Reliant Real Estate Management, a Midgard Self Storage affiliate, has acquired a six-property self storage portfolio totaling 3,070 units in metro Atlanta. The properties traded for more than $67 million, according to Fulton County and Cobb County records. The seller was Your Extra Attic, a family-owned business.
Marcus & Millichap arranged the transaction on behalf of the seller and helped procure the buyer. The facilities will operate under the Midgard Self Storage flag.
Portfolio Breakdown
The transaction included the 536-unit facility at 2909 Log Cabin Drive SE in Smyrna, Ga. The property traded for more than $17 million, according to Cobb County records. Completed in 2006, the three-story building offers 536 units. All storage spaces are climate-controlled, with the larger units offering drive-up access.
Reliant also acquired a 519-unit facility at 6075 Post Road in Cumming, Ga., for $13.6 million. Built in 2020, the 76,356-rentable-square-foot asset offers climate-controlled units ranging between 25 and 300 square feet.
Another Cumming facility traded for more than $10 million, the same data provider shows. Located at 1715 Peachtree Parkway, the 516-unit property offers 85,381 square feet across nine single-story buildings. Storage spaces include climate-controlled units and RV and boat parking spaces.
The portfolio also included:
- A 538-unit facility at 130 Peachtree Industrial Blvd. in Sugar Hill, Ga., that traded for $10.5 million, according to Fulton County records. Built between 1999 and 2002, the property offers climate-control options as well as RV and boat parking spaces.
- A 529-unit facility at 13700 Highway 9 North in Alpharetta, Ga., acquired for nearly $10.9 million. Built in phases between 2001 and 2005, the asset offers drive-up access options, climate-controlled units and RV and boat storage spaces.
- A 538-unit property at 5534 Highway 92 in Acworth, Ga., that sold for $5.4 million. Completed in 1999, the facility includes RV and boat parking spaces as well as climate-controlled units.
A Thriving Market
The assets are located in a highly-penetrated self storage market, with nearly 8.5 square feet of storage per capita. Even so, the portfolio is well-positioned to draw occupancy from the growing Atlanta demographic, Stacey Gorman, senior vice president of investments at Marcus & Millichap’s Atlanta office, said in prepared remarks. Atlanta’s population rose by nearly 19 percent over the last decade, according to data from the U.S. Census Bureau.
Moreover, as national storage rents continued to drop in the last quarter of 2021 following record gains since the onset of the COVID-19 pandemic, Atlanta saw no slowdown in rent growth. In the 12 months ending in November, rents in the metro increased by 15 percent for the standard 10×10 non-climate-controlled unit and by 16 percent for the same-size climate-controlled unit. The figure is more than double the national average rate gain and marks the highest rent increase across U.S. markets.
In November 2021, Reliant Real Estate Management partnered with Harrison Street to acquire a 26-property portfolio spanning six states. The properties were nearly fully occupied at the time of the sale. Reliant is also providing management services for the assets.
