Phoenix-Area Self-Storage Assets Find Out-of-State Owner
- Sep 05, 2017
The Mele Group of Marcus & Millichap facilitated the sale of Ironwood and Strongbox—two self-storage facilities in Apache Junction, Ariz., comprising 608 units—to a buyer based outside of Arizona. Specialists in the firm’s Phoenix, Tampa and Sacramento offices brokered the transaction. Prior to the deal, the Apache Junction self-storage portfolio belonged to an out-of-state private investor.
One of the facilities, Ironwood, is located on 4.8 acres at 1678 Superstition Blvd. It consists of 398 units—345 non-climate-controlled units ranging from 25 to 600 square feet, 13 offices and 40 boat/RV spaces. Ironwood offers 60,442 rentable square feet, with physical occupancy of roughly 89 percent and economical occupancy of 76.2 percent. The property has excellent visibility and signage along Superstition Boulevard. By relocating the office area, it is possible to expand units within the space.
Less than one mile from Ironwood, Strongbox occupies 1.5 miles at 1735 West Apache Trail. The self-storage facility comprises 210 units, including 203 non-climate-controlled units, ranging from 50 to 250 square feet and seven office spaces. The property offers 26,522 rentable square feet, with a physical occupancy of roughly 79 percent and an economic occupancy of 66 percent. Office tenants include computer repair and mobile sales services. The asset is close to State Route 88 and U.S. Highway 60.
Shortage of climate-controlled units
Both assets, built in 1997, are located in the vicinity of residential communities and retail options and adjacent to manufactured home parks.
Michael Mele and Luke Elliott, investment specialists in Marcus & Millichap’s Tampa office, Devin Beasley of the firm’s Phoenix office and Daniel Kuchugurny of the Sacramento branch had the exclusive listing to market the property on behalf of the seller. Kuchugurny and Edward Nelson, investment specialists in Marcus & Millichap’s Sacramento office, secured and represented the buyer, while Broker Brian Tranetzki assisted in closing the transaction.
“The purchase of the portfolio provides the buyer with an incredible opportunity to convert various units to climate-controlled spaces in order to take advantage of a shortage in the market,” says Beasley.
Image courtesy of Marcus & Millichap