This is an archive of self-storage acquisition news items collected during the month of November 2020.

News from the week of 11/4/20

Michigan-based Storage Pros Management LLC has sold a 16-property self-storage portfolio in New England to SROA Capital, a storage-invested private equity firm based in West Palm Beach, FL. Storage Pros was represented by Newmark Vice Chairman Aaron Swerdlin and Executive Managing Director Kenneth Cox, in cooperation with local representation in Connecticut, Massachusetts and Rhode Island.

“This transaction presented a rare opportunity to establish mass in the New England self storage market in one transaction,” said Cox.

This transaction represents Newmark’s fourth large portfolio sale with Storage Pros’ industry veterans and leaders, David Levenfeld, Ian Burnstein and John Price. The portfolio was accumulated through single- and multi-property acquisitions over the last several years, each carefully re-positioned through property improvements and institutional management, adding significant value to the portfolio.

The subject portfolio consists of more than 850,000 square feet across three states, offering significant geographic scale in the highly sought-after New England region. This acquisition marks the first investment for the buyer SROA’s 8th dedicated self-storage fund, SROA Capital Fund VIII, LP. The portfolio will be managed under its brand Storage Rentals of America (SROA).

“This transaction not only provides SROA a foothold into the Northeast and gives SROA the opportunity to add value through building several expansions on the existing properties, but it also allows SROA to further accumulate single- and multi-property owners looking for liquidity in a market that is seeing positive growth due to COVID-19-related housing disruptions,” says SROA Capital CEO Benjamin Shibe Macfarland III.

Berkshire Hathaway Storage Group reports:

Hagerstown, MD based, Valley Storage, purchased Thornburg Self Storage in Woodford, VA for an undisclosed price. The facility, located at 5309 Mudd Tavern Road, offers ~45,000 square feet of rental space inside of 326 units. Cameron Vale and Parker Sweet of Berkshire Hathaway Storage Group facilitated the transaction between seller Smithdeal LLC and Valley Storage.

Marcus & Millichap reports the following:

The Vault Self Storage, a 70,275 square-foot self-storage facility located 144 at 144 Rawlinson Rd in Rock Hill, SC, was sold in an off-market deal to a private investor. The facility includes 295 climate-controlled units, 225 non-climate-controlled units and 67 parking spots totaling 70,275 net rentable square feet. The facility was built in 2018 and has enjoyed a fast lease-up. Gabriel Coe and Brett R. Hatcher, investment specialists in Marcus & Millichap’s Columbus office, brokered the deal between the buyer and seller. Ben Yelm, regional manager and broker of record, assisted in closing this transaction.

Strategic Storage Growth Trust II reports the following:

Strategic Storage Growth Trust II, Inc. (“SSGT II”), a private real estate investment trust sponsored by an affiliate of SmartStop Self Storage REIT, Inc. (“Smartstop”), announced today its acquisition of a newly constructed, 950-unit self storage facility in Las Vegas, NV. This property represents SSGT II’s first acquisition in Las Vegas and the ninth property owned or managed by Smartstop in the Las Vegas market. Located at 5730 S. Durango Drive just south of the Spanish Trail Golf Course, the facility is composed of approximately 99,300 square feet of rental space.

News from the week of 11/11/20

Ladera Ranch, CA-based SmartStop Self Storage will acquire Strategic Storage Trust IV (SST IV) in an all stock transaction valued at $370 million. SmartStop will add 24 wholly-owned properties in the U.S. and five joint venture self-storage properties under development in Toronto to its portfolio. Together the properties total 2.6 million square feet of self-storage space.

“We are excited to announce this transaction and look forward to combining the high-quality assets in the SST IV portfolio with SmartStop’s existing portfolio and operational platform.” said Michael S. McClure, CEO of SmartStop. “With this merger, the combined company will be better positioned to recognize expense efficiencies, reduce borrowing costs, and aggregate size and scale for the future. Since all of the SST IV portfolio is already branded as SmartStop® Self Storage, there will be total continuity of operations throughout the process.”

