Storage Pros Management Buys 7 Michigan Self-Storage Facilities for $19.5M
|Copyright 2014 by Virgo Publishing.|
|Posted on: 07/19/2012|
Storage Pros Management LLC has acquired seven self-storage facilities in Michigan for $19.5 million, increasing the number of Michigan properties under its management to 37. The properties were purchased in two separate transactions and will be rebranded as Storage Pros Self Storage. The company said it will infuse $850,000 in capital improvements to modernize the facilities.
Combined, the seven acquisitions represent more than 450,000 square feet of storage space, bringing the company’s national total to more than 3 million square feet and more than 26,000 storage units and parking spaces.
“We are pleased to be able to continue to execute our opportunistic acquisitions program, targeting high-yield investments in our core markets,” said CEO David Levenfeld. “In a marketplace with abundant capital, our focus is on uncovering value-add investment opportunities to provide both substantial cash flow and attractive capital appreciation over time.”
The BSC Group LLC, a commercial real estate financing advisor and provider of debt and equity capital solutions for self-storage owners, arranged $15.125 million in financing for the deal.
“The capital markets are extremely competitive at present, and through a combination of commerical mortgage-backed security and balance sheet executions, we were able to provide the client with very compelling debt solutions to enhance their value-add investment objective," said Devin Huber, a principal with the firm.
“Our ability to secure long-term, fixed-rate financing in the mid-4s provides incomparable long-term value to investors,” adds Levenfeld.
Storage Pros manages 58 facilities throughout Massachusetts, Michigan, Mississippi, Rhode Island and Tennessee. Founded in 2007, the company offers property-management services to private equity funds, lending institutions and individual investors.