Transactions and Deals: August 3, 2020
posted on 8/3/2020 5:54:00 AM
Hollywood storage sells near Augusta
Meridian Storage Group brokered the sale of Hollywood Self Storage in Grovetown, Georgia, near Augusta. The property sold to a private operator.
Hollywood Self Storage is 62,073 NRSF with 486 units. It opened in March 2019.
Patrick Kidder, president of Meridian Storage Group in St. Petersburg, Florida, represented the seller, a private owner, and secured the buyer.
Talonvest refis Sundance Self Storage
Talonvest Capital, Inc. negotiated a CMBS refinance loan for Seaview Financial on Sundance Self Storage, a 96,765 NRSF facility located at 1351 Baseline Road in Roseville, California.
The $8,640,000 non-recourse loan featured ten years of interest only payments, cash out, and an upper 3.0% fixed rate loan. Built in 2003, the property consists of 688 drive-up storage units.
The Talonvest team responsible for this assignment included Erich Pryor, David DiRienzo, Lauren Maehler, Jim Davies, and Eric Snyder.
Kelly rejoins Westport Properties
David Kelly has rejoined Westport Properties Inc., as vice president of development. Kelly was previously director of development from 2014 to 2019. In this advanced role, Kelly will oversee the development team, focusing on self storage and industrial projects nationwide.
Westport Properties operates more than 120 self storage facilities under the US Storage Centers brand.
“We’re thrilled to have David with the Westport Properties family again,” said Charles Byerly, CEO and president. “Prior to his departure, David played an integral part in growing Westport’s development portfolio, and there is no doubt he will play a vital role in creating opportunities for us this time around as well.”
Most recently, Kelly was vice president of development for North Palisade Partners LLC. He also has several years of development and construction experience gained at Regency Centers Corp., Snyder Langston and Standard Pacific Homes, now CalAtlantic Group Inc. Kelly earned a bachelor’s degree from Chapman University.
Invesco, Baranof buy San Diego storage
Invesco Real Estate with Baranof Holdings has acquired Morena Storage in San Diego, California. Located in the Morena District, the facility totals 108,700 square feet and 1,640 units.
Cushman & Wakefield’s Greg Wells, Bryce Aberg, Brant Abert and Zachary Harman brokered the transaction on behalf of the seller, Sherman Street Ventures. The seller was the original developer of the property.
The buyer plans to keep the name.
Marcus & Millichap names LeClaire-Schlosser Group
Marcus & Millichap announced that The LeClaire Group of Marcus & Millichap is now The LeClaire-Schlosser Group of Marcus & Millichap. The team is an industry-leading national self-storage property investment team that delivers brokerage and advisory services to institutional and private investors.
“The change reflects the contributions my business partner, Adam Schlosser, has made in our growth and success within the self-storage investment industry in Denver, throughout Colorado and beyond,” stated Charles “Chico” LeClaire, executive managing director investments in Marcus & Millichap’s Denver office. LeClaire and Schlosser, senior vice president investments, have completed 645 self storage investment transactions in 33 states valued at over $4 billion.
The 14-member team includes Dave Knobler, first vice president investments, with whom they do numerous institutional deals in Texas, and Thomas Parsons, senior associate.
LeClaire joined Marcus & Millichap in 1990, Schlosser in 2005.
A graduate of The Ohio State University, Schlosser served in the Army National Guard’s 1-137th Aviation Blackhawk Battalion and while serving overseas earned multiple awards and decorations for leadership and outstanding service.
Boardwalk launches new fund
Boardwalk Development Group LLC, a private-equity investment company focused on self storage, has launched Boardwalk Storage Fund III, intended for storage property acquisitions in secondary and tertiary markets throughout the Southeast. BDG plans to use the fund to purchase “stable and cash-flowing” facilities with the intent of operating them with “low-cost automation,” such as self-serve kiosks and online move-in features.
BDG has not disclosed the amount of the fund but indicated it received capital from a private-equity group.
The company launched an $80 million fund in2017.
Founded in 2016 by Raj Sheth, BDG is a real estate acquisition, development and management firm based in Suwanee, Georgia, a suburb of Atlanta. It operates 11 self storage facilities in the Southeast and plans to acquire more than 100 storage properties in the next five years.
Lender plans foreclosure on storage project
The 360 CB Fund I, based in White Plains, New York, has filed a foreclosure action against New Rochelle Birch Development LLC and Ira Schwartz, the managing partner, over a $2.7 million loan for a self storage project in New Rochelle, according to Westfair.com.
The developer planned to build a $25 million self storage warehouse at 2 Birch St., near a New England Thruway interchange, Kings Highway and Main Street for ExtraSpace Storage of Salt Lake City. New Rochelle Birch is affiliated with BlackMountain Partners LLC, an Albany real estate investment firm that specializes in self storage facilities.
Plans called for the demolition of a former Rotanelli frozen foods facility and build a five-story, 152,000-square-foot warehouse with 1,182 storage units.
The work was to begin in 2018 and to be done by the end of 2019, and the loan was extended four times. The lender is demanding that the property be sold to pay the loan.
NKF forum features industry overview
Here are the takeaways from the Newmark Knight Frank Self Storage Forum with Dean Jernigan, president and CEO of Jernigan Capital.
As the sector transitioned from the lockdown that started mid-March into the new socially-distanced normal, consumer activity has proven the product type remains essential to the U.S. consumer and is only further emphasized by societal dislocation seen in recession environments.
Earnings season for public companies is expected to emanate resilience in the sector with Q2 performance expected to beat prior year performance in multiple parts.
Although March saw an influx of activity, largely due to college students vacating campuses early, normal activity was widely muted for both March and most of April. Storage rental activity resumed into May and reached outsized levels by Memorial Day.
August is likely a big net move-in month given the lack of students that would normally dominate the move-outs as they returned to campuses.
The amount of capital chasing the self storage product type, combined with the low interest rate environment, will continue to keep downward pressure on cap rates well into the future.
Projects in progress will see greater interest reserve pressure that will likely push some developers to sell.
KeepSafe in Missouri sells
Marcus & Millichap brokered the sale of KeepSafe Self Storage, a 27,636-square foot self-storage located in Rolla, Missouri.
Anne Williams-Blackwell, first vice president, and Marla Čolić, associate, had the exclusive right to market the property on behalf of the seller. Čolić, of Marcus & Millichap’s St. Louis office and an associate with The Williams Storage Group, also procured the buyer.
KeepSafe Self Storage is located at 11289 Twitty Drive. Constructed in 1995 on 3.41 acres, the property features 183 non-climate units, and 8 large vehicle/boat parking units.