Sound Point Lends $33M on Staten Island Self-Storage Acquisition
By Andrew Coen July 6, 2022 9:36 am
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Storage Post Self Storage has nabbed $33.2 million of acquisition financing to purchase a Staten Island property, Commercial Observer has learned.
Sound Point Capital provided the loan on the developer’s acquisition of the brand-new 2,370-unit self-storage facility on the North Shore of Staten Island from Abingdon Square Partners, according to public records. JLL Capital Markets arranged the transaction with a debt advisory team led by Steve Klein, Robert Tonnessen, Jackie Ferrer and Ricky Song.
“Lender appetite for well-located, best-in-class self-storage assets remains strong in what has been a volatile market,” Tonnessen said in a statement. “We are thrilled to have been able to secure competitive financing from a lender eager for a foothold in the space with an investment positioned for long-term gain.”
Located at 620 Richmond Terrace, the four-story facility features climate-controlled units that vary from 15 to 300 square feet. Amenities include indoor loading bays, motion-activated LED lighting, packing and moving supplies, elevators, digital keypad access and energy-efficient building management systems.
The property also benefits from New York City’s 15-year Industrial and Commercial Abatement Program, where there are no property taxes for the first 11 years of ownership, according to JLL.
“The property’s location within an underpenetrated, densely populated market, combined with Storage Post’s self-storage expertise, present an opportunity for rapid lease-up and asset stability,” Klein said in a statement.
Atlanta-based Storage Post has been active in the New York City market of late with its recent addition of self-storage properties in Elizabeth and Amboy, N.J., combining for 227,000 gross square feet. It also acquired a self-storage facility at 3350 Park Avenue in the Bronx’s Morrisania neighborhood from Wildflower this past winter for which JPMorgan Chase supplied a $28 million loan, as reported by CO.
Representatives for Sound Point Capital, an alternative asset management firm, and Storage Post, did not immediately return requests for comment.
Andrew Coen can be reached at acoen@commercialobseserver.com.
