NEW YORK CITY-In a transaction that spans New York to Connecticut, HFF has closed the sale of a 16-property self-storage portfolio on behalf of Manhattan-based seller Storage Deluxe. CubeSmart purchased the entire portfolio for $357.31 million, which features prime properties in the Bronx, Brooklyn, Queens, Westchester and Fairfield counties.
Under the terms of the contract, HFF says this was the first of two closings involving CubeSmart and Storage Deluxe. The second closing, with a purchase price of approximately $202.7 million, will consist of six assets encumbered with $88 million of secured debt to be assumed by CubeSmart. This closing will take place immediately following the completion of the loan-assumption process and should occur in the first quarter of 2012. The second closing is subject to customary closing conditions, including lender consent with respect to the debt that will be assumed, according to HFF.
The bulk of the sites are located in the Bronx, including 200 E. 135th St., 1880 Bartow Ave., 255 Exterior St., 1376 Cromwell Ave., 1810 Southern Blvd., 1816 Boston Rd., 955 Bronx River Ave., 1425 Bruckner Blvd. and 1980-1990 White Plains Rd., SEC filings show. The portfolio also includes three properties in nearby Westchester County such as 111 Cedar St., New Rochelle, NY; 3277 Crompond Rd., Yorktown, NY; and 40 Marbledale Rd., Tuckahoe, NY.
In addition, CubeSmart snatched up five facilities in Brooklyn located at 552-570 Van Buren St., 481 Grand Ave., 2047 Pitkin Ave., 464 Stanley Ave. and 2990 Cropsey Ave., as well as two in Queens at 98-26 Jamaica Ave. and 179 Jamaica Ave. Outside the boroughs, the company acquired 111 Danbury Rd. in Wilton, CT, 829 Bridgeport Ave. Shelton, CT and 700-714 Markley St., Norristown, PA.
As part of the company’s strategy, Nick Coslov, CEO of Storage Deluxe, says the transaction validates 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 says in a statement following the deal.
HFF and Louis Perfetto, Esq. of the law firm Cohen & Perfetto LLP, represented the seller, Storage Deluxe. The HFF investment sales team representing Storage Deluxe was led by senior managing director Aaron Swerdlin.
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