Real Estate Roundup: Self-Storage Transactions October 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 independently due to missing information such as buyer, seller, sale price or other relevant details.

A-1 Westside Storage in Midland, Mich., was sold for $2.5 million. The property at 4405 Isabella Road includes 11 buildings comprising 37,830 square feet of storage space in 501 units. Built in 1997, it sits on nearly 12 acres. The buyer and seller were represented in the transaction by Pogoda Cos., a Michigan-based self-storage operator and real estate firm.

Constitution Place Self Storage hosted a ribbon-cutting ceremony last week to celebrate its opening in Bloomington, Ind. The property at 1202 N. Linden St. includes nine buildings comprising nearly 250 units and an office. The project included the renovation of two existing structures—a brick office on Linden Street and a climate-controlled building adjacent to Constitution Trail. Construction began last October and cost more than $1.5 million, according to the source. The site was formerly home to R. B. White Co., a metal-fabrication company that vacated the premises seven years ago.

“We think it’s the most central location in the market and the best quality,” said Erik Prenzler, the developer and owner/operator. Prenzler also owns the adjacent Constitution Place at 712 and 716 E. Empire St. The business offers more than 45,000 square feet of office, retail and warehouse space.

Extra Space Storage Inc., a publicly traded self-storage real estate investment trust and third-party management firm, acquired The Lock Up Self Storage in Plymouth, Minn., for $17.75 million. The property at 2960 Empire Lane contains 765 storage units.

Dye Road Storage in Flint Township, Mich., was sold for $900,000. The property at 3172 S. Dye Road includes six buildings comprising 36,040 square feet of storage space in 434 units. Built in 1987, it sits on 8.5 acres. The buyer and the seller, Dye Road Storage LLC, were represented in the transaction by Mark Floria, a real estate advisor for Pogoda.

National Storage Centers, which operates facilities in Michigan and Ohio, acquired Heritage Movers Self Storage in Warren, Mich. for $1.5 million. Built in 1996, the property at 2800 Mound Road includes five buildings comprising 21,640 square feet of storage space in 102 units. The buyer intends to add a mezzanine to one of the buildings to create more square footage, according to a press release from Pogoda, which will manage the property. Floria represented National in the transaction.

Life Storage Inc., the real estate investment trust (REIT) formerly known as Sovran Self Storage Inc., has purchased Patriot Self Storage of Talon Bay in North Port, Fla. The property is the second of a two-facility portfolio. The facility at 6029 Talon Bay Drive includes 849 units, some of which are climate-controlled. Patriot Self Storage of Bobcat Trail, also in North Port, was purchased last month by Southern Self Storage of Palm Beach Gardens, Fla.

The buyer and the seller, Passco Cos., were represented in the transaction by Michael Mele and Luke Elliott, senior directors for the Marcus & Millichap National Self-Storage Group.

Passco built the property in 2008 with its joint-venture partner, Perdew Investment Group. The partnership timed the sale of the property to capitalize on the strong investor interest, according to Scott Allen, president of development at Passco.  

Portico Self Storage in Calexico, Calif., was sold for $4.1 million to StaxUp Storage-Portico LP, which operates properties in California and Texas. The facility at 2420 Enterprise Road sits on 3.4 acres and comprises 47,710 square feet of storage space in 451 units as well as 7,800 square feet of covered vehicle parking. The buyer was represented in the transaction by Garrett Sholer, vice president of Lee & Associates–North San Diego County. The seller, Calexico Self Storage LLC, was represented by Clifford Crowe, a principal in the same office.

BAMM N.W. LLC sold a 25,225 square-foot self-storage facility in Bothell, Wash., to an investment group based in the state. The seller was represented in the transaction by Nick Walker, senior vice president of the Self Storage Advisory team for CBRE Group Inc., a commercial real estate services and investment firm.

Two Storage Concepts facilities were sold to a private investment group as part of a three-property portfolio. The transaction includes a facility in New York and another in Pennsylvania. The property at 2673 NY-302 in Middletown, N.Y., sold for $5.3 million. It consists of five single-story buildings offering more than 290 units as well as a rental office. Opened in 2006, it sits on nearly 12 acres of land. It also has development approval for an additional 11,500 square feet of storage space.

The Storage Concepts facility at 1524 Route 739 in Dingmans, Ferry, Pa., sold for $2.8 million. Opened in 2008, the facility includes three single-story buildings containing more than 200 units as well as rental office. It sits on more than 5 acres and has development approval for another11,325 square feet of storage space.

The buyer and seller in both transactions were represented by Investment Real Estate LLC (IRE), a self-storage real estate firm. The closing of the third property is expected to be complete in November, according to an IRE press release.

Storage Express, which operates 91 self-storage properties in five states, opened a new facility in Indianapolis, its eighth in the market. The property at 7734 Madison Ave. comprises 34,000 square feet of storage space.

CBRE Group, a Fortune 500 and S&P 500 company headquartered in Los Angeles, employs approximately 70,000 employees, excluding affiliates, and serves real estate investors, occupiers and owners through more than 400 offices worldwide. CBRE offers strategic advice and execution for appraisal and valuation; corporate services; development services; investment management; mortgage banking; property, facilities and project management; property sales and leasing; and research and consulting.

Headquartered in Salt Lake City, Extra Space owns or operates 1,412 self-storage properties in 37 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 945,000 units and 106 million square feet of rentable space.

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

Lee & Associates Self Storage Group provides commercial real estate brokerage and advisory services nationwide to public and private investors/owners, investment trusts, banks, receivers, and other lending institutions.

Based in Buffalo, N.Y., Life Storage operates approximately 650 self-storage facilities in 29 states under the Life Storage and Uncle Bob’s Self Storage brands. Its portfolio of owned and managed facilities comprises about 45 million square feet. The company announced its intent to operate as Life Storage following its $1.3 billion acquisition of LifeStorage LP this summer.

Michigan-based National Storage Centers operates 23 facilities in the state and one in Dayton, Ohio, under various brand names.

Passco is a real estate investment firm specializing in the acquisition, development and management of commercial properties, multi-family and retail properties.

Based in Farmington Hills, Mich., Pogoda Cos. is a self-storage operator with approximately 2 million square feet of self-storage space in Michigan and Ohio. The firm also provides brokerage, consulting, investment and management services to the self-storage industry through Pogoda Group Inc. and Pogoda Management Co.

Founded in 1992, Storage Express owns and operates self-storage properties in Illinois, Indiana, Kentucky, Ohio and Tennessee. The company has offices in Bloomington, Indianapolis and Jeffersonville, Ind. Rentals are centralized out of the company’s Bloomington headquarters.