Madison Realty Capital, a CRE investment firm founded in 2004, announced this week that it had provided $21 million in acquisition financing and a conditional commitment for $10 million in construction financing for an eight-story warehouse building, a one-story industrial building and a parking lot separating the two properties. Alan Shmaruk and Michael Sherman of the Soho-based Manhattes Group represented both the seller, 29 Ryerson Street LLC, and the purchaser 11-45 Ryerson Holdings LLC, in the transaction, according to a Real Estate Weekly article. The property had been owned for decades by 29 Ryerson Street LLC, an entity whose principal also controls the sole occupant of the building, a storage outfit called Total Records, according to a Crains report. The Manhattes Group will handle the leasing of the property.
"It is extremely rare a property of this size becomes available within striking distance of Manhattan. It presents an excellent opportunity for conversion to an office building, where the current demand for is greater than the supply. Due to multiple parties bidding on the property, we were pleased to achieve a price over asking," said Shmaruk, a principal at Manhattes Group.
The approximately 214,710 square-foot property, which was built in 1951, is currently being utilized as a storage warehouse. The borrower intends to renovate the building into Class A office space and pursue a leasing strategy focusing on tenants seeking attractive office space at more affordable rates than neighboring locations such as DUMBO. In addition to the office space, the property contains approximately 70 feet of frontage on Flushing Avenue. The space will be able to capitalize on the growing retail demand on Flushing Avenue due to the high foot traffic driven by the nearby office and residential buildings.
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