North State Storage, a wholly-owned subsidiary of the Dilweg Cos., has sold its entire self-storage portfolio of 13 properties in North and South Carolina, effectively exiting the storage industry. Dilweg sold the portfolio to focus on the acquisition and enhancement of commercial office and retail properties. The disposition of the portfolio was completed on May 23.
Five of the facilities—four in North Carolina and one in South Carolina—were purchased by Flagship of Orlando, Fla. They contain 2,479 units totaling almost 313,700 square feet. Dilweg acquired the properties over a 10-year span, selling them in late 2012 for more than $17 million.
The remaining eight facilities were purchased by affiliates of Hudson, Ohio-based All Stor Storage LLC. They are in Charlotte, Durham, Indian Trail, Matthews, Morrisville, Swansboro and Wilmington, N.C., and Rock Hill, S.C. Together they contain 4,074 storage units totaling more than 515,200 square feet. They have an average occupancy of 88 percent.
All Stor also acquired the North State Storage banner and will continue to operate the facilities and serve customers with the same onsite team.
“With the current high demand for self-storage assets, the timing was ideal for us to sell our portfolio,” said Anthony Dilweg, CEO of Dilweg Cos. “We were able to capitalize on a market trend, add value to the assets and realize significant returns for our investors, which represent a win for all involved. Now that we’re out of the self-storage business, we will focus on core business segments of office and retail properties.”
In addition to selling its self-storage facilities, Dilweg recently acquired four retail and office properties in the Triangle and expanded its reach in 2012 with the acquisition of four office buildings in the greater Atlanta area.
Dilweg is a full-service commercial real estate firm based in Durham, N.C. Since its launch in 1997, the company has gained broad experience in the acquisition, development and operation of office, retail warehouse/flex, multi-family and self-storage properties. Its investors have sponsored more than $510 million in asset value and more than 6 million square feet throughout Georgia, North Carolina, South Carolina and Virginia.