The real estate industry reflects consumer demand. It does not determine it.
That is why it’s not the industry’s fault that bowling alleys have been disappearing and self-storage businesses have been proliferating. It’s because bowling has lost popularity and Americans are increasingly seeking space to store their stuff.
Occupancy of self-storage units is nearly 94 percent nationwide, as well as in the New York metro area. About one in nine households use self-storage, but only about one in 30 Americans bowl 12 or more times a year.
Which brings us to Deer Park, a hamlet on Long Island. Newsday reports that nearly 2,000 residents are asking the Babylon planning board to reject a rezoning that would allow Joseph Giaquinto’s LAG Associates to lease 849 Long Island Avenue, which has been a bowling alley since 1959, to Public Storage. LAG would bulldoze the bowling alley and build a two-story, 17,000-square-foot storage facility.
The residents say that Strike 10 Lanes is a “symbol of community” and is treasured by many, including students with special education needs. “Please do not take this bowling alley away from them,” one parent told the planning board. “This is all they have.” (Yelp shows bowling alleys in nearby West Babylon, Commack and Melville.)
I would bet that if Giaquinto were asking to convert a longstanding self-storage facility into a 30-lane bowling alley, Deer Park residents would object to that as well, citing traffic congestion and their need for storage space. People don’t like change. But I digress.
Although the market has deemed self-storage more lucrative than bowling, the laws of economics will not necessarily determine the immediate future of the 58,000-square-foot lot at 849 Long Island Avenue. That’s because Strike 10 Lanes is still open and is apparently a viable business at the rent it is paying, and without permission from Babylon the property owner cannot change the use to self-storage.
What we’re thinking about: Are property owners on Block 780, immediately south of Penn Station, lobbying the Trump administration to select a station re-design plan that does not require demolition of their buildings? Send your thoughts to eengquist@therealdeal.com.
A thing we’ve learned: Daily Dirt readers provided two reasons that Colorado-based REIT UDR is only looking for about $500 million for a portfolio of five Manhattan buildings it purchased in 2012 for $635 million from Laurence Gluck’s Stellar Management and the Chetrit Group.
One, as expected, is that cap rates are higher now, meaning buyers are demanding more net income from properties relative to the purchase price.
The second reason, which real estate investor John Morgan discovered by sifting through Department of Finance records, is that the Columbus Square buildings’ tax breaks have expired or soon will.
The properties — 801 Amsterdam Avenue and 775, 795, 805 and 808 Columbus Avenue — all had 421a abatements for their residential portions and ICIP for their commercial space at the time of the 2012 deal.
Elsewhere…
— Rep. Jerry Nadler, whose district spans much of Manhattan, announced that he would not seek re-election, which may lead to a crowded race to succeed him, Gothamist reported. Democratic Party insiders report that City Council member Erik Bottcher and state Assembly member Alex Bores are interested in running. Another potential candidate is Assembly member and former Nadler aide Micah Lasher. Democrat Liam Elkind had planned to run against Nadler.
— An anti-Andrew Cuomo campaign has evolved into a super PAC. DREAM, which stood for “Don’t Rank Evil Andrew for Mayor,” is relaunching with a new message: “Don’t Re-elect Eric or Andrew for Mayor.” The independent expenditure group aims to counter the millions flowing into PACs backing Cuomo and Mayor Eric Adams and to bolster Democratic nominee Zohran Mamdani’s bid, according to The City.
— Adams is facing more City Council pushback over three ballot proposals that would shift final authority on land-use approvals away from the Council, eroding if not ending “member deference,” Commercial Observer reported. In a letter to the Board of Elections, Council leaders argued the proposals contain misleading language and, if passed, would strip communities of their only elected voice in such decisions. — Quinn Waller
Closing time
Residential: The top residential deal recorded Tuesday was $17.2 million for a 5,468-square-foot townhouse at 400 West 12th Street, Unit TH3, aka Superior Ink, in the West Village. Dante Iraola and Trove with Compass had the listing.
Commercial: The top commercial deal recorded was $105 million for a 342,596-square-foot, 18-story office building at 440 Ninth Avenue in Manhattan. The Real Deal reported on the sale by Taconic Partners and Nuveen Real Estate to David Werner.
New to the Market: The highest price for a residential property hitting the market was $23 million for a 3,478-square-foot condominium unit at 15 Central Park West on the Upper West Side. The Mercedes Berk Team at Engel & Volkers has the listing.
Breaking Ground: The largest new building permit filed was for a proposed 11,327-square-foot, six-unit residential project at 1569 56th Street in Borough Park. Eli Schneider filed the permit on behalf of developer Juda Klein.
— Matthew Elo
