Marcus & Millichap Sells 8-Property Self-Storage Portfolio for $91M
- Jun 10, 2014
An eight-property portfolio of Best Florida Storage locations in Broward County, Fla., totaling more than 7,100 units and about 854,800 rentable square feet has sold for $91 million, or $106 per square foot, it was announced Friday by Marcus & Millichap. The company’s Michael Mele, a first vice president/investments in the Tampa office, represented the seller and the buyer, Dylan Delaune of Storage Post and Arvid Albanese of The Albanese Group (Best Storage), respectively, a Marcus & Millichap spokesperson told Commercial Property Executive.
The portfolio “is an outstanding mix of stabilized assets with strong cash flow, lease-up properties with new construction components, and newly renovated space,” Mele said in a release. “The previous owner assembled this portfolio of prime locations with exacting focus over a decade of ownership, selectively pruning under-performing assets along the way.”
The eight properties are:
· Best Storage One, 115,528 rentable square feet, 1,074 units, Fort Lauderdale.
· Best Storage Two, 56,107 rentable square feet, 740 units, Fort Lauderdale.
· Best Storage Three, 104,474 rentable square feet, 1,070 units, Fort Lauderdale.
· Best Storage Five, 87,137 rentable square, 1,041 units, Lauderhill.
· Best Storage Six, 52,113 rentable square feet, 346 units, Pompano Beach.
· Best Storage Seven, 88,694 rentable square feet, 519 units, Oakland Park.
· Best Storage Eleven, 220,000 rentable square feet, 1,169 units, Pompano Beach and Deerfield Beach.
· Best Storage Twelve, 100,450 rentable square feet, 1,199 units, Fort Lauderdale.
A combination of strong new-household formation and increasing population mobility will lift demand for self-storage units nationally, even as construction of new facilities is limited, according to a first-quarter report from Marcus & Millichap. Among regional trends supporting this sector’s viability, the report noted, is a recovering housing market in the Sun Belt.
Sellers of storage facilities are generally in an advantageous position, the report says, restraining cap rates to the sub-6 percent range in primary markets.
Nationally, the median sale price rose 11 percent last year to $73 per square foot, with the highest price growth in the Midwest and West.
Finally, the report predicted that rising interest rates will drive self-storage facility prices down and that new listings will see “plenty of buyer demand as capital awaits quality properties.”