400,000 s/f portfolio for sale.A 400,000 s/f portfolio of self-storage self-stor·age adj. Of, relating to, or being a commercial facility in which customers can rent space to store possessions: a self-storage warehouse. properties is being brought to market this week by venture capital firm Wharton Equities. Consisting of four buildings located in Long Island City, the Bronx Bronx, river, c.20 mi (30 km) long, issuing from Kensico Reservoir, SE N.Y., and flowing SW through the Bronx into the East River. The Bronx River Parkway, one of the first limited-access highways in the New York City area, parallels a portion of the river. , Westchester Westchester is the name of some places in the United States of America:
prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the broker handling the sale, Aaron Swerdlin, a managing director at Houston based Storage Investment Advisors Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and . Although self-storage owners in the city are expected to be a large contingent among the pool of bidders, Swerdlin believes that developers and real estate owners outside of the storage business will also find the portfolio attractive. Under current zoning regulations, the properties cannot be converted for other uses, but Swerdlin explained that investors might gamble that those restrictions could be lifted in the coming years, unlocking the potentially lucrative opportunity to convert the properties into residential buildings. Even if such a scenario doesn't play out however, the self-storage business that Wharton helped strengthen during its tenure as owners of the properties is profitable. "I think that this could be a great real estate play for developers," Swerdlin said. "You get to have control of that real estate which could have such a future while in the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile getting the cash flow from the self-storage business." Swerdlin expects the portfolio to trade at a cap rate of 7%, but added that the self-storage business could be quickly improved to yield more specifically by converting some of the buildings' larger vacant storage units into smaller, more easily rentable spaces. "Self-storage is like the cellular phone business," Swerdlin said. "Once people have a cell phone they never want to be without one. It's the same with storage, once people start putting things in self-storage, that service is something they always like to keep." The biggest property in the portfolio, 3028 Starr Avenue in Long Island City--a purple building that sits prominently next to the Long Island Expressway--also has a record storage business that, because of the building's proximity to Manhattan, could be expanded. "That building could probably close to double its revenue," Swerdlin said. While all of these improvements to the portfolio's storage business seem conspicuously con·spic·u·ous adj. 1. Easy to notice; obvious. 2. Attracting attention, as by being unusual or remarkable; noticeable. See Synonyms at noticeable. in the domain of an experienced self-storage operator, Swerdlin said that the only qualification required of the owner was an "expertise in hands-on real estate." "Wharton doesn't focus on self storage," Swerdlin said. "They take properties that need to go 100 miles and they bring them 50 miles, they do the grunt work. Now an owner just has to come in and bring them the rest of the distance." |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion