RIVERDALE, NJ-Public non-traded REIT Strategic Storage Trust, Inc. recently shelled out $6.4 million for an 820-unit self-storage facility here. The property will be re-branded under the SmartStop Self Storage trade name. The seller was Rick Kerper with Space Stor Self Storage; it was a direct sale and there were no brokers involved.
Developed in 2007, the property is located at 112 State Rt. 23 and contains approximately 62,000 net rentable square feet on close to 2.4 acres. The four-level building is 25 miles from New York City and approximately 20 miles from two other SSTI-owned self-storage facilities located in Jersey City, NJ and Ft. Lee, NJ.
The Riverdale site features digital surveillance, climate-controlled units, freight elevators, a large retail display area and an interior loading/unloading area that shelters customers from the weather.
“The facility has many qualities we look for--popular commuting corridor, great visibility, ease of access and new construction," says Wayne Johnson, senior vice president of acquisitions for SSTI. Neighboring national retailers include Home Depot, Staples, BJ’s Wholesale Club and Target.
SSTI currently owns two other self-storage facilities in New Jersey: 550 Main St. in Ft. Lee, a three-story building with around 990 climate-controlled units that is located two miles north of Manhattan, and 69 Mallory Ave. in Jersey City, which has close to 1090 units and is located five miles west of Downtown New York City.
Since the launch of SSTI two years ago, its portfolio of wholly owned properties has expanded to include 34 assets in 14 states, including Alabama, Arizona, California, Florida, Georgia, Kentucky, Mississippi, Nevada, New Jersey, Pennsylvania, South Carolina, Tennessee, Texas and Virginia. Historically, self-storage market conditions have remained fundamentally stable, says Michael Schwartz, CEO of Strategic Storage Trust Inc. "Unlike office, there are no capital expenditures for tenant improvements or tenant leasing commission expenses," says Schwartz, whose company acquired around $53 million self-storage assets in 2010, only two of which had debt.
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