Self Storage Industry Report: January 17, 2017
posted on 1/17/2017 10:40:00 AM
Institutional Investors Moving into Secondary Markets like Montgomery
Marcus & Millichap has assisted with the sale of a Montgomery, AL, portfolio of self storage facilities that drew strong interest from institutional buyers. The portfolio includes four facilities totaling 178,680 net rentable square footage.
“We were able to secure nine qualified offers on this Montgomery portfolio from both institutional and private investors,” said Eddie Greenhalgh, an investment specialist in Marcus & Millichap’s Birmingham office.
Michael Mele, Preston Cooper and Greenhalgh held the exclusive listing and marketed the property on behalf of the seller, a limited liability company. The buyer was also a limited liability company secured by the team plus Sean Delaney.
The Montgomery Self Storage Portfolio is comprised of four self storage facilities located within a 5 mile distance from one another, providing dominant market share of the area. Each facility is situation at a high-traffic corridor with close proximity to a major thoroughfare.
“Demand for self storage facilities in secondary markets remains strong,” said Mele. “We have recently seen an influx of institutions moving into markets like Montgomery.”
Marcus & Millichap closed over 8,700 transactions in 2015 with a value of approximately $37.8 billion.
Strategic Storage Trust II Invests Big in Western NC
Strategic Storage Trust II, Inc., has purchased 11 self storage facilities in North Carolina totaling 4,850 units in 76 building and approximately 553,500 rentable square feet.
All 11 storage facilities are located in near Asheville, NC.
“Collectively these 11 properties have averaged an overall occupancy of 95 percent during 2016 and require little capital expenditure,” said H. Michael Schwartz, chairman and CEO of SST II.
Many of the properties have expansion capabilities, and SST II plans growth in the Asheville market immediately.
Strategic Storage Trust II, Inc., is a public non-traded REIT focusing on stabilized self storage properties. Its portfolio includes about 47,120 self storage units throughout the US and Canada.
The BSC Group Arranges Long Island Re-Fi
The BSC Group, LLC, has arranged a $30 million construction loan for a new Life Storage self storage facility in New York City.
The loan was arranged on behalf of Review Avenue Partners, LLC, a joint venture between Life Storage LP, and Review Avenue Storage LLC, an affiliate of Equator Capital Management, LLC. The new storage facility will be in Long Island City, NY, and will be branded, operated and managed by Life Storage.
“We are excited to be involved with such an attractive and well located property in the NYC boroughs,” said Paul Powell, chief investment officer of Life Storage, a self storage REIT.
The BSC Group, based in Chicago, is a commercial real estate financing advisor and provider of debt and equity capital for self storage investors.
Devon Self Storage Promotes Two
Devon Self Storage has promoted Jim Mooney, Jr. and Mike Vinciguerra to the position of vice president of operations. Mooney was promoted from director of operations while Vinciguerra was promoted from regional vice president of the Northeast.
Mooney has been with Devon for 15 years and held positions within the company including property and regional manager. In his most recent role he helped grow Devon’s online presence, software administration and acquisitions.
Vinciguerra has been with Devon for 11 year. He currently oversees operation for all facilities, including budgeting hiring and overseeing five regional managers and a training director. He works with the company’s accounting, legal, asset management and human resources departments and collaborates with the company’s capital partners. Before joining Devon he was a regional director for Shurgard Self Storage.
Devon Self Storage is a California-based operator with 35 facilities nationwide.
William Warren Group CFO Retires
Kent Christensen, CFO of The William Warren Group, Inc., is retiring after 17 years in the self storage industry. Christensen played a significant role in the company’s portfolio growth and expansion. Clark Porter is the new CFO. Christensen will remain a financial partner and active investor.
“Kent had a wonderful career both at Extra Space Storage and at The William Warren Group,” says CEO Bill Hobin. “The company is sad to see Kent go but happy for him and his good fortune to be able to retire at a young age and take advantage of the opportunity to pursue other interests.”
Christensen served as a senior vice president at Extra Space before joining William Warren Group in 2012. He helped WWG expand its corporate infrastructure and double its assets base.
Affluent Site Near Nation’s Capital Set for Storage
One of the final remaining self storage development parcels in well-heeled Bethesda, MD, has sold and is set for redevelopment as class-A self storage.
The Mele Storage Group of Marcus & Millichap arranged the sale of a 1.5 acre parcel of land at 5204 River Road in Bethesda, MD in the Washington, DC, metropolitan statistical area. The land sold for $11 million, approximately $7.3 million per acre and is located in one of the country’s most affluent, high barrier to entry communities. The surrounding demographic profile is among the best in the country with further high-density residential development occurring within two miles of the site.
The buyer is 1784 Capital Holdings based in Phoenix, AZ.
“Very rarely does a development opportunity of this quality come to market,” said Robert Bloch, an investment specialist in Marcus & Millichap’s DC office. “The unprecedented price per acre is a testament to the nature of the opportunity.”
Categories: Self Storage Business
Tags: Montgomery AL
, Marcus & Millichap
, Strategic Storage Trust
, Asheville NC
, The BSC Group
, Life Storage
, New York City
, Devon Self Storage
, William Warren Group
, Mele Storage Group
, Bethesda MD
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