Phoenix Asset Sells for Record Price
- Aug 26, 2016
By Adriana Pop
Phoenix—Marcus & Millichap has facilitated the sale of 7th Street and Dunlap Self Storage, a five-story, 706-unit, 69,910-net-rentable-square-foot storage facility in Phoenix. Terms of the transaction were not disclosed, but the asset reportedly fetched a record-breaking price within the market.
“The property, which has high physical and economic occupancies and an excellent cash flow, was reportedly sold for the highest price per square foot ever achieved by a self-storage asset in Phoenix,” Michael Mele, senior director of Marcus & Millichap’s National Self-Storage Group (NSSG), said in prepared remarks.
Built in 2007, the class A facility at 533 East Dunlap Ave., is situated in Sunnyslope, one of Phoenix’s most well-established and socio-economically diverse neighborhoods. The population within a five-mile radius totals 345,540 residents. There are also 12 shopping centers nearby, including the 61-store enclosed Christown Spectrum Mall. Interstate 17 and the Piestewa Freeway (Arizona State Route 51) are three miles away.
Mele, Sean Delaney, also a senior director of the NSSG, and Devin Beasley, associate, represented the seller and procured the buyer. Donald Morrow, regional manager of Marcus & Millichap’s Phoenix office, is the firm’s broker of record in Arizona.
“After a comprehensive marketing campaign, we received numerous offers from both private and institutional capital. This was a fantastic opportunity to acquire a pristine, Class A facility in a top-20 MSA that was locally owned and operated,” added Delaney. “Despite paying a record price per square foot, the buyer is inheriting a property that produces a solid cash flow with real upside through professional on-site management, a more robust marketing platform and revenue management systems.”
Image courtesy of Marcus & Millichap