Storage Deluxe, a Manhattan, N.Y.-based self-storage owner and developer, has acquired a large lot in Bushwick, N.Y., on which it intends to build a new, seven-story facility. The $45.5 million deal includes an 80,000-square-foot vacant warehouse at 74 Bogart St., but the company is expected to raze the structure and replace it with a 200,000-square-foot structure containing 4,000 units. The $50 million development will take up an entire city block, according to the source. It’s expected to open in fall 2021 and will be managed by self-storage real estate investment trust CubeSmart.
“After careful analysis based on decades of experience in the New York metro area, we are excited to acquire one of the most prominent development sites in all of Brooklyn,” said Daniel Alvarez, director of acquisitions, in a press release.
“We look forward to offering convenient storage options for the growing Bushwick community,” added Steven Novenstein, co-founder and president. “Storage is especially important for small businesses, and we expect approximately 40 percent of our customers will come from this sector.”
The Bushwick property is Storage Deluxe’s fifth acquisition in the last 12 months. In April, it acquired a former document-storage center in Stamford, Conn., for $5.5 million, which it plans to convert to self-storage. In all, its development pipeline includes 11 storage projects comprising 1.5 million square feet. The company has also completed construction on six ground-up developments during the same period, adding 830,000 square feet to its portfolio, the release stated.
Founded in 1998, Storage Deluxe has 65 projects completed and in development, totaling 7 million square feet.
Crain’s New York Business, Self-Storage Builder Strikes Deal for $100M Development