A six-story self-storage development that is fully approved just off Newark’s Downtown will be moving forward after obtaining financing to build out the project.
JLL Capital Markets announced that it arranged $19 million in construction financing for a project at 305 Wilson Avenue. The endeavor will add a 1,332-unit self-storage facility to Newark’s Ironbound neighborhood that was previously home to an auto salvage yard.
JLL worked on behalf of the borrower, a joint venture between CrownPoint Group and Lamar Companies. The loan was issued through New Jersey-based Provident Bank.
The eventual self-storage property totaling will total 135,728 square feet and all of the units will be climate controlled. The spaces will average 75.5 feet and the property will also feature two interior loading spaces and eight off-street parking spaces.
“JLL is pleased to have worked on CrownPoint and Lamar’s behalf to secure financing for this ground up development,” said Klein. “The market for construction financing currently has its challenges but can be obtained for well-located self-storage projects being managed by top tier operators and experienced developers.”
Extra Space Self Storage will lease and manage the day-to-day operations of the property. Construction is scheduled to be completed during the first half of 2025.
The neighborhood surrounding 305 Wilson Avenue consists of housing units that are 76% renter-occupied, which translates to strong demand for self-storage facilities.