Update 7/10/19 – Pogoda Cos. closed on three Michigan self-storage properties during the first half of the year as part of its growth strategy for the Upper Midwest. Together, they comprise 170,666 net rentable square feet in 1,521 units. All three facilities have been rebranded as National Storage Centers and will undergo renovations. Two are slated for expansion, according to a press release.
The four-story property at 1100 Oakman Blvd. in Detroit comprises 52,470 square feet in 543 units. The former Devon Self-Storage is Pogoda’s first Opportunity Zone investment. Renovations include a new management office and signage, LED lighting, a new roof, and tenant amenities. The company also intends to add 40,000 square feet of climate-controlled space, the release stated.
In Pontiac, Mich., the company acquired the former Bloomfield Mini Storage at 800 Martin Luther King Blvd. S. The facility comprises 43,156 square feet in 353 units. Renovations include new doors and roofs, LED lighting, a redesigned office, security upgrades including new cameras and gates, new asphalt and landscaping, and upgrades to the county roadway. Pogoda intends to remove a concrete median to allow tenants to turn left from the street onto the property. It will also install a traffic light.
The largest of the three facilities is at 5215 Curtis Road in Traverse City. The property comprises 75,040 square feet in 625 units. Planned renovations include new fencing and signage. Pogoda also intends to convert an existing building to climate control as well as add boat/RV storage to the site. Future expansion could include up to 25,000 square feet, according to the release.
The company expects to acquire three more properties in the region before year-end. “We are what I would call patient, aggressive buyers,” Pogoda said. “We are able to pay all cash, which has separated us from the herd, and are strategically selecting stores that complement our existing portfolio in Michigan and Ohio. We are educated buyers with many years of self-storage experience and are willing to sit back and wait if necessary. This has allowed us to pick up properties that were priced much higher just months ago.”
2/20/19 – Pogoda Cos., a Farmington Hills, Mich.-based self-storage operator that also provides third-party management services, has launched an “aggressive growth campaign” to expand its existing portfolio in Michigan and Ohio and possibly other states. The initiative is spearheaded by Adam Pogoda, who was recently hired as director of acquisitions, according to a press release.
Since January, the company has closed on one property and has multiple deals under contract that are expected to close during the first half of the year, the release stated.
Adam Pogoda joins the firm from New York City-based East End Capital, a private-equity real estate company. As vice president, he was responsible for finding and sourcing acquisitions in the metropolitan area, and assessed more than 300 deals per year, facilitating the purchase of $1.5 billion of properties. He specializes in structuring deals, discovering value-add potential within properties and finding operational deficiencies, the release stated.
“The strong reputation built by Pogoda Cos. over the last 30 years has given me the platform and network to put my 10-plus years of experience in real estate to work in identifying and sourcing strategic acquisition targets,” Adam Pogoda said. “We are well-positioned to take advantage of the more favorable pricing that we have been seeing in the market, and we have been making aggressive, all-cash offers, which have served us well in getting sellers’ attention and giving us a competitive advantage.”
Based in Farmington Hills, Mich., Pogoda Cos. is a self-storage operator with approximately 2 million square feet of self-storage space in Michigan and Ohio. The firm also provides brokerage, consulting, investment and management services to the self-storage industry through Pogoda Group Inc. and Pogoda Management Co.