Public Storage Inc., a self-storage real estate investment trust (REIT), recently acquired the American Self Storage facility in East Palo Alto, Calif., tripling the number of units the REIT offers in the area. The facility at 1961 E. Bayshore Road is roughly a quarter of a mile from the Public Storage property at 2047 E. Bayshore Road. Both facilities have frontage along U.S. Route 101, the primary north/south freeway between San Francisco and Silicon Valley, and are in the San Francisco Peninsula, which separates San Francisco Bay from the Pacific Ocean.
Built in 1977, the 2-acre property includes two single-story and one two-story buildings. It encompasses 49,668 square feet of self-storage space in 765 storage units. The facility is near retailers such as IKEA and The Home Depot, and less than four miles from Stanford University, according to a Public Storage press release. The REIT plans to upgrade the facility over the next two months by adding its signature orange signs and new paint.
The purchase is a part of Public Storage’s drive to expand its portfolio through acquisition rather than new development, the release stated. The practice is in line with the company’s sustainability initiatives. By reusing existing structures, the storage operator is able to reduce its carbon footprint with fewer contractor trips in the area, according to the release.
Last month, Public Storage purchased the newly constructed Access Self Storage facility in League City, Texas. Completed earlier this year, the property encompasses 84,550 rentable square feet of storage space in 762 climate-controlled units.
Tom De Jong, vice president of commercial real estate firm Colliers International and a broker affiliate of the Argus Self Storage Sales Network, represented the seller in the transaction. Argus is a Denver-based network of real estate brokers who specialize in storage properties. Formed in 1994, the company has 36 broker affiliates covering nearly 40 markets.
Based in Glendale, Calif., Public Storage has interests in 2,258 self-storage facilities in 38 states, with approximately 146 million net rentable square feet. Operating under the Shurgard brand name, the company also has 193 facilities in seven European countries, with approximately 10 million net rentable square feet.