What's Happening?
DECA Companies, an industrial developer based in San Francisco, has secured a $45.2 million construction loan to develop a new self-storage facility named Extra Space McKinnon Avenue. This project marks the first new self-storage development in San Francisco in two
decades. The financing was provided by Affinius Capital and Axonic Capital, with Talonvest Capital's Kim Bishop arranging the first mortgage. The facility, located at 2270 McKinnon Avenue in the Produce Market neighborhood, will feature 1,600 units and span 175,000 square feet. It will include light industrial space on the ground floor and four stories of self-storage above, managed by Extra Space, a national self-storage company.
Why It's Important?
The development of the Extra Space McKinnon Avenue facility addresses a significant supply constraint in San Francisco's self-storage market, which has not seen new facilities in 20 years. This project is crucial as it meets the growing demand for storage solutions from both residents and small business owners in the densely populated city. The strategic location with access to major highways like U.S. Highway 101 and Interstate 280 enhances its appeal. The investment by Affinius and Axonic Capital underscores their commitment to supporting high-quality, institutional-grade developments in markets with strong fundamentals and high entry barriers.
What's Next?
The completion of the Extra Space McKinnon Avenue facility is expected to alleviate some of the storage shortages in San Francisco. As the project progresses, it will likely attract attention from other developers and investors looking to capitalize on similar opportunities in constrained markets. The success of this development could encourage further investments in self-storage and other real estate sectors in the region, potentially leading to more construction projects that address the city's evolving needs.
Beyond the Headlines
The development of new self-storage facilities in urban areas like San Francisco highlights the adaptive reuse of commercial spaces to meet changing demands. This trend reflects broader shifts in urban planning and real estate investment strategies, where developers are increasingly focusing on projects that offer practical solutions to space constraints in densely populated cities. The involvement of community stakeholders in the planning process, as emphasized by DECA Companies, also points to a growing emphasis on community engagement in urban development projects.
