NEW YORK CITY — Progress Capital has secured a $30 million bridge loan for the American Self Storage Building in Brooklyn. Brad Domenico of Progress Capital secured the interest-only bridge loan for Jorge Madruga of Maddd Equities and Eli Weiss of Joy Construction. The lender was Nataxis. Located at 202-208 Tillary St., the 115,000-square-foot property will continue to be operated as a self-storage facility until plans to convert it into a residential building are finalized.
GARLAND, TEXAS — Under the auspices of a limited partnership, Henry S. Miller Cos. (HSM) has developed a 743-unit self-storage facility in the northeastern Dallas metro of Garland that will open on Saturday, Sept. 8. The property encompasses 77,000 net rentable square feet across four buildings. About 87 percent of the units are climate-controlled. Pennsylvania-based self-storage REIT CubeSmart will manage the facility.
MILWAUKEE — Founders 3 Real Estate Services has brokered the sale of Birchwood Storage in Milwaukee for $6 million. The 487-unit self-storage facility is located on 6.3 acres at 5115 W. Good Hope Road. The property consists of 57 climate-controlled units and 430 non-climate-controlled units. Paul McBride of Founders 3 represented the buyer, Good Hope Road Self Storage LLC. Birchwood Good Hope Road LLC was the seller.
WESTCHESTER COUNTY, N.Y. — KeyBank has provided a $20.2 million CMBS loan for the Westchester Self Storage Portfolio, a two-facility portfolio in Westchester County. The two properties, known as Yorktown Self Storage and Bedford Self Storage, consist of 1,235 units and total 114,216 square feet. Each property includes gated entrances, security cameras and climate-controlled units. Jacob Proctor of KeyBank arranged the non-recourse, fixed-rate financing with a 10-year interest-only period for an undisclosed borrower. The loan was used to refinance existing debt.
AUSTIN, TEXAS — The Jenkins Organization (TJO), a Houston-based developer and manager of self-storage properties, has purchased land in southeast Austin for the development of a 1,090-unit facility. Branded Bergstrom Storage, the Class A property will total 238,000 square feet and provide climate-controlled space, as well as storage space for boats and RVs. The facility, which will be located near the airport, is currently slated to open in November 2019.
Self-storage properties have had a pretty good run in Texas over the last several years. Surging population growth has brought more material possessions into the state, boosting absorption of existing space. In addition, ample land for development has enabled builders to bring self-storage — a submarket-specific business — to new, underserved communities. The investment side of the business has flourished as well. A capital-rich environment has sustained a healthy pace of development and price escalation has kept cap rates low, incentivizing many owners to market their properties for sale. The building boom is still running hot. According to Tennessee-based research firm STR, as of June 2018, there were more than 300 self-storage facilities in the development pipeline in Texas. In the 12 months leading up to that point, 72 new facilities totaling almost 7 million square feet came on line. In addition, about 130 new properties are slated to open by June 2019, adding more than 9 million square feet, or 5.7 percent of the existing inventory. And those figures only encompass the seven biggest markets in Texas. According to The Houston Chronicle, the Dallas, Houston, Austin and San Antonio markets all feature about 8 square feet of storage space …
MONTGOMERY, TEXAS — Bellomy & Co. has arranged the sale of AA Climate Controlled Storage, a self-storage facility located in Montgomery, about 50 miles northwest of Houston. Built in 2003, the property consists of 483 units across 58,685 net rentable square feet of climate-controlled space. Bill Bellomy and Michael Johnson of Bellomy & Co. represented the Houston-based seller in the transaction. The duo also procured the buyer, Katy-based Pinnacle Storage Properties. The sales price was not disclosed.
HOUSTON — Bellomy & Co. has arranged the sale of Sentry Self Storage, a 941-unit facility in Houston. Built in 2006, the property is situated on five acres and features climate-controlled units that total 104,025 net rentable square feet. Hugh Horne of Los Angeles-based Charmel Storage Capital, along with Bill Bellomy and Michael Johnson of Bellomy & Co., represented the seller in the transaction. The team also procured the buyer, Public Storage, a self-storage operator and REIT based in Glendale, Calif.
ROCHESTER HILLS, MICH. — Marcus & Millichap has brokered the sale of Rochester Mini Storage in Rochester Hills, about 25 miles north of Detroit. The sales price was not disclosed. The 94,115-square-foot self-storage facility includes units that range in size from 25 to 400 square feet. Both climate-controlled and non-climate-controlled options are available. Brian Kelly, Brett Hatcher and Gabriel Coe of Marcus & Millichap brokered the transaction. An out-of-state buyer purchased the asset. The seller was a local owner.
INGRAM, TEXAS — Marcus & Millichap has brokered the sale of Lone Star Mini Storage, a 351-unit facility located in Ingram, about 70 miles northwest of San Antonio. The property totals 45,680 net rentable square feet. Jon Danklefs of Marcus & Millichap represented the seller and procured the buyer, both of which were limited liability companies. Other terms of sale were not disclosed.
