The Magellan Group, a Southern California real estate investment and development firm and parent company of Magellan Storage, recently purchased two Los Angeles self-storage facilities for $11.2 million. The company plans to rebrand both properties, which have a combined occupancy of 58 percent, as Magellan Storage and perform substantial physical improvements.
The acquisition includes a three-story building at 801 E. Commercial St., a 717-unit storage facility visible from U.S. Route 101 in downtown Los Angeles. Converted to self-storage in 2004, the property will undergo several improvements. The new lobby will feature a business center with work stations, a coffee bar and a retail area. Exterior improvements will include new paint, brick accents and signage that will make the most of the propertys highly visible location.
The acquisition also includes a 942-unit storage facility at 700 E. Slauson St., just south of downtown Los Angeles. The property, which was also converted to self-storage in 2004, will undergo surveillance-system upgrades and improvements throughout the property that are thematically consistent with the Magellan Storage brand.
This acquisition presents an excellent opportunity for Magellan Storage to add value through a renewed leasing effort, property upgrades and improved management operations, said Martin Slusser, Magellan principal and co-founder.
The Magellan Group is actively pursuing additional self-storage investments and development opportunities in Southern California.
Doug McCarron of Holliday Fenoglio Fowler LP, a provider of commercial real estate and capital markets services, represented The Magellan Group in the transaction.