Storage Deluxe has purchased an East Williamsburg development site for $45.5 million, where it plans to build a facility spanning about 220,000 square feet.
The self-storage builder bought 74 Bogart Street and plans to demolish the building and replace it with a seven-story self-storage property, according to Crain’s. It will likely spend more than $50 million to develop the property.
CubeSmart will operate it, and it should be finished by the fall of 2021.
Storage Deluxe builds and owns storage properties, but it does not operate them. It has developed several storage sites in the city in recent years, including a roughly 250,000-square-foot project at 2880 Exterior Street in Marble Hill.
East Williamsburg and Bushwick have both seen increased residential and commercial development in recent years, which has increased the demand for storage space.
“The rule of thumb in the storage business is that within a 3 mile radius, there’s demand for 7 square feet of storage per person,” Storage Deluxe executive Andrew Ehinger told Crain’s. “In Brooklyn that adds up to millions of square feet of demand, and when you consider supply, there’s quite a deficit.”
A Kassin Sabbagh Realty team of Dan Myers, Steven Pollan, and Rachael Brook brokered the deal. [Crain’s] – Eddie Small