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Self-Storage Real Estate Acquisitions and Sales: June 2021

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Self-storage properties are constantly changing hands and Inside self-storage is regularly informed about these market transactions. Here is an overview of the activities in June 2021.

A three house Advantage of storage Portfolio sold in Odessa, Texas. Facilities at 5101 E. 52nd St., 6501 E. Business 20, and 5136 E. University Blvd. comprise 252,506 net rentable square meters in 1,428 units. The 52nd Street location was expanded in 2019 and offers space for future developments. Advantage operates more than 50 self-storage facilities in Arizona, Colorado, and Texas. The seller was represented in the transaction by The Hatcher Group by Marcus & Millichap (M&M), a commercial real estate investment firm with offices across Canada and the United States.

Allsafe self-storage in Cedar Hill, Texas, to a private foreign investor. The facility at 611 E. Beltline Road was built in 2000 and expanded in 2011, encompassing 85,550 square feet in 599 units. The buyer and seller, a private developer and investor, were represented in the transaction by Kyle Newswanger, an investment specialist from Colliers International, an investment firm operating in 67 countries.

Amar Road self storage in City of Industry, California. The facility at 15870 Amar Road, built in 2009, has 48,460 square meters of net rental space in 438 units and 28 parking spaces for vehicles. At the time of sale, the property had a physical occupancy rate of 96.4%. The Hatcher Group of M&M represented the seller in the transaction.

Public Storage, a self-storage real estate investment trust (REIT) and management company, is acquired Arbor Town camp and University store in Estero and Fort Meyers, Florida by Seagate Development Group, which built the properties in 2019 and 2020, respectively. Arbor Town on Tiburon Way 20091 covers 76,000 square feet in 663 units. The three-story university warehouse at 10688 Colonial Blvd. offers 63,275 square meters in 601 units. The transaction was brokered by SW Management & Realty LLC, a subsidiary of Seagate. Seagate is a development company specializing in construction, custom renovations, interior design, management and leasing.

Andover Properties LLC, which operates the Storage King USA brand, bought Baghdad mini warehouses in Milton, Florida. The property at 4065 Garcon Point Road comprises 37,000 square meters of net rentable space in 288 units and 97 parking spaces for vehicles. The Hatcher Group of M&M represented the seller in the transaction. Founded in 2003 and based in New York, Andover owns and manages more than 75 warehouse properties in 16 states, spanning 5.7 million square feet across 42,500 units.

Black box self-storage in Tanner, Alabama. The facility at 20285 Huntsville Brownsferry Road, built in 2016, has 75,225 square meters of net rental space in 388 units and 51 vehicle spaces. The Hatcher Group of M&M represented the seller in the transaction.

The three property Cornerstone Storage LLC Portfolio in Council Bluffs and Omaha, Nebraska, sold to Missouri and Pennsylvania buyers. Together, the facilities at Rue St. 1911 in Council Bluffs and 8787 S. 192nd St. and 6100 S. 72nd St. in Omaha comprise around 45,000 square meters of net rental space in 309 units. The seller was represented in the transaction by Bill Bellomy and Michael Johnson of Bellomy & Co., a commercial real estate company with offices in Austin and Houston, Texas. Bellomy and Johnson also brokered the buyers.

A newly built self-storage facility by REIT. is managed CubeSmart sold in Stratford, Connecticut. The four story building at 225 Lordship Blvd was built on 1.25 acres. comprises 84,555 lettable square meters in 914 units. The facility received its certificate of operation in April. The seller was represented on the transaction by Matt Davis, Vice President, Thomas K. Gustafson, National Director, and Enzennio Mallozzi, Managing Director of Colliers International’s Self Storage Group.

Envy Self-Storage & Motorhome of Gilbert, Arizona, to Arizona-based JLL Arizona Self Storage LLC for $ 17.5 million. The facility at 18612 S. Lindsay Road comprises 127,745 square meters of net rental space in 757 units. The property is in the middle of being expanded to include a further 39 covered and three open motorhome parking spaces. The seller, 202 Storage LLC based in Arizona, was represented in the transaction by Denise Nunez, Managing Director, and Victoria Filice, Associate, of NAI Horizon, a member of NAI Global, a managed network of independent commercial real estate firms.

