Angelo, Gordon & Co. and partner plan self-storage facility in Homestead

Andover Properties is close to scoring $6M in construction financing

February 28, 2018 03:43 PM

Rendering of self-storage facility (Credit: Andover Properties)

A joint venture between the New York-based investment manager Angelo, Gordon & Co. and Andover Properties is planning to develop a 110,000-square-foot self-storage facility in Homestead, and is expecting to score nearly $6 million in construction financing, The Real Deal has learned.

Brian Cohen, president of Andover, which does business as Storage King USA, said the partners expect to close on the construction financing within the next couple of months. Records show the joint venture purchased the 3-acre property at 1235 Northeast 12th Avenue in October for $1.2 million, under the entity AGAP Homestead LLC.

The developers want to build a multi-level climate controlled facility, as well as several smaller, single-story buildings that will house some drive-up storage units. The storage facility is scheduled to be completed by the end of the year, according to a press release.

Andover owns and operates 28 self-storage facilities throughout the United States.

Development of self-storage facilities has increased nationwide. The annual rate of new self-storage construction was $4.6 billion last year, on a seasonally adjusted basis, or double that of the previous year, according to Census Bureau figures.

Self-storage real estate in South Florida has also recently garnered the attention of some prominent storage operators and investors. In November, Prudential paid $18.5 million for a new 101,000-square-foot self storage building in Little Havana.

CubeSmart, a Pennsylvania-based self-storage real estate investment trust, also recently bought properties in Delray Beach and Oakland Park and will manage a facility under construction near Coral Gables.

Haru Coryne contributed reporting.

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