York, PA-based PFG Capital is looking to sell a portfolio of self-storage facilities in Harrisburg, PA.
“They recognize the timing of the market and how aggressive it has been and decided to put the last five facilities they own on the market,” said Rick Schontz, a managing director of the Philadelphia office of HFF who is representing the seller.
The facilities operate under the Storage Depot brand name.
Expand and contract
PFG is a diversified real estate firm and bought its first self-storage facility in 2000. By 2006 the company bought and developed 30 facilities in six states under the name All Seasons Storage Trust. It sold the entire portfolio to Simply Self Storage that year.
Following the disposition, the company assembled a new portfolio under the names StorageWORKs! and Storage Depot.
In April, Schontz helped PFG sell its three StorageWORKs! locations in the Philadelphia area to Metro Self Storage for $29.25 million. PFG also sold one other StorageWORKs! facility in Baltimore the previous year.
“This is the second portfolio we are selling for the seller this year,” Schontz said.
Schontz said the portfolio is a good opportunity for an independent operator or investor to put a stake in the Harrisburg market.
“Harrisburg is not a huge market, but given the aggressive nature of the market we are in right now, we find a lot of investors looking at deals like this because they are getting priced out of portfolio deals in places like New York, D.C. and Florida,” Schontz said.
Schontz added that a couple of the storage REITs are looking at the property, but not all of them.
The Storage Depot portfolio does not have a list price.
The portfolio covers 310,000 square feet and includes 2,500 units. There is room to expand the portfolio another 29,000 square feet. Three of the facilities were also expanded earlier this year.
Three of the facilities in the portfolio were built in the 80s, the other two were built in the last 15 years. Schontz said the physical occupancy of the portfolio is in the high 80s, while the economic occupancy is in the mid 70s.
“Generally speaking this is a higher quality portfolio in a smaller market, but there is a little bit of juice left in the deal, which a lot of people are looking for,” Schontz.
Schontz said a call for offers on the portfolio is due October 15.
The facilities are located as follows:
6325 Allentown Boulevard
321 Milroy Road
4401 North 6th Street
350 South 7th Street
115 Cumberland Parkway