MD Investments, a Woodside, Calif.-based investment firm, recently acquired Pelandale Self Storage in Modesto, Calif., from CGK Properties LLC for $3 million. The 3-acre property at 340 Pelandale Ave. comprises 48,700 net rentable square feet in 362 units, according to a press release.
The asset features 11 single-story storage buildings and a manager’s office. It has concrete drive aisles. MD Investments intends to hold onto the property as an investment while also making some capital improvements, the release stated.
Built in 1991, the self-storage facility offers units ranging from 25 to 300 square feet. It also serves as a Budget truck-rental center, which brings in $64,000 in annual revenue, according to a listing on LoopNet, a real estate website.
The property is west of McHenry Avenue, close to industrial and retail centers, including several car dealerships. There are also several residential developments to the east, south and west. “Physical occupancies in the Modesto submarket currently trend very close to 90 percent,” the LoopNet listing stated. “Operationally, the property is a great opportunity for an investor who will increase occupancy while eliminating concessions.”
Bobby Loeffler and Tyler Skelly, self-storage specialists with The Loeffler Self-Storage Group (LSSG), represented the buyer and seller in the transaction. LSSG is a commercial real estate brokerage firm specializing in self-storage properties throughout the West. The group has closed more than 65 storage transaction in California and Nevada, company officials said.