Public Storage Inc., a self-storage real estate investment trust (REIT), made its first acquisition of the year with the purchase of Spare Space Storage in Austin, Texas, from Platinum Storage Group. The facility will be rebranded as Public Storage.
The property at 9420 Spectrum Drive is on 3.8 acres and encompasses 86,000 square feet of storage space and 661 units on three floors. It also includes 21 uncovered boat- and RV-parking spaces. Amenities include two gated entrances with keypad access, video cameras, a package-delivery service, and a large conference center.
The facility was built in 2004 by MST Constructors Inc. for $3.7 million, according to the source. Platinum purchased the property in 2008 for about $6.5 million. Public Storage assumed the property's mortgage of $4.8 million on April 3, but the total cost of the acquisition has not been confirmed. In its 2013 annual financial report, released on Feb. 20, Public Storage said it had a facility in Austin under contract for $10.8 million. It is unclear if Spare Space is the same property.
In a recent call with Wall Street analysts, Public Storage Chairman and CEO Ron Havner recently said he expects the company to acquire several facilities this year, but it will depend on the availability of quality sites, according to “The Sparefoot Storage Beat.”
In its year-end report, Public storage revealed it had acquired 121 facilities in 2013 for about $1 billion. In December, the REIT purchased the national portfolio of Stor-All Storage for $430 million. It also recently purchased land in Georgetown, Texas, according to sources.
Based in Glendale, Calif., Public Storage has interests in 2,200 self-storage facilities in 38 states, with approximately 141 million net rentable square feet. Operating under the Shurgard brand name, the company also has 188 facilities in seven European countries, with approximately 10 million net rentable square feet.
Headquartered in Irvine, Calif., Platinum Storage Group owns and manages 50 self-storage facilities nationwide, many of which operate under the Storage Direct Self Storage brand name.
Established in 1999 by Skip Elefante, a 28-year veteran of the industry, Platinum offers property-management solutions and investment opportunities to its equity partners.