Atlanta-based self-storage developer Mequity LLC has acquired a former Moving Man storage building in New York City for $15.6 million. Mequity intends to convert the structure into a seven-story self-storage facility comprising 40,593 net rentable square feet in 1,424 climate-controlled units. Construction is expected to begin during the third quarter, with completion scheduled for the second quarter of 2018.
The property at 465 W. 150th St. in the Sugar Hill area of Manhattan is primarily surrounded by residences, as well as some parks and recreational centers, the release stated. It’s also near City College of New York and Columbia University.
Jernigan Capital Inc., a merchant bank and advisory firm serving the self-storage industry, has co-invested $26.5 million in the development, its second with Mequity, according to a press release. The finished project will be managed by CubeSmart, a real estate investment trust and third-party management firm.
“Pretty much all of Manhattan is very undeserved with storage, so when there is an opportunity to work on a building like this and create a new, modern storage facility in Manhattan, it’s an opportunity that we want to take,” Mequity Principal Bill Marsh told the source.
In February, Jernigan Capital and Mequity co-invested in a Vinings, Ga., property. The project includes a building conversion and construction of an additional connected structure. The multi-story self-storage facility will comprise 103,561 net rentable square feet and is expected to be complete next year.
Jernigan Capital is a commercial real estate finance company that provides financing to private developers, operators and owners of self-storage facilities. It offers financing for acquisition, ground-up construction, major redevelopment or refinancing. The firm intends to be taxed as a real estate investment trust and is externally managed by JCap Advisors LLC.
CubeSmart owns or manages 832 self-storage facilities across the United States. Its operating portfolio comprises 55.9 million square feet.
