Westport Properties Inc., which operates 85 self-storage facilities under the US Storage Centers brand, recently purchased Vista Self Storage in Orlando, Fla., for $11.8 million, or about $121 per square foot. The price was a substantial premium over the $100-a-square-foot average sales price commanded by storage properties in the Orlando market, according to an article in “The Wall Street Journal.” The property at 6707 Narcoossee Road received bids from 18 potential purchasers, including several real estate investment trusts, the source reported.
“This is a perfect example of how hot the self-storage market is,” said Michael Mele, senior director of the National Self-Storage Group at Marcus & Millichap Real Estate Investment Services, which brokered the transaction. Mele represented Westport and the seller, Florida-based Vista Self Storage Co.
Built in 2003, the facility was expanded in 2005 and renovated last year. It sits on nearly 7 acres and is comprised of 97,300 square feet of storage space in 696 units.
“With an exceptional location on Narcoossee Road in Orlando, this facility has all of the amenities today’s self-storage investors are seeking—a high-density location on a main thoroughfare with excellent accessibility, surrounded by a growing population base, which should fuel demand and steady rent increases over the long term,” Mele said.
“We continue to see overall population growth in Orlando, which has correlated with an increase in demand for self-storage. This is an exciting market and we expect to see an increase in revenue and growth with the implementation of our advanced marketing and operations platforms,” said Jason Lopez, marketing vice president.
Based in Irvine, Calif., Westport Properties is a real estate investment company that acquires, develops and operates self-storage facilities as well as provides third-party management services. It’s affiliated with Westport Memphis Self Storage LLC.
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 7,600 transactions in 2014 with a value of approximately $33.1 billion.