A newly formed limited-liability company sponsored by California-based self-storage operator SuperStorage has acquired A-1 Sierra Storage in Santa Clarita, Calif., for $2 million. The single-story asset at 17175 Sierra Highway in the Canyon Country area comprises 37,000 square feet in approximately 400 units, which were mostly converted from storage containers, according to a press release from Bancap Self Storage Group Inc., the commercial real estate firm that brokered the deal.
The asset had operated as a family-owned business since 1982 and was sold by three siblings who inherited the facility from their father, the original developer. The facility has gravel driveways, a manual sign-in sheet, a manually controlled access gate and no computers. Though it sits on about 6 acres, less than half the parcel is usable for storage due to mountain terrain and a flood channel, the release stated. Subsequent zoning changes have classified the business as a legal non-conforming use. Previous attempts to sell it were unsuccessful.
SuperStorage will brand the property under its name. The operator intends to make improvements to marketing and operations to increase the facility’s cash flow and value, according to the release.
“This was one of those deals that everyone says they want, but few are ever able to actually buy—especially in Southern California,” said Bancap president Dean Keller, who brokered the transaction. “With a strong Los Angeles County market location, no professional management, no computerized operations and significant upside potential, I expect the buyer to do very well with this property.”
California-based Bancap has completed more than $1.35 billion in self-storage sales, including independently owned properties, mid-sized chains and large portfolios.
SuperStorage operates 10 California self-storage facilities primarily in Southern California and along the Central Coast.