Real Estate Roundup: Self-Storage Transactions December 2016

Self-storage properties are constantly changing hands, and Inside Self-Storage is regularly notified of these market transactions. Many are covered in detail on the ISS website and available for viewing on the “Real Estate” topics page. Following are additional acquisitions and sales that weren’t covered.

265 Super Storage in Springdale, Ark., was sold as the second leg of a 1031 exchange. Built in 1995, the property at 1507 S. Old Missouri Road comprises 58,665 square feet of storage space in 375 storage units and 75 outdoor parking spaces. The property will be managed by Absolute Storage Management (ASM), which owns and manages self-storage facilities throughout the Southeast. The seller was represented in the transaction by Larry Goldman, an associate with RE/MAX Commercial, who is the Argus Self Storage Sales Network broker affiliate for Arkansas, Kansas, Missouri and Southern Illinois.

Adams Storage Systems in Farmington, Mo., was sold. The first phase of the 5.5-acre property at 2079 Highway D opened in September with 236 units, 35 outdoor parking spaces and a 1,260-square-foot office and apartment. The buyer plans to start the second phase soon, according to an Argus press release. Goldman represented both buyer and seller in the transaction.

Anytime Storage - Commerce Park in Sellersburg, Ind., was sold to a limited-liability company (LLC). The 40,700-square-foot property at 8511 Commerce Park Drive was a Certificate-of-Occupancy deal, according to a press release from The Mele Storage Group of Marcus & Millichap, the real estate firm that represented the buyer, also an LLC, and the seller in the transaction. The brokers were Michael A. Mele, Mickey Hurley and Sean M. Delaney.

Bargain Storage, which owns 32 facilities in four states, purchased Memorial Mini Storage in Houston. The property at 1101 Tully Road contains 519 units. The buyer and the seller, a private investor, were represented in the transaction by Dave Knobler, senior associate, in the Marcus & Millichap Houston office, and Charles "Chico" LeClaire, senior vice president of investments, in the firm’s Denver office.

Brazos Moving and Storage in College Station, Texas, was sold to a foreign investor. The property at 17535 Highway 6 S. includes 477 units. The facility is new and not fully stabilized, according to a press release from Marcus & Millichap, which brokered the transaction. The buyer, a storage developer, and the seller, a storage owner owner, were represented by Knobler and Logan Miller, an associate, both from the firm’s Houston office.

Carefree Storage in Carthage, N.Y., was sold to a private investor. Built in 1986, the property at 10889 State Route 26 comprises 53,952 of net rentable square feet of storage space in 443 units and outdoor parking spaces. The seller, also a private investor, was represented in the transaction by Mele, Luke Elliott and Kevin Menendez of Marcus & Millichap. Mele and Elliott also represented the buyer.

Crestline Storage in Lansing, Kan., was sold. The transaction was driven by a series of 1031 exchanges from Nebraska farmland. The property at 13621 Gilman Road comprises 65,116 square feet of storage space in 123 units, three office/warehouse units, and a 1,500-square-foot office and apartment. The buyer plans to expand the facility soon, according to an Argus press release. Goldman represented the seller in the transaction.

Gateway Mini-Storage LLC in Gilbert, Ariz., was sold for nearly $14 million to a self-storage real estate investment trust. The property at 5750 S. Power Road, which formerly operated as Uncle Bob’s Self Storage, comprises 92,855 net rentable square feet of storage space in 669 units. A phase-three expansion is under construction and will add 21,575 net rentable square feet to the property. The addition will be completed in early 2017, according to a press release from NAI Horizon, the real estate firm that brokered the transaction. The buyer and the seller, Circle G Property Development, were represented by Denise Nunez, senior vice president of NAI.

High Security Self Storage in Goodyear, Ariz., was sold to River Crossing Goodyear LLC for $2 million. The 3.4-acre property at 13360 W. Van Buren St. comprises 34,093 square feet of storage space. The buyer and the seller, Bar-K Development II LLC, were represented in the transaction by Nunez. River Crossing, which owns another storage facility in the market, plans to increase the net rentable square footage on the site, Nunez said.

