What's Happening?
Safeguard Self Storage has purchased an industrial building in the Borough Park area of Brooklyn for $40.25 million. The four-story building, located at 1454 39th Street, spans 63,814 square feet. This acquisition is part of Safeguard's expansion strategy, as the company operates over 5 million square feet of storage space across 86 locations in seven states. The seller, Equity Resource Investments (ERI), is a private equity firm focused on real estate investments, including affordable and workforce housing. The transaction details, including the broker involved, have not been disclosed.
Why It's Important?
This acquisition underscores the growing demand for self-storage facilities in urban areas like Brooklyn, driven by increasing population density and limited
space. For Safeguard, expanding its footprint in a major market like New York City enhances its competitive position and potential revenue streams. The deal also reflects broader trends in real estate investment, where firms like ERI are capitalizing on the value of industrial properties. This transaction could influence future investments in the self-storage sector, highlighting the potential for high returns in urban real estate markets.
