Despite Oversupply, Miami City Self Storage Secures Refi

MIAMI—Newmark Knight Frank has arranged a $44.3 million floating-rate loan for Miami City Self Storage (MCSS) for the refinance of three self-storage facilities in Southern Florida. Two are in Miami and one is in Fort Lauderdale. The three facilities combine for a total of 1,836 units and 237,044 square feet.

“Although the market is starting to see some pockets of over-supply, occupancy rates in the submarkets these assets are located remain strong,” Jordan Roeschlaub, Newmark Knight Frank’s vice chairman and co-head of debt and structured finance, tells GlobeSt.com.

“Miami went so far as to put a moratorium on new self-storage product, which will certainly serve to limit additional new competition. However, we found the submarkets where the subject properties were located exhibited strong current and expected future demand drivers such as continued residential development. Therefore, we received great lender interest.”

The three 100% climate-controlled facilities opened in mid-late 2018 and are currently in the process of a successful ramp-up to stabilization. The Miami properties are both managed by CubeSmart, one of the nation’s leading self-storage operators. The Fort Lauderdale property is managed by Public Storage, the largest self-storage operator globally.

Miami City Self Storage (MCSS) is a joint venture between Rivergate Companies and SJM Partners, which was formed by industry veterans Jay Massirman, Steve Garchik & Steve McBride to develop urban infill self-storage facilities in high-value locations nationwide. MCSS currently has two million square feet of self-storage facilities in various stages of development and lease-up. Current markets for MCSS include South Florida, New York, Boston, Los Angeles and Northern California.