Kwik Storage in Rock Hill, S.C., was sold to a regional buyer for approximately $77 per rentable square foot. The property at 1409 Albright Road comprises 21,200 square feet of storage space in 187 units, some of which are climate-controlled. The 2.7-acre site also contains an office, laundromat and free-standing pharmacy. The seller was represented in the transaction by Dale C. Eisenman, president of Midcoast Properties Inc.

Lake Road Self Storage in Sheffield Lake, Ohio, was sold. The property at 5360 Lake Road comprises 57,000 net rentable square feet in 418 units. Built in 2004, the 8.6-acre site also contains 41 parking spaces. It includes 1.25 acres of land zoned for office and retail as well as 32,800 square feet to expand the storage space. The seller was represented in the transaction by Ryan Clark, senior vice president of SkyView Advisors.

SG Realty, a real estate holding and service company, has acquired B&B Storage and Top Storage in Edgerton, Wis. The properties at 100 U.S. Highway 51 and 541 Lake Drive Road have been rebranded as Badger Storage and will be managed by Josh Eastman and Justin Spaulding. The brokers in the transaction were Paula Carrier, owner of Best Realty of Edgerton, and Melanie Simmons of Brayson Realty LLC.

South Oldham Self Storage in Crestwood, Ky., was sold for $1.7 million to a national self-storage operator. Built in 2001, the property at 6440 W Highway 146 comprises 26,175 square feet of storage space. The buyer and the seller, a local developer, were represented in the transaction by Paul Grisanti, owner and principal broker, and Nick Grisanti, sales and leasing associate, for the Grisanti Group Commercial Real Estate, an Argus broker affiliate for Kentucky, Southern Indiana and Tennessee.

Storage Concepts in Hamburg, N.J., was sold as part of a three-property portfolio for $5.9 million to a private investment group. The property at 3490 State Route 94 comprise three single-story buildings containing more 320 units, which includes outdoor parking spaces. Opened in 2002 and expanded in 2005, it sits on more than 7 acres. The other two properties in the portfolio are in New York and Pennsylvania. The buyer and the seller were represented in all three transactions by Investment Real Estate LLC (IRE), a self-storage real estate firm.

The eight-property Storage Pros portfolio in Knoxville, Tenn., was sold. The portfolio comprises 415,616 square feet of storage space as well as 23,500 square feet of parking space. The properties are within 20 miles of each other. The seller, Storage Pros Management LLC, was represented in the transaction by Aaron Swerdlin, executive managing director, and Kenneth Cox, senior managing director, of NGKF Self Storage Group, a division within commercial real estate advisory firm Newmark Grubb Knight Frank (NGKF).

The three-property Sunset Storage portfolio in Jesup, Ga., was sold to a regional buyer. Sitting on more than 5 acres, the facilities comprise 48,000 rentable square feet of storage space in 430 units, a rental office and an apartment. The seller was represented in the transaction by Eisenman.

Argus is a Denver-based network of real estate brokers who specialize in storage properties. Formed in 1994, the company has 36 broker affiliates covering nearly 40 markets.

Founded in 2002, ASM operates more than 96 properties in 13 states. Headquartered in Memphis, Tenn., it has regional offices in Atlanta; Charlotte, N.C.; Jackson, Miss.; and Nashville, Tenn.

Based in Portland, Ore., Bargain Storage operates facilities in Arizona, Colorado, Oregon and Texas.

Since its inception in 1998, IRE has provided brokerage, construction, development and management services to self-storage owners and investors.

Midcoast Properties offers brokerage services to self-storage owners and investors in the Carolinas and Georgia.

Established in 1992, NAI Horizon is a commercial real estate brokerage and management firm serving Arizona through offices in Phoenix and Tucson. It’s a member of NAI Global, a managed network of independently owned commercial real estate brokerage firms.

NGKF offers appraisal and valuation advisory services, debt placement, investment sales, proprietary lending, and transaction management. Together with its affiliates and London-based partner Knight Frank, the company employs more than 14,000 professionals, operating from 400 offices on five continents.

Founded in 1971, Marcus & Millichap is a commercial-property investment firm with more than 1,500 investment professionals in offices throughout Canada and the United States. The firm closed more than 8,700 transactions in 2015 with a value of approximately $37.8 billion.

SkyView is a boutique firm specializing in self-storage acquisition, development, facility expansion and renovation, refinancing, and sales. Based in Tampa, Fla., the firm also has offices in Cleveland and Milwaukee.