C
ayre Equities is planning a significant transformation in Manhattan's Garment District. The company acquired 254-258 West 35th Street for $16.2 million and intends to convert the 106,000-square-foot office building into self-storage space. This move comes as the real estate market adjusts to changing conditions.

    The property was previously owned by an entity tied to the Tekiner family, who purchased it in 1982. The family attempted to sell the property in 2021 but received only five offers ranging from $30 million to $50 million before taking it off the market.

    A recent report suggests that rising interest rates and plummeting office building values contributed to the decline in purchase price. However, industry experts predict a stabilization of values by 2025.

    This acquisition is part of Cayre Equities' strategy to convert older, vacant office buildings into self-storage facilities. The company has been active in this market through its Treasure Island Storage brand and has previously converted a Crown Heights warehouse into a self-storage facility.