CubeSmart pays $175.5M to Storage Deluxe, assumes debt, as part of $540M deal

CubeSmart paid $175.5 million to Storage Deluxe for three self-storage facilities in New York City. The transactions included two fee purchases and one ground lease purchase. The transactions also included the assumption of debt on the two fee purchases.

These are part of a $540 million cash, stock and debt exchange for eight New York City properties that was announced last fall. The transactions were expected to close in the fourth quarter. The properties were already managed and branded as CubeSmart locations.

In the largest purchase, CubeSmart through the entity Cubesmart 338 3rd Avenue, LLC paid Storage Deluxe’s 338 De LLC $77 million for 300 3rd Avenue in Gowanus. The deal closed on December 22, 2020 and was recorded on December 31, 2020. The transaction consists of 1 parcel, including the tax class warehouse or self storage (E7)The property is 79,244 square feet. The parcel(s) have total development potential of 79,244 square feet.
The average sale price per square foot is $972.

The contract date was October 21, 2020. The last time the property sold was February 2, 2011 for $6,500,000.
Direct link to Acris document. link
The signatory for the buyer or lender was Jeffrey P. Foster

In the second, Cubesmart, L.P. signed a memorandum of lease as ground lease buyer from seller Storage Deluxe through its entity 163 6th Street LLC for 1 parcel, including the tax class warehouse or self storage (E7) at 163 6th Street in Gowanus. The lease was valued at $50 million. The memorandum was signed on December 21, 2020 and was recorded on December 31, 2020
The property contains a total of 76,248 square feet of built space.
Storage Deluxe as tenant signed a 99-year ground lease with landlord Louis Petrosino and his Petros Realty Corp. October 9, 2015.
Over the past five years, there have been 5 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000.

Direct link to Acris document. link

In the third, CubeSmart through the entity 33-24 Woodside Avenue, LLC paid Storage Deluxe’s Woodside De LLC $48.5 million for 33-24 Woodside Avenue in Sunnyside. The deal closed on December 22, 2020 and was recorded on December 31, 2020. The transaction consists of 1 parcel, including the tax class warehouse or self storage (E7)The property is 79,694 square feet. The parcel(s) have total development potential of 79,694 square feet.
The average sale price per square foot is $609.

A Storage Deluxe affiliate bought the vacant site on February 3, 2011, for $2,385,543.
Direct link to Acris document. link