Pegasus Group, a real estate investment and management company that owns and operates 51 self-storage facilities in 11 states under the Central Self-Storage brand, has acquired two Storage City properties in Antioch and Milpitas, Calif. The Bay Area facilities were purchased from an unidentified Norway-based self-storage company. Together, they comprise more than 111,000 net rentable square feet in more than 1,100 units, according to a press release from Performance Self Storage Group Inc. (PSSG), the real estate firm that brokered the sale.
“These assets offered a rare opportunity to purchase two institutional-quality self-storage properties in markets where storage properties rarely become available for sale,” said Jason Allen, co-owner of PSSG. “Once marketed for sale, we knew immediately these properties would command an extremely low cap rate and generate multiple offers.”
Both properties were about 95 percent occupied at the time of the sale, the release stated. “Our self-storage industry has been flooded with qualified buyers looking to buy storage properties like these,” said Carl Touhey, also a co-owner of PSSG. “The lack of inventory has created a true seller’s market, and demand for storage assets like these has never been higher.”
The seller operates self-storage facilities in Denmark, Norway and Sweden.
PSSG offers self-storage brokerage services to owners and investors in California. The company has completed more than $620 million in sales transactions, according to the release.
Based in Walnut Creek, Calif., and founded in 1988, Pegasus specializes in self-storage investments. Its portfolio is primarily comprised of facilities operated and managed under the Central Self-Storage brand name. It operates 19 facilities in California, including two in Antioch and one in Milpitas.