What's Happening?
A joint venture between Broad Street Development and TPG Angelo Gordon has purchased a self-storage facility in Manhattan's Tribeca neighborhood for $43.5 million. The 56,384-square-foot building, originally constructed in 1915, is set to undergo a conversion into multifamily housing. The facility, located at 139 Franklin St., currently houses 74 units. The transaction was facilitated by JLL representatives Brendan Maddigan, Andrew Scandalios, Ethan Stanton, Hall Oster, Michael Mazzara, and Vickram Jambu, who represented the seller, the Sofia Family. The timeline for the conversion has not been announced.
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Why It's Important?
The acquisition and planned conversion reflect a growing trend in urban real estate where older commercial properties are repurposed for residential use. This move could address housing demands in Manhattan, a city known for its high real estate prices and limited housing availability. The conversion of commercial spaces into residential units can potentially increase housing stock and provide more options for city dwellers. Additionally, such projects can stimulate local economies by attracting new residents and businesses to the area.
What's Next?
While the construction timeline has not been disclosed, the conversion process will likely involve significant planning and regulatory approvals. Stakeholders, including local government and community groups, may weigh in on the project, especially concerning zoning and community impact. The joint venture will need to navigate these processes to successfully complete the conversion.
