Newark, N.J. – In Newark, one of the nation’s top air, shipping and rail hubs, a joint venture between CrownPoint Group Inc. (CPG) and the Lamar Companies has closed on the acquisition of an underutilized land parcel in the city’s Ironbound District. In addition, the JV has secured city-approved site plans 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, where the two major arterial logistics roadways of U.S. Routes 1 and 9 converge, the property serves Ironbound’s most population-dense residential neighborhoods. In total, the former salvage yard spans four lots and approximately one 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,” said CPG Vice President Michael Legacki. “We are pleased to partner with Lamar Companies 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,” said Legacki. “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 Companies, 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 Companies 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,” said Kyle Hayes of Lamar Companies. “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 Corporation, the neighborhood is four square miles and an important economic engine for Newark that drives 40 percent of the city’s economy and contributes 33 percent 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.
Rich in history and a long-time industrial stronghold for the city since the 19th Century, the Ironbound has been home to a host of prominent Newark companies. Bound by Newark Penn Station and the Amtrak line to the west, the neighborhood is bordered by the Passaic River to the north, U.S. Routes 1 and 9, NJ Turnpike and Port Newark to the east and I-78/Newark Airport to the south. Specifically, Routes 1 and 9 offer a southbound exit and northbound entry point at Wilson Avenue and extend from New York City to Middlesex, Union, Hudson and Bergen counties.
Since its inception in 2013, Parsippany, N.J.-based CrownPoint Group’s investment and development team has sourced, entitled and developed over 2.5MSF of self-storage space with an aggregate value +$500M.