A partnership between Invesco Real Estate and Baranof Holdings has paid $48.5 million for Solana Beach Storage, an 895-unit self storage facility in Solana Beach, Calif. Cushman & Wakefield negotiated the transaction on behalf of the buyer. The seller, a private investor, developed the property in 1993.
The facility was 92 percent leased at the time of the sale. Extra Space Storage was tapped to manage the asset.
Located at 545 Stevens Ave. W., Solana Beach Storagecomprises seven one- and two-story buildings spanning 3.5 acres. Storage spaces range between 20 and 300 square feet and include climate-controlled units. The property offers drive-up access to larger units, wine storage and video surveillance.
The property, situated some 22 miles north of downtown San Diego, is part of a self storage park, which includes three other facilities. The location serves residents of Del Mar, Rancho Santa Fe, Encinitas and Fairbanks Ranch.
The asset’s location in a high barrier to enter market was one of the key factors that determined the partnership to close the deal, Cushman and Wakefield Managing Director Greg Wells said in prepared remarks.
The Cushman & Wakefield team that arranged the transaction included Wells as well as Executive Managing Director Luke Elliott and Vice-Chairman Mike Mele.
Four other self storage facilities are located within a three-mile radius, making for an average penetration rate of 10.1 square feet per capita—considerably above the metro’s average of nearly six square per capita and the national average penetration rate of 6.8 square feet per capita.
San Diego’s self storage sector continued to expand through August, driven by high demand and limited supply. Street rates continued to be among the highest across major U.S. markets, clocking in at $177 for the standard 10×10 non-climate-controlled unit, a recent Yardi Matrix report shows.
Construction activity also picked up pace in August. The new-supply pipeline accounted for 11.3 percent of existing stock, up 60 basis points compared to the previous month.
