Our client approached us to discuss a possible sale of their self storage property. The client owned two self storage facilities, and did not consider this storage facility as a core asset in their portfolio. They had also bought at the peak of the previous business cycle and the location was too far from their homes for them to manage properly. This tasked our team with the challenge of selling the property based on both performance and the price our clients needed.
We began by advertising the strength of the storage facilities location. It is situated on a very busy street near Arizona State University, and most of the area surrounding it was either under re-development or planned for it. Our team also marketed it showing a value add opportunity, considering it had about half an acre that was being used for vehