Self-storage operator Strategic Storage Trust Inc. recently purchased a four-property, 2,584-unit self-storage portfolio in North California from a real estate investment management firm. The properties are at 3480 Tennessee St. in Vallejo, 2300 Grant St. in San Lorenzo, 222 San Pedro Ave. in Morgan Hill and 8900 Murray Ave. in Gilroy. The acquisition was completed in three separate transactions.
The seller was represented by HFF (Holliday Fenoglio Fowler LP). The sales and marketing team included senior managing director Aaron Swerdlin and managing director Doug McCarron. Thus far in 2011, HFFs self-storage group has closed more than $81 million in sales transactions nationwide.
The self-storage industry continues to perform at extremely strong operational fundamentals, which is likely why we see buyers outnumber sellers by a very wide margin, said Swerdlin. Quality assets in economically stable markets draw levels of interest that Ive not seen in the 17 years Ive focused on the industry. The confidence the investor community shows in the product type suggests that we will continue to see, for quite some time, strong interest levels for quality deals.
HFF, a provider of commercial real estate and capital-markets services, operates out of 19 offices nationwide. The company and its affiliate, HFF Securities LP are owned by HFF Inc. Together they offer debt placement, investment sales, advisory services, structured finance, private equity, loan sales, and commercial loan servicing.
Strategic Storage Trust, one of five publicly traded self-storage REITs in the United States, is the first and only one to not be publicly traded on the stock exchange. The companys facilities are branded as SmartStop Self Storage.
Since the companys launch in 2008, its portfolio has expanded to include 76 facilities in 17 states and Canada, comprising approximately 51,000 self-storage units and 6.3 million rentable square feet of storage space.