Devon Self Storage, which owns or manages 48 facilities nationwide, has acquired a Budget Self Storage facility in Sterling, Va., a suburb of Washington, D.C. The facility is the company’s second in the state and will be rebranded under its name.
The property at 21639 Cascades Parkway comprises 56,795 square feet of non-climate-controlled storage space in 527 units. Devon plans to invest several million dollars in improvements, including the addition of a new 25,500-square-foot, climate-controlled building as well as new asphalt, a leasing office, paint and roofs, according to a company press release. The facility also offers more than 30 U-Haul truck and trailer rentals.
The facility is in one of the most desirable storage markets in the United States and part of the populous Primary Metropolitan Statistical Area for Maryland, Virginia, West Virginia and Washington, D.C., according to a press release from Marcus & Millichap, the real estate firm that represented the buyer and seller in the transaction. It’s in Loudoun County, which is widely recognized as one of the wealthiest in the country. The area boasts a median household income of $113,895 within a three-mile radius and $115,916 within a five-mile radius. Population growth surrounding the facility is forecasted to increase 15.2 percent over the next five years.
"The explosive development taking place in Sterling will exert upward pressure on storage rents and make space increasingly scarce in relation to the growing population," said Robert Bloch, investment specialist in the Washington, D.C., office of Marcus & Millichap. Bloch and Michael Mele, senior vice president of investments in the Tampa, Fla., office and senior director of the firm’s National Self Storage Group, were the brokers.
Founded in 1988, Devon Self Storage operates facilities sites in 17 states, managing more than 3.5 million square feet of storage space and serving 21,000 tenants. Based in Emeryville, Calif., it employs more than 100 people.
Budget Self Storage operates three properties in Temple Hills and Waldorf, Md., and Springfield, Va.
Marcus & Millichap is a commercial-property investment firm with more than 1,500 investment professionals in offices throughout the United States and Canada. The company closed more than 8,700 transactions in 2015 with a value of approximately $37.8 billion.