Delaware Firm Buys 2,000-Unit Self-Storage Portfolio in Metro New York
- Apr 19, 2016
New York–Marcus & Millichap arranged the sale of two family-run self-storage properties located in the New York metro area. The portfolio, which is made up of the 937-unit Byram Self Storage in Port Chester, N.Y. and the 1,063-unit New Haven Self Storage in New Haven, Conn., sold for a combined $25 million, which equates to more than $218 per square foot.
“These assets are high-quality self-storage facilities situated within densely populated submarkets with high barriers to entry,” Kevin Menendez, an associate in Marcus & Millichap’s National Self Storage Group (NSSG), said in prepared remarks. “The acquisition gives the new owner a pair of well-maintained, cash-flowing facilities with opportunities for value enhancement through lease-up and expansion.”
The seller, a Delaware limited-liability company, was represented in the transaction by Menendez and Michael Mele, a senior director of the NSSG. The team also procured the buyer, a privately held company based in Santa Monica, Calif.
Both facilities are located just off Interstate 95, approximately 50 miles from each other. More than 262,600 people live within a five-mile radius of New Haven Self Storage, while the population living within a five-mile radius of Byram Self Storage exceeds 134,000 residents. Another advantage of the Byram location is that the area’s median household income is about $98,335, which is nearly double the national average.
“These properties had been in the seller’s family for generations but after careful consideration they realized the time was right to put them on the market,” added Mele. “We are seeing this more recently with smaller, family run, self-storage operators. Increased competition from national players and record prices make now the perfect time for smaller operations to cash in.”
J.D. Parker, senior vice president in Marcus & Millichap’s Manhattan office, is the firm’s broker of record in New York and Connecticut.
Image courtesy of Byram Self Storage