In an unrelated transaction, Strategic Storage Growth Trust II purchased the facility at 2900 93rd Ave SW in Olympia, WA for $13 million. The facility is located on 7 acres and offers 92,500 square feet of self-storage space for rent. The facility will be rebranded under the SmartStop banner.

Source: SmartStop Self Storage

HPI Real Estate Services & Investments reports the following:

HPI Real Estate Services & Investments, a Texas-based investment firm, has purchased the 72,910 square foot facility at 420 N. 4th St. in Lantana, FL. The all-cash deal was closed in just 37 days. The facility opened in July 2018 and is third-party managed by CubeSmart. The seller, Florida-based Acorn Mini Storage, was represented in the transaction by Zack Urow and Richard Riddle of SkyView Advisors. This transaction marks the first acquisition in HPI’s recently launched self-storage acquisition fund, which will acquire over $125 million of assets over the next 12 months. HPI currently has 11 other storage facilities throughout Texas, Florida, Nevada, and California that are either under construction or in lease-up.

Barker Pacific Group report the following:

A joint venture between Barker Pacific Group and Artemis Real Estate Partners has acquired a newly built self-storage property in Phoenix, AZ. The newly built, climate-controlled, Class-A facility contains 94,450 square feet and features 935 storage units. The project is located in Midtown Phoenix, two blocks west of Route-51 and 4 miles northeast of Downtown Phoenix. The Life Storage-branded property has been open since May 2019 and is currently 70% occupied. The purchase the joint venture’s 13th self-storage acquisition together, and its first in Arizona.

The Loeffler Self-Storage Group, Inc. reports the following:

Lockwood Landing Self Storage & Industrial located in Sparks, NV was acquired by an unnamed buyer for $5,525,000. Bobby Loeffler & Tyler Skelly listed the 235-unit property for the local ownership group. The buyer was an owner-operator headquartered in Northern California. Lockwood Landing is comprised of 49,100 net rentable square feet of self-storage and 28,865 net rentable square feet of industrial space on 8.75 acres located along Interstate 80. The storage buildings were approximately 84% occupied at the time of sale while the industrial buildings were 100% occupied.

Marcus & Millichap reports the following:

  • New York-based Merit Hill Capital has purchased a pair of A-AAA Key Mini Storage facilities from a private owner in Texas for an undisclosed price. The assets have a total of 837 units and almost 90,000 net rentable square feet. The facilities are located at 3317 NW 39th Street in Oklahoma City, OK and 5104 Jefferson Highway in Harahan, LA. The LeClaire-Schlosser Group of Marcus & Millichap represented the seller.
  • The LeClaire-Schlosser group also represented the seller in the sale of West Bellfort Self Storage, a 42,925 square foot storage facility located in Houston, TX (pictured above). The facility offers 350 storage units and was purchased by a Dallas-based LLC.

News from the week of 11/18/2020

InSite Property Group, a Redondo Beach, CA-based operator and investor, purchased the Self Storage Plus facility in Lanham, MD for an undisclosed amount. The facility, at 10108 Greenbelt Road, is part of the Washington D.C. metro area and located near NASA’s Goddard Space Flight Center. The 100,000-square-foot facility will be rebranded under the name SecureSpace—InSite’s wholly-owned management platform.

A significant renovation is slated for the property’s appearance and infrastructure. New signage, landscaping, paint, asphalt, and lighting will transform the exterior. The leasing office will be replaced with SecureSpace’s signature lounge layout, free WiFi will be provided throughout, and security systems upgraded to the latest technology.

“We are pleased to announce our first SecureSpace store in the D.C. area. This property has no direct competitors and the renovation will serve the needs of the substantial residential growth taking place in the immediate area,” said Nathan McElmurry, the firm’s head of acquisitions.

