Acadia Acquires Self-Storage Portfolio for $175M
- Mar 06, 2008
Acadia Realty Trust has acquired 11 self-storage facilities in New York and New Jersey from American Storage Properties North L.L.C. for $175 million.The 933,000-square-foot portfolio, which was 72 percent leased at the time of sale, is comprised of six newly constructed facilities in the lease-up phase, one under construction and four converted warehouse facilities.Transwestern’s Washington, D.C. institutional commercial group and CB Richard Ellis Inc.’s self storage group were co-brokers on the deal. Gerry Trainor, managing director with Transwestern, and Steve Hryszko of CBRE represented the seller.All the facilities will be continue to be managed and leased by Storage Post.“The sale consummated the value creation process undertaken by American Storage Properties,” Andrew Czekaj, manager of ASP North Investors, L.L.C., said in a release. “The portfolio was built over a seven-year period; and based on market valuations it was prudent to sell the assets.”The White Plains, N.Y.-based REIT said it was also partnering with Storage Post to develop four other facilities that were not part of this acquisition for a total of 15 facilities. Those four are located in Westchester County, N.Y.; Queens and Brooklyn. The 11 facilities acquired in the portfolio are primarily in the New York City boroughs and New Jersey, noted Joel Braun, Acadia’s executive vice president, acquisitions. Braun said Acadia used its Fund III to acquire the portfolio. Braun said Acadia planned on growing the self storage part of its portfolio, which is dominated by retail centers. “We will absorb these and probably go look again,” he told CPN today. He said storage “was a good symbiotic use with shopping centers because they are very location and visibility-oriented, like retail is. They also have very limited parking requirements so they don’t conflict with retail. We also believe the growth profiles in terms of income growth in the storage business are attractive.” Founded through a merger in 1998, Acadia’s portfolio consists mainly of neighborhood and community shopping centers and mixed-use properties with retail components in the Northeast, Mid-Atlantic and Midwest. The firm owns or has interest in more than 70 retail properties.