Valet-storage operator Clutter has acquired a four-property self-storage portfolio from The Storage Fox for $152 million. Together, the properties in Brooklyn, Long Island City, White Plains and Yonkers, N.Y., comprise 500,000 square feet. The move marks Clutter’s entry into the traditional self-storage space and brings its portfolio of leased and owned space to more than 2 million square feet, according to a source.
Company officials expect the acquisitions to be fully operational under the Clutter brand name by November. They are:
- 5601 Foster Ave., Brooklyn
- 3046 Northern Blvd., Long Island City
- 1 Holland Ave., White Plains
- 280 Fullerton Ave., Yonkers
Clutter’s first foray into self-storage ownership comes on the heels of a $200 million Series-D funding round in March, which was led by Japan-based SoftBank Vision Fund and included participation from several other investors. To date, Clutter has raised more than $300 million in equity capital since launching in 2015. The company’s valet-storage service is available in more than 1,000 U.S. cities, according to a press release.
“In the spirit of saying ‘yes’ more, we are proud to offer self-storage services to customers who need local access and want to know their belongings are close at hand,” said Ari Mir, co-founder and CEO of Clutter. “This hybrid strategy of self-storage and on-demand storage has been our vision from the beginning. It represents an exciting milestone in our long-term strategic plan to create a platform for people to manage their belongings.”
Sequoia Capital, an early Clutter investor, has long been intrigued by the possibility of the company diversifying into the more traditional self-storage space. “Expanding into self-storage is something we have been discussing since Clutter’s Series-A pitch to Sequoia, and we are excited to see it come to fruition,” said Omar Hamoui, a partner at Sequoia. “The acquisition reinforces Clutter’s market leadership and expands Clutter services by offering a better experience for customers who need self-storage or on-demand storage.”
Barclays Investment Bank acted as Clutter’s sole financial advisor in the deal. “Portfolios like that of The Storage Fox are extremely rare, and this acquisition signals that Clutter is uniquely positioned to take on and succeed in the self-storage industry,” said Eliav Dan, head of the company’s West Coast Real Estate Finance division. “Clutter competed with multiple self-storage real estate investment trusts throughout the bidding process to win the deal—a testament to the strength of the company’s management team and its ability to execute on an innovative business model.”
Clutter will continue to expand its pickup and delivery services into new markets, while remaining open to additional acquisitions, Mir told a source. “There are over 52,000 self-storage facilities in the U.S. alone,” Mir said. “If you take all that and add it up, there are more square feet in those storage spaces than there are in McDonald’s and Starbucks in the U.S. combined. At the same time, inside of cities, we’re running out of space. So, our vision is to apply all the technology that we’ve built in-house to increase the value that these self-storage facilities provide across society.”
Similar to other valet-style storage operators, Clutter offers by-the-bin storage targeted at urban residents who don’t have adequate home storage. Founded in 2013, the Los Angeles-based company uses an online platform that allows customers to schedule free item pickup, maintain an image catalog of stored bins and bulky items, and schedule delivery of items to their home. It operates in several domestic markets including Chicago, Los Angeles, New Jersey, New York, Philadelphia, San Diego, San Francisco and Seattle.
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