You Won't Believe How a $47M Manhattan Self-Storage Refi Could Change Your Investment Game!

Storage Post, a prominent national self-storage operator and developer, has secured a substantial $47 million in financing to refinance its facility, Storage Post East Village, located in Manhattan’s East Village. This development was reported first by the Commercial Observer.

The financing was provided by Nuveen Real Estate, with a deal orchestrated by a team from JLL Capital Markets, specifically Steven Klein and Robert Tonnessen. Klein highlighted a significant trend in the Manhattan market, pointing out that it remains undersupplied for self-storage assets, with an average of only 0.63 square feet of self-storage space available within a one-mile radius of the property. This statistic starkly contrasts with the national average of 6.32 square feet.

“Nuveen recognized Storage Post’s exceptional repositioning and the facility’s continued growth potential,” Klein stated, emphasizing the promising outlook for the East Village facility.

Located at 444 East 10th Street, the Storage Post East Village facility occupies a historical site—the former Wheatsworth Building, which dates back to 1928. The facility spans over 78,000 square feet and offers 1,959 climate-controlled self-storage units. Its strategic location is notable, situated within a vibrant submarket that blends residential and retail spaces, in proximity to two major universities, New York University and The New School.

In April 2022, Storage Post and its equity partner, Almanac Realty Investors, acquired the facility from Keepers Self Storage for a total of $61 million. Since then, the joint venture has invested an additional $8.6 million in capital improvements, which has led to a healthy occupancy rate of 91.2 percent.

Despite efforts to reach out, Storage Post did not respond to requests for comment regarding the financing and ongoing operations of the facility.

This refinancing and the ongoing improvements at the Storage Post East Village facility underscore a larger trend in urban real estate, where the demand for self-storage options continues to rise. With a growing population and limited space in urban environments, companies like Storage Post are poised to capitalize on the need for additional storage solutions. As cities evolve, understanding the balance between residential, commercial, and storage needs will be crucial for developers and investors alike.