Self Storage Industry Report: May 9, 2017
posted on 5/9/2017 3:30:00 PM
Bellomy Advises on Nebraska Self Storage Sale
Bellomy & Co. has sold Kiss Mini Storage in Lincoln, NB. The facility includes 120 units in 29,000 net-rentable-square-feet on almost 8 acres. Bill Bellomy, Michael Johnson and John Arnold procured the Lincoln-based buyer and helped negotiate a 25-year ground lease. Bellomy & co. is an Austin, Houston and Atlanta-based commercial real estate firm with a team focused on self storage.
StorQuest Self Storage Opens New Facility in Phoenix
StorQuest Self Storage celebrated the grand opening of its newest Phoenix location on 7th Street near Steele Indian School Park in May. The facility offers unique storage solutions to active Phoenix residents who go hiking or biking in nearby Piestewa Peak and Camelback Mountain as well as storage for residential and business customers.
The new facility features drive-up access with 24-hour gate access, digital surveillance, complimentary dollies and carts and free truck and driver at move-in. Some units are climate-controlled.
StorQuest Self Storage is owned by The William Warren Group, Inc., which operates a network of self storage facilities across the US.
Jernigan Develops in Atlanta and Near Tampa
Jernigan Capital Inc. has plans for two multi-story climate controlled self storage facilities in Atlanta and Largo, Fla. Jernigan has invested $20.6 million in the projects.
In Atlanta on Monroe Drive, Monroe Drive Self Storage will feature 941 units and will be visible from I-85. RRB Development LLC will invest $12.5 million to develop the property when it breaks ground in July. It’s the fifth co-investment project for RRB Development and Jernigan Capital.
In Largo, Jernigan will partner with Phillips Development & Realty to develop and build a 684-unit facility. The ground-up project is close to a thoroughfare that connects Tampa/St. Petersburg and the Gulf coast beaches. Development there is also expected to begin in July.
Marcus & Millichap Gets Record Amount for Facility in Wisconsin
Marcus & Millichap has advised on the sale of two self storage facilities in the Greater Milwaukee area. The Vault of Menomonee Falls and The Vault of Waukesha sold for a total of $17.07 million, the highest on record per square foot for a self storage portfolio in the Milwaukee MSA.
Sean Delaney and Michael Mele of The Mele Group of Marcus & Millichap represented the private investor sellers. The buyer was U-Haul.
Built in 2016, The Vault of Menomonee Falls opened in late 2016 with 451 units. Phase II construction will be completed over the next 12 months and will expand the property to 768 units.
The Vault of Waukesha was built in 2014 and expanded in 2015. It has 582-units.
The properties are within 15 miles of each other and 20 miles from Milwaukee.
MJ Partners Report Shows Moderating Growth
Revenue and net operating income growth in the self storage sector continued to moderate in the first quarter of 2017, according to an analysis by MJ Partners Self Storage Group.
The self storage REITs generated same-store revenue growth in the first quarter of 2017 ranging from 3.2 percent to 6.6 percent. Revenue growth was unevenly spread across markets. Occupancies plateaued in the first quarter compared to 2016. Rental rate increase had the greatest impact on revenue growth, according to the report.
In the area of sales, the bid-ask spread between buyers and sellers remains wide, driving lower acquisition volume for operating properties and certificate of occupancy transactions during the first quarter of the year. An uptick in transactions is anticipated in the second half of year as that gap narrows and the impact of new supply becomes more defined.
Storage Opens in Former Elementary School
IdeaTek Equity Group has opened a self storage facility in North Plum, Kansas, in a former elementary school building.
The new Sand Hills Center offers 160 storage units ranging in size from 10 to 200 square feet with select units larger than 2,200 square feet. All storage is climate controlled and camera-monitored.
In addition to storage, one side of the property houses a 4,800 square foot event and community center that can be rented for meetings, parties and other events.
IdeaTek Equity purchased the 100-year-old school building on 5 acres after the district built a new school and closed it. IdeaTek Equity Group is a private investment company that operates four IdeaTek Storage facilities.