“Converting big-box retail into storage — now that’s sexy”

Investors eye vacant stores to convert into warehouses

TRD MIAMI /
Jun.June 13, 2017 03:00 PM

From TRD New York: As the retail market continues to flounder, investors are eyeing vacant brick and mortar stores as possible future storage centers.

There are more than 50,000 storage facilities in the United States, and construction spending on mini-warehouses hit an all-time high in April, Bloomberg reported. The largest storage operator, Public Storage, took in $538 million in revenue during the first three months of this year, logging only $149 million in operating costs.“These guys are making money hand over fist,” Chuck Gordon, chief executive at SpareFoot, a Texas-based storage startup, told Bloomberg.

Ari Rastegar, of Dallas-based Rastegar Equity Partners, said he’s looking for storage space on the outskirts of big metro areas and looking at buying space retail landlords haven’t been able to fill. “Converting big-box retail into storage — now that’s sexy,” he told Bloomberg.

Self-storage facilities proliferating all over South Florida. Most recently, a development team broke ground in February after landing an $8 million loan to build 113,000 square feet of self-storage space in Miami next to the Palmetto Expressway.

The sponsor of the development is an affiliate of  Florida Value Partners, which Alfonso serves as managing partner in partnership with Benjamin S. Macfarland III of Elit Stor Capital Partners, LLC, a self-storage operating company.

The project is the initial phase of a 280,000-square-foot self-storage development at Miami Airport Center, located at Northwest 25 Street and the Palmetto Expressway. Fully built, it would rank among the largest self-storage facilities in South Florida. [Bloomberg] — Kathryn Brenzel 


Related Articles

arrow_forward_ios
27359 South Dixie Highway and Longpoint Realty Managing and Founding Partner Dwight Angelini (Google Maps)

Longpoint buys Fresco Y Mas-anchored center in Naranja

Longpoint buys Fresco Y Mas-anchored center in Naranja
Hard Rock Cafe at Bayside Marketplace (Hard Rock)

Bayside Marketplace sues to evict Bubba Gump, Hard Rock Cafe and three other tenants

Bayside Marketplace sues to evict Bubba Gump, Hard Rock Cafe and three other tenants
Commissioner Ricky Arriola and an aerial of Sunset Harbour in Miami Beach (Compass)

Miami Beach moves toward banning chain restaurants and stores in Sunset Harbour

Miami Beach moves toward banning chain restaurants and stores in Sunset Harbour
Diane Von Furstenberg, Brookfield Properties Bruce Flatt, and the DVF store in the Shops at Merrick Park (Getty, Google Maps)

Brookfield seeks to evict Diane Von Furstenberg at Merrick Park

Brookfield seeks to evict Diane Von Furstenberg at Merrick Park
Rendering of American Dream Miami, Triple Five Group chairman Nader Ghermezian

Triple Five “inching closer” to construction on American Dream Miami

Triple Five “inching closer” to construction on American Dream Miami
4402-4678 North University Drive, Todd Nepola

Miami Beach parking lot mogul sells retail center in Lauderhill for $13M

Miami Beach parking lot mogul sells retail center in Lauderhill for $13M
Mitchell Kaplan and Books & Books at 927 Lincoln Road (Google Maps) 

Books & Books closes its chapter on Lincoln Road

Books & Books closes its chapter on Lincoln Road
Diesel USA and Original Penguin Lincoln Road stores skipped April and May rent payments: lawsuit

Diesel USA and Original Penguin Lincoln Road stores skipped April and May rent payments: lawsuit

Diesel USA and Original Penguin Lincoln Road stores skipped April and May rent payments: lawsuit
arrow_forward_ios

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

Loading...