NEW YORK CITY—The former cigar factory in Long Island City that came up for sale back in April has traded for $31 million. Brickman, a real estate private equity firm, acquired the historic property at 35-11 Ninth St., just one block from Long Island City's waterfront and the bridge leading to Roosevelt Island. The sale also included a parking lot at 35-31 Ninth Street. At the time of closing the building—which is now an office and loft building—was approximately 91% occupied.
The Modern Spaces team of Evan Daniel and Edward DiTomasso, of the commercial and investment property group represented the seller, Hudson Realty Capital, and the buyer in the transaction. The property was sold four months after hitting the market. It was unclear at press time who represented Brickman.
“Tremendous demand from local, national and international investors led to a price point of approximately $302.91 per square foot in just eight weeks of marketing,” says Daniel. “The sale to Brickman speaks to the strength of the office and investment market, a trend that continues to prove that Long Island City is quickly becoming a destination for institutional capital and truly a mixed-use, live/work neighborhood.”
Built in 1896 and once home to the DeNobili Cigar company, the four-story 102,670 square foot office/loft building currently houses 57 commercial units and two cell towers. Like several other recently converted industrial to office buildings in Long Island City, the Cigar Factory will provide alternative options intended for creative/flex use for small businesses in the area as well as more affordable options for businesses moving from across the river.
“Demand for such space has exploded this year, leading to dramatic rent increases throughout Western Queens” adds Daniel. “The development of the Cornell Tech campus on Roosevelt Island will create more jobs and further put significant upward pressure on office demand and rent growth.”
The Cigar Factory, due to its R5 zoning designation, is also positioned for future residential conversion with 14 to 22 foot ceilings and unique architectural features such as exposed beams, arched windows and beautiful hardwood floors. In terms of the location in northern Long Island City, the building and lot are close to major subway lines and highways that provide direct access to Manhattan and across Queens.
“The development wave has begun to push north from Hunter's Point into Astoria,” notes Daniel. “This part of the waterfront connects the two and is a natural destination for future development.”
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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.
