The Real Deal New York

Clinton Hill warehouse, slated for transformation, in contract for $26M: Sources

Buyer intends to convert to hotel, retail, office space
By Adam Pincus | March 20, 2013 09:00AM

A Brooklyn company is in contract to purchase an eight-story warehouse building and adjacent one-story structure in Clinton Hill, a stone’s throw from the Brooklyn Navy Yard, for $26.25 million, and convert it to hotel, retail and offices uses, sources familiar with the transaction said.

The buyer, an entity called Ryerson Equity with an address in Borough Park, plans to acquire the 192,000-square-foot structure at 29 Ryerson Street, as well as the lot next door at 256-266 Flushing Avenue, which includes an 8,070-square-foot building, the sources said. The property belongs to Robert Lewis, who owns the document storage company Total Records Information Management.

The buyer expects to lease three floors to an entity that will operate a 200-room hotel, two floors to an executive suites company, and two floors to a gym, while the ground floor will be retail, a source familiar with the deal said. The sale went into contract Feb. 27 and is expected to close in mid-May, sources said.

The plan also calls for a rooftop deck and bar, to be affiliated with the hotel, one source said.

The combined parcels have 220,000 square feet of development rights, according to marketing information from the listing brokers, Alan Shmaruk and Michael Sherman of the Soho-based Manhattes Group. A number of Brooklyn-focused firms were bidding on the parcel, which drove up the contract price slightly beyond the listing price of $26 million.

The Manhattes Group declined to comment. Lewis did not respond to multiple requests for comment.