Jernigan Capital, a Memphis-based real estate investment trust specializing in self-storage units, has closed a $16.1 million development investment in Bay Shore, NY.
The project involves the conversion of an existing building into a 107,325 net rentable square feet, 1,191 unit multi-story facility that will provide state-of-the-art, all climate-controlled storage in a dense, high income area on Long Island, approximately 40 miles east of midtown Manhattan. All building permits have been obtained for the proposed project, and construction is expected to commence this month and be completed in the fourth quarter of this year. The Company advanced approximately $6.9 million of its total $16.1 million commitment at closing. Alton Storage Partners, LLC, headquartered in Monrovia, CA, is the developer of the proposed project. This is the first self-storage development in which the Company and Alton Storage Partners have co-invested.
“Our developer partners are finding excellent self-storage sites in areas just outside the boroughs of New York City,” said Dean Jernigan, chairman and chief executive officer of Jernigan Capital. “These sites have similar demographic characteristics to the boroughs, but generally lack self-storage capacity to meet the demands of the population in the submarkets. We are hopeful that our momentum in this region will lead to additional high-return opportunities in the coming months.”