Amalfi invests with SNL Capital Partners in Life Storage
SNL Life Storage
The development of a 4-story, 104,100 NRSF, state-of-the-art self-storage facility ideally located in the supply-constrained trade area of Staten Island, New York.
Resilience of Self-Storage during Market Disruption / Dislocation: –The self-storage market has historically been resilient during times of market disruption, including, most recently, disruptions caused by the COVID-19 pandemic. The Sponsor believes that both individuals and companies that are dislocated during an economic downturn rely on self-storage until the dislocation is lifted. For instance, with respect to the 2008 Great
Recession, self-storage occupancy maintained relative strength during the crisis followed by multiple years of double-digit rental growth.
Barriers to Entry Include Zoning Restrictions and Limited Supply: – Existing zoning restrictions in New York City limiting self-storage use and lack of suitably sized real estate act as a barrier to entry in the geographic area of the Property. The Property is in the M2-1 zoning district, which permits self-storage “as of right”. The Sponsor believes that feasible self-storage development sites in this market radius are in limited supply.
Undeserved and Supply-Constrained Market: – The national average for self-storage supply is in excess of 7.0 square feet per capita. The Sponsor typically underwrites facilities within this geographic area of the Property to a 5.0 square foot per person demand factor. Based upon this metric, the Sponsor anticipates demand for approximately 896,000 NRSF of self-storage space within the 5.0-mile radius of the Property (exclusive of New Jersey market); however, to the Sponsor’s knowledge, there is only approximately 665,000 NRSF, or 3.7 square feet per person, of existing or planned supply within the same radius.
Prominent NYC-Focused Self-Storage Developer: – SNL Capital Partners is a vertically integrated, self-storage development firm focusing on opportunities in dense urban markets such as New York City, having expertise and knowledge of the boroughs that it believes is unparalleled by multi-market competitors. Since 2013, the Sponsor and its affiliates have sourced, acquired and developed or is developing, and in two cases exited, 25 investment-grade self-storage assets throughout the boroughs of New York City and its surrounding metro area, having partnered with prominent institutional private equity funds, large family offices and self-storage REITs. Since 2017, the Sponsor and its affiliates have delivered twelve new facilities to market and is scheduled to deliver six in 2021.
THE PROJECT
The Staten Island Self-Storage Project site is approximately 48,693 square feet and is in an M2-1 zoning area, which allows a self-storage facility. SNL is currently planning to build a 99,200 net rentable square foot, four-story building with 4,900 SF of outdoor containers for a total of approximately 104,000 NRSF. In order to provide the state-of-the-art units, all interior units in the building will be climate-controlled. The Project will have convenient and easily accessible loading areas for customers and will be safe-guarded by digital security and web-based video surveillance systems. The Sponsor is targeting to deliver approximately 2,100 units ranging from 5x5x4 Cubic-Foot lockers up to 15×20 SF units. The targeted average unit size is just under 50 SF per unit.