Publicly traded REIT Sovran Self Storage has purchased a self-storage facility in a booming section of St. Petersburg, FL, for $10.2 million.
Michael Mele, senior vice president of investments at Marcus & Millichap in Tampa, FL, said the price per square foot of $143 is the highest he’s seen for a self-storage facility since the economic downturn. Mele represented both sides in the deal.
Sovran, which operates the Uncle Bob’s Self Storage brand, closed on the purchase of the 720-unit facility on Aug. 29, local property records show. The seller was Largo, FL-based Watermark Development Group.
The 71,000-square-foot facility, located at 10111 Gandy Blvd., was built in 2007 and operated as Gandy at 4th Street Storage. The six-building facility is 82 percent climate-controlled.
“The asset is a premier self-storage facility located in an area of St. Petersburg that is experiencing an apartment and retail construction boom,” Mele said.
In 2006, Watermark Development bought the land where the storage facility sits for $2.2 million, according to local property records.
2014 has been an active year for Sovran on the acquisition front, racking up $225 million in acquisitions from January through June. More recently, Sovran bought a facility in Chesapeake, VA, for more than $6 million.