Strategic Storage Trust VI Inc. (SST VI), a private REIT sponsored by a subsidiary of SmartStop Self Storage REIT Inc., is acquiring Full house self storage in Las Vegas. The facility at 8570 S. Durango Drive was completed nearly a year ago and covers 52,200 square feet in 335 units. It is the third acquisition for the newly established SST VI and the tenth SmartStop-owned property in the Las Vegas market or managed by SmartStop. Maryland-based SST VI invests in self storage and related real estate investments in Canada and the United States.

Interstate mini storage in Gainesville, Florida. The facility at 2707 SW 40th Blvd. comprises 106,883 net rentable square meters in 831 units and 63 vehicle parking spaces. It includes a manager’s residence. The property had a physical occupancy rate of 83% at the time of sale. The Hatcher Group of M&M represented the seller in the transaction.

A joint venture between Blue Vista Capital Management LLC and Montfort Capital Partners LLC has acquired a San Antonio facility owned by REIT. is managed and branded Life Storage Inc.that it will continue to monitor. The property at 12991 Potranco Road is 79,810 square feet in 694 units. The seller was represented in the transaction by Jon Danklefs, an investment specialist at M&M, who also brokered the buyer. Blue Vista, based in Chicago, is a real estate investment management firm. Montfort is a Dallas-based company that invests exclusively in self-storage nationwide. The purchase is the eighth from Montfort, Texas.

Londonderry warehouse in Middletown, Pennsylvania. The facility at 4043 E. Harrisburg Pike was built in 1999 and expanded to an adjacent property in 2003 and offers 49,250 square meters of net rental space in 371 units. The seller, a limited liability company, was represented in the transaction by Gabriel Coe, Nathan Coe and Brett Hatcher, investment specialists for the Hatcher Group. They were supported by M&M broker Sean Beuche.

Meadows self-storage of Castle Rock, Colorado, to a joint venture between Invesco Real Estate and Westport Properties that operates the US Storage Centers brand. The facility in 4395 Regent St., built in 2018, comprises 54,102 lettable square meters in 472 units and vehicle parking spaces. The seller was Castle Rock Development. Invesco is the global real estate investment management arm of Invesco Ltd. He invests in direct real estate and publicly traded real estate stocks. Founded in 1985, US Storage Centers manages more than 10 million rentable square feet.

Acquired Storage Express, which owns and operates 114 properties in Indiana, Illinois, Kentucky, Ohio and Tennessee Mount Tabor granary in New Albany, Indiana. The two year old facility at 614 Mt. Tabor Road covers 40,000 square feet in 370 units. The buyer and seller were represented in the transaction by Hunter Sells, a senior associate of SkyView Advisors, a Tampa, Florida-based commercial real estate brokerage firm specializing in self-storage.

Acquired SmartStop Self Storage, which operates 154 properties in 19 states and Ontario, Canada Great memory in Riverside, California. The facility at 6637 Van Buren Blvd. comprises 69,800 square meters in 379 units and 71 vehicle parking spaces. SmartStop manages $ 1.7 billion in real estate assets, including 11.8 million square feet of rentable self-storage.

Purchased iStorage Self Storage Union Road Self Storage in the White House, Tennessee. The 6-acre property at 2979 Union Road comprises 74,270 square feet of lettable space in 362 units. The facility was built in 2004 and expanded in 2017. Buyer and seller were represented in the transaction by Coe and Hatcher. They were supported by M&M Regional Manager Jody McKibben. iStorage, which operates facilities in 13 states, is owned by the National Storage Affiliates Trust, a Maryland REIT specializing in self-storage.

Acquired SpareBox Storage, which operates 41 facilities in five states four properties in Niceville, Florida and Edmond, Oklahoma, from multiple vendors. Together they cover 306,000 square meters of net rental space and more than 2,000 units. SpareBox Storage was launched last year and is sponsored by Rizk Ventures, an operations and investment platform focused on healthcare, real estate and technology.

