Chicago, IL-based real estate investment firm Harrison Street Real Estate Capital LLC and Irvine, CA-based self-storage owner and operator Westport Properties Inc. bought two self-storage facilities in the Nashville, TN, market for a combined total of nearly $38 million.
The two Mallory Station Storage facilities are set to be rebranded under Westport Properties’ US Storage Centers brand.
“Self-storage has been a core investment area for Harrison Street since we launched in 2005. We continue to identify attractive opportunities in the sector that will generate risk-adjusted returns for our investors,” said Christopher Merrill, co-founder, president and CEO of Harrison Street.
The facility at 7102 Bakers Bridge Avenue in Brentwood, TN sold for more than $21 million.
One of the facilities, at 7102 Bakers Bridge Ave. in Brentwood, TN, sold for $21,485,000, or $301 per square foot, according to Ashley Compton of Nashville, national director of the self-storage group at Colliers International. The other facility, at 6346 Nolensville Road in Nolensville, TN, sold for $16,485,000, or $216 per square foot. Compton brokered the two-facility deal.
The name of the seller wasn’t available.
Compton said the portfolio attracted 18 bidders. The purchase price set a per-square-foot record for self-storage acquisitions in Tennessee, he said.
“The sale of the Mallory Station properties establishes a new high-water mark for institutional-quality self-storage in the Southeast,” Compton said. “The fact that multiple bidders offered … north of $300 per square foot clearly illustrates that institutional money places similar value in well-located and stabilized self-storage as Class A CBD office buildings.”
The Brentwood facility covers 76,168 square feet, while the Nolensville facility covers 71,338 square feet.
Six-property portfolio sold
Meanwhille, Harrison Street sold a six-facility portfolio in the Dallas, TX market to Glendale, CA-based self-storage REIT Public Storage. The purchase price was not available.
The portfolio consists of about 3,400 units and 445,000 square feet. Addresses for the properties weren’t available. The facilities had operated under the Advantage Self Storage brand name.
