A Long Island City office building is selling for $90 million, double what it was purchased for two years ago by real estate investment firm Brickman.
According to Crain’s New York, the property at 47-25 34th St. will be purchased by Metropolitan Realty Associates and investment firm TIAA. Only 45 percent of the 342,000-square-foot building is currently being used and tenants are using it for warehouse and showroom space.
Metropolitan Realty Associates and TIAA plan will invest more than $10 million to upgrade the space into modern offices, according to Crain’s New York.
Steven Klein, Brickman’s chief investment officer, told Crain’s that his firm sold the property to capitalize on the increased value in commercial property in the borough and will focus on its other commercial buildings nearby.
A warehouse the company owns at 30-02 48th Ave. will be turned into creative offices. Similarity, a property at 35-11 Ninth St. in Astoria will also receive upgrades.
Klein said office space in neighborhoods like Long Island City are slightly cheaper than in places like Chelsea and this has spurred a high level of interest from investors to develop these buildings into office spaces.
“When we bought 47-25 34th St. a few years ago, people might have thought we were idiots because we were one of the few investment groups in the neighborhood,” Klein told Crain’s. “Now there’s a deep bench of investment firms like Vornado, Related and RXR buying buildings there.”