Andover also acquired a Self-storage portfolio with five properties in Aubrey, Crowley and Wylie, Texas. Together, the facilities comprise 278,840 lettable square meters in 1,736 units and 329 vehicle parking spaces. The sale included additional land for expansion. The Dallas-based seller was represented in the transaction by Bellomy and Johnson by Bellomy & Co., who also brokered the buyer.

Swell:

Business watchers, developers are selling a pair of self-storage facilities
Business Wire, Strategic Storage Trust VI, Inc. to acquire recently developed storage facility in Las Vegas, NV
Business Wire, SpareBox Storage Announces Acquisition of Stabilized Self Storage Properties in Oklahoma and Florida
Fort Worth Business Press, Colliers sells self-storage facilities
Multi-Housing News, Self Storage in Denver Area is changing hands
REBusiness Online, Colliers Arranged for Sale of 599-Unit Allsafe Self-Storage Facility in Metro Dallas
REBusiness Online, Marcus & Millichap Brokers are selling 371-unit self-storage facility in Middletown, Pennsylvania
The Argus Press, SmartStop Self Storage REIT, Inc. to acquire self storage facility in Riverside, California

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Housing crisis becomes an emergency as Salt Lake County home prices spike 31% in a year

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Average price climbed to $ 535,000 in May, $ 128,000 more than twelve months ago as severe supply shortages and declining sales take their toll on would-be buyers in Utah.

(Francisco Kjolseth | The Salt Lake Tribune) A home for sale in Salt Lake City on Tuesday, April 27, 2021. Despite Utah housing demand at historic highs, home sales along the Wasatch Front declined earlier this year due to a lack of supply. Single-family home prices, meanwhile, continue to rise as wafer-thin deals dampen sales and buyers seek cheaper alternatives like condos and townhouses.

As the latest sign of the Utah real estate crisis, Wasatch Front real estate agents lamented the catastrophic shortage of homes in the market on Thursday as prices soar to shocking new records and sales continue to decline.

The average price of a single-family home in Salt Lake County surged the noticeable $ 500,000 mark sometime in March, then hit $ 535,000 last month, new data shows – a staggering $ 128,000 year-over-year increase of 31%.

This major damper on the price spiral pushed the volume of home sales in the five-county region in May well below the level of the same month last year, when home shopping was temporarily wiped out by COVID-19.

With the average new home supply now spanning 30 to 40 and selling in five days, real estate agents in Utah’s main metropolitan area issued a rare emergency statement saying the region was “severely undeveloped” and facing severe declines through decades of underinvestment be in terms of affordability.

“It will take more construction of all types of homes so more people can realize the American dream of their own home,” said Matt Ulrich, president of the Salt Lake Board of Realtors, which covers Salt Lake, Utah, Weber, Davis and Tooele counties.

“It’s just too tough out there,” said Ulrich in an interview. “There is simply not enough stock because the demand is so great.”

That cry for help sparked a new report released on Wednesday that estimates the country’s housing deficit at around 5.5 million units. The industry study calls for residential construction in the US to increase by 2 million homes annually over the next decade, compared to 1.3 million units built last year.

America’s housing stock has been largely neglected for nearly two decades, the National Association of Realtors report said, with a severe shortage of new buildings leading to an acute shortage, an “increasingly worsening” affordability crisis and an inventory of existing homes it is getting old and in need of repair.

Calling the magnitude of the construction delay and the resulting gap between demand and supply “enormous”, the report said the crisis will require “a major national commitment to building more homes of all kinds”.

In Utah, the housing gap is estimated at 45,000 to 50,000 single-family homes, apartments, and other forms of housing, with a particularly acute need for more affordable housing for residents with average wages.

Home builders in Utah have record numbers of units under construction but say they are not catching up given the heavily pent-up demand, lack of supply and rising prices for land, building materials and builders.

According to economists, rising prices along the Wasatch front have temporarily slowed sales since 2019, but the pandemic-induced demand for houses with more rooms and larger backyards has pushed the supply of apartments to new lows.

The resulting drop in sales worsened in May, with double-digit price gains making it more of a creep and increasing stress on the part of buyers.

