Harlem’s art freeport to close
● Manhattan’s first freeport, a windowless five-storey warehouse in Harlem designed to store $2.5bn (R41.4bn) worth of blue-chip art, is closing after two years.
Named Arcis, which means stronghold or citadel in Latin, the building was developed by Cayre Equities at a cost of more than $40m and includes 33,500m² of space and security features such as retina scanning. It was built on a lot designated as a foreigntrade zone, meaning that the merchandise inside is not subject to US duty or excise tax.
“After careful consideration we have decided to close Arcis permanently,” executive director Roxanna Zarnegar said in a letter to clients, a copy of which was seen by Bloomberg. She did not give a reason, but asked customers to make arrangements to remove items from storage immediately. The final day of operations will be October 31.
Zarnegar did not respond to an e-mail or calls seeking comment.
Freeports have become essential to the global $64bn art trade, creating a legal way for dealers and collectors to avoid paying duties and taxes on art works, whose prices routinely run into millions of dollars. These high-security warehouses operate from
Geneva to Delaware to Singapore, helping the rich stash their valuables.
The coronavirus pandemic has hit the art world hard, with fairs postponed, galleries closed and auction sales declining dramatically. Organisers on Wednesday cancelled Art Basel Miami Beach, the largest contemporary art fair in the US, which was scheduled for December.
The freeport on West 146th Street stood out in the neighbourhood, located next door to the Greater Hood Memorial AME Zion Church and across the street from a bus depot.
Cayre was marketing the building last year, valuing it at about $60m, Real Estate Alert said in March 2019.
The industry newsletter said the developer would consider proposals for an outright sale, a recapitalisation or the sale of a leasehold interest.
James Coakley, PprResident of Treasure Island Management, another company controlled by the Cayre family, said Arcis is not currently listed for sale, but declined further comment. Cayre Equities specialises in selfstorage buildings and retail in New York and New Jersey.