Pegasus Group, operator of Central Self Storage, paid $439 per square foot for a self-storage facility in Berkeley, CA, near San Francisco and Oakland.
Pegasus Group paid $11.2 million for the 24,736-square-foot facility, at 2721 Shattuck Ave. The purchase price included $1.4 million in defeasance costs associated with buying out the existing loan on the property.
Commercial real estate broker Carl Touhey of Performance Storage Group represented the seller. Touhey said the deal commanded the highest price per-square foot that he’s ever seen for a self-storage facility.
“Everything is a function of the rents. In this market, it is $279 for a 10×10,” Touhey told The SpareFoot Storage Beat.
Touhey said barriers to entering the Berkeley market are extremely high. Berkeley is home to the main campus of the University of California.
“You will never ever get another self-storage facility in Berkeley,” Touhey said.
The property traded at a cap rate of 5.1 percent. Touhey said the deal is part of Pegasus Group’s joint venture with the Arizona State Retirement System.
A private investment group owned the former UC Storage facility (pictured in photo at top). The structure was converted into an 800-unit storage facility in 2006.
Self-storage REIT Public Storage recently bought a four-facility portfolio along the East Coast.
The facilities — in Virginia, North Carolina and South Carolina — previously operated under the names Storage 2000 and Storage Central.
According to a news release from Midcoast Properties, the buyer paid over $100 per square foot for the 383,000-square-foot portfolio, amounting to more than $38.3 million. Combined, the four facilities contain more than 2,500 units.
Dale Eisenman, a broker at Midcoast Properties, represented the seller.
These are the four facilities:
- 4121 Commodity Parkway, Raleigh, NC
- 521 Garrisonville Road, Stafford, VA
- 4720 Business Drive, Fredericksburg, VA
- 540 Knox Abbott Drive, Cayce, SC
Extra Space Storage
Self-storage REIT Extra Space Storage recently bought an 80,575-square-foot self-storage facility in Colorado Springs, CO, for $6.25 million.
The property, at 5110 Stetson Hills Blvd., previously operated as Austin Bluffs at Stetson Hills Self Storage.
The facility, built in 2003, consists of 18 buildings and 476 drive-up units. The seller was Charles E. Ishmael LLC. Joan Lucas, a member of the Argus Self Storage Sales Network, brokered the deal.
Extra Space also recently purchased a 53,000-square-foot storage facility at 660 Edgewood Ave. in Atlanta from NitNeil Partners for an undisclosed sum.
NitNeil bought the property in 2012, converted two vacant industrial buildings to self-storage and added another building.
Extra Space recently reported the purchase of two properties in Colorado and Georgia for a combined $17.5 million. It’s presumed that they are the Colorado Springs and Atlanta facilities.
Other notable transactions
- LifeStorage bought a 62,170-square-foot storage facility at 651 S. Rowlett St. in Collierville, TN, for $3.87 million. Lottastorage LLC was the seller. LifeStorage also bought two facilities in Houston, TX. They’re at 1770 E. TC Jester Blvd. and 690 Normandy St. The purchase prices weren’t available.
- U-Haul bought a 51,922-square-foot storage facility at 905 W. New Orleans St. in Broken Arrow, OK, from Rock Cod Broken Arrow Land LLC for $3 million.
- Amsdell Companies, operator of Compass Self Storage, bought an 80,000-square-foot storage facility at 2420 E. 14 Mile Road in Warren, MI, for $2.7 million. The facility is the company’s 11th location in Michigan. Jay Greenspan of Michigan Metropolitan Realtors represented the seller, Safety Mini Storage LLC.
- A private investor bought a 28,460-square-foot facility at 54401 Independence St. in Elkhart, IN for $1.1 million. The transaction included two single-tenant commercial buildings on the property totaling 7,200 square feet. Sean Delaney and Matthew Duda, brokers at Marcus & Millichap’s office in Oak Brook, IL, represented the seller, which operated the facility as Premier Self Storage. The property now is known as All Secure Self-Storage.
- WDP Glendale Storage bought a 79,544-square-foot facility at 5801 W. San Miguel Ave. in Glendale, AZ, for $4.9 million. The seller, Ivicevic Self Storage LLC, operated the facility as West Glendale Self Storage. Under the new ownership, the facility is being managed by US Storage Centers. Norman Herd, a partner at Empire Commercial, represented both parties in the deal.
- GF Frontier LLC bought a 16,479-square-foot storage facility at 14007 N. Newport Highway in Mead, WA, for $2.85 million. The facility features 117 storage units and 109 RV parking spots. Anthony and Pamela McClure were the sellers.
- A private investor bought Tri-Cities Self Storage at 3414 Swetzer Road in Loomis, CA, from another private investor for $3.3 million. The facility features 445 units. Carl Touhey of Performance Storage Group brokered the deal.
- A private investor in Houston, TX, bought the 39,890-square-foot Preferred Mini Storage facility at 4300 Highway 105 East in Conroe, TX, for an undisclosed amount. Bill Bellomy, Michael Johnson and John Owens of Bellomy & Co. arranged the deal.
- Bellomy & Co. also arranged the sale of A-Another Space Place in Conroe, TX. Conroe Storage Investors bought the 30,380-square-foot facility for an undisclosed amount.