The Small Space Marketplace

List Your Space

Find Space

Home About Us Executive Subscriber Membership RENTV Conferences Newsletter Contact Us Advertise
March 29, 2024
 Search RENTV
   Go!
 The REview
 News
News Home Page
Southern California
Northern California
Pacific Northwest
Texas/Southwest
Retail
Multifamily
Financing
Prop. Management
Archives
Press Releases
 R. E. Marketplace
Service Providers
JobWorks
Property Spotlight
 RENTV  Conferences
Subscriber Login:
  
Email      
    Go!
Password      
Forgot Password?





LOS ANGELES COUNTY NEWS
Printer-friendly Version   Email an Associate
Self-Storage Facility Becomes the Latest Gelt-y Pleasure for L.A. Real Estate Firm

1/24/19

Gelt Inc has acquired Southmark Storage, a 665-unit, self-storage facility in South Pasadena, for $16.5 mil. Built in 1986 and situated on a 1.81-acre site at 919 Mission St, the six-building property includes 623 indoor storage units and 42 outdoor rental units, a site office and a two-bedroom manager’s apartment.

The property was 99% occupied at the close of escrow. Immediately upon closing, Gelt hired Extra Space Storage, one of the nation’s top self-storage property management companies, to streamline operations. Gelt will conduct property improvements including installing new roofs, asphalt, and paint, among other property maintenance. It will also improve signage, property access systems and add a web payment platform for its customers.

Southmark Storage is located in a residential neighborhood adjacent to the South Pasadena Metro Station, with high median home prices and household incomes. The property is within a 16-minute drive to Downtown Los Angeles.

“This is Gelt’s first self-storage facility acquisition,” said Keith Wasserman, a partner with LA-based Gelt. “We have and continue to be in the multifamily space, however, we are also an opportunistic and entrepreneurial company and identified the intrinsic value in acquiring this particular property and expanding into another stable asset class. Just as we have been successful at adding value to large-scale apartment assets through improving operations, management, making capital improvements and bringing rents to market, we plan on a similar strategy to maximize returns for our investors with this property.”

Wasserman noted that Gelt is targeting the acquisition of up to 1 msf of self-storage facilities over the next two years in primary and secondary markets with high barriers to entry, where Gelt has an existing footprint.

Greg Nassir and Edward Matevosian of CBRE represented the seller, Southmark Storage LLC, a California-based private investor. Gelt was self-represented.

With over 50,000 self-storage facilities across the country, this property type has evolved from an interim property use to a core asset in the commercial real estate industry. Additionally, a surprising 9.4% of American households rent a self-storage space and statistics show that there is seven square feet of self-storage space rented per capita in the U.S. Equity and debt capital invested in this asset class has increased substantially and self-storage has continued to outperform other real estate asset classes during and after the recession. Self-storage returns consistently lead the market and yet have amongst the lowest default rate of all real estate asset classes.







Return to the Archive page


 


 


 
 
 



Home | About Us | Newsletter | Contact Us | Executive Subscriber Membership | Executive Subscriber Home | Advertise
Southern California | Northern California | Pacific Northwest | Southwest | Retail | Multifamily | Financing | Property Management
Archives | Press Releases | Service Providers | JobWorks | Property Listings

Copyright © 2024 by RENTV, All Rights Reserved
Website designed by Regency Web Services, Inc. and powered by Lightning Media