Farmington Hills, MI-based operator Storage Pros Management has put a nine-facility, three-state portfolio on the market for $62.5 million. If a deal goes through, the sale would be the company’s first.
“We chose these facilities because they are cohesive in that they are institutional-quality and will presumably appeal to the best-capitalized buyers in the industry,” said David Levenfeld, president and CEO of Storage Pros.
Levenfeld said he thinks at least one REIT, as well as well-financed private buyers, will be interested in the portfolio.
The portfolio features 5,215 units in more than 684,000 rentable square feet. The overall occupancy rate of the portfolio is 86.5 percent, according to a sales flyer from the listing broker, NGKF Capital Markets.
“The market is signaling it is a good time to sell. We view this as a strategic initiative in response to market conditions that is in the best interest of our investors,” Levenfeld said.
The facilities up for sale are in three states: five in Michigan, three in Massachusetts and one in Rhode Island. Levenfeld said Storage Pros—which operates more than 50 facilities in Florida, Massachusetts, Michigan, New Hampshire, Rhode Island and Tennessee—is not pulling out of the markets where it’s selling facilities.
The properties in the nine-facility portfolio were purchased between 2008 and 2010. The Michigan facilities are outside Detroit, and in Flint and Grand Rapids. The other facilities are clustered south of Boston.
Levenfeld said Storage Pros is in the market for potential acquisitions, primarily in markets where it already has a presence. “We have strong demand from our investor base to continue to acquire properties,” he said.