Transactions and Deals: December 23, 2019
posted on 12/23/2019 8:43:00 AM
Extra Space Asia adds 10th facility
Extra Space Asia has opened its 10th facility in Singapore, according to BusinessInsider. The new facility is located at Toa Payoh, and is easily accessible via public transport. Extra Space Toa Payoh spans over 50,000 square-feet with 6 floors, and has a variety of storage types available for personal, business and even wine storage. Plans are underway to launch Extra Space Asia’s 4th facility in Malaysia in 2020, among other developments in South Korea, Taiwan, Hong Kong and Japan.
Metro Storage opens two stores in PA, NY
Metro Storage LLC has opened two new self storage stores in Line Lexington, Pennsylvania and Westhampton Beach, New York.
The Line Lexington store, located at 4671 County Line Road, is a two-story facility that offers 79,383 RSF of climate-controlled storage in 785 units. It is the 11th Metro store in Pennsylvania.
The Westhampton Beach, New York facility is located at 105 Old Riverhead Road. It is a 689-unit, three-story, 100% climate controlled self storage building encompassing with 77,000 RSF. This is the 5th Metro store in New York.
Both stores were developed in partnership between Metro Storage LLC and Fremont Realty Capital.
Metro Storage LLC is a privately owned, international self storage company and one of the top 10 largest owner/operators of self storage facilities in the United States with over 140 stores covering 14 states.
Sixty5 Storage underway in IL
Sixty5 Self Storage at 2107 S. Eastgate Avenue in Springfield, Illinois, is under construction, according to Springfield Business Journal.
The 88,000-square-foot building is being developed by Drury Properties Inc. Rich Kramer Construction is the general contractor.
The three-story facility with 627 units is expected to be completed by March.
Legacy plans KS storage development
Legacy Properties & Development has applied for a conditional-use permit to build a self storage facility in Paola, Kansas. The project is proposed for Sundance Drive, according to the Miami County Republic.
The proposed development would include 13 10-foot-by-20-foot storage units within a 2,600-square-foot building located on a currently vacant 1.75-acre lot.
Chicago-area Sears converting to storage
An empty Sears building in the Avalon Park neighborhood of Chicago will be converted to self storage, according to Book Club Chicago.
The building is at 134 E. 79th Street and is owned by Farpoint Development. Until 2013 the building housed one of the oldest continually operating Sears stores in Chicago.
Birmingham allows Morningstar to move forward
The Birmingham City Council has settled a dispute with Charlotte-based Morningstar Properties LLC, which will be allowed to resume construction of a self storage facility in the city, according to AL.com. Earlier this month the council approved a $125,000 settlement between the city and Morningstar. The company will be able to obtain building permits and continue construction at 2105 Richard Arrington Jr. Boulevard South.
In July, the council approved a six-month self storage ban, which halted work on Morningstar’s project.
Despite allowing Morningstar to continue, the council approved a 90-day extension on the moratorium.
Talonvest: market is good for borrowers
It’s a borrower friendly time, according to Talonvest Capital Markets. But risk awareness is increasing.
That’s the message from Talonvest Capital Markets, which share some recent observations on self storage financing.
Perm lenders are competing hard to make loans secured by stabilized properties. Ten-year Interest Only loans continue to be popular from CMBS lenders as they aggressively pursue higher volume targets in 2020. Fresh allocations for life company lenders are likely to increase the near term supply of capital in the market.
The length of the economic cycle is starting to result in greater scrutiny by appraisers and lenders’ underwriters of the lease-up velocity and rental rate assumptions for value-add bridge loans and construction loans. Upfront analysis and consideration of these risk factors that can significantly impact loan sizing is becoming more important for borrowers.
Marcus & Millichap brokers TN storage
Marcus & Millichap brokered the sale of The Storage Place and The Storage Place South, a combined 56,155-square-foot self storage facility in Dickson, Tennessee.
Gabriel Coe and Brett R. Hatcher, investment specialists in the Columbus, Ohio, office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The buyer, a limited liability company, was also secured and represented by Coe and Hatcher. Jody McKibben, regional manager and broker of record, assisted in closing this transaction.
The Storage Place and Storage Place South consists of two sites located at 715 Hwy 70 West and 120 Tennsco Rd in Dickson. The Storage Place South facility is currently serving as a satellite location to the Storage Place location.
The Storage Place location has 225 standard units, totaling 30,155 net rentable square feet and 11 parking spaces. The Storage Place South location with expansion has a total of 229 units, totaling 26,000 net rentable square feet, along with 20 parking spaces. The facilities combined have a total of 465 standard units, totaling 56,155 net rentable square feet.
Secure Storage to convert WI county office building
Secure Storage LLC will create climate-controlled, self storage units, outdoor recreational storage and leased office space in the former Columbia County Health and Human Services building at 2652 Murphy Road in Portage, Wisconsin, according to the Portage Daily Register.
The building has been vacant for more than a year.
The county sold the building to Secure Storage on Dec. 13 for $250,000.
Secure Storage, based in Baraboo, has been granted a conditional use permit by the city of Portage, and wants the property rezoned for industrial use. The company plans to build and operate climate-controlled, self storage units and outdoor storage for recreational vehicles on the 4.8-acre property. It also will lease office space in the structure already on the property.