NEW YORK CITY—Madison Realty Capital has acquired 29 Ryerson St., a vacant eight-story loft warehouse in the Clinton Hill section of Brooklyn, for $45 million. The real estate investment firm plans to convert the building into Class A office space and market it as a cost alternative to other parts of Brooklyn.
Located across the street from the Brooklyn Navy Yard, the property was purchased in an off-market transaction based on a direct relationship with the seller, which led to a deal that provides the prior fee owner an opportunity to participate in future upside in the property. The identity of the property's seller was unclear at press time. However, GlobeSt.com reported a previous sale of the asset back in 2013.
The approximately 215,000-square-foot property, which was built in 1951, was most recently being used as a storage space. MRC plans to convert the property into Class A office space for creative/technology clients and pursue a leasing strategy focusing on tenants seeking attractive office space at more affordable rates than neighboring locations such as DUMBO.
The eight-story property features ceiling heightsin excess of 15 feet and exposures on three sides, providing great light and air throughout the entire floorplate. With 440 feet of frontage on Ryerson street and 110 feet of frontage on Flushing avenue, the property also benefits from the growing retail in the area. The neighborhood has seen considerable growth recently with the arrival of high-profile tenants with long-term lease signings.
Says Joshua Zegen, co-founder and managing member of MRC, “Rising rents and the lack of large, classic industrial spaces throughout Manhattan has changed the value proposition and driven tenants to look elsewhere for space. We're excited about the investment and the opportunity to participate in the transformational change that the neighborhood is experiencing.”
29 Ryerson Street is located in the Wallabout neighborhood in Brooklyn, a subsection of Clinton Hill known for a large mix of commercial properties ranging from single family homes to large industrial properties. The property also is within the Brooklyn Tech Triangle—encompassing downtown Brooklyn, DUMBO, and the Brooklyn Navy Yard—which continues to attract digital and technology companies.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
