Wednesday, May 1, 2019

Adam Levin Directs $30 Million Sale of 1,777-Unit Storage Facility in Newark, NJ

 FlatRate Storage, a three-building, 1,777-unit self-storage facility with an in-house moving company at 856-882 Frelinghuysen Avenue, Newark, NJ

NEWARK, NJ– Adam Levin, Senior Managing Director of Levin Johnston of Marcus and Millichap, has successfully directed the $30 million sale of FlatRate Storage, a three-building, 1,777-unit self-storage facility with an in-house moving company in Newark, New Jersey.
“The self-storage investment market has reached more than $38 billion in annual revenue, based on increased transaction activity that reflects solid fundamentals within this property type,” says Levin. “In this case, the buyer recognized the tremendous opportunity in acquiring a stable income-producing asset in a premier metropolitan area.”

Adam Levin
Levin represented the buyer, SmartStop – a national real estate company with $1.9 billion of real estate assets under management including 129 self-storage facilities – as well as the seller, a private investor.
Situated on a 6.25-acre lot, the property is located just outside Manhattan and only 3.8 miles from Newark Liberty International Airport – the second-busiest airport in the New York metro area.
With a population of 720,600 within a five-mile radius, the facility is in close proximity to major economic drivers including major employers and several leading corporate headquarters, such as Prudential, Panasonic, and IDT Corporation, among others.
“Self-storage properties remain in very high demand, based in large part on national occupancy rates in the sector, which are at an all-time-high at well above 90 percent,” explains Levin. “The FlatRate Storage property, which is nearly fully occupied, also benefits from ancillary income generated by an in-house moving company that is owned by the seller.”
To best leverage this, Levin worked closely with the seller and buyer to negotiate a leaseback through which the seller will continue to operate the moving company, and the buyer will benefit from additional rental income.

“By looking at the investment holistically, we were able to demonstrate the value of both business strategies and create an ideal situation for both buyer and seller,” Levin notes.
The FlatRate Storage facility recently underwent considerable capital improvements totaling more than $3 million.

 Renovations included roof replacements, upgraded fire alarms, sprinkler systems, indoor and outdoor security cameras, HVAC, heating blowers, lighting, safety signage, sidewalk and motorized gates with remote access.
Located at 856-882 Frelinghuysen Ave. in Newark, New Jersey, the facility consists of three buildings, two parking lots, 32 loading docks and five fire pumps, as well as 118 exterior portable units totaling approximately 8,761 square feet, resulting in a total of approximately 101,161 rentable square feet property wide.

Alex Caswell / Jenn Quader 
Brower Group
(949) 438-6262

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