Self-storage real estate investment trust and third-party management firm CubeSmart will soon operate several new facilities in the works in Louisiana, working with various owners and investors. The properties are largely in the Baton Rouge area, including the surrounding cities of Gonzalez and Prairieville.
Development has begun or land purchases made for four sites in Baton Rouge and one in Prairieville. Five additional land acquisitions are underway, according to the source.
Attorney Craig Smith is building a three-story facility in Baton Rouge. Additional development sites under contract in the city include the former Lone Star Steakhouse at 1920 O’Neal Lane and a property on Highland Road near Ruffino’s Restaurant.
A mixed-use project in Gonzales will include a RaceTrac Petroleum Inc. gas station in addition to self-storage. Locations in Denham Springs and Zachary are also being considered, according to Mark Hebert, an agent with Kurz & Hebert Commercial Real Estate Inc., which represented CubeSmart in some of the deals.
Each of the projects could include up to four stories and will cost $5 million to $6 million to build, said Hebert, who also represented the REIT during transactions in Lafayette and New Orleans.
Development in the state could be spurred by the flooding in 2016, which damaged many older self-storage facilities, the source reported. “Also, this type of commercial investment will likely be less of a risk factor for a commercial loan,” Hebert said.
StorageMax is also entering the Baton Rouge self-storage market with the development of a 600-unit facility on Burbank Drive. The company, which operates 21 facilities in the South, stated the industry’s growth on a national level could explain the new development in the area.
Malvern, Pa.-based CubeSmart owns or manages 868 self-storage facilities across the United States. Its operating portfolio comprises 58.7 million square feet.
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