Acadia Realty reported on Feb. 13, as part of its 2007 year-endfinancial disclosure, that it had entered into a contract inDecember in conjunction with its self-storage partner Storage Postto acquire 10 self-storage facilities. In January, Acadia went intocontract on the 11th self-storage property. The portfolioacquisition was made through its Fund III, a $500-million equityfund managed by Acadia Realty, which closed in the second quarterof last year.

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All of the properties were and will continue to be leased andmanaged by Storage Post. The deal was brokered by Gerry Trainor,managing director of Transwestern's Institutional Commercial Groupbased in Washington, DC, and Steve Hryszko, national director of CBRichard Ellis' Self Storage Group based in Cleveland, who bothrepresented American Storage Properties in the transaction.According to Transwestern, the portfolio was 72% leased at the timeof sale and included six newly constructed facilities in thelease-up phase, one still under construction and four that areconverted warehouse properties.

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"The sale consummated the value creation process undertaken byAmerican Storage Properties," says Andrew Czekaj, manager ofAmerican Storage Properties North LLC. "The portfolio was builtover a seven-year period and based on market valuations it wasprudent to sell the assets."

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According to a marketing flyer distributed by Transwestern andCBRE, the offering price for the 11-property Storage Post leasedportfolio was $206.6 million. The flyer listed the properties forsale as: 191 Broadway in Jersey City; 401 S. Park Ave., Linden, NJ;4077 Park Ave., Bronx, NY; 2 Dunnigan Dr., Suffern, NY; 640Rockaway Turnpike, Lawrence, NY: 301 Fordham Rd., Bronx, NY; 30-28Starr Ave., Long Island City, NY; 112 Bruckner Blvd.; Bronx, NY;363 Huguenot St., New Rochelle, NY; 131 Saw Mill River Rd.,Yonkers; and 48 Metropolitan Ave., Queens, NY.

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Currently, Acadia Realty Trust, in partnership with StoragePost, has four redevelopment projects under way with self-storagecomponents that were not part of the acquisition. Thoseredevelopment initiatives are at Acadia's Liberty Avenue propertyin Ozone Park, Queens, the Pelham Manor Shopping Center inWestchester County and projects in the Canarsie section and onAtlantic Avenue in Brooklyn, NY.

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Joel Braun, VP of Acadia Realty, says that based on itspartnership with Storage Post, the firm learned about that side ofthe real estate business and decided to significantly expand itsself-storage portfolio when it learned of the Storage Postportfolio's availability. He says that Acadia will work to absorbthe vacancies that now exist in the portfolio and later will go outinto the market and look for additional self-storage acquisitioncandidates.

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John Jordan

John Jordan is a veteran journalist with 36 years of print and digital media experience.