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.

 

 

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Alexander Harris