CubeSmart acquired from Storage
Deluxe are in the Bronx, including
this one at 200 E. 135th St.
NEW YORK CITY-Phase two of CubeSmart’s $560-million acquisition of a 1.6-million-square-foot portfolio from locally based Storage Deluxe has closed, HFF said Wednesday. An HFF team led by senior managing director Aaron Swerdlin represented locally based Storage Deluxe in the sale of 16 unencumbered and six encumbered self storage assets, located mainly in the five boroughs.
First announced this past October, the sale positions CubeSmart, a REIT headquartered in Wayne, PA, as the leading self storage owner and operator in New York City with 27 assets. It leaves Storage Deluxe with seven properties; the firm has another six under construction.
Nine of the assets in the Storage Deluxe deal, including a 50,225-square-foot development site, are located in the Bronx, according to a release from CubeSmart. There are also five in Brooklyn, two in Queens, three in Westchester County, two in Connecticut and one in Pennsylvania.
Phase one of the sale closed this past November for $357 million. The $202.7-million second phase includes the assumption of $88 million in debt, according to CubeSmart.
When phase one closed last fall, Storage Deluxe CEO Nick Coslov said the transaction validated the opportunity to create value and reinvest capital into future deals in other markets. “We believe we have capitalized on a unique opportunity to monetize the value of the majority of our portfolio and this transaction will be a win-win for both CubeSmart and Storage Deluxe,” he said in a statement.