Self-storage operator Morningstar Properties LLC has acquired City Storage near midtown Atlanta for $6.1 million. Serving the Virginia Highlands neighborhood, the property features a five-story, climate-controlled building comprising 47,500 square feet in 351 indoor storage units. It will be rebranded under the Morningstar Mini-Storage brand name.
Built in 2009, the facility was 92 percent occupied at the time of purchase. "This property has the strategic attributes we typically look for in order to establish a strong presence in a market, " said Dave Benson, president. "The quality of the structure is class A, and the trade areas feature an exceptionally dense population base with relatively high average household incomes, a major retail corridor and vibrant development. We're confident that this acquisition positions us well to capture market share in one of Atlanta's most dynamic infill neighborhoods and increase consumer demand for our services in the metropolitan region."
Virginia Highlands is situated where the Atlanta Beltline crosses Ponce de Leon Avenue. The self-storage property is adjacent to national retailers Home Depot, Kroger, Staples and Whole Foods. It is also next to the Ponce Market redevelopment project, a $200 million revitalization of a historical Sears Roebuck distribution facility that comprises 2 million square feet.
The City Storage property was purchased through Morningstars self-managed, institutional investment vehicle, Blue Doors Storage Fund I. This is the third Morningstar asset financed through the fund, Benson said.
With the acquisition, Morningstar now owns and operates 66 self-storage facilities in eight states. The company has one other location in the Atlanta market. Founded in North Carolina in 1981, it has facilities in Florida, Georgia, Nevada, North Carolina, Ohio, South Carolina, Texas and Virginia.