Several self storage real estate transactions have been in the news this week as the market for self storage facilities steadily improves.
Highway 79 Super Storage of Temecula, California, was sold this week for 93 percent of its asking price. The final sale, which was brokered by Marcus & Millichap, was for seven million dollars. The buyers and sellers were represented by Nick Walker and Michelle Watson, of Marcus & Millichap’s National Self Storage Group, and by Jake Steele and Andy Glinski, from its Special Assets Group.
Highway 79 Super Storage has 700 storage units situated on approximately 3.5 acres. Currently, about 71 percent of its units are occupied. The facility, which has existed since 2006, has a total of 89,343 square feet of storage space.
Meanwhile, Storage Deluxe bought three quarters of an acre of land from Home Depot for a new self storage facility in Queens, New York. The lot of land cost Storage Deluxe $2.1 million, and the company plans to build an 85,000 square foot facility containing 1,150 self storage units. At the same time, M&T Bank provided $8.2 million to Storage Deluxe to use in developing the land and constructing the new facility. The entire deal, when both the cost of land and the cost of development are folded together, amounted to $13.3 million.
“It’s good to see a decently sized development deal like this going forward, especially in a difficult environment,” Louis Perfetto, the lawyer who represented Storage Deluxe in the deal, commented in a statement released yesterday. Perfetto is a managing partner at Cohen & Perfetto. “It is a solid investment.”
In his own statement released at the same time, Storage Deluxe’s president, Steve Novenstein, commented, “In this financial climate, Storage Deluxe continues to be committed to finding grea
t locations in densely populated areas where we can add to our existing New York City footprint.” Storage Deluxe currently owns 31 New York-based self storage facilities.
Sources used:
Fung, Amanda. “Development deal yields Queens storage facility.” Crain’s New York Business. March 30, 2010.
“Marcus & Millichap agents sell Highway 79 Super Storage in Temecula, CA.” Inside Self-Storage. March 29, 2010.
“Storage Deluxe developing self-storage facility in Queens.” Inside Self-Storage. March 30, 2010.