Metro Storage LLC, which operates more than 100 self-storage facilities in 11 states, has partnered with LaSalle Investment Management, a real estate investment management company, to purchase three self-storage facilities in North Philadelphia suburbs for $29 million, or $153 per rentable square foot. The seller was PFG Capital LP, a partnership of individuals who specialize in accounting, finance, insurance and real estate.
The sale included the two-property StorageWORKs portfolio, with facilities in North Wales and Warminster, Pa., as well as Newtown Storage in Newtown, Pa. The acquisitions add 191,000 rentable square feet, 1,589 storage units and 58 vehicle-parking spaces to the company’s existing Pennsylvania portfolio.
“This quality portfolio acquisition and its related development expansion broadens our Metro Self Storage footprint in the suburbs of Philadelphia to 10 stores, with more than 7,000 rental units to offer the self-storage consumers in the market area,” said Matthew Nagel, chairman.
The StorageWORKs property at 418 N. Sumneytown Pike in North Wales consists of eight single-story buildings comprising 75,120 square feet of storage space in 600 units with 15 parking spaces. Features include perimeter fencing, automatic gates and doors, and video cameras.
The StorageWORKs facility at 1634 Mearns Road in Warminster contains 15 single-story buildings encompassing 89,210 rentable square feet of storage space in 751 units with 43 parking spaces. Features include interior and drive-up units as well as video cameras.
Newtown Storage at 100 Upper Silver Lake Road consists of 26,568 square feet of storage space and 238 non-climate-controlled units in two, two-story buildings. Features include drive-up storage, perimeter fencing and video cameras.
“The addition of these three stores rounds out our ability to better serve the storage needs of the surrounding community and positions Metro for continued success in the Philadelphia area,” said CEO Blair Nagel. All three properties offer moving and packing supplies, tenant insurance, and truck rental.
PFG was represented in the transaction by HFF (Holliday Fenoglio Fowler LP), a provider of commercial real estate and capital-markets services to self-storage and other commercial sectors. The HFF team was led by Barbara Guffey, director, Richard Schontz, managing director, and Matthew Weckesser, real estate analyst.
“The aggressive pricing of this portfolio was dictated by the strong fundamentals of the self-storage industry, combined with the abundance of institutional equity chasing quality self-storage properties,” Schontz said. “The seller recognized the timing of the market and moved forward with an aggressive marketing campaign. The buyer pool for a portfolio of this size is extremely deep and, ultimately, Metro Self Storage offered the best price and terms, and demonstrated the ability to close. The portfolio adds to their scale in the Philadelphia market and makes economic sense given their capital structure.”
LaSalle is a real estate investment manager with approximately $55 billion of assets under management of private and public real estate property and debt investments. The company is an independent subsidiary of real estate firm JLL.
HFF and HFF Securities LP are owned by HFF Inc. The firm operates out of 22 offices nationwide.
Headquartered in Lake Forest, Ill., Metro Storage is a privately owned, fully integrated real estate operating company specializing in the acquisition, development and management of self-storage facilities nationwide.