An eight-property portfolio of Best Florida Storage locations in Broward County, Fla., totaling more than 7,100 units and about 854,800 rentable square feet has sold for $91 million, or $106 per square foot, it was announced Friday by Marcus & Millichap. The company’s Michael Mele, a first vice president/investments in the Tampa office, represented the seller and the buyer, who were unidentified as of press time.
The portfolio “is an outstanding mix of stabilized assets with strong cash flow, lease-up properties with new construction components, and newly renovated space,” Mele said in a release. “The previous owner assembled this portfolio of prime locations with exacting focus over a decade of ownership, selectively pruning under-performing assets along the way.”
The eight properties are:
· Best Storage One, 115,528 rentable square feet, 1,074 units, Fort Lauderdale.
· Best Storage Two, 56,107 rentable square feet, 740 units, Fort Lauderdale.
· Best Storage Three, 104,474 rentable square feet, 1,070 units, Fort Lauderdale.
· Best Storage Five, 87,137 rentable square, 1,041 units, Lauderhill.
· Best Storage Six, 52,113 rentable square feet, 346 units, Pompano Beach.
· Best Storage Seven, 88,694 rentable square feet, 519 units, Oakland Park.
· Best Storage Eleven, 220,000 rentable square feet, 1,169 units, Pompano Beach and Deerfield Beach.
· Best Storage Twelve, 100,450 rentable square feet, 1,199 units, Fort Lauderdale.
A combination of strong new-household formation and increasing population mobility will lift demand for self-storage units nationally, even as construction of new facilities is limited, according to a first-quarter report from Marcus & Millichap. Among regional trends supporting this sector’s viability, the report noted, is a recovering housing market in the Sun Belt.
Sellers of storage facilities are generally in an advantageous position, the report says, restraining cap rates to the sub-6 percent range in primary markets.
Nationally, the median sale price rose 11 percent last year to $73 per square foot, with the highest price growth in the Midwest and West.
Finally, the report predicted that rising interest rates will drive self-storage facility prices down and that new listings will see “plenty of buyer demand as capital awaits quality properties.”
About Marcus & Millichap
Since 1971, Marcus & Millichap (NYSE: MMI) has been the premier provider of investment real estate brokerage services. The foundation of our investment sales is the depth of our local market knowledge. Our 43-year history of maintaining investor relationships in local markets enables us to be the best information source and transaction service provider in North America.
In 2013, Marcus & Millichap closed more than 6,600 investment transactions for private and institutional investors. By closing more transactions annually than any other firm, our investment professionals provide clients with an unparalleled perspective on the investment real estate market locally, regionally and nationally. Included in these transactions were shopping centers, office and industrial buildings, apartment properties, single-tenant net-lease properties, hotels/motels, senior housing facilities, manufactured home communities, self-storage facilities, golf and resort properties and land.
Marcus & Millichap has established itself as a leading and expanding investment real estate company with more than 1,300 brokers in 76 markets throughout the United States and Canada. For more information, please visit: https://www.marcusmillichap.com/]]>