A joint venture between self-storage operator Advantage Storage and investment-management firm Harrison Street Real Estate Capital (HSRE) has acquired a two-property portfolio from Wasatch Storage Partners and a private real estate fund advised by Crow Holdings Capital - Real Estate. The facilities in Arizona and Colorado comprise 147,521 square feet in 1,425 units, according to a press release issued by from JLL Capital Markets, the commercial real estate and finance firm that helped broker the deal.
The three-story facility at 7910 W. Beardsley Road in Glendale, Ariz., comprises 96,950 square feet in 955 units. The property is visible to more than 120,000 vehicles per day traveling along State Route 101. Average annual household income within a three-mile radius is more than $90,000, the release stated.
The Colorado property at 11645 W. Belleview Ave. in Littleton comprises 50,571 square feet in 470 units. The property includes a three-story building and two single-story structures. There are 80,400 residents living within three miles of the property. Average annual household income for the local market is $98,000, according to the release.
Both properties offer some climate-controlled space, electronic access control, security fencing and video cameras.
Brian Somoza and Steve Mellon led the JLL team on the sale. “New, institutional-level construction, excellent visibility and local barriers to entry made this portfolio an attractive offering,” Somoza said. “Even more so, strong projections for economic and population growth in both the Phoenix and Denver metro areas should result in a sound investment for the new ownership.”
Advantage Storage developed its first facility in Sherman, Texas, in 1996. To date, the company has acquired, developed, managed and sold more than 30 facilities comprising more than 15,000 storage units and 2 million square feet of rentable space. It operates four storage facilities in Arizona, one in Colorado and 22 in Texas. Its management arm is Advantage Self Storage Property Management LLC. The company formed a joint venture with HSRE in 2013 to pursue acquisition and expansion opportunities.
HSRE has extensive interests in “needs-based” real estate, including self-storage. It has more than $12.2 billion in assets under management through commingled funds and public securities products. The commingled funds focus exclusively on the education, healthcare and self-storage segments of the real estate market. Affiliate Harrison Street Securities LLC manages publicly traded real estate securities on behalf of institutional clients and high-net-worth individuals.
Wasatch Storage Partners is a Utah-based real estate investment firm specializing in self-storage acquisitions and development. It was formed in 2015 by Bret Durfee and Scott Wyckoff, chief development officer, who were involved in acquisitions and development efforts at Extra Space Storage Inc., a real estate investment trust. They engaged in more than $1 billion in storage acquisitions and development projects across the country during their time with Extra Space, according to a company press release. WSP now has three storage facilities in operation in Minnesota, New York and Tennessee, with two projects in development, according to its website.
JLL is a full-service global provider of capital solutions for real estate investors and occupiers. The firm completed $170 billion in investment sale and debt and equity transactions globally in 2017. The firm’s Capital Markets team comprises more than 82,000 specialists globally.