February self-storage acquisition roundup: Morningstar, William Warren Group add facilities

March 6, 2014 0
February self-storage acquisition roundup: Morningstar, William Warren Group add facilitiesMorningstar Properties Inc. bought this facility in Gastonia, NC.

Private operators have dominated recent self-storage deals, picking off small and midsize portfolios across the country. Here’s our roundup of self-storage deals completed or announced in February. 

Morningstar Properties
Matthews, NC-based Morningstar Properties Inc. recently bought six properties in North Carolina and South Carolina for a total of $27.1 million. The new facilities cover 315,000 square feet and will add 2,500 units under the Morningstar Mini-Storage brand.

“These facilities are in excellent physical condition and have shown strong results recently in terms of occupancy and rental revenue,” said Dave Benson, president and CEO. “We expect them to be strong performers right off the bat.”

Five of the facilities were acquired from NC Storage LLC, an entity controlled by Conix Inc., a Tucson, AZ-based real estate investment firm. Here are the five properties picked up from Conix:

  • A 61,000-square-foot facility at 2527 Little Rock Road in Charlotte, NC, for $5.6 million.
  • A 63,970-square-foot facility at 4023 E. Franklin Blvd. in Gastonia, NC, for $5.5 million.
  • A 40,350-square-foot facility at 935 N. New Hope Road in Gastonia, NC, for $2.1 million.
  • A 20,290-square-foot facility at 542 Main Ave. S.E. in Hickory, NC, for $300,000.
  • A 70,040-square-foot facility at 930 Retail Drive in Fort Mill, SC, for $7.45 million.

The portfolio acquisition was financed, in part, by a nearly $14 million loan from Starwood Mortgage Capital in Miami, property records show.

The company also bought a 58,990-square-foot facility at 2988 N. Highway 17 in Mount Pleasant, SC, for $5 million from Stow Away Storage LLC. This purchase marks the company’s return to the Charleston, SC, metro area after selling 43 properties to Public Storage Inc. last October.

william warren group

The William Warren Group Inc. now owns this facility in Sarasota, FL.

William Warren Group
Santa Monica, CA-based The William Warren Group Inc., which operates facilities under the StorQuest brand, picked up a slew of properties in February.

The operator, which recently opened an office in Tampa, FL, bought a 95,870-square-foot storage facility at 4625 Clark Road in nearby Sarasota. The facility, which operated under the name Lock Tite Self Storage, was purchased for $7.5 million, according to property records.

The seller was a company owned by local financiers Stanley Kane and Edward Kalin. The deal was financed, in part, with a $5.7 million loan from Bank of America, according to the Herald Tribune.

The William Warren Group also closed on a 15-property portfolio in Arizona, California, Colorado and Texas. According to property records, at least nine of the properties were owned by various companies managed by Norman Spieler of Woodland Hills, CA. Information about the six remaining properties could not be obtained.

The William Warren Group identified one of the Spieler properties as A-1 Self Storage in Lafayette, CO, which it bought for $6.9 million. The property, at 530 Stacy Court, features 551 units and 72,312 square feet of rentable space.

The company also announced the purchase of three properties in Arizona for $10.8 million. Spanning more than 178,000 square feet across 1,508 units, the facilities are Arizona Rent-A-Storage at 9240 N. 67th St. in Glendale, Midvale Valencia Self Storage at 6400 S. Commerce Court in Tucson and Watchful Eye Self Storage at 10461 E. Apache Trail in Apache Junction.

Property records also show the company bought four properties in Texas and one in California from the same seller. Those properties include 9250 N. Normandale St. in Fort Worth, 10317 Shady Trail and 10333 Denton Drive in Dallas, 10966 Montwood Drive in El Paso and 454 W. Baseline Road in Claremont, CA. Those facilities were purchased with a $5.87 million loan from Pacific Premier Bank, according to property records.

great value storage

World Class Capital Group LLC operates facilities under the Great Value Storage brand.

World Class Capital Group
Austin, TX-based real estate investment firm World Class Capital Group LLC bought six facilities in the Houston area from California-based M/MD Group. The properties encompasses 270,000 square feet and more than 1,600 units.

“Houston is a strategic market for our platform, and we plan to continue acquiring and developing high-quality self-storage facilities in the Houston market,” said Nate Paul, president and CEO of the company.

