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7/07/16
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We’ve three separate self storage transactions to report. The deals, totaling $30.1 mil in value and 260k sf in total space, took place in San Diego County, Texarkana, TX, and Phoenix.
In San Marcos, near San Diego, Barker Pacific Group acquired an 84k sf asset that had been owned by a family partnership for more than 20 years. The buyer acquired the property in a venture with an institutional equity partner, and plans to operate under their Storage Solutions brand name. Greg Wells with Cushman & Wakefield’s Self Storage Practice Group represented the seller in the deal.
In Texarkana, TX, Wells and C&W colleague Jim Lewis repped the seller of New Boston Storage, which totals 50.1k sf sf. The property was purchased by a regional operator that owns several stores in the Texarkana area.
In the Phoenix area, a national operator acquired a self-storage project totaling in excess of 100k sf. The project consists of seven buildings and over 400 RV/Boat parking spaces on 16 acres. Wells represented the seller, the original developer of the property.
“These transactions are indicative of several current trends in the self storage sector,” said Wells, Director of Cushman & Wakefield’s Self Storage Practice Group. “Quality assets located in top 10 MSA’s like San Diego and Phoenix are generating a tremendous amount of interest and aggressive pricing from all investor types, especially the REITs and institutional equity players. This trend has caused more groups to focus on secondary markets like Texarkana in an effort to achieve higher yields.”
Added Lewis, “The shift to smaller markets has clearly opened up a window of opportunity for owners in those areas to exit at very attractive prices compared to where values were just a few years ago. Relative to other asset classes, the returns in self storage are still very appealing given the ability to grow revenue and virtually no below-the-line capital costs.”
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