Newmark Arranges $300M for Self Storage JV
The firm has provided the financing to Maya Capital Partners and Artemis Real Estate.
Newmark has arranged a $300 million programmatic joint venture involving participants Maya Capital Partners and Artemis Real Estate Partners. The joint venture is focused on high-quality, value-add self storage assets in the Northeast U.S.
Transactions will comprise both marketed and off-market acquisitions of high-quality, value-add properties and certificate of occupancy lease-up plays with the goal of creating a diverse portfolio of assets. The joint venture was seeded by acquiring a Class A self storage property in New Rochelle, N.Y. Featuring 1,120 units, the 96,693-square-foot facility, which recently received its certificate of occupancy, is made up of a single, four-level building that is 100 percent climate controlled. This property will allow the chance for immediate lease-up at market rents to obtain the maximum rental revenue.
The joint venture will use Maya’s existing “Drive Up Storage” brand. The tech-forward operating system offers remote management and deep data analytic capacity, and on-site, kiosk-driven customer interaction and interfacing.
In a prepared statement, a Newmark executive reported Maya has achieved substantial success in the self storage sector. The new venture involving Artemis will enable the company to expand its platform while simultaneously growing into one of the dominant storage operators in the region. The same statement noted capital markets responded very well to the opportunity, reflecting the availability of capital for operators with unique business plans based on aggregating alternative real estate assets.
The capital-raising initiative is one aspect of Newmark’s ongoing thrust into complex joint venture financing, which focuses on raising capital for platform and programmatic joint ventures. Led by Dustin Stolly and Jordan Roeschlaub, vice chairmen & co-heads of the Debt and Structured Finance team, the group recently arranged a $1 billion cold storage platform venture backed by $350 million in equity. Earlier this year, Newmark secured a $284 million loan for a development in Silicon Valley.