Transactions and Deals: August 15, 2019
posted on 8/15/2019 7:20:00 AM
10 Federal launches 2nd offering
10 Federal has launched its second self storage offering. 10 Federal Self Storage Acquisition Company 2, LLC broke escrow and admitted $7.6 million of initial equity raised via existing investor relationships, crowdfunding and via foreign syndicate partnerships, including a recently announced partnership with Mainstay Global of Austin, Texas. The fund endeavors to raise $30 million for this second self storage acquisition platform offering.
10 Federal has also closed on the first three self storage assets for the new portfolio. The three assets are located in Charlotte, North Carolina, Elgin, Illinois and Columbia, South Carolina. Repositioning and renovation efforts onto 10 Federal's unmanned self storage management & technology platform has begun on all three self storage assets.
BSC Group closes two sales
The BSC Group closed two loans, one for a six-property portfolio and another for a 32-property portfolio
The first loan was a $42 million life company loan used to acquire and recapitalize a six-property self storage portfolio for an institutional sponsor on behalf of their new formed joint venture with a REIT partner. This 10-year loan was underwritten at ~50 percent of the contributed purchase price and the borrower rate locked the deal, which featured interest only amortization for the full term of the loan, at 3.62 percent.
The second loan was for a $139 million CMBS loan that was used to acquire a 32-property self storage portfolio for an institutional sponsor. This 10-year loan was underwritten at ~65 percent of the purchase price and the borrower rate locked the deal, which featured 36 months of interest only amortization, at 3.8 percent.
Marcus & Millichap brokers deals in TX, MO
Marcus & Millichap has brokered the following deals:
AAA Self Storage in Bellville, Texas near Houston. The LeClaire Group brokered the sale of the 65,950 net rentable square foot storage facility is on 5.42 acres. It consists of six single-story buildings with 395 units. The property opened in 2005 and expanded in 2013 and 2016.
Dave Knobler, first vice president investments, in the Houston office and Charles "Chico" LeClaire, executive managing director investments in the Denver, Colorado office, had the exclusive listing to market the property on behalf of the seller, an Austin-based partnership.
Star Self Storage, a 377-unit self storage facility in Grandview, Missouri.
Britney Hendricks, an associate, and Sean Delaney, senior vice president investments, in the Chicago Oak Brook office exclusively marketed the property on behalf of the seller and represented the buyer.
Bradley Barham assisted on the transaction as the broker of record in Missouri.
Star Self Storage is located at 12120 Grandview Road and consists of 48,073 net-rentable square feet on 2.99 acres of land.
SST IV buys WA storage
Strategic Storage Trust IV, Inc. (SST IV), a public non-traded real estate investment trust, has acquired a 350-unit self storage facility in Redmond, Washington.
Located at 23316 Redmond-Fall City Road NE, the property was constructed in 1997. It includes approximately 48,000 net rentable square feet.
SST IV is a public non-traded REIT that owns 17 self storage facilities.
StorQuest makes move to Boulder
StorQuest Self Storage will enter the Boulder Colorado market with a new facility at the former Marv’s Quality Towing property, according to Colorado Real Estate Journal.
The property at 4790 Pearl Street will include 650 climate-controlled units plus 55 covered RV units. The site is 2.7 acres.
The StorQuest will be three stories with rooftop solar panels. It’s designed by Galloway & Co and being built by Waner Construction. Completion is expected by early summer 2020.
StorQuest Self Storage is owned by the William Warren Group Inc., which has developed a half-dozen StorQuest facilities in the Denver metro area over the past few years and owns or manages approximately 24 StorQuest facilities in the Denver market.
NH builder plans Hudson storage
A New Hampshire developer wants to build a new self storage facility in Hudson, NH, according to the New Hampshire Union Leader.
Developer Jim Allard plans a 90,900-square-foot, three-story self storage facility at 23 Roosevelt Ave. The plan is to combine the lots at 23 and 27 Roosevelt Ave. and demolish an existing 4,990-square-foot concrete building and parking lot before erecting the new building.
Allard is a contractor, and this is his first self storage facility.
Texas architecture firms merge
Texas-based architectural design firms Archcon Architecture and Archcon Design Build have merged and rebranded as DALLENBACH-COLE ARCHITECTURE. Senior project manager, Cheryl Cole, has been promoted to associate partner of DALLENBACH-COLE ARCHITECTURE. Jeffrey S. Dallenbach, AIA, is the founder and managing partner.
Based in San Antonio, Texas, DALLENBACH-COLE ARCHITECTURE has expertise in self storage design.
Yardi: Supply dampens self storage rent growth
According to Yardi Matrix, demand for self storage space remains strong in most U.S. metros, but high levels of development indicate the industry will face a rocky road for the foreseeable future.
