A joint venture between Mequity Companies and Flatiron Equities Real Estate has secured $57 million in financing to refinance an office-to-storage conversion project in Midtown Manhattan. PGIM provided the loan for the transformation of the property at 152 West 36th Street from a 51,853 square foot Class C office building into a self-storage facility with approximately 1,500 units, which will be operated by Manhattan Mini Storage.
The refinancing, which closed on Friday afternoon, will be used to repay existing construction debt and finance the final development phases of the conversion project. The facility will encompass 75,000 square feet of rentable space and is expected to be completed in early 2027. Colliers negotiated the financing with a team led by Dylan Kane, Zach Redding, and Jared King.
Dylan Kane, Managing Director at Colliers, emphasised that the project has good prospects for success due to the rezoning in Midtown South, which will boost demand for self-storage in the region through the emerging residential properties. The development is expected to receive a temporary certificate of occupancy within a few months, according to Kane. He noted that this progress allowed for higher loan proceeds, a significant reduction in financing costs, and room for the lease-up phase.
Mequity and Flatiron acquired the eight-storey office building in Manhattan's Chelsea district in September 2024 for $23.8 million from Falcon Properties. Originally built as a warehouse, the property will have an additional eight storeys added as part of the conversion.
Bill Marsh, CEO of Mequity, commented on the project's strategic positioning in a statement. He explained that the company is perfectly positioned to benefit from the new residential demand that will emerge in the next few years as a result of the rezoning in Midtown South.
- —Financing volume: $57 million
- —Lender: PGIM
- —Location: 152 West 36th Street, Midtown Manhattan
- —Self-storage operator: Manhattan Mini Storage
