Clutter Enters Self Storage Market
The on-demand storage provider paid $152 million for four facilities located throughout New York City and across the state.
Storage Fox, Long Island City. Image courtesy of Clutter
Clutter made its first acquisition in the self storage sector, spending $152 million on the four-property, 5,240-unit Storage Fox portfolio. Colony Credit Real Estate provided the buyer $116 million in acquisition financing.
The four facilities are located throughout New York at 5601 Foster Ave. in Brooklyn, 3046 Northern Blvd. in Long Island City, 280 Fullerton Ave. in Yonkers, and 1 Holland Ave. in White Plains. The assets total approximately 500,000 square feet with a rentable area of 320,000 square feet.
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Clutter launched in 2015 as a way for customers to have their unwanted furniture or items picked up and stored at a warehouse whenever they requested. Now the company is shifting towards acquiring more real estate in major metropolitan markets. Ari Mir, Clutter’s co-founder & CEO, added that giving their customers a self storage option was part of the company’s long-term strategic plan since the beginning.
“Over the past few months, our team has been actively evaluating strategic real estate investments in key markets across the country,” Mir told Commercial Property Executive. “We were especially drawn to The Storage Fox portfolio due to its close proximity to major cities in the New York metropolitan area.”
New York City’s self storage market attracts increased attention, as another portfolio received a $49 million loan in June. Barclays’ Eliav Dan, head of West Coast real estate finance and Clutter’s exclusive financial advisor, said The Storage Fox portfolio was an extremely rare opportunity and that Clutter competed against multiple self storage REITs throughout the bidding process.
With more than $300 million raised in venture capital funding from Softbank, Sequoia and others, Clutter will continue its path of buying up properties to expand their new hybrid on-demand and self storage model. “Looking ahead, we’ll evaluate owning real estate in more key markets across the US to bring our hybrid strategy of on-demand and self storage to everyone,” Mir told CPE.
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