Atlanta-based self-storage developer Mequity has closed on the $15.6 million purchase of 465 West 150th Street in Manhattan, and plans to convert the property into a new CubeSmart-managed self storage facility.
Mequity closed on the acquisition of the existing 40,593-square-foot building between Amsterdam and Convent Avenues in the Sugar Hill area on June 30, according to Bill Marsh, a principal at the firm. The seller was an affiliate of moving and storage services company Moving Man.
Jernigan Capital, a Memphis-based real estate investment trust that specializes in funding self-storage facilities, invested $26.5 million in the project to cover the purchase and construction costs, according to a news release today.
The seven-story building will feature 1,424 climate controlled, self-storage units. The development project is expected to begin in the third quarter of the year and be completed by the second quarter of 2018.
“Pretty much all of Manhattan is very undeserved with storage so when there is an opportunity to work on a building like this and create a new, modern storage facility in Manhattan, it’s an opportunity that we want to take,” Marsh told Commercial Observer.
Requests seeking comment to representatives for Jernigan were not immediately returned. Moving Man was represented in the sale by Seth Peyser of TAA Properties. A call to Peyser’s office was not immediately returned.
This development is the second partnership for Jernigan and Mequity. In February, the pair teamed up to purchase a $13.6 million property in Vinings, Ga. They will build a self-storage facility there with 1,118 units. The project is expected to be completed next year.