HFF (Holliday Fenoglio Fowler LP) completed sales of 28 self-storage properties totaling approximately $122.75 million in the past 60 days. The properties were closed in eight unrelated transactions and are located throughout the United States.
The largest of the three transactions was a 19-property portfolio HFF marketed on behalf of Barker Pacific Group, Angelo Gordon & Co. and Union Development Co. Inc. Self-storage real estate investment trust Extra Space Storage purchased the Southern California portfolio, which totals 1,592,053 square feet.
A six-property, 3,122-unit portfolio was sold on behalf of Prudential Real Estate Investors and Extra Space Storage to six separate buyers for a total price of $17.9 million. The properties are in Arizona, Massachusetts, Michigan, Ohio, Rhode Island and Tennessee.
Lastly, HFF represented Americas Capital Partners in the sale of a 72,050-square-foot StorSafe Hammocks facility in Miami. The property is 71 percent leased and was purchased by Extra Space Storage.
The HFF self-storage investment sales team representing the sellers included senior managing director Aaron Swerdlin, managing director Doug McCarron and associate director Barbara Guffey. HFFs self-storage group has closed $198 million in sales transactions in 2011.
The self-storage sector continues to perform extremely well on an actual basis and a relative basis to other product types, Swerdlin said. The fundamentals reported by the public companies in the sector support the notion that concessions have normalized, solid rent growth is likely to continue and there is an appetite from the capital markets to do the right deals. Provided that transaction pricing accurately reflects asset and market quality as well as the overall risk associated with an asset, transaction volume will continue to be solid.
Holliday Fenoglio Fowler LP and HFF Securities LP (HFFS) are owned by HFF Inc. HFF operates out of 19 offices nationwide and is a provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.