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Transactions and Deals: February 2, 2018

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Transactions and Deals: February 2, 2018

Public Storage Buys 6 Dallas Properties

Public Storage has purchased a six-property portfolio in Dallas-Fort Worth from a joint venture owned by Advantage Storage and Harrison Street Real Estate Capital. The JLL team of managing directors Steve Mellon and Brian Somoza led the team on the transaction.

Constructed from 2001 to 2017, the properties total approximately 430,000 square feet and more than 3,300 units. Features of the properties include institutional-quality construction, climate controlled units, drive-up units, 24-hour video surveillance, secure fencing with electronic access control, wide drive aisles and retail-oriented customer service offices.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers.

Colorado’s Firehouse Self Storage Sells

A group of California investors paid $22.25 million for Firehouse Self Storage in south Loveland, Colorado.

The group, led by FolletteUSA in Sacramento, purchased the facility on S. Lincoln Avenue, from the Burton Family. The facility has 1,235 units on 24 acres. It’s the biggest single self storage facility in Colorado.

The Burtons have been planning another Firehouse Self Storage in Longmont near the Vance Brand Airport. According to BizWest, the Burtons purchased 43 acres near the airport in January with construction planned to begin in July.

Talonvest Offers Capital Markets Update

Talonvest Capital Inc. has offered the following notable updates on capital markets:

The Federal Open Market Committee raised the target for the federal funds rate 25 basis points in December. Following this increase, industry experts expect that the Fed will lift short-term rates by an additional 25 basis points between two and three times in 2018.

CMBS issuance was strong in 2017 at over $95 billion, according to Commercial Mortgage Alert, however, volume is expected to decrease to $65 billion in 2018. The decrease is expected to be driven by reduced volume of eligible collateral.

Due to this reduced supply of CMBS loans coming to market, credit spreads are expected to tighten. However, Treasuries/Swaps may continue to rise off-setting any reduction in the “all in” rate.

The Alternative Reference Rates Committee has been working to develop a fallback and possible replacement for LIBOR. The current front-runner is the Secured Overnight Funding Rate or “SOFR” – a secured overnight Treasuries repo rate. The Federal Reserve Bank of New York is planning to collect and tabulate information that it will use to publish SOFR starting mid-2018.

Janus Group Gets New Owner

Janus International Group LLC, a manufacturer of roll-up doors and building components for the self storage industry, is being acquired by Clearlake Capital Group, LP, a private investment firm. The deal is in partnership with the Janus management team.

“We are excited to partner with Clearlake, which has a successful track record of sponsoring, supporting and growing companies in the industrial and building products sectors,” said David Curtis, founder and CEO of Janus. “Clearlake’s investment approach, operational expertise and financial resources will help accelerate our growth and allow us to continue providing the highest quality products and services to our customers.”

Headquartered in Temple, Georgia, Janus has 10 US locations as well as manufacturing facilities in Europe and Mexico. The company was acquired in December 2013 by Saw Mill Capital Partners, LP, a New York-based private equity fund.

U-Haul Makes Plans for Mesa

U-Haul has acquired a nearly 8-acre property at 6215 E. Main Street in Mesa, Arizona, and plans a new self storage facility there.

U-Haul Moving & Storage of East Mesa will include more than 500 indoor units and U-Box rentals.

U-Haul will renovate a former 67,463-square-foot former shopping complex. The development is driven by the company’s focus on corporate sustainability by making adaptive reuse of existing buildings.

Private Investor Buys in Yuma

Fortuna Road Storage in Yuma, Arizona, has sold to a private investor.

Devin Beasley, Luke Elliott and Michael A. Mele, investment specialists at Marcus & Millichap, marketing the property on behalf of the seller, also a private investor.

Fortuna Road Storage is a 61,218-square-foot storage facility with 434 units. The facility expanded in 2015. Fortuna Road is a primary thoroughfare through Yuma.

Developer Delivering 3 Naples-Area Storage Facilities

A new storage facility to be managed by Extra Space Storage is underway in East Naples, Florida.

Johnson Development Associates, a real estate developer based in Spartanburg, South Carolina, purchased 1.6 acres of vacant commercial property on Rattlesnake Hammock in September. The company plans a three-story, 105,000 square foot building with 776 units. The new facility is expected to open in the third quarter of 2018.

Naples-based DeAngelis Diamond is the contractor.

Johnson Development is building two other self storage facilities in the area that are set to open in March. They are a three-story building with 757-units on Juliet Boulevard managed by Extra Space and a 662-unit facility on Bonita Beach Road to be managed by CubeSmart.

StorQuest Opens New Facility in Colorado

StorQuest Self Storage has opened StorQuest Lakewood, located at 9720 W. Colfax Avenue, in Lakewood, Colorado. The facility includes drive-up access and climate-controlled units.

StorQuest Self Storage is owned by The William Warren Group, Inc.

NKF Takes Closer Look at Demand

Newmark Knight Frank’s Self Storage Group has released a report on self storage demand and capital. The report is the result of more than a year of work identifying definitive characteristics of demand populations. The result is a four-part release of the findings from the top 50 MSAs.

NKF builds and uses algorithms to define parameters such as the urban area vs the suburban area of these MSAs to identify hidden demand drivers, such as how ownership and to weigh these demand drivers in urban areas differently than in suburban areas of the same market.

NKF will release each part of their findings over the next several months.

 

| Categories: | Tags: Public Storage, Dallas, Firehouse Self Storage, Colorado, Janus International, U Haul, Fortuna Road Storage, Marcus and Millichap, Naples, Extra Space, CubeSmart, StorQuest, Newmark Knight Frank | View Count: (1205) | Return

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