Class-A Self-Storage Property On Richmond Avenue Sold
Two Self Storage 1 locations have new ownership.
The 158K SF portfolio of Class-A self-storage properties closed in Houston and Los Angeles. The undisclosed buyer is described as a well-capitalized national operator.
"This portfolio was an extremely rare opportunity to acquire two irreplaceable trophy assets positioned in two of the strongest trade areas in the United States,” Cushman & Wakefield Senior Director Greg Wells said in a release. Wells, along with JLL's Steve Mellon and Brian Somoza, represented the seller, San Jose, California-based Cardill Mason Development.
Situated in the Galleria-Uptown area, the Houston location is at 5321 Richmond Ave., one of the busiest roads within the district with more than 29,000 cars per day. There are about 2,500 new apartments units under construction or in the planning stages within a 3-mile radius of the property. Residential activity is typically a driver of self-storage demand.
"The demand for assets of this caliber in locations this strong remains incredibly high,” Mellon said.
Within the last month, many self-storage facilities in Houston have been sold, including six properties in Houston to Strategic Storage Trust IV Inc., a real estate investment trust sponsored by SmartStop Asset Management LLC.
Greysteel arranged the financing for the Extra Space Storage Property, located at 22300 Highway 249 in Northwest Houston, to an undisclosed buyer.
“This opportunity was a value-add investment for the borrower,” Greysteel Senior Finance Associate Daniel Hartnett said in a release. “With the current occupancy sitting at 70%, the borrower plans to invest extensive capital improvements into the facility. By bringing on Extra Space as the new third party property managers, it will help them increase occupancy and stabilize the facility by capitalizing on Extra Space’s advanced technologies and efficiencies.”