A joint venture between Parsippany-based CrownPoint Group Inc. and the Lamar Cos. has closed on the acquisition of an underutilized land parcel in Newark’s Ironbound District, where it plans to build a self-storage facility.
According to a Tuesday announcement from the JV, approval from the city already has been secured for the construction of an institutional-quality self-storage facility of approximately 135,000 gross square feet and more than 1,200 units.
Located at the corner of Avenue L and Wilson Avenue, the property serves Ironbound’s most population-dense residential neighborhoods. In total, the former salvage yard spans four lots and approximately 1 acre of land.
“This facility will benefit from a high-barrier-to-entry location in Newark, where there is a shortfall of land primed for development and the existing supply of new self-storage inventory has been extremely limited,” CPG Vice President Michael Legacki said. “We are pleased to partner with Lamar Cos. to bring an institutional-quality self-storage facility to the city of Newark that will serve as a new neighborhood anchor and a catalyst for the repositioning of an underutilized land parcel.”
Once completed, the modern, six-story, climate-controlled self-storage facility will feature best-in-class management.
“At CPG, we are data-driven, well-capitalized and drawn to high-barrier-to-entry submarket storage developments because of the recession-resistant nature of self-storage,” Legacki said. “We believe that this site meets or exceeds our investment criteria and will provide value to our investors, partners and lenders while benefiting the community that it will serve.”
According to CPG and Lamar Cos., this in-demand asset will figure prominently in an underserved market with strong underlying market fundamentals and demographics.
“As a full-service real estate investment company, Lamar Cos. is pleased to partner with CPG on this redevelopment project, which will allow both companies to deploy a shared entrepreneurial vision while creating investment value and overall community enhancement,” Kyle Hayes of Lamar Cos. said. “We look forward to achieving significant value creation in collaboration with CPG and will utilize a first-class self-storage operator at this new facility.”
According to the Ironbound Community Corp., the neighborhood is four square miles and an important economic engine for Newark that drives 40% of the city’s economy and contributes 33% to its tax base. The Ironbound’s distinct architectural landscape includes local factories, warehouses and industrial properties as well as one-, two- and three-family homes and apartment complexes.
