Sold! Heitman takes over Brooklyn storage facility in $47 million deal

Bruce Goldberg
February 27, 2024

Chicago-based investment firm Heitman obtained a 1,378-unit self-storage facility in Brooklyn for $46.9 million, more than double the price paid for the same property in 2017. The deal closed days prior to a planned auction of the property, to which Heitman was creditor. Instead of foreclosing on the loan itself, Heitman was able to foreclose on the collateral in a deal brokered by Keen-Summit Capital Partners.

The facility, located in the Midwood neighborhood at 1296 East 14th Street, opened in 2020 after development by a joint venture. Safe N Lock Self Storage purchased the property in 2017 for $19 million. The operator’s former partner, Equity Resource Investments, funded a number of Safe N Lock developments in the city and across the state.

Now the two firms are at odds, with ERI targeting Safe N Lock executives with a lawsuit that alleges fraudulent misappropriation of funds, according to the Commercial Observer. The alleged misappropriation caused the property to default and enter foreclosure in July. Heitman was previously a lender on the storage property, providing a $24 million construction loan in 2018. Heitman repossessed its equity interest late last year, along with that of another facility owned by the joint venture at 2036 Webster Avenue in the Bronx.

Both properties are managed by Life Storage.

Source: The Real Deal

U-Haul purchased a Storage Sense facility on Dec. 21, 2023, at 920 NE Deerbrook St. in Lee’s Summit, MO. The site has 626 additional units. Source: Yahoo! Finance

Stor Safe Self Storage has made acquisitions in Cedar Lake, IN and Melbourne, FL. The company now has 29 storage facilities with a total of more than 1.7 million square feet across Florida, Illinois, Indiana, North Carolina, Ohio and Wisconsin. StorSafe is a subsidiary of Elmdale Partners. StorSafe, which opened in 2021, added third-party management services in January. Source: EIN Presswire

HPI Real Estate bought a newly built self-storage facility at 4017 34th St. South in St. Petersburg, FL. It has 73,000 rentable square feet and 701 units. The Davis Group, a multifamily and storage developer based in Atlanta, GA, worked the project. CubeSmart will continue to manage the property, which opened in August 2023. HPI is based in Austin, TX. Source: HPI Real Estate

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