Sovran Self Storage has signed a deal to operate four self-storage facilities on Long Island and in western Connecticut as part of its push to expand in the metro New York City market.
Under the deal, Sovran will run four Westy Self Storage facilities in Danbury and Milton, Conn., and Hicksville and Farmingdale, N.Y., and rebrand them under its Uncle Bob’s banner. Sovran, in recent years, has been expanding its stable of properties through a program where it manages self-storage facilities that are owned by others.
Sovran earlier this year acquired three self-storage facilities on Long Island, where it now operates 10 facilities. The company now has seven Uncle Bob’s stores in Connecticut.
Sovran will run the four sites under 15-year leases, with $6 million annual lease payments that will rise by 4 percent each year. The deal also gives Sovran an option to purchase the facilities for $120 million between February 2015 and September 2016.