Stein's Self-Storage Empire Takes Off
Stein Investment Group has purchased two existing self-storage facilities in North Metro Atlanta and plans to develop a third with 525 units in Marietta.
The current investment pipeline could top $75M for Stein's Space Shop self-storage brand. The two new acquisitions include a former Quality Self Storage facility in Roswell (45k SF with plans to expand to 100k SF) and a former Quality Self Storage at 2016 Atlanta Hwy (with plans to take from 76k SF to a 100k SF modern climate-controlled facility). The third, a site in Marietta, will be a 70k SF property. Marcus & Millichap's Stacey Gorman brokered the sales. Stein also owns 486 Decatur St in the Old Fourth Ward, which was completed as a Space Shop in 2014.
Stein entered the self-storage business in 2013, seeking high population growth areas with above-average income levels. And then it added features to its properties not usually found in them, such as a coffee bar and WiFi. Stein's Jason Linscott (center, being beaten by Stein's Jeff Stein while partner Adam Sauer backs him up) tells us it's also looking to expand at other existing properties. For instance, it recently bought three acres next to its existing property in Stockbridge to expand by another 300 units. "We believe that a supply and demand imbalance exists within specific Atlanta submarkets and, therefore, see significant opportunity to build a self-storage portfolio," says Adam. "The conditions for self-storage development are prime, with Wall Street considering this asset type as recession resistant based on its performance in 2008." Adam aso tells us the firm's seeking more sites in high-growth areas with high barriers to entry.