PE firm reaches $70M ground lease deal for Staten Island self-storage project

Equator Capital Management to develop 136K sf building

TRD New York /
Aug.August 11, 2017 05:45 PM

Rendering of a planned self-storage building at 2601 Veterans Road West

UPDATED, Aug. 15, 6:08 p.m.: Private equity firm Equator Capital Management signed a 99-year, $70 million ground lease for a development site in Staten Island and plans to build a 136,000-square-foot self-storage building.

The $70 million price tag is the aggregate value of annual rent payments for the entire term of the lease, according to Pure Properties Commercial Division’s Eugene Rivera, who brokered the deal. The landlord of the two-acre property at 2601 Veterans Road West is A. Tranchina Incorporated, a seller of construction materials.

Brooklyn-based Equator, founded by Douglaston Development veteran Mehul Patel, in 2015 acquired a development site at 29-01 Review Avenue in Long Island City, where it developed a 143,000-square-foot self-storage building.

Self-storage has become a booming business in recent years, as ballooning rents forced more New Yorkers to squeeze into smaller apartments.

Pure Properties, founded in 2016, is the U.S. brokerage arm of the Australian investment management firm Dixon Advisory.

Correction: According to Rivera the $70 million figure refers to the aggregate value of annual rent payments over the full term of the lease, not the net present value as previously reported.

Related Articles

John Legere (Credit: Getty Images)

WeWork reportedly in talks to hire T-Mobile exec as CEO

(Credit: iStock)

Small Talk: Every community meeting. About every development project. Ever.

An example of roll-off waste management (Credit: YouTube, iStock)

A win for big building owners in trash-collection fight

Duke Long and Poshtel International CEO Morten Lund

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

From left: Pavel Fuks, Michael Cohen, Felix Sater, and Donald Trump (Credit: Getty Images and Wikipedia)

As House begins impeachment inquiry, here’s what we know about Trump’s Ukraine-real estate ties

Rodrigo Niño (Credit: Prodigy Network and iStock)

Embattled Prodigy Network CEO Rodrigo Niño to step down

The Watchtower building at 25 Columbia Heights, CIM Group’s Shaul Kuba (right) and LIVWRK’s Asher Abehsera (Credit: Wikipedia, CIM Group, and LinkedIn)

JPMorgan leads $335M refi for CIM and LIVWRK’s Watchtower renovation