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18 Feb 2021

$35 Million Loan to Boost Manhattan Self Storage Conversion


JLL Capital Markets has arranged $35.1 million in financing for the redevelopment of 41-47 E 21st Street, a parking facility in the Flatiron District, into a self-storage facility.

JLL worked on behalf of the borrowers, Ramrock Real Estate and self storage developer Mequity Companies, to place the loan with an affiliate of Cerberus Capital Management.

Mequity, which acquired the site from the Zucker Organization for $32.17 million in 2019, plans to develop an eight-story project with 64,360 rentable square feet of space, state-of-the-art security, and access control with online and touchless rental options (rendering top).

41-47 E 21st St. will have two off-street, enclosed, truck-sized loading bays, as well as a smaller backup loading area. In addition, ownership will construct two new elevators and new building systems, including sprinklers, plumbing, electric, HVAC and roofing.

The JLL Capital Markets team representing the borrower was led by Senior Managing Directors Steve Klein and John Rose, Managing Director Geoff Goldstein, and Associate Mitchell Kaliner.

“This was a unique opportunity to lend on a premier asset class in a supply constrained market that is poised for future growth,” Klein said. “It was a pleasure to work with Ramrock Real Estate, Mequity Companies, and Cerberus, who each intimately understand the Manhattan self-storage market.”

The former 24 hour parking garage will be converted into climate controlled self storage facility operated by real estate investment trust CubeSmart.

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