AAA Stor-Stuff Self Storage in Lancaster, Calif., was recently sold for $2.6 million. Built in 1986, the 61,600-square-foot facility comprises 520 drive-up self-storage units and 39 uncovered vehicle-storage spaces. Situated on 4.2 acres of land, the single-story building features all-metal construction. Occupancy was approximately 65 percent at the time of sale.
The transaction was brokered by listing agent Dean Keller, president of Bancap Self Storage Group Inc., who said this was "a rare opportunity to purchase a temporarily under performing self-storage property in Los Angeles County with significant upside potential."
AAA was sold on a cash to new loan basis. The seller, a private investment firm, had purchased the mortgage on the property from a special servicing firm after it had begun the foreclosure process and listed the property for sale once the foreclosure was complete. The buyer is a private limited liability company owned by local investors who are new to the self-storage industry, according to a Bancap press release.
There have only been a handful of foreclosed storage properties listed for sale in Southern California in the past few years, according to Keller, and plenty of buyers looking to "steal" lender-owned properties. Bancap has been able to get very good prices for sellers, he said.
Bancap specializes in self-storage property sales and acquisitions. The company has completed $1 billion in self-storage sales, including man lender-owned properties, portfolio sales, and a record-setting single-property sale of more than $31 million.