Queens is the new king of self-storage investment sales.
The New York City borough led the nation with $101.3 million in sales volume for the property type, the Commercial Observer reported. Queens saw 261,000 square feet of self-storage facilities sold, according to a StorageCafe report.
In a statement, StorageCafe researcher Maria Gatea said that “acquiring existing properties is often the most practical and profitable strategy” in Queens due to limited land availability and an onerous approval process for new developments. This helped boost the borough’s investments.
In total, more than 800 self-storage properties spanning a combined 51 million square feet were sold across the country last year, generating $3 billion in sales. The year’s biggest sale was Hines’ $91 million acquisition of a 260,000-square-foot Extra Space Storage property in Cerritos, California.
Cerritos ranked second in total sales volume last year, while Miami ranked third.
Queens isn’t the only strong New York City performer in the sector. Brooklyn ranked fourth with $60.1 million in total sales last year. Manhattan was further down the list with $17 million in sales volume.
Prime Group Holdings was the leading investor in the market last year, pouring $264 million into the sector. Carlyle Group ranked second with $178 million in acquisitions, followed by StrategicREIT’s $131 million in deals.
Last summer, Carlyle and Sabharwal Properties landed a $100 million loan to refinance a four-property portfolio in New York City, comprising three self-storage properties in Brooklyn and one in Staten Island. A few months earlier, the private equity giant bought the Life Storage building at 87-16 121st Street in Queens from a joint venture of SNL Holdings and Equity Resource Investments for $50.3 million.
— Holden Walter-Warner
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