World Class Capital plans to renovate the facilities and put them under its Great Value Storage brand. The deal marks the company’s fourth acquisition in 18 months, with a total of 27 facilities purchased. The company operates 45 facilities in six states.

The six facilities are at 632 Timkin Road in Tomball, 8320 Alabonson Road in Houston, 5811 N. Houston Rosslyn Road in Houston, 16530 W. Hardy Road in Houston, 941 Fairmont Parkway in Pasadena and 4806 Marie St. in Deer Park.

The purchase price was not disclosed.

“This year, we hope to further increase our Texas and Ohio regional presence, as well as expand our national presence by targeting self-storage assets in previously untapped markets,” Sheena Paul, vice president of World Class Capital, told The Storage Facilitator.

storage king USA

Andover Properties LLC purchased this facility at 335 E. Price St. in Philadelphia.

Storage King USA
New York City-based Andover Properties LLC, which operates Storage King USA, bought several properties in Pennsylvania and Florida.

The company bought a portfolio in Philadelphia for $2.6 million, according to property records. Covering more than 300,000 square feet, the properties were part of a defaulted CMBS loan. The facilities are at 3100 C St., 335 E. Price St. and 5120 Lancaster Ave.

The company also bought three properties in Florida. The company bought the 80,996-square-foot Big Key Self Storage at 16200 SW 137th Ave. in Miami for $8.5 million, as well as two facilities from Sovran Self Storage (Uncle Bob’s) in Tallahassee for a combined $7.3 million. The Tallahassee facilities, at 1501 Capital Circle NW and 4552 Moore Circle, cover more than 140,000 square feet.

U-Haul
U-Haul bought a former Dr Pepper bottling plant in Lafayette, LA, for an undisclosed price and will redevelop the 71,405-square-foot steel frame building into a self-storage facility. The former Acadiana Bottling Plant is at 700 Kaliste Saloom Road.

The site was selected as part of the company’s initiative to seek run-down properties that have potential for reuse.

The company also recently bought a former Pepsi plant in Chantilly, VA, for $10 million and a former La-Z-Boy store in Poughkeepsie, NY.

U-Haul Dr Pepper plant

U-Haul purchased this former Dr Pepper bottling plant in Lafayette, LA.

Uncle Bob’s
Sovran Self Storage, operator of Uncle Bob’s storage facilities, bought four facilities in February for a combined total of $32.7 million. The properties cover a combined 460,000 square feet.

Sovran bought two facilities in Maine: 50 Gorham Road in South Portland and 11 Sand Hill Road in Topsham.

It also bought two facilities in Texas: 9706 Manchacha Road in Austin and 24264 Wilderness Oak in San Antonio.

Other Notable Deals

  • 21st Century Storage bought the 46,000-square-foot Airport Road Self Storage at 1118 Airport Road in Monterey, CA, for an undisclosed amount. The company also has locations in Missouri, New Jersey and Pennsylvania.
  • All Stor Asheville LLC purchased a 56,350-square-foot facility at 3941 Lake Wilson Road in Wilson, NC, for $2.95 million. The sellers were Richard and Lou Ann Eatmon.
  • Edward Whitaker purchased a 47,050-square-foot facility at 2381 Highway 71 in Del Valle, TX, for $1.23 million. The seller was Dobson Realty Corp. 
  • ES River Crossing Storage LLC purchased River Crossing Self Storage, a 257-unit facility at 12011 W. Van Buren in Avondale, AZ, for $1.65 million. Built in 1996, the property includes 89 RV spaces. The seller was River Crossing LLC.
  • Weston Investment Co. LLC purchased Queen Self Storage, a 51,000-square-foot facility at 1668 Industrial Way S.W. in Albany, OR, for $2.7 million. The seller was Celtic Enterprises LLC.
  • Scott Meyer and group of private investors bought a 39,385-square-foot storage facility at 24 Clermont Drive in Cape May Courthouse, NJ, for an undisclosed amount. The facility has 288 units.
  • Private investors Steve and Chris Jensen bought the Performance Plaza Self Storage facility at 5630 S. Highway 95 in Fort Mohave, AZ, for $1.04 million. A family trust sold the 28,175-square-foot, 321-unit facility.
  • Stuart Tunick purchased the 49er Mini Storage facility in Placerville, CA, from the Quinn Family Trust for $2.1 million. The 440-unit facility covers 63,106 square feet.

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