According to Keen-Summit Capital Partners, which brokered the sale, Equity Resource Investments (ERI) has sold its 1,378-unit, Life Storage-branded facility at 1301 Avenue M in Brooklyn, N.Y., to Heitman Capital Management, its lender, for $46.9 million. The sale took place before the Uniform Commercial Code foreclosure auction that was scheduled to occur on Feb. 29.
ERI had invested more than $73 million in Safe N Lock’s storage developments, including this 96,568-square-foot facility that was built in 2020. However, per court documents, ERI is suing Safe N Lock’s top executives for fraud, claiming Safe N Lock misappropriated funds that helped cause their jointly owned properties to go into foreclosure in July. According to the complaint filed in August, ERI is seeking $3.7 million in damages related to breaches of contract and other relief yet to be determined.