Home sales in May fell to 2,396, a 7% decrease from the same month last year, which was itself a historically bleak sales month, down 19% from 2019 due to pandemic lockdowns. The average single-family home price in five counties is now $ 485,000, up $ 109,640 from the same point last year.

While these declining sales are apparently a bread-and-butter problem for the area’s 10,000 or so real estate agents working on commission, a spokesman for the Salt Lake Board of Realtors said its members are speaking on behalf of budding homebuyers.

“We are heading for California prices if we stay on this path,” warned spokesman Dave Anderton. “And that is a really difficult situation, especially for first-time buyers.”

The National Association of Realtors report blamed the crisis on “persistent underinvestment” in all major regions of the country as a result of economic conditions following the 2009 Great Recession. This downturn resulted in severe job losses in the construction sector and tightened lending standards for builders and buyers, both severe setbacks to housing construction that persisted for years.

While the report describes this as a crisis of national proportions, Ulrich noted that Utah, Nevada, and Idaho – some of the fastest growing states in the country since 2010 – had also seen the worst declines in affordability.

The Cottonwood Heights-based broker and home builder reiterated the demands of the broader Utah real estate sector, urging cities to remove “onerous” building requirements and streamline building permits to reduce construction costs. Ulrich also called for increased incentives to attract more workers to builders – such as frame builders, electricians, plumbers and roofers – who are now scarce.

The national report also pointed to potential benefits of increased housing construction for the U.S. economy, including relief for costly tenants and nearly $ 400 billion in additional economic activity.

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Loyalsock taxpayers to see real estate tax increase for school district | News, Sports, Jobs

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For the first time in three years, residents of Loyalsock Township School District will pay more property taxes next year after the school board recently increased the rate by $ 0.43 million.

This means that for every $ 100,000 of the estimated value of a property, an additional $ 43 is added to the tax bill. According to M. Dan Egly, general manager and board secretary, the new tariff will generate $ 300,000 in additional revenue for the district that would have run a $ 640,000 deficit without the additional millage. The remaining deficit will be covered by fund balances to present a balanced budget for 2021-22 with revenues and expenditures of $ 25,084,743.

“We didn’t leave a stone unturned. We are looking for all possibilities to avoid the effects of these budgets on taxpayers. said Egge.

He said the district had renegotiated contracts, installed solar panels on buildings, and recently approved the construction of a cell phone boom on district property in an attempt to find ways to reduce costs.

“The district is looking for ways to avoid tax increases in the future, but unfortunately we have to make these decisions at some point.” said Egge.

The other tax rates remain the same for the next year.

The Loyalsock Township Recreation Board budget of $ 23,994 for programs available to children in the district for the period 2021-22 was awarded to the OK.

The board also approved that

Resolution to Foreclose Homestead / Farmstead, which will allow primary residents of qualifying properties to obtain a $ 130.75 reduction in their property taxes. There are 3,020 homesteads and nine homesteads in the district that are eligible for exclusion.

In Human Resources, the Board approved the following positions at the stated salary rates: Marc Walter, Assistant Principal, $ 86,000 for the 2021-22 school year; Maria Debrody, Temporary Specialist, Elementary School Teacher, effective October 18, prorated salary of $ 49,059; Laura Kriger, part-time high school secretary, $ 13 an hour; Connie Clapper, part-time hospitality worker, $ 10 an hour; and Erika Maurer, voluntary rail trainer.

The following resignations were noted: Julia Muse, data coordinator; Eric Gerber, social studies teacher; Brandon Schrimp, school policeman; and Kimberly Bigelow, hospitality worker.

The board agreed to accept a $ 4,700 offer made by James McDermott for a 2004 bus with 72 passengers. The bus had previously been sold but the sale was not completed so the bus was offered again.

The purchase of a Cub Cadet mower from Lawn & Golf Supply Co., Inc. for $ 18,824 has been approved.

With the district’s summer programs beginning and CDC policy changes, Superintendent Gerald McLaughlin asked the board if they had any objection to making mask wear optional during the summer months. The board agreed, but stressed that it is up to everyone whether they want to wear masks or not.

