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Transactions and Deals: December 20, 2017

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Transactions and Deals: December 20, 2017

All American Sells to Chicago Operator

EquiCap Commercial has arranged the sale of All American Self Storage in Minooka, Illinois, to a Chicago-area operator. All American Self Storage is a 31,750 rentable-square-foot self storage facility with 213 units.

Jesse Luke, managing partner of EquiCap’s Self Storage Advisory Group, represented the seller and the buyer.

“This deal represented an off-market transaction, where the seller had an unsolicited offer on the table from a large national operator.  However, due to our relationships, we were able to secure a more acceptable price point from a local 1031 buyer.  This ultimately netted the seller more proceeds at the closing” said Luke.

Midcoast Sells Alcom Mini in North Carolina

Midcoast Properties Inc. arranged the sale of Alcom Mini Storage, a 20,000-square-foot self-storage facility in Cherryville, North Carolina, about 40 miles from Charlotte. The seller was a private investor, and the buyer was out-of-state. Alcom Mini Storage is 100 percent occupied.

Opened in 2007 and expanded in 2010, the four building self storage facility occupies more than four acres, and comprises 123 storage units, a 5000-square-foot warehouse, a rental office and RV and boat parking. The construction allows for further expansion.

Michael Morrison, associate broker with Midcoast Properties Inc., arranged the sale. Midcoast specializes in self storage transactions.

Harrison Street Buys 2 Facilities in Tennessee

Investment-management firm Harrison Street Real Estate Capital LLC acquired a two-property portfolio in the Nashville market from Mallory Station Self Storage.  Together, the facilities comprise more than 147,500 rentable square feet. The portfolio sold for nearly $38 million. The properties will be renamed US Storage Centers and operated by Westport Properties Inc. Colliers International brokered the deal.

The property in Cool Springs, Tennessee, comprises 71,338 square feet and sold for $21.5 million. The facility in Nolensville, Tennessee, comprises 76,168 square feet and sold for $16.5 million.

“This transaction is reflective of the evolution that has occurred in recent years propelling self storage facilities from a relatively undesirable asset class into one of the most sought after commercial real estate investments,” said Ashley Compton, national director for the Colliers Self Storage Group, who represented the seller in the transaction and procured the buyer.

CubeSmart Buys New Delray Beach Facility

CubeSmart has purchased a newly constructed self storage facility in Delray Beach for $17.75 million. The facility was sold by Kaufman Lynn Construction, which built the storage facility.

The 132,000-square-foot facility is six-stories and built on a nearly 3-acre site

CubeSmart is a Pennsylvania-based real estate investment trust that owns or manages more than 900 self storage locations across the country. CubeSmart also plans to manage a self storage facility currently under construction in North Gables and recently bought a 97,140-square-foot self storage facility in Oakland Park.

U-Haul Mum on Smart Mobility Center

Phoenix-based U-Haul International Inc. will build a “Smart Mobility Center” on 24 acres in Tallahassee, Florida, including up to 150,000 square feet of self storage. The mixed-use development would also include up to 85,000 square feet of research and incubator space, 23,000 square feet for bicycle sales and service, and a 23,000-square-foot Ford Chariot rideshare facility for commuter shuttles. The center is also expected to include alternative-fuel stations and electric-vehicle charging stations.

Tallahassee city commissioners have approved U-Haul’s request to create a Planned Unit Development (PUD) on the property. The PUD changes the zoning from a “high-intensity urban activity center” to allow for self storage and warehouse uses.

U-Haul has not commented publicly on the project, but the concept is thought to signal the company’s approach to the shared economy.

U-Haul operates more than 1,300 self storage facilities in North America.

Metro Storage Building in New Jersey

Metro Storage LLC will open a new facility in Woodridge, New Jersey, by early 2018.

The three-story property on Route 17 is an urban-infill project on the former site of Rudox Engine and Equipment Co.

Headquartered in Lake Forest, Ill., Metro Storage operates the Metro Self Storage brand, including facilities in Andover, Pennsauken, Springfield and Stanhope, N.J. The privately owned, fully integrated real estate company operates more than 125 self storage locations in 14 states.

New Storage Coming Outside Bakersfield

A-1 Self Storage Tehachapi will be built in 2018, bringing 102,814-square-feet of storage to the community outside of Bakersfield, California.

The facility will include 13 single-story buildings with more than 1,000 units with outdoor or indoor access.

The first phase of the project will begin construction in the New Year. The Tehachapi Planning Commission approved plans at its December meeting.  The structures will be built out of precision concrete walls and metal roofs with roll-up doors.  

New Storage in SW Indiana

Developers will soon open Safe-T-Access Storage LLC in Washington, Indiana. The storage facility will offer climate-controlled units as well as camper, boat and trailer storage.

Safe-T-Access Storage will include 104 units, five covered bays, and 28 open lot RV and boat spots.

Connecticut Storage Approved

A Stamford-based developer plans to open a self storage facility at the rear of a former hotel property in Stratford, Connecticut.

Developer 225 Lordship Boulevard LLC is already underway with a 69-unit apartment building on the 4.7-acre property.

CubeSmart will manage the 120,000 storage facility. The building will be four-stories tall and contain up to 800 climate-controlled storage spaces.

Talonvest Offers Capital Markets Update

The Fed Rate increased by 25 basis points on December 13 in a move widely expected. 2018 could bring as many as three more increases, Talonvest Capital experts predict. Bank lenders could react by tightening their lending standards.

Banks continue to compete with CMBS lenders by offering greater flexibility on potential environmental issues.

The amount of CMBS loans scheduled to mature in 2018 is expected to decline compared to the most recent three-year stretch, according to Talonvest Capital Inc. Due to strong investor demand coupled with a reduced supply, spreads are likely to compress slightly as lenders compete for the best properties.

| Categories: | Tags: All American Self Storage, Chicago, EquiCap, Alcom Mini Storage, Harrison Street Real Estate Capital, US Storage Centers, Tennessee, Colliers Self Storage Group, CubeSmart, U Haul, Metro Storage, New Jersey, Indiana, Connecticut, Capital Markets | View Count: (1752) | Return

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