Today, we’ll highlight a deal to show you what title insurance costs, as well as what happens behind the scenes to streamline the closing process.
While 2020 marked one of the worst-performing years in recent history for commercial real estate, one bright spot was self-storage. Investors seeking diversification from multifamily and traditional commercial real estate found yield opportunities in self-storage.
Overall, self-storage sales tallied $7.7 billion in 2020—a 33% jump, according to Real Capital Analytics. Self-storage is off to a strong start this year as well, with $968 million in investment activity through February. That’s the highest number that RCA has recorded for the first two months of a year.
The Deal
Real estate investment trust Life Storage purchased a self-storage site in Queens from storage company SNL Development Group for $36.4 million.
Queens County (Jamaica)
Fee Policy: $104,319
Title Fees: $750+
NYS Transfer Tax: $236,600
NYC Transfer Tax: $955,500
County Recording Fees: $500+
Title Grade: N/A
Cornerstone Insight
These transactions present challenges usually not found in other commercial real estate sectors. Until recently, many of these properties did not trade often, and many have been owned by families for more than 50 years. When properties have been owned for decades, they’ve often passed through heirs informally, which can present major issues if the title exchange was not completed properly. Untangling such inheritances can be very complex and hold up a transaction. Our attorneys have in-depth experience with trust and estate matters, which is integral in solving these issues.
If you have any questions about inheritances or title insurance, or if you would like to discuss an upcoming or potential transaction, please contact us.
