Real Estate Roundup: Self-Storage Transactions May 2017

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.

A Discount Mini Storage in Houston was sold to a local limited-liability company (LLC). The property at 3735 Mangum Road contains 338 storage units. The buyer and the seller, a personal trust, were represented in the transaction by Dave Knobler, vice president of investments, Davis Hansen, associate, Derek Hargrove and Justin Miller, first vice presidents of investments, in the Marcus & Millichap Houston office.

A two-property A+ Self Storage portfolio in Gettysburg, Pa., was sold for $1.6 million to a private investment group that owns several facilities in the area. Built in phases from 1989 to 2008, the properties at 1865 Baltimore Pike and 1880 Highland Ave. Road sit on a combined 14 acres. The sites contain 12 single-story buildings containing more than 270 units as well as 20 outdoor parking spaces. The rental office at the Baltimore Pike location includes a retail space with a long-term tenant. The property has approval for an additional 15,300 square feet of storage space. The seller was represented in the transaction by Investment Real Estate LLC.

All Storage purchased 5.3 acres of land in Mansfield, Texas, from LEJJ Realty LLC on which it plans to build two climate-controlled self-storage facilities totaling 216,723 square feet. The transaction was brokered by Coldwell Banker Commercial Advisors, a real estate firm comprised of 200 independently owned and operated companies.

The three-property B&G Self Storage portfolio in Atmore and Brewton, Ala., was sold for $3.1 million to an out-of-state investor. The Atmore sites total 42,708 square feet of space in 322 units, while the Brewton property comprises 18,807 square feet of space in 162 units. The location also houses a 3,000-square-foot laundromat and 87,000 square feet of warehouse space. The seller was represented in the transaction by Bill Barnhill, Mary Franklin and Stuart P. LaGroue Sr., of Omega Properties Inc. The trio are the broker affiliates for the Argus Self Storage Sales Network in Alabama, Louisiana and Mississippi.

Bursca Self Storage in Bridgeville, Pa., was sold for $1.1 million to a local investor. The property at 100 Bursca Drive was built in 1985 and comprises 34,000 net rentable square feet of space in 252 units. The seller, an LLC, was represented in the transaction by Brett R. Hatcher and Gabriel Coe, investment specialists in the Marcus & Millichap Columbus, Ohio, office. Marcus & Millichap broker Brenton Baskin assisted.

Canal Street Self Storage in Chicago was sold to a private investor. The five-story property at 1601 S. Canal St. overlooks the downtown area and is in the historic South Loop neighborhood, bordering Chinatown and East Pilsen. Locally owned and operated since 2001, it encompasses 66,063 square feet of space in 792 units. The buyer and the seller, also a private investor, were represented in the transaction by Sean Delaney, first vice president of investments in the Marcus & Millichap Chicago-Oak Brook office, and Michael Mele, senior managing director of investments in the firm’s Tampa, Fla., office.

Discount Self Storage in Plymouth, Ind., was sold to a storage operator. The property at 13005 Third Road comprises 48,430 square feet of space. The seller was represented in the transaction by Bruce Bahrmasel, a broker with Waveland Commercial Real Estate, who’s the Argus broker affiliate for North Illinois, North Indiana and Wisconsin. The buyer was represented by Newmark Grubb/Cressy & Everett, a commercial real estate, development and management company serving Indiana and Michigan.

Extra Space Storage is converting the former Connecticut Film Center warehouse in Stamford, Conn., to self-storage. The property at 300 Stillwater Ave. will comprise 170,000 square feet of drive-through space in 1,100 units. The facility is expected to open by June 15. Boston-based The Davis Cos. and Valhalla, N.Y.-based Highland Development Ventures LLC purchased the property in October for $20 million, according to the source.

A three-building portfolio branded as Extra Space Storage in Chicago’s West Loop was sold for $13.5 million. The properties at 1230-1242 W. Washington Blvd. encompass 60,000 square feet of space. The seller was represented by Chad Schroedl, Drew Dillon and Scott R. Maesel of SVN Chicago Commercial.

Keith’s Mini Storage in Vero Beach, Fla., was sold for $500,000. The property at 4850 20th St. comprises 17,625 square feet of storage space. The seller was represented in the transaction by W. Frost Weaver and Josh Koerner, of Weaver Realty Group in Jacksonville, Fla., who are the Argus broker affiliates for North, Central and South Florida.

Kingston Self Storage in Shreveport, La., was sold to a Houston-based investor. The property at 8968 Kingston Road contains seven buildings on just under 2 acres. It comprises 33,025 net rentable square feet of space in 247 units. The Addison, Texas-based seller was represented in the transaction by John Arnold, Bill Bellomy and Michael Johnson of Bellomy & Co.

Kiss Mini Storage in Lincoln, Neb., was sold to a local investor. The property at 6500 N.W. 42nd St. sits on 7.7 acres and comprises 29,000 net rentable square feet of space in 120 units. The buyer was represented in the transaction by Arnold, Bellomy and Johnson.

Secure Self Storage in Monroe, Mich., was sold for $2.6 million to an out-of-state investor. The 3-acre property at 15420 Telegraph Road comprises 36,755 net rentable square feet on 3 acres. The seller, Secure Self Storage Inc., was represented in the transaction by Mark Floria, a real estate advisor for Pogoda Cos.

Storz A Lot in New Caney, Texas, was sold to a Houston LLC. The property at 18318 Highway 59 contains 208 storage units. It also has 2 acres of land for future development. The buyer and the seller, a private investor, were represented in the transaction by Knobler and Logan Miller, an associate in the Marcus & Millichap Houston office.

Strategic Storage Growth Trust Inc. (SSGT) has purchased a newly constructed facility in Sarasota, Fla. The three-story property at 1027 N. Washington Blvd. comprises 48,000 rentable square feet of storage space in 510 climate-controlled units.

Telegraph Storage in Brownstown Township, Mich., was sold for $4 million. The 6.5-acre property at 21516 Telegraph Road comprises 38,800 net rentable square feet of storage space. It was converted from an industrial site to storage two years ago. The seller, Telegraph Storage LLC, was represented in the transaction by Floria.

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.

With offices in Atlanta, Houston, and Austin, Texas, Bellomy & Co. focuses on the sale of self-storage, industrial, office and retail properties nationwide.

Headquartered in Salt Lake City, Extra Space is a real estate investment trust (REIT) as well as a third-party management company. It owns or operates 1,427 self-storage properties in 38 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 960,000 units and 107 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.

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.

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.

SSGT is a public, non-traded REIT that focuses on the acquisition, development, redevelopment and lease-up of self-storage properties. Its portfolio currently consists of 18 storage facilities in eight states comprising approximately 1.4 million net rentable square feet in 11,900 storage units. The company is sponsored by SmartStop Asset Management LLC, a diversified real estate company with a managed portfolio of 107 self-storage facilities in Canada and the United States. Its managed properties comprise approximately 7.8 million rentable square feet.

SVN has broker representation in more than 100 markets across the United States. Its team specializes in the marketing, sale and disposition of self-storage properties nationwide.