In a city brimming with self-storage development, another warehouse conversion is underway in Brooklyn.
Cayre Equities plans to convert a 92,000-square-foot building in Crown Heights into a Treasure Island Storage facility with 1,600 units, the firm said. (Cayre owns and operates the regional storage developer.)
The private real estate firm paid $23.5 million for the property, said Treasure Island’s President James Coakley. Cayre paid in cash, and the construction budget is about $5 million.
Marcus & Millichap’s Jakub Nowak, who brokered the deal, declined the comment.
The conversion of the four-story warehouse, located at 1260 Atlantic Avenue, marks Treasure Island’s seventh property in the borough. It’s expected to open in the first quarter of 2020, Coakley said.
Treasure Island, which is in the midst of building another storage facility off Cooper Avenue in Queens, had been eyeing the Crown Heights property for some time. Atlantic Properties LLC was the seller, according to a source.
“The good deals are tough to come by these days, or it seems to be. And this one we have been looking at since 2012. … I just think the seller was finally able to make the deal,” Coakley said.
There are several self storage developments and conversions already underway, particularly in the outer boroughs, as the asset class continues to see strong demand and rising rents in the New York metro area.
Shibber Khan’s Criterion Group recently filed an application to build what may be one of the city’s largest self-storage stores. Located at 31-08 Northern Boulevard in Long Island City, the project will span 255,000 square feet and stand nine stories tall.
Update: This article was updated to add information about the seller.