First Real Estate Acquisition in the Self-Storage Space, Will Expand Services in the New York Market
Clutter, a tech-enabled storage company that manages the pickup, storage and retrieval of your belongings, announced it has acquired The Storage Fox portfolio for $152 million. The Storage Fox portfolio is comprised of four properties in New York, including Long Island City, Brooklyn, White Plains and Yonkers, bolstering Clutter’s presence in the largest city in the US.
“Clutter competed with multiple self-storage REITs throughout the bidding process to win the deal — a testament to the strength of the company’s management team and its ability to execute on an innovative business model.”
Since launching in 2015, Clutter has become the leading provider of on-demand storage services, operating in seven major market areas and over 1,000 cities and towns across the US. With the acquisition of The Storage Fox portfolio, Clutter will extend its services to customers who need regular access to their belongings, such as small business owners, contractors, pharmaceutical representatives and teachers.
“In the spirit of saying ‘yes’ more, we are proud to offer self-storage services to customers who need local access and want to know their belongings are close at hand,” said Ari Mir, co-founder and CEO of Clutter. “This hybrid strategy of self-storage and on-demand storage has been our vision from the beginning. It represents an exciting milestone in our long-term strategic plan to create a platform for people to manage their belongings.”
Self-storage is a $40 billion a year market in the US. One in nine households use self-storage and there are more self-storage facilities in the US than Starbucks and McDonald’s locations combined. Since its founding, Clutter has invested in people, technology and logistics in order to make the entire storage experience and ecosystem more convenient. Clutter started with building out its own warehouse network and creating infrastructure for urban areas. Now, the company is focused on owning real estate in key markets to offer the most comprehensive suite of storage products and services.
“Expanding into self-storage is something we have been discussing since Clutter’s Series A pitch to Sequoia and we are excited to see it come to fruition,” said Omar Hamoui, partner at Sequoia Capital. “The acquisition reinforces Clutter’s market leadership and expands Clutter services by offering a better experience for customers who need self-storage or on-demand storage.”
“Portfolios like that of The Storage Fox are extremely rare, and this acquisition signals that Clutter is uniquely positioned to take on and succeed in the self-storage industry,” said Eliav Dan, Head of West Coast Real Estate Finance at Barclays, which acted as Clutter’s exclusive financial advisor. “Clutter competed with multiple self-storage REITs throughout the bidding process to win the deal a testament to the strength of the company’s management team and its ability to execute on an innovative business model.”
Clutter will rebrand all four facilities and expects them to be fully operational under the Clutter brand by November 2019. Since raising its Series D funding round earlier this year, Clutter continues to enter new markets and expand its customer base. With a supply chain that is more intelligent and sophisticated than ever before, the company’s industrial footprint now includes over two million square feet of self-storage facilities and warehouses.