Broad Street Development pays $44 million for Tribeca conversion opportunity

Manhattan, NY JLL Capital Markets has arranged the $43.5 million sale of 139 Franklin St., a 10-story, 56,384 s/f self-storage facility located in the Tribeca neighborhood.

JLL represented the seller, the Sofia family, a third-generation storage center operator, and procured the buyer, a joint venture of Broad Street Development and TPG Angelo Gordon, a diversified credit and real estate investing platform. Founded in 2004 by Raymond Chalmè and Daniel Blanco, Broad Street Development specializes in acquiring, repositioning, converting and developing both office and multifamily properties.

“We are thrilled to close our acquisition of 139 Franklin St.,” said Blanco, COO and principal of Broad Street Development. “We believe this asset represents a standout residential conversion opportunity, and we’re looking forward to seeing our vision for its future come to life.”

Located between Varick and Hudson streets, 139 Franklin St. was originally built in 1915 and currently operates as a 74-unit self-storage facility in the heart of Tribeca. The building benefits from the presence of full light and air on both the north and south-facing sides of the building. The top three floors also offer abundant light and present an ideal opportunity for luxurious penthouse apartments. 139 Franklin St. is steps away from several MTA subway train lines offering access to all parts of Manhattan. 

JLL Capital Markets’ Brendan Maddigan, Andrew Scandalios, Ethan Stanton, Hall Oster, Michael Mazzara and Vickram Jambu, led the sales team for this transaction.

“139 Franklin St. is surrounded by high-income residents and growing businesses that drive demand for both commercial self-storage and multifamily housing,” said Maddigan. “Broad Street Development recognized the property’s exceptional potential given Tribeca’s status as a top submarket for multifamily development in New York City.”

According to JLL Research, 139 Franklin St. will be the first residential conversion in Tribeca since the city introduced its new 467m tax incentive along with zoning reforms under its City of Yes for Housing plan. That has spurred a total of 63 office conversions that are now completed, planned or underway across Manhattan, including 20 Exchange Place, 20 Broad St., One Wall St. and 180 Water St., all Downtown.

With little to no underutilized office stock, most buildings in Tribeca are historic or were converted into residential lofts decades ago, leaving very few development opportunities. While not a candidate for 467m, the conversion of 139 Franklin would likely qualify for a range of other incentives offered by both the city and state to encourage the adaptive reuse of underutilized commercial space, including storage facilities.