Phoenix-based U-Haul International Inc., which operates more than 1,300 self-storage locations across North America, has acquired two self-storage facilities in the Greater Milwaukee area for $17 million: The Vault of Menomonee Falls and The Vault of Waukesha. The properties are within 15 miles of one another and 20 miles from Milwaukee.
The Menomonee Falls facility at N58 W15500 Shawn Circle is near U.S. Route 45 and Interstate 41, and adjacent to the Bruceton Manor neighborhood and several retail stores. Built in 2016, it comprises 39,573 rentable square feet of storage space in 451 units. Phase two of the project, which is under construction and expected to be complete within the next 12 months, will expand the site to 80,230 net rentable square feet and 768 units.
The Waukesha site at 1450 S. West Ave. was built in 2014 and expanded to twice its original size a year later. It comprises 64,648 rentable square feet of space in 582 units. The property is less than a mile from Wisconsin Highway 59, less than five miles from Interstate 94, and within two miles of Carroll University. It faces the residential community Sunset Heights and a McDonald’s.
"We are very excited to be a part of this acquisition," said Mike Schneider, president of the U-Haul Co. of South Eastern Wisconsin. "There is a big demand for U-Haul products and services in Menomonee Falls and Waukesha. We also have unique services including wine storage, safe deposit boxes and weapons storage."
The sale price for these two assets is the highest on record for a self-storage portfolio in the Milwaukee-Waukesha-West Allis Metropolitan Statistical Area, according to a press release from Marcus & Millichap, the real estate firm that brokered the deal.
“After a thorough national marketing campaign, we had multiple offers from both the public and private sectors. The level of interest in these facilities, although still in lease-up, was commensurate with the quality of these best-in-class assets,” said Sean Delaney, first vice president of investments in the Marcus & Millichap Chicago-Oak Brook, Ill., office. “Despite the fact that we are still in an uncertain and changing market, this transaction clearly demonstrates the continued demand by investors for quality assets.”
The buyer and the seller, a private investor, were represented in the transaction by Delaney and Michael Mele, senior managing director of investments in the Marcus & Millichap Tampa, Fla., office as well as members of The Mele Group.
The acquisitions were driven by U-Haul’s corporate sustainability initiatives, which support infill development to help local communities lower their carbon footprint, according to a company press release. U-Haul’s adaptive reuse of existing structures eliminates the amount of energy and resources required for new-construction materials and helps local cities diminish their unwanted inventory of unused buildings, U-Haul officials said.
Established in 1945, U-Haul has more than 44 million square feet of storage space at its owned facilities throughout North America.
Founded in 1971, Marcus & Millichap is a commercial-property investment firm with more than 1,500 investment professionals in offices throughout Canada and the United States.