Manhattan Mini Storage has secured approximately $2.1 billion in commercial mortgage-backed securities financing to refinance 16 self-storage properties across New York City, according to a source familiar with the transaction.
The refinancing comes as the city's self-storage industry faces increased regulatory scrutiny, including new licensing requirements and recent enforcement actions related to pricing practices.
The portfolio, operated by Manhattan Mini Storage (MMS), comprises 51 facilities across Manhattan, Brooklyn and Queens. The $2.1 billion floating-rate loan was provided by Citi Real Estate Funding and Morgan Stanley and will refinance a mortgage of the same amount originated in 2022, according to the source.
The new loan is expected to carry an initial two-year term, with three 12-month extension options. The transaction is scheduled to close around Oct. 8.
2.2M Square Feet of Collateral
The collateral includes approximately 54,000 storage units spanning 2.2 million square feet in Manhattan. The portfolio also contains roughly 293,000 square feet of commercial and miscellaneous space and is nearly 87% occupied.
The properties are spread across 10 New York City neighborhoods, with the largest concentrations in Chelsea, SoHo and Harlem.
MMS invested approximately $42 million in capital improvements across the properties between 2022 and 2025, according to the source. That investment included $16.2 million for the expansion and modernization of the facility at 420 E. 62nd St., the largest property included in the collateral pool.
Financing Amid Regulatory Changes
The refinancing arrives as self-storage operators in New York City contend with new regulatory requirements and heightened scrutiny of industry practices.
A city regulation adopted last year requires self-storage facilities to obtain licenses from the New York City Department of Consumer and Worker Protection (DCWP). The requirement took effect in August and requires operators to submit sample rental contracts and a schedule of rates as part of the licensing process.
Under the rules, rates not included in a facility's application cannot subsequently be charged unless the operator first provides written notification to the DCWP.
The industry's pricing practices have also faced enforcement activity. In July, Extra Space Storage paid $1.7 million to settle a lawsuit brought by the New York City Department of Consumer and Worker Protection concerning pricing practices in the city.
Against that backdrop, the Manhattan Mini Storage refinancing represents a significant financing transaction involving a substantial New York City self-storage portfolio.
Read Regulatory Reckoning: NYC Puts Self-Storage In Its Crosshairs
StorageMart Acquisition
Manhattan Mini Storage was founded in 1978 as a family-owned business and was acquired by StorageMart in 2021.
StorageMart, founded in 1973 and headquartered in Columbia, Missouri, operates a global self-storage portfolio valued at more than $10 billion. Its portfolio encompasses more than 25 million square feet and approximately 236,000 units worldwide.