Public Storage, a self-storage real estate investment trust (REIT), has purchased Keep It Self Storage in Santa Clarita, Calif., for an undisclosed amount believed to be at least $13.5 million. The cash deal was part of a two-property transaction valued at more than $25 million. The portion of the price allocated to the Santa Clarita property reflected an indicated price of more than $130 per net square foot, according to Bancap Self Storage Group Inc., which brokered the sale.
Public Storage will rebrand the property under its name, officials said. The site opened in 2009 and was approximately 70 percent occupied at the time of sale. The seller was a private self-storage partnership that originally developed the property.
This is a very desirable first-class property located in a growing market with high barriers to entry, said Dean Keller, Bancap president, who was the sole broker in the transaction. It is also one of the nicest and newest storage facilities in the area. It should perform very well for the buyers.
The self-storage property (pictured) is in a business park in the Valencia area of Santa Clarita. The facility contains more than 104,000 net square feet of self-storage space divided into nearly 1,000 units, in addition to 43 exterior RV storage spaces. The buildings are constructed of concrete block and stucco with metal partitions, roofs and doors.
The second property is in nearby Sylmar and also operated under the Keep It Self Storage name. The facility will also be rebranded under Public Storage. The price allocated to this property (believed to be about $11.5 million) indicated a cost of nearly $140 per net square foot.
The facility contains 81,500 net square feet of storage space divided into more than 800 units, some of which are climate-controlled. The buildings are constructed of concrete block and stucco with metal partitions, roofs and doors.
"Keep It Self Storage has developed several first-class storage facilities in very strong markets," Keller said. "This property has incredible freeway visibility and signage, and is one of the nicest storage facilities in the area. It should perform very well for the new owners."
Bancap Self Storage Group has completed more than $900 million in self-storage sales, including many lender-owned properties and portfolio sales.
Based in Glendale, Calif., Public Storage has interests in more than 2,000 self-storage facilities in 38 U.S. states with approximately 131 million net rentable square feet. Operating under the Shurgard brand name, the company also has 189 facilities in seven European countries with approximately 10 million net rentable square feet.