Much has been made of EDM’s rise, but little has been made of its sustainability. Thus, when news hit this morning of the sale of the building housing Output–the hipster-friendly indie dance nightspot in Brooklyn’s Williamsburg community–it provides a great moment to take a look into the long-term potential of dance music as a scene and community.
The building housing output sold for $7.4 million and was completed between Cayuga Capital Management (CCM) and Latus Partners and a buyer identified by Cayuga’s Jacob Sacks as “a New York City-based family with extensive real estate holdings.” CCM purchased the building in 2012 for $1.6 million, with lessee Output using all three levels and 14,400 square feet of building space including 7,400 square feet of grade retail area, 4,000 square feet of mezzanine and penthouse area and a 3,000-square-foot roof deck with unobstructed views of Manhattan. Sacks states as well that the club will “continue normal operations.”
With Output as the building’s sole tenant, the 362.5% increase in sale rate over two years of ownership by CCM and Latus is a testament to the growth potential seen in dance music. With Output’s global renown as a hub for underground dance music increasing, the potential for a return on investment from what was described as Output’s “secured, long term net lease” on the property, is likely presumed to be quite high. Though the terms were not stated, a “secured net lease” implies, as per Wikipedia, that an owner finance a significant portion of the purchase price on a property and pay the resulting mortgage with the lessee’s monthly owed rent. Once the mortgage is paid, the property is sold after a period of equity-building.
With EDM’s success at an all-time high, whatever the terms of the sale and lease of the property are, it’s certainly proof of the sustainability of the scene and movement overall.