Such development has led to declining year-over-year street rates in some metros, most notably Houston and Pittsburgh. Significant new supply is also beginning to dampen rates in New York City and Boston. National street rates dropped 1.7 percent year-over-year in June 2019 for standard 10x10 non-climate controlled units, with about 60 percent of the top metros tracked by Yardi Matrix experiencing decreases.
Listed rates are highest in low-development West Coast markets including California metros San Francisco, Los Angeles and San Jose. Las Vegas’ friendly business environment and affordable cost of living compared to coastal California metros continue to drive self storage demand and rent growth. Colorado’s expanding economy and population growth have prompted developers to break ground on new projects.
Xercor hires Malagisi
Xercor Insurance Services LLC has named Anastasia N. Malagisi as director of marketing. Malagisi will be responsible for the company’s strategic marketing initiatives and contribute to its overall business development efforts.
Malagisi previously worked for Union Realtime/Radius, a data services provider for the self storage industry. Formerly, she served as the Self Storage Association’s director of marketing and outreach.
Storage Group promotes Cotto
The Storage Group has named Marlene Cotto as client success manager.
Cotto has been with the B2B digital marketing company since 2017.
The Storage Group in Altamonte Springs, Florida, provides products and services for improved customer experiences through technology, marketing, and consulting. Services include website development, search engine optimization, pay-per-click advertising, reputation management and software development.
Talonvest hires 2, promotes controller
Talonvest Capital, Inc. in Irvine, California, has named David DiRienzo as an analyst and Lauren Maehler as a loan administrator.
DiRienzo is responsible for underwriting and analyzing commercial and self storage transactions, conducting market analysis, writing financing packages, and growing the firm’s capital market relationships. He has six years of real estate experience, including several years with an investment firm. He earned his B.S. in business administration from the University of Colorado at Boulder.
Maehler is responsible for the coordination and communication between clients, capital providers, and the other relevant parties to ensure the timely and efficient closing of debt and equity assignments for the firm’s clients. Maehler has 13 years of real estate experience. She earned a B.A. in communications from California State University, Fullerton and is a licensed CA real estate salesperson.
Talonvest has also promoted Carole Stanley to controller. In addition to managing the firm’s accounting, reporting, payroll, and HR benefits, she is actively involved in the maintenance and enhancement of the organization’s culture. Including seven years with Talonvest, Stanley has over 15 years of commercial real estate experience. She graduated from the University of California, Santa Barbara with a B.A. in communication and is a licensed CA real estate salesperson.
CubeSmart among most engaged workplaces
CubeSmart has been recognized as one of the Achievers 50 Most Engaged Workplaces in North America. This annual award recognizes top employers that display leadership and innovation in engaging their workplaces.
“We believe that our teammates are the heart of CubeSmart and the experiences they have working here matter to us,” said Christopher P. Marr, president and chief executive officer of CubeSmart. “That’s why this recognition means so much to us. It confirms that the culture we work so hard to build and protect is truly special.”
A panel of 10 judges comprised of employee engagement academics, industry analysts, thought leaders, journalists and influencers evaluated the applicants. Winners were selected based on Achievers’ eight elements of employee engagement: leadership; communication; culture; rewards and recognition; professional and personal growth; accountability and performance; vision and values; and corporate social responsibility.
Based in Malvern, Pennsylvania, CubeSmart is a self-administered and self-managed real estate investment trust which owns or manages 1,165 self storage properties across the United States.
WA storage expands
Principal RV & Self Storage in Battle Ground, Washington, has opened an expansion of its facilities at 1710 S.W. 12th Ave., according to The Columbian.
The facility includes 645 total units for boats, RVs or self storage.
The facility is part of the 22-acre Scotton Landing mixed-use development in Battle Ground being developed by Principal Properties, which also owns the self storage facility.
Talonvest secures two loans
Talonvest Capital, Inc. negotiated a $14.6 million bridge loan on behalf of New York City based GoodFriend Self Storage / Post Management for the acquisition and expansion of a self storage facility located on the North Fork of Long Island, New York. The property, located at 50 Commerce Drive in Cutchogue has 79,000 existing net rentable square feet of storage space, which includes a recent 7,000 square foot expansion financed through the new loan.
In addition, Talonvest represented Chicago based Metro Storage on $12.3 million of bridge financing for the acquisition of facilities in Franklin, Tennessee and Orlando, Florida. The property at 108 Werthan Circle in Franklin is a recently built facility with 69,541 net rentable square feet on approximately 1.8 acres of land. The second property, located at 7500 W. Orlando Drive in Orlando is a 62,600 rentable square foot, climate controlled, two story ‘big box’ facility that opened in early 2018.
Tags: 10 Federal Self Storage
, BSC Group
, Star Self Storage
, StorQuest Self Storage
, Strategic Storage Trust
, New Hampshire
, self storage demand
, Xercor Insurance
, The Storage Group
, Principal RV & Self Storage
, New York
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