Update 1/6/15 – J. Lohr will continue to be a tenant in the building until it relocates its barrel-wine storage to another location. The process could take up to two years, according to de Jong. Once the warehouse space is vacant, Storage Solutions plans to convert it to self-storage use, de Jong said. The two-story building currently encompasses 105,000 square feet of space, including 71,779 net rentable square feet of self-storage.
12/22/2014 – Storage Solutions, a self-storage operator with 31 facilities in Arizona and Nevada, has purchased CBD Indoor Mini Storage in San Jose, Calif., for $13.4 million, or $128 per square foot. The seller was J. Lohr Vineyards & Wines and Gerald Hamilton. The wine business has more than 1,300 acres of vineyards in Monterey County, Calif.
A portion of the building at 501 Cinnabar St. was used as a wine warehouse, with the remaining area housing 900 self-storage units, 85 percent of which were occupied at the time of sale. It’s the first time the property has changed hands since opening in 1985, the source reported. Storage Solutions plans to add improvements, including elevators and new security.
Tom De Jong, vice president of commercial real estate firm Colliers International and a broker affiliate of the Argus Self Storage Sales Network, represented the buyer and seller. Funding from institutional investors, particularly in larger markets, is more prevalent in the market today, he told the source.
"Pension funds, insurance companies and [real estate investment trusts] are all aggressively looking to acquire self-storage properties," De Jong said. "With incomes and occupancies all above pre-recession levels, we are seeing record prices." The sale price for CBD was based on a combined income approach between the two separate businesses, according to an Argus press release.
Founded in 1989, Storage Solutions’ portfolio includes more than 1.8 million square feet of rentable storage space.
Formed in 1994 and based in Denver, Argus specializes in the brokerage of self-storage facilities. The company has 36 broker affiliates covering nearly 40 markets.
Sources:
- Silicon Valley Business Journal: Downtown San Jose Storage Facility Trades for $13.4M as Self-Storage Heats Up
