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White Oak and Thorofare Secure $21.5M Loan for Tribeca Storage Conversion


Public storage sign

According to Business Wire, White Oak Real Estate Capital (WOREC), an affiliate of White Oak Global Advisors, and Thorofare Capital have teamed up to secure a $21.5 million floating rate senior loan. This funding will support the acquisition and transformation of 78 Walker Street in Tribeca, Manhattan into a state-of-the-art self-storage facility, which will be managed by Public Storage.

 

Project Details

CSP Properties LLC, the new owner, will oversee the conversion of the eight-story former office and factory building into a 300-unit, climate-controlled storage facility spanning 30,540 square feet. The facility will focus on offering larger units to meet the significant demand in the Tribeca area. Eric Tanjeloff, Managing Principal of WOREC, commented on the strategic location and value creation potential of the project, highlighting its importance in the Manhattan storage market.

 

Market Insights

The facility is situated in Lower Manhattan, a region characterized by high barriers to entry and premium rental rates. Reports from CBRE and REIS indicate a storage space deficit of over 530,000 square feet within a one-mile radius of the property. Additionally, existing self-storage facilities within three miles boast an average occupancy rate exceeding 93%, suggesting strong market demand.

 

Partnership and Industry Resilience

This collaboration marks the second time WOREC and Thorofare have joined forces for a self-storage loan. In a previous venture, they provided $27.8 million in bridge financing to GoodFriend Storage in August 2023 for a facility expansion on Long Island. Felix Gutnikov, Principal and Head of Originations at Thorofare, emphasized the resilience of the self-storage sector amidst challenging capital markets, noting sustained institutional investor interest in urban areas.

 

Strategic Outlook

The 78 Walker Street project not only addresses the storage needs of the Tribeca community but also presents a lucrative investment opportunity. By converting the property into a high-demand storage facility, WOREC and Thorofare aim to enhance their real estate portfolio and deliver substantial value to stakeholders.


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