Prime Holdings Group has landed $156 million in refinancing for a self storage portfolio, located in multiple boroughs in New York City.
The new loan, provided by Affinius Capital and 3650 Capital, will replace the previous $147 million debt, which was issued by SREC REIT Holdings in 2022, according to a report from The Real Deal.
The properties involved include three assets: one in Brooklyn (1084 Rockaway Avenue, spanning 104,200 square feet), another in Queens (31-07 20th Avenue, 158,300 square feet) and the other in the Bronx (1260 Zerega Avenue, 96,400 square feet). The prices online start at $51 per month, $87 per month and $90 per month, respectively, according to listings posted by Prime Holdings. The Saratoga Springs, New York-based company first bought the portfolio in 2017 for $187 million.
“This self-storage portfolio refinancing expands our presence in a growing asset class and further diversifies our loan portfolio," Affinius Capital Senior Vice President Tyler Figley said in a statement.
"Moreover, we were drawn to the opportunity to establish a new partnership with Prime, an experienced team with an impressive track record in this space.”
Self storage has been quite popular among real estate investors — especially in New York, according to Drew Anderman of CBRE, who helped arrange the refinancing on behalf of Prime. According to a report from the New York City Comptroller's office, 69 percent of the residents in the metro opt to rent. Plus, NYC is known for its low rental vacancy.
“There’s a long occupancy that usually exists for people storing things,” Anderman said, according to The Real Deal.
“It’s out of sight, out of mind.”
CBRE's Eddie Haber, Jared Fried and AJ Bruno, were also involved with the refinancing deal.
According to Prime Holdings, the company has acquired more than $5.7 billion in self storage assets, while managing over 400 facilities. The private equity real estate firm operates in 28 states, one U.S. territory and in two of Canada's provinces.
Nationally, private investors have been driving the interest in self storage. In the first quarter, those investors accounted for 45 percent of the year-over-year purchases in the sector, Marcus & Millichap revealed in a recent self storage outlook report.
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