Edison Properties eyes $3B sale of Manhattan Mini Storage

Company’s business boomed during pandemic

New York /
Aug.August 18, 2021 01:30 PM
Edison Properties eyes $3B sale of Manhattan Mini Storage

Edison Properties CEO Jon Dario and 161 Varick Street (Edison Properties, Google Maps)

Many New Yorkers put things in storage during the pandemic. Now the dozens of owners of Manhattan Mini Storage are looking to cash in with a mega sale of the company.

Edison Properties, which manages the storage provider, is working with Eastdil Secured to find a buyer, Bloomberg reported. The company is believed to possess the largest market share among Manhattan storage providers.

Manhattan Mini Storage has grown immensely since being founded in 1978 by the late Jerry Gottesman, who formed Edison as a holding company for the storage firm’s now 70-odd stakeholders.

It prospered during the pandemic as lots of New Yorkers let their leases expire. The company’s portfolio covers 3.1 million square feet across 56,000 units, with an occupancy rate above 95 percent.

True to its name, all 18 of the company’s locations are in Manhattan and it counts more than 150,000 people as customers. The city’s storage industry has made steady gains for years as New Yorkers found themselves with more stuff than they had space for — not to mention a serious homelessness problem.

Eastdil plans on contacting qualified and prospective buyers, specifically looking at REITs, sovereign wealth funds and institutional investors.

The potential $3 billion price point is informed by other massive deals in recent months for storage providers.

Earlier in the year, Public Storage acquired EzStorage for $1.8 billion. In late 2020, Blackstone Real Estate Income Trust purchased Simply Self Storage from Brookfield Asset Management for around $1.2 billion. If Manhattan Mini Storage sells for more than $3 billion, it would exceed those two deals combined.

Given how few jobs the industry creates relative to its physical footprint, New York politicians have taken a dim view of the storage boom and have taken some actions to limit its growth — to little effect.

[Bloomberg] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    The Centre at Purchase at 1, 2, 3, 4 Manhattanville Road with George Comfort & Sons CEO Peter Duncan (George Comfort & Sons)
    Westchester office park owned by George Comfort & Sons slated for auction
    Westchester office park owned by George Comfort & Sons slated for auction
    Attorney General Letitia James and A&E Real Estate CEO James Patchett (Getty, iStock)
    A&E pays just $510K in lead-paint settlement
    A&E pays just $510K in lead-paint settlement
    Seeding from recapitalization of 25 health care properties
    KKR, Cornerstone in $1B JV to develop health care facilities
    KKR, Cornerstone in $1B JV to develop health care facilities
    The Broadway location of Halloween Adventure (Facebook via New York Costumes / Halloween Adventure)
    Halloween Adventure to vacate East Village home as retail condo hits market
    Halloween Adventure to vacate East Village home as retail condo hits market
    Bluerock Residential CEO Robert Ramin Kamfar (Owler)
    NY-based multifamily REIT Bluerock explores sale
    NY-based multifamily REIT Bluerock explores sale
    Two more rent law challenges tossed, landlords reserve hope in appeal
    Two more rent law challenges tossed, landlords rest hopes on appeal
    Two more rent law challenges tossed, landlords rest hopes on appeal
    Purchases across the country rose 0.7 percent in August, easily outpacing estimates by retail analysts. (iStock)
    Big month for retail sales bodes well for landlords
    Big month for retail sales bodes well for landlords
    A rendering of River Ring with Two Trees CEO Jed Walentas (BIG, Getty)
    CB1 approves Two Trees’ River Ring, keeping project on pace
    CB1 approves Two Trees’ River Ring, keeping project on pace
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...