Extra Space Storage has sold one of its four self-storage facilities in Brooklyn, NY, for a whopping $89.4 million, or about $387 per square foot.
Quinlan Development Group and Building & Land Technology bought the 230,000-square-foot building and will convert it into commercial office space, according to the Wall Street Journal. The first floor will feature street-level retail.
We did this deal in a quiet, targeted, off-market manner and achieved an amazing result for all parties.
— Commercial real estate broker Andrew Sasson
Quinlan Development found the site and made an offer to Extra Space, the Journal reported. Quinlan then brought in Building & Land as a partner.
“We happen to believe the demand for creative office space is accelerating,” Greg Bates, fund manager with Building & Land, told the Journal.
Brooklyn office properties boast a vacancy rate of 3.4 percent, the lowest since 2006, according to the Downtown Brooklyn Partnership.
Extra Space bought the facility in 2005 from Security Capital Self Storage for $18.3 million. The 10-story facility contains 355 units.
Leases at the facility range from 30 days to six months, according to The Real Deal. That means Extra Space could vacate the building as early as September.
Andrew Sasson and Ben Tapper, both of Eastern Consolidated, represented the buyers.
“We did this deal in a quiet, targeted, off-market manner and achieved an amazing result for all parties,” Sasson told The Real Deal.
While Extra Space will have one less facility in Brooklyn, the Salt Lake City, UT-based REIT has a development project lined up to fill the void. In December, the company bought a vacant movie studio at 1262 E. 14th St. in Brooklyn for $10.85 million.
It’s unclear when Extra Space plans to start converting the former movie studio. A company representative told The SpareFoot Storage Beat in January that it was too early to comment on the project.
Extra Space operates about 30 facilities in the New York City metro area.