In what might be the highest price paid for a self-storage facility in 2014, Public Storage recently bought a 160,000-square-foot storage facility in Sunnyvale, CA, for $40 million.
The Silicon Valley Business Journal identified the seller as Highridge Partners, a commercial and residential real estate investment firm. The facility, at 875 E. Arques St., had operated as Super Space Self Storage. Public Storage closed the deal in mid-November.
In its third-quarter financial report, Public Storage said it had four facilities under contract for a total of $63 million, with those deals expected to close by the end of 2014. Public Storage, a publicly traded REIT, is the country’s largest self-storage operator.
Los Angeles, CA-based Storage Solutions bought a 105,000-square-foot self-storage facility in San Jose, CA, for $13.4 million.
The facility, at 501 Cinnabar St., was sold by J. Lohr Vineyards and Wines and Gerald Hamilton. CBD Indoor Mini Storage had operated the facility.
Tom de Jong, vice president of Colliers International, represented both sides of the deal.
Storage Solutions owns and operates four facilities in Southern California.
Simply Self Storage
Orlando, FL-based Simply Self Storage has purchased a seven-property portfolio in the Memphis, TN, area for $16.6 million. The portfolio covers more than 383,000 rentable square feet and 2,861 self-storage units.
“Strategically located within a strong MSA, these seven properties provide the new owner with a substantial market presence and the ability to balance risk between stabilized assets and value-add properties,” said Michael Mele, a broker in the Tampa, FL, office of Marcus & Millichap who arranged the sale.
Anne Williams of the Marcus & Millichap office in Memphis helped close the deal.
Property records show the facilities were owned by a number of companies affiliated with Austin, TX-based Virtus Real Estate Capital and Gulfport, MS-based Tellus Development. Most of them had been acquired in 2010. The facilities were built between 1995 and 1999.
Here are the seven facilities:
- Collierville Mini Storage, 50,100 square feet, 348 units, Collierville, TN
- Kirby Raines Self Storage, 49,610 square feet, 364 units, Memphis, TN
- Northwest Self Storage, 50,085 square feet, 388 units, Memphis, TN
- Southaven (Airways) Self Storage, 61,185 square feet, 550 units, Southaven, MS
- Stateline Self Storage, 61,900 square feet, 378 units, Southaven, MS
- Southern (Getwell & Shelby Mini Storage), 51,285 square feet, 352 units, Memphis, TN
- Winchester Self Storage, 58,470 square feet, 481 units, Memphis, TN
Florida storage operator Safe & Sound Storage Center sold one of its three self-storage facilities to W.P. Carey for $8.6 million.
The 797-unit, 82-949-square-foot storage facility is at 1400 NE Savannah Road in Jensen Beach, FL. Extra Space Storage manages the facility for W.P. Carey.
Michael Mele and Luke Elliott, both of Marcus & Millichap, represented the buyer and seller.
Elliott said the owner received several offers for the Jensen Beach facility, which was built in 1989.
“Through our system, we were able to bring in higher offers, manage the process, and ultimately put substantially more dollars in the seller’s pocket,” Elliott said.
Heritage Storage Facilities
Independent operator Heritage Storage Facilities recently sold its two facilities to an undisclosed private investor in Southern California. The two facilities, covering a combined 106,230 square feet, sold for $6.8 million. The facilities total 824 units.
Bobby Loeffler and Tyler Skelly, both of The Loeffler Self-Storage Group, represented the seller.
The facilities are at 1885 E. Dinuba Ave. in Reedley, CA, and 795 Greger St. in Oakdale, CA. They date back to the mid-2000s.
Publicly traded self-storage REIT CubeSmart bought Champion Self Storage at 8421 Cheswick Oak Ave. in Jacksonville, FL, for $5.5 million.
The seller was Atlanta-based Argyle Vest LLC.
Compass Self Storage
Compass Self Storage bought the former Amelia Island Self Storage at 2641 Bailey Road in Fernandina Beach, FL, for an undisclosed price. The 68,000-square-foot property is the 14th Compass location in Florida. The facility is in the Jacksonville area.
Cleveland, OH-based Amsdell Companies owns and operates Compass Self Storage.
Virtus Real Estate Capital
Austin, TX-based private equity firm Virtus Real Estate Capital bought the former Audubon Point Mini Storage facility at 1411 Audubon Point Drive in Horn Lake, MS, for an undisclosed amount.
The 935-unit facility, built in 2007, covers 125,630 square feet and was built in 2007. The property had an occupancy rate of 55 percent at the time of the purchase. The seller was an unnamed private company.
The location is Virtus’ third facility in the Memphis, TN, area. It is managed by Memphis-based Absolute Storage Management.
The Memphis suburbs of Horn Lake, Southaven and Olive Branch “will continue to be an area of focus for Virtus and Absolute going forward, due to the region’s underlying economic and population growth,” said Scott Humphreys, acquisitions director at Virtus.