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

U.S. Average Homeownership Tenure Dips to 8.05 Years and Posts Biggest Annual Increase Since Q4 2015

 Denver, Austin, Dallas and Nashville Sales Prices 50+ Percent Above Pre-Recession Peaks

Todd Teta
IRVINE, CA –— ATTOM Data Solutions, curator of the nation’s premier property database and first property data provider of Data-as-a-Service (DaaS),  released its Q1 2019 U.S. Home Sales Report, which shows that homeowners who sold in the first quarter realized an average price gain of $57,500 since purchase, representing an average 31.5 percent return on the purchase price.

Meanwhile, the report also shows that homeowners who sold in the first quarter had owned an average of 8.05 years, down slightly from a record-high average homeownership tenure of 8.17 years in Q4 2018 but still up from 7.75 years in Q1 2018.

 Homeownership tenure averaged 4.21 years nationwide between Q1 2000 and Q3 2007, prior to the Great Recession.

“We are starting to see homes sales prices and profit margins softening for the nation, and the average homeownership tenure did see a slight dip from last quarter,” said Todd Teta, chief product officer at ATTOM Data Solutions.

“However, home prices are still above pre-recession peaks in 59 percent of local markets, and as the buying season starts to kick into gear, the next few months may provide even more answers to the question of whether a lasso is indeed around the market or if the recent trend is a temporary bump in the ride.”


Christine Stricker

Data and Report Licensing:

HFF secures financing totaling $37.85 million for Florida and Georgia apartment communities

Litchfield Place Apartments, 6301 Chief of Love, Southwest Savannah, GA
MIAMI, FL –– Holliday Fenoglio Fowler, L.P. (HFF) announces it has secured financing totaling $37.85 million for The Place at Alafaya in Orlando, Florida, and Litchfield Place in Savannah, Georgia.

HFF worked on behalf of the borrower, Beachwold Residential, to place two 10-year, interest-only, fixed-rate loans with Freddie Mac. 

The loans will be serviced by HFF, a Freddie Mac Optigo℠ lender.  Loan proceeds were used to refinance existing debt on The Place at Alafaya and to acquire Litchfield Place.

The Place at Alafaya Apartments,  11600 MacKay Boulevard,
East Orlando, FL
The Place at Alafaya consists of 36 two-story buildings encompassing 400 one- and two-bedroom units. 

 Located at 11600 MacKay Boulevard, The East Orlando property is less than two miles southwest of the University of Central Florida (UCF) campus as well as multiple lifestyle amenities, parks and hospitals. 

Mona Carlton
The community features a swimming pool, basketball courts, tennis courts, volleyball courts, state-of-the-art fitness center, clubhouse, student lounge, hammocks throughout the property, business center and UCF shuttle service.

Litchfield Place consists of 76 units averaging 1,119 square feet across eight two-story buildings located at 6301 Chief of Love in the high-growth submarket of Southwest Savannah, which provides accessibility to the CBD and the suburban community of Richmond Hill. 

Elliott Throne
Additionally, the property is positioned within 15 minutes of Savannah College of Art and Design and 10 minutes from Georgia Southern University – Armstrong Campus.  The property was completed in two phases between 2008 and 2014.

Jesse Wright
The HFF debt placement team was led by senior managing director Mona Carlton, managing director Elliott Throne and director Jesse Wright.

About Beachwold Residential

Through its vast operational and ownership experience, in-depth knowledge of its target markets and long-lasting relationships with brokers, lenders and property managers, Beachwold Residential is able to identify and acquire undervalued assets that offer superior long-term returns and lower than average risk. 

Beachwold presently controls more than 60 properties and more than 15,000 multifamily units in Connecticut, Texas, Florida, New Jersey, Maryland, Tennessee and Virginia.

HFF Managing Director
(305) 421-6549

HFF Director
(786) 532-2347

HFF Public Relations Specialist
(713) 852-3403