The property at 765 Route 17, Carlstadt, was formerly occupied by ENER-G Rudox, which makes generators, according to David Thurston of Marcus & Millichap in Saddle Brook, the listing and selling agent in the deal. The company was founded in 1949 as Rudox and merged with the British company ENER-G in 2013. It recently moved to a modernized plant in East Rutherford, which will also serve as its North American headquarters.
The Carlstadt/Wood-Ridge property was sold by Janard Management Services Inc. and bought by Metro Self Storage, Thurston said.
Thurston said the former owner considered marketing the property for different uses, including industrial, retail and multifamily. But ultimately, Thurston said, self storage seemed to be the best fit. Self storage buildings require several acres, but generate relatively little traffic or need for parking, he said. Thurston said self storage buildings do best in densely populated areas such as North Jersey, especially when there are a lot of apartment-dwellers nearby who don't have room for all their belongings.
The old Rudox building is being demolished to make way for the three-story self storage building. Thurston said the deal reflects growing interest in redevelopment on Route 17 in South Bergen. With little space available in Paramus, he said, "you have to look elsewhere for larger opportunities to build."
There are 48,500 self storage facilities totaling 2.5 billion square feet in the U.S., with total annual revenue of about $28 billion, according to the Self Storage Association in Alexandria, Va. The association says about 9.5% of U.S. households rent storage units, up from 6% in 1995.