Sovran Self Storage Inc., the real estate investment trust that operates the Uncle Bob's Self Storage brand, has purchased the four-property Magellan Storage portfolio for $105 million from The Magellan Group. The facilities in Los Angeles and Orange County, Calif., comprise more than 450,000 rentable square feet of storage space in 3,700 units.
The seller was represented in the transaction by David Hasbrouck, executive vice president of Cushman & Wakefield, and Greg Wells, director of the firm’s Self Storage Practice Group. Mark Root, managing director of the company’s Equity, Debt & Structured Finance Group, and Lars Platt, senior managing director of its Valuation & Advisory Group, also assisted.
“This portfolio was significant for a variety of reasons. The Magellan Storage portfolio offered an incredibly rare opportunity to acquire class-A, institutional-quality assets in the highly desirable Los Angeles and Orange County markets,” Wells said. “The combination of the high-quality assets, locations with high barriers to entry and compelling demographics, provided Sovran Self Storage with an opportunity to expand on its recent entry into the Southern California market.”
The portfolio generated interest from a range of parties, according a press release. “The number of interested purchasers for this portfolio was as broad and diverse as we have seen recently,” Wells added. “Southern California is an extremely difficult market in which to acquire high-quality, self-storage assets, and the buying community recognized that. One potential buyer commented that Magellan was one of the ‘most hotly contested portfolios’ they have seen in recent years.”
Based in Buffalo, N.Y., Sovran operates more than 500 facilities in 26 states. Its portfolio of owned and managed facilities comprises more than 36 million square feet.
Founded in 1990, The Magellan Group is a real estate investment and development firm with in-house acquisition, development, finance, leasing and property management. The company also operates Magellan Aviation, a provider of hangars and services at McClellan-Palomar Airport in Carlsbad, Calif.
Founded in 1917, Cushman & Wakefield offers a complete range of services for all property types including consulting and appraisal, corporate services, debt and equity financing, investment banking, leasing, and sales and acquisitions. Its Self Storage Practice Group is dedicated to the self-storage asset class. The group offers consulting, data services, feasibility, investment advisory and valuation in major markets nationwide.