Author: Alison DeJaeger

Decoding the Mystery of the Self Storage Cap Rate: How and Why It’s Used to Assess Facility Value

If you’re planning to sell or purchase a self storage facility, your real estate broker will talk to you about value in terms of capitalization (cap) rates. If you’re an owner looking to refinance, your appraiser will also use a cap rate to determine value. As an owner, it’s important that you understand this metric! To help you get a firm grasp, let’s explore the ins and outs of the cap rate, including what it is, how it’s calculated and how it’s used in self storage. What Is a Cap…

Recent Closings: 6.30.21 – 7.6.21

Property: Luray Business & Self Storage Location: Luray, VA NRSF: 30,010 Broker and Brokerage: Lindsey Self Storage Group   Property: Old Mill Storage Location: Concord, NC NRSF: 43,170 GSF: 62,180 Units: 326 and 40 outdoor parking spaces Brokerage: The Hatcher Group of Marcus & Millichap Year Built: 2017 Highlights: Below Market Rents Rapidly Growing Market Five-Mile Population of 96,173 | Represents a 37.43% Increase Since 2000 Property: CubeSmart Self Storage (Managed) Location: Providence, RI MSA NRSF: 62,000 Units: 616 Acreage: 2.0 Brokerage: The Hatcher Group of Marcus & Millichap Year…

Featured Broker: Mark Floria

Mark started with Franklin Storage Advisors in 2011. He has facilitated the sale of over 100 storage properties with a value in excess of $500,000,000. Mark’s sole focus is the sale of self storage properties, and he is a recognized sales valuation expert. He works tirelessly to be sure that every sale goes smoothly. Buyers rely on him to guide them through the due diligence process while sellers expect sound financial analysis and property valuations so that their properties will be priced to sell but yield maximum value. Mark began…

Recent Closings

From 6.23.21 – 6.30.21, the following transactions were recorded. Visit our “Recent Transactions” page to view more. Property: Kutztown Self Storage Location: Kutztown, PA NRSF: 22,243 Broker and Brokerage: The Hatcher Group of Marcus & Millichap Expansion Potential: Yes; approvals on 56,950 NRSF one mile away and awaiting permits Occupancy: 97.9% (physical)/86.3% (economic) Highlights: Two Eastern Pennsylvania stabilized self storage facilities 0.4 mile apart Upside through tenant insurance penetration Less than 0.5 mile from Kutztown University of Pennsylvania (roughly 8,300 students)       Property: Stowaway Storage Location: Madison Heights,…

SOLD: 4.53-Acre Development Site

The Colliers Self Storage Group is pleased to announce the sale of the Loganville Storage Development Site located at US Highway 78 & GA Highway 20 in Loganville, Georgia.  Walton Ranch, LLC, sold the parcel on June 18, 2021 to Storage Cap Leasing LLC for $800,000.  The Loganville Storage Development Site will benefit from its heavy traffic in a growing northeastern suburb of Atlanta and its location adjacent to the Loganville Town Center in Loganville, Georgia.  The development site sits within the Loganville Town Center next to Publix and behind Wendy’s,…

Albacado Limited Partnership Sells 2.96-Acre Site in North Andover Massachusetts for a Self Storage Facility

Albacado Limited Partnership sold a 2.96-acre lot on the corner of Beechwood Dr. and RT.125 in North Andover, Massachusetts to a private equity joint venture. The joint venture has received approvals to develop a state-of-the-art 90,000 square-foot self storage facility. This site is directly across the street from the redevelopment of a 2.5 million square foot Amazon distribution center. This self storage facility will serve the Andover, North Andover and Haverhill communities. North Andover and Andover have unmet demand for a facility of this type. Haverhill, MA downtown has gone…

Andover Properties Closes on a Five-Property DFW Portfolio

Andover Properties, LLC (dba Storage King USA) has recently acquired a five-property portfolio located in the Dallas-Fort Worth metro area in an off-market transaction. Andover’s portfolio includes nine facilities in this market and nineteen in the state. Four out of the five properties are in North Dallas, which more than one million people have moved to since 2010 and will see 18% population growth and an additional 1.4 million jobs over the next decade.” The five-property, single-story portfolio is over 372,500 NRSF and 2,045 units, comprising a mix of drive-up,…

Tony Hawk Invites Fans to “Live a Life Worth Storing” with Tour of His StorQuest Collection

Tony Hawk, the legendary skateboard athlete and pop culture icon, introduces the world to his rarest and most valued possessions during a tour of his personal storage unit at StorQuest Self Storage. Make room in your life for awesome things to happen.” “This isn’t just a collection of stuff,” Hawk said while describing the incredible memorabilia displayed along the walls, on shelves and tables. “It’s a collection of experiences.” The items Hawk brings to StorQuest symbolize every era and phase of his astonishing career, from turning pro skater at 14…

Self Storage Is on Fire: Is It Crazy to Buy or Build? Probably.

If you talk to anyone in the storage industry, they will tell you that they have never seen a market as hot as this one. Existing facilities are full, rents are rising, cap rates are at historic lows and every supplier is so inundated with orders that they cannot keep up. The word ‘unprecedented’ has been used an unprecedented number of times in the last 16 months, but there is no better word to describe the self storage market – what is happening right now is unprecedented. The best advice…

Storage World, Jonesboro, Georgia, Sold

Midcoast Properties Inc. announces the recent sale of Storage World, located at 9887 Tara Blvd, Jonesboro, Georgia.  Midcoast Properties represented the Seller, with Dale C. Eisenman, CCIM, as lead broker.  The facility was sold to a National REIT. The facility, situated on 4.24 +/- acres, with 54,650 rentable square feet, has 421 storage units, comprised of both climate controlled and non-climate, drive-up and interior units, as well as boat and RV parking.  Amenities include surveillance cameras, an alarm system, ample lighting, personalized keypad entry and a rental office with moving…