Madison Development LLC, a New York-based self-storage developer, plans to convert an 11-story storage building into a high-end facility catering to the luxury residential market as well as art galleries along the 57th Street corridor in New York City’s Upper East Side. The company is partnering with investment firm EMS Capital LLC, which purchased the building in December 2012 for $28 million.
The facility at 305 E. 61st St. is comprised of 72,000 square feet.
“It’s going to be a totally revolutionary brand of storage that will never have existed before,” said Adam Gordon, managing partner of Madison Development. “This will be an extension of a personal closet or gallery space or wine storage, especially after what happened with WineCare Storage and that whole debacle. You could only pull this off with a unique piece of real estate on the Upper East Side.”
Chelsea, N.Y.-based wine-storage specialist WineCare Storage LLC went bankrupt last year after sustaining heavy damage from Hurricane Sandy, according to news reports. The company reportedly has been unable to return thousands of cases of wine to its clients.
“If someone has a bottle of Lafite or a Mondrian, it would be as comfortable here as any place they might keep it in their apartment,” Gordon told the source.
Michael Graves, a residential broker for real estate company Douglas Elliman, said the project may be attractive to residents of luxury complexes because many like to rotate their art collections, and storage inside their buildings is inadequate for art, wine, jewelry and other valuables.
“If the facility were high-tech, high-security and engineered to protect the life span of specific valuables, there will be high demand by collectors of art, wine and other valuables requiring special care,” Graves said. “But the security and service level will need to be extremely high.”