Federal Capital Partners (FCP), a Chevy Chase, Md.-based real estate investment company, has partnered with Self Storage Zone, an Orlando, Fla.-based operator and developer of self-storage facilities, to convert a former food bank into a three-story self-storage operation. The redevelopment of the former Capital Area Food Bank in the Brookland submarket of Washington, D.C., is expected to be completed during the first quarter of 2014 and will comprise 78,600 square feet and 1,034 units.
"We've studied the self-storage business extensively, and our evaluation really concluded that it's a business that offers attractive risk-adjusted returns," said Drew Odabashian, vice president of commercial acquisitions for FCP. "When you look at the real estate landscape as a whole, it was something that was really compelling to us."
The two companies acquired the building last year for approximately $5 million. The conversion project is expected to cost about $11.5 million.
The property, at 645 Taylor St. N.E., is one block from Catholic University and six blocks from the Brookland/CUA Metro station. “FCP is pleased to be underway in partnership with a top self-storage operator in an excellent location,” Odabashian said. “We believe there are continued opportunities in this region and throughout the mid-Atlantic [states].”
Once completed, the self-storage facility will serve nearby residents who have previously needed to travel outside the District of Columbia for storage services, said Diane Tipton, a principal with Self Storage Zone, which currently operates four facilities in the Washington, D.C., area. “We look forward to completing the project and introducing our wide range of services to the residents of Northeast D.C.,” she said.
Self Storage Zone also has four self-storage facilities in Florida. Since 1995, the company has developed or acquired and managed approximately 3.8 million square feet in 36 self-storage projects in Florida, Maryland, New Jersey, New York and Virginia. It is actively seeking new development opportunities in Washington, D.C.
FCP has invested in or financed more than $3 billion in assets since its founding in 1999. The company is seeking debt and equity investments in commercial and residential real estate throughout the Mid-Atlantic region.