Sovran Buys Recently Completed Self-Storage Development in Miami
- Feb 29, 2016
By Adriana Pop, Associate Editor
Miami–A subsidiary of Sovran Self Storage, which operates nationwide under the Uncle Bob’s Self Storage brand name, purchased the 99,000-square-foot facility at 640 N.W. 133rd St. in North Miami. An affiliate of Northbrook, Ill.-based Banner Storage Group, the property’s developer, sold the recently-built project for $11.04 million, the South Florida Business Journal reported.
The four-story property is located along I-95, 10 miles from downtown Miami. Banner Storage bought the 1.3-acre site in late 2014 for $1.12 million, and used a $5.9 million loan from PNC Bank to build the facility in 2015. According to the Banner website, the project’s cap rate at sale was 7.4 percent, considerably lower than the projected 8.9 percent.
Located between Miami Shores and North Miami Beach, North Miami will soon welcome the planned SoLē Mia, a 183-acre, $4 billion mixed-use project. LeFrak and Turnberry Associates are joint venture partners in the mega-project.
Based in Buffalo, N.Y., Sovran is a real estate investment trust that operates more than 500 storage facilities in 26 states and 300 cities. The company, which recently announced a major expansion, has a portfolio of owned and managed facilities of more than 36 million square feet.
Banner Storage Group became operational in 2013 as a subsidiary to Banner Apartments LLC to diversity the company’s real estate holdings outside of the multifamily sector. Banner Storage is led by Gary Delaney, president, who has more than 25 years of real estate development and construction experience, with the last 19 years being almost exclusively focused on self-storage.
Images courtesy of Sovran Self Storage/Banner Storage Group