Update 12/2/14 – The storage facility StoreSmart Self-Storage recently acquired in Melbourne, Fla., using approximately $3 million raised through crowdfunding, was purchased for $9.25 million. The facility comprises 112,030 square feet in 964 units, with an additional 8,800 square feet under construction.
The property consists of more than 10 acres leased from the Melbourne Airport Authority and is in an area poised for economic growth, according to brokers Adam Rathbun of SouthTrend Realty and Frost Weaver of Weaver Realty Group, who represented the seller, Apollo Storage, in the transaction. Rathbun and Weaver are partners in the Florida Commercial Brokers Network and represent the Argus Self Storage Sales Network in Florida.
Argus is a Denver-based network of real estate brokers who specialize in self-storage properties. Formed in 1994, the company has 36 broker affiliates covering nearly 40 markets.
10/27/14 – StoreSmart Self-Storage, which owns a portfolio of more than 20 properties, has acquired a self-storage facility in Melbourne, Fla., using crowdfunding secured through Realty Mogul, an online marketplace that allows accredited investors to pool money online and buy shares of pre-vetted investment properties. Realty Mogul's institutional investors contributed more than $3 million in aggregate equity financing to help StoreSmart buy the property, company officials said in a press release. This is the second storage asset Realty Mogul has helped StoreSmart finance through crowdfunding.
The former Apollo Storage at 575 N. Apollo Blvd. comprises 112,030 square feet. StoreSmart will rebrand the facility in its name and plans to renovate the property before reselling it at the end of an anticipated holding period, according to the release. Investor distributions are projected to begin after the first full quarter of operations following the closing of the acquisition, officials said.
"Self-storage facilities continue to be a popular asset class for real estate crowdfunding because they consistently produce steady income to investors," said Jilliene Helman, CEO and founder of Realty Mogul. "Regardless of how the economy is doing, people will always need to store their stuff.”
Reliant Real Estate Management LLC, StoreSmart’s property-management company, conducted a market study and concluded the area around the property remains strong for self-storage, Helman said.
Built in 2006, the facility’s main traffic artery averages traffic counts of more than 21,000 vehicles per day, officials said. The property consists of nine buildings on more than 10 acres. The planned expansion will add an additional 8,800 square feet of storage space in 42 units.
"We are always aggressively seeking new investment opportunities," said Lewis G. Pollack, managing principal of StoreSmart.
StoreSmart operates 22 facilities in Arkansas, Florida, Georgia, Illinois, North Carolina and South Carolina.
Realty Mogul gives investors tools to browse investments, conduct due diligence, invest online and have 24/7 access to an investor dashboard that allows them to see how their investments are performing.
- iReach by PR Newswire: Realty Mogul Successfully Crowdfunds Florida Self-Storage Facility with StoreSmart