Malvern's CubeSmart To Close $540 Million NYC Storage Deal

MALVERN, PA — Malvern-based CubeSmart has expanded further into New York City markets, acquiring rentable storage property there in a half-billion-dollar deal.

CubeSmart owns or manages 1,256 self-storage properties across the United States. According to the 2020 Self Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the U.S.

CubeSmart will acquire eight self-storage properties in New York City from Storage Deluxe, at a cost of $540 million, GlobalNewswire reported this week. CubeSmart's (NYSE: CUBE) portfolio consists of 780,425 rentable square feet located in Brooklyn, Queens, and the Bronx, NY.

Christopher P. Marr of Wayne, who is President and Chief Executive Officer of CubeSmart, said he has long recognized New York City's value in the market. In 2011 the company acquired a $560 million portfolio from Storage Direct and re-branded from U-Store-It to its present identity as CubeSmart, according to Reit magazine.

"This exciting transaction represents the culmination of our ten-year strategic plan to establish our leading market position in New York City," Marr said.

"The acquisition of this portfolio expands our presence in attractive submarkets within each outer borough that have positive demographic trends and a strong growth outlook. The timing of this opportunity allows us to take advantage of strong fundamental trends for self-storage in the boroughs," he added.

The company expects to pay about $201 million in cash as it closes the deal, GlobalNewswire reported.

Steven J. Guttman, Founder and Chairman of Storage Deluxe, commented, "When I began investing in self-storage in 1998, I identified New York City as the best market in the country and, over twenty years later, I still believe that. Over the last ten years we have been a seller, customer and partner of CubeSmart, and with this transaction we will add investor."

Millionairedoc.com said in 2018 self-storage is a $33 billion business in the United States, with 54,000 self-storage facilities across the country.