Prior to the business portion of the meeting, Denise Holmes was announced as the winner of the Lauretta Woodson Support Staff Award, and Alicia Carner, a special education teacher at the high school, received an Instructor Award Acknowledgment from the group.

The next board meeting will be on July 14 at 7:00 p.m. in the boardroom at 1605 Four Mile Drive.

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Former SEC chief accountant joins real estate investment platform as CFO

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Diving letter:

  • Fundrise, a direct-to-investor real estate investment platform, has been selected as new CFO Alison Staloch, former chief accountant for the investment management division of the Securities and Exchange Commission.

  • Fundrise, headquartered in Washington, DC, manages $ 1.5 billion in equity for more than 150,000 investors. The company has invested more than $ 5.7 billion in real estate since its inception in 2012.

  • Former Fundrise CFO Michael McCord was Fired for attempted blackmail In 2016, he denied a charge.

Dive Insight:

Staloch’s attitude follows news from earlier this month that Fundrise is a Goldman Sachs’ $ 300 million loan facility to finance the construction of new single-family houses in the Sun Belt region.

At the SEC, Staloch developed policy recommendations for regulating investment companies and advisors with regard to their disclosure and financial reporting requirements. Before that, she worked in the auditing practice at KPMG for a decade.

“Having spent my entire career in investor protection roles in our capital markets, I am inspired by Fundrise’s investor-centric mission to use technology to build a better financial system for retail investors,” Staloch said in a statement. “I am excited to work with the Fundrise team to further amplify the impact of its uniquely powerful technology to streamline conventional capital raising and capital financing on behalf of its customers.”

“Alison’s background in advocating at the highest level for the individual investor was a perfect fit for our mission at Fundrise,” said Co-Founder and CEO Ben Miller.

Alison Staloch

Courtesy Fundrise

Staloch was drawn to Fundrise to “do something more entrepreneurial,” she told CFO Dive. “I’ve spent my entire career in gatekeeping and regulation, so it was tempting to be part of building something.”

Staloch, who took up her position in late April, is the company’s first full-time CFO and characterizes her workload as typical of a late-stage company. She focuses on accounting and reporting, alongside more strategic work such as improving earnings models and managing diversity, equity and inclusion goals.

“The most important thing I’m focusing on right now is structuring the finance function to leverage the technology to automate controls and processes so the company can focus more strategically,” she said.

Fundrise is very complex and heavily regulated, but “incredibly innovative in terms of compliance”.

“That impressed me as a former regulator,” she said, adding that she supported the company’s mission to democratize access to alternative assets for retail investors.

In competition with Public Real Estate Investment Trusts (REITs) and with regard to access to a broad investor base, the company offers its products and services directly. “There really is no middleman,” she said.

Fundrise’s assets are managed externally; To achieve efficiency gains in operating costs, the company is focusing on building its technical efficiency to better scale.

“Our technology enables us to raise investor money through an online platform that enables incredible investments,” she said. “Our operations are all done in-house, and our technology gives us real-time data and insights to help us execute an investment strategy more effectively.”

While rising interest rates could affect the value of real estate, it doesn’t determine how Staloch approaches the strategy, she said. “We’re looking for assets that we believe can create value and that we also see an opportunity to transform a current approach to create even more value for our investors,” she said.

Amid the well-documented uncertainty over commercial real estate following the pandemic, Fundrise is not changing its plans.

“We are currently investing primarily in rental properties for multi-family and single-family houses: asset classes that are not confronted with the same uncertainty as commercial real estate,” said Staloch. “One of the benefits of investing is that our real estate assets are diversified; We are not restricted by any asset class or geography. Single family home rental is something of a new industry that we are targeting and we are constantly reviewing which asset classes have value and opportunities for disruption. “

Since McCord’s layoff in 2016, Fundrise has been a Regulation A applicant and filing regulation letters for all funds and measures, Staloch said, which is “truly unique for a company at our stage”. Her own due diligence process has shown her the company has strong controls and, as a former regulator, Fundrise has been impressed by its adherence to strict regulations.

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