Cayre Equities turned a tidy revenue on a Midtown South workplace constructing, seemingly due to the neighborhood’s rezoning.
The agency offered a 16-story property at 254 West thirty fifth Road within the Garment District for $26.2 million, notching a roughly $10 million achieve in lower than two years. Cayre purchased the 106,000-square-foot property in December 2024 for $16.2 million with plans to transform it to self-storage, then flipped it to Joel Wertzberger’s Joyland for a 62 p.c bounce in worth, property data present.
The deal comes six months after the Metropolis Council authorised Midtown South’s long-awaited rezoning, unlocking high-density residential growth throughout massive swaths of the neighborhood. Plans for a residential conversion have been filed in January, based on PincusCo, which first reported the sale, brokered by Itanel Rahamani of Enterprise Capital Properties.
Joyland nabbed a $27 million mortgage from Levon Capital to finance the acquisition. The debt was organized by Henry Bodek of Galaxy Capital.
The worth surge was seemingly pushed by the rezoning, which makes residential growth possible. The constructing was zoned as industrial however is now a part of a mixed-use district that permits residential, industrial, group facility and lightweight manufacturing makes use of.
The Midtown South rezoning created two new high-density residential districts that permit tasks as much as 15 and 18 instances the scale of their tons. The adjustments apply to 4 pockets of Midtown South lengthy dominated by manufacturing zoning that both barred housing outright or capped density.
Joyland apparently doesn’t plan to construct the undertaking itself. Concurrently the acquisition, the agency signed a 99-year floor lease with Brooklyn developer Mendel Fleischman valued at $6.8 million.
Cayre and Wertzberger didn’t instantly reply to requests for remark.
Keith Larsen contributed reporting.
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