UPDATED, 9 a.m., Oct. 1: Fort Lauderdale-based commercial real estate firm got a $9.8 million loan and started construction of seven-story self-storage building in Miami’s Allapattah neighborhood.
Generation4 Partners started building a SpareSpace Storage facility after an affiliate of the firm got the mortgage loan from BB&T.
Marty McGrogan and Niki Perez of Walker & Dunlop arranged the loan on behalf of Generation4, led by Howard Pryor and Travis Prince.
The 143,080-square-foot SpareSpace Storage facility at 644 Northwest 30th Street is expected to open for business in the summer of 2019.
Generation4 acquired the 0.56-acre development site in 2017 for $2 million.
The Fort Lauderdale-based firm expects residential real estate development east of Interstate 95 in Miami’s Wynwood area to generate demand for its self-storage building west of I-95 in Allapattah.
The project advanced to the construction stage amid signs of overbuilding in South Florida’s self-storage market.
Brokerage firm Marcus & Millichap forecast that the self-storage vacancy rate in Miami-Dade, Broward and Palm Beach counties will rise to 7.8 percent this year from 7.3 percent last year. [South Florida Business Journal] – Mike Seemuth
An earlier version of this story incorrectly identified the project name.