311-319 West 43rd offers upside potential for its new owners, Atlas Capital.

NEW YORK CITY-Atlas Capital has picked up a Far West Side office tower with potential for redevelopment in a $62.4-million acquisition. The 14-story property at 311-319 W. 43rd St. was sold by Zubarry Associates in a deal brokered by Eastern Consolidated.

“We had to act quickly, since the buyer was obliged to close the transaction by year end within 45 days,” says Eastern vice chairman Brian Ezratty, who procured the buyer, in a release. Eastern Consolidated’s chairman and CEO, Peter Hauspurg, represented Zubarry along with Ezratty and director financial services Scott Ellard. Atlas is assuming Zubarry’s mortgage on the property in the form of a securitized loan.

The 171,465-square-foot office component at 311-319 W. 43rd is 100% occupied. Its retail component is given over to upscale Chinese restaurant Hakkasan, which also has locations in London, Miami, San Francisco, Las Vegas, Abu Dhabi, Dubai and Mumbai. Hakkasan spent $17 million on the 11,000-square-foot installation at 311-319 W. 43rd.

In a release, Ezratty notes that in addition to the advantages of proximity to Times Square, the property offers significant upside potential, not least of which is the potential for rent increases when current leases expire. Ownership could upgrade it from its current class B to class A status. Further, current zoning would allow for a future conversion of part or all of the building to residential use.

Attorneys in the deal were Andy Herz of Patterson Belknap for Zubarry and a Rob Ivanhoe-led team from Greenberg Traurig for Atlas. Founded in 2006, Atlas controls a portfolio of more than $2.5 billion of developmental land, residential, commercial, and hotel real estate assets in New York City, Boston, Washington, DC and London.