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FlatRate Storage, a three-building, 1,777-unit self-storage facility with an in-house moving company at 856-882 Frelinghuysen Avenue, Newark, NJ
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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.”
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| 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, Audible.com 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.
“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.
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.
CONTACTS:
Alex Caswell / Jenn Quader
Brower Group
(949) 438-6262
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