Andover Properties reports the following:

Andover Properties LLC, whose facilities operate under the Storage King USA brand, recently acquired 18 properties in a multi-state portfolio transaction. Combined, the properties total over 1.3 million square feet of rentable space across 10,000 units.

Newmark Self Storage Group reports the following:

The GoodFriend Self-Storage facility at 588 North State Road in Briarcliff Manor, NY was purchased by an unnamed party. The 50,513-square-foot facility has 561 units. The property was 91% occupied at the time of sale.

NitNeil Partners report the following:

NitNeil Partners purchased the facility at 850 Baseline Road in Brighton, CO. The 450-unit facility spans 64,850 square feet, with room for expansion. The facility will be third party managed by CubeSmart. The property is NitNeil’s first in the Denver MSA, expanding their portfolio to 24 assets in 11 states.

HPI Real Estate Services & Investments

Texas-based HPI Real Estate Services & Investments has acquired a 668-unit, 78,930 square foot facility in Las Vegas. The property, which is managed by Shield Storage, is located at 3251 N. Dapple Gray Rd. in Summerlin. The facility was opened in August 2020 and was nearly 30% occupied at sale. The all-cash deal marks the second acquisition in HPI’s recently launched self-storage acquisition fund, which aims to close over $125 million in transactions over the next 12 months. With the addition of the Summerlin property, HPI now owns three storage facilities in Las Vegas, including one in North Las Vegas that is set to open next month.

Argus Self Storage Advisors reports the following:

Tom Flannigan and Alex Ihrke of KW Commercial Minneapolis, broker affiliates of Argus Self Storage Advisors, represented the seller and procured the buyer for the sale of Dakota Mini Storage in Hastings, MN. The facility consists of 14,550 rentable square feet of self-storage, along with 3,354 square feet of warehouse and office space. The property sold for $1,410,000 to a regional group of buyers and was placed under contract the same day it was listed.

Marcus & Millichap report the following:

  • SVT Self Storage, a 34,350-square foot self-storage facility at 460 Industrial Drive in Galt, CA, closed at full list price for $2.3 million, or $66.96 per square foot. The facility sold at a 6.06% cap rate. Christopher R. Secreto and Tru Petrilli of the Marcus & Millichap National Self-Storage Group, had the exclusive listing to market the property on behalf of the seller, a private investor based in California. Secreto and Petrilli procured the buyer, a private investor also based in California. The Sacramento County mixed-use facility was under contract in less than two weeks.
  • Medina Lake Mini Storage, a 15,380 square foot storage facility located in Lakehills, TX, has sold. The LeClaire-Schlosser Group of Marcus & Millichap had the exclusive listing on behalf of the seller. The buyer, a local private self storage investor, was represented by Jon Danklefs of the Marcus & Millichap San Antonio office. The facility was built in 1994 and has 91 units. It is located 30 minutes from San Antonio.

  • Permian Storage, a 15,513-square foot self-storage located in Odessa, TX, has been sold. Arol Horkavy and Jon Danklefs, investment specialists in Marcus & Millichap’s Austin and San Antonio offices, had the exclusive listing to market the property on behalf of the seller, a limited liability company. Permian Storage is located at 525 W 42nd St in Odessa, TX. The property currently sits on 0.85 acres and maintains 123 non climate-controlled units ranging anywhere from 45 to 280 square-feet.

  • Banana River Self Storage, a 16,825-square-foot self-storage facility located in Merritt Island, FL, has been sold. Meir Perlmuter, Brett R. Hatcher, Gabriel Coe, and Nathan Coe, investment specialists in Marcus & Millichap’s Columbus office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The buyer was also secured and represented by the Columbus office. The facility, located at 900 N Banana River Drive features 132 climate-controlled units and 78 non-climate-controlled units. It also offers 116 RV/boat spaces for rent.

 

 

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Alexander Harris