CubeSmart closes three deals in Brooklyn and Queens in year-end splurge
Building purchases and new ground lease are part of the company’s $540 million acquisition play in NYC
Self-storage giant CubeSmart purchased two buildings in Brooklyn and Queens for a combined $125 million and secured a new ground lease valued at $50 million, according to property records filed Thursday.
The self-storage sector has proven to be among the most resilient to the pandemic, as economic headwinds tend to bolster demand for storage space.
CubeSmart paid $77 million to acquire a 79,000-square-foot storage facility at 338 3rd Avenue in Gowanus — where the city is proposing a rezoning project expected to add thousands of new residential units — and $48.5 million for a building of nearly the same size at 33-24 Woodside Avenue in Woodside.
CubeSmart also took over a ground lease at 163 6th Street in Gowanus, where a 76,000-square-foot building sits just a few blocks away from the 3rd Avenue property.
The three properties, currently managed and operated by the real estate investment trust, are part of its recent agreement to purchase an eight-building portfolio from Storage Deluxe for $540 million. CubeSmart announced the deal in October.
To finance the acquisitions, the company said it will pay just over $200 million in cash and more than $180 million in ownership units that are convertible to stock, while assuming roughly $155 million of existing debt.
CubeSmart is one of the country’s largest owners and operators of self-storage space, with more than 1,200 properties throughout the U.S. in its portfolio.