AC Self Storage Solutions LLC of Newport Beach, Calif., a division of Axxcess Capital LLC, has acquired Rivergate Self Storage and Truck Rentals, a suburban Nashville, Tenn., self-storage facility in the city of Murfreesboro. The facility has 452 self-storage units, 17 parking spaces for RVs and boats, and about 62,000 of net rentable square feet. The price was not disclosed, but the facilty is designated as stabilized and cash-flowing.
AC Self Storage Solutions bought the facility from Jeff Davis, a Murfreesboro entrepreneur. Ashley Compton, first vice president of CB Richard Ellis’s Self-Storage Advisory Group in Nashville, Tenn., represented the seller. The buyer “fast-tracked” the all-cash acquisition, closing it 60 days after signing the purchase agreement. Though the acquisition was not financed initially, AC Self Storage plans to finance 60 percent to 65 percent of the property in a secondary transaction.
The facility is located at 1323 N.W. Broad St. and is approximately 80 percent occupied. Troy Downing, managing member of , said Rivergate met all of the company's acquisition criteria. “It’s well-occupied, situated in an established, in-fill location on a high-traffic road with good visibility and easy access. It is situated close to high-density housing and retail with a Kmart across the street and solid economic anchors, such as Middle Tennessee State University and Middle Tennessee Medical Center,” Downing said.
Downing also cited Murfreesboro's ranking as the fastest-growing city in Tennessee. The population grew by about 40,000 between 2000 and 2010, and census data is predicting a 14.4 percent gain over the next five years.
Downing pledges AC Self Storage will “significantly enhance” Rivergate’s benefits to storage customers by adding a call center, longer hours, content insurance coverage, and more frequent and creative marketing campaigns. He also said the operator will provide “institutional level management and oversight” of the facility. The name and Internet address will remain the same, rivergateselfstorage.com, but the website will now accept monthly payments.
Rivergate will be managed by Westport Properties Inc., a national self-storage operator-manager of approximately 40 facilities. The facility also has a two-bedroom apartment to house an onsite manager.
Downing added AC Self Storage Solutions is looking to acquire other stabilized, cash-flow-positive self-storage facilities in the Southeast and Southwest United States. “Our primary focus is the Sunbelt, but as cash buyers, we will look at the right opportunity, regardless of where it’s located,” he said.
AC Self Storage Solutions is a joint venture between Axxcess Capital Ventures and Specialized Storage Management Holdings LLC.