Chicago-based Heitman buys Brooklyn self-storage for $47M

Investment firm Heitman has added a Brooklyn building to its self-storage portfolio.

The Chicago-based investment firm bought the property at 1296 East 14th Street for $47 million from an LLC, according to property records. That’s more than double what the limited liability company paid for it in 2017.

A construction loan issued the following year suggests the building was improved.

The LLC that sold it appears to be a joint venture between SNL Storage of Lake Success, New York, and Equity Resource Investments of Cambridge, Massachusetts.

The buyer had been a lender to the sellers: Heitman provided the $24 million construction loan in 2018. The 97,000-square foot building at the corner of Avenue M in Midwood, hit the market in November.

In a separate deal, Heitman paid $16 million for the ground lease on another self-storage building that SNL and Equity Resource Investments developed at 2036 Webster Avenue in the Bronx. That transaction was first reported by PincusCo,

Self-storage in New York City’s outer boroughs has been a hot ticket in recent years, especially as people moved during the pandemic but did not want to part with their stuff.

In December, Blumenfeld Development and LSC Development traded two separate self-storage facilities in Queens for $72 million and $52 million.

In 2022, Adam Gordon’s Wildflower sold a self-storage facility it built in the South Bronx for $65 million, and entities connected to Brookfield Asset Management plunked down a combined $90 million for three properties in Brooklyn.

Heitman and Equity Resource Investments did not respond to requests for comment.

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