Storage Deluxe has acquired a development site at 74 Bogart Street from Joseph Brunner for $45.5 million. The buyer plans to construct a 220,000-square-foot self-storage facility on the East Williamsburg parcel, Crain’s reported.
Plans: Storage Deluxe’s Steve Novenstein estimates it will spend over $50 million on hard and soft costs for the 7-story project. Most of the company’s portfolio is managed by CubeSmart.
Be Smart: The site falls outside of an Industrial Business Zone (IBZ)… Such areas have been designated to help preserve manufacturing and industrial businesses. Two years ago the city passed a law requiring that self-storage facilities secure a special permit in order to operate in an IBZ zone. The rules were passed out of concern that storage spaces were supplanting those businesses while creating few jobs.
Heard on the Street: Storage Deluxe’s Andrew Ehinger: “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. In Brooklyn that adds up to millions of square feet of demand, and when you consider supply, there’s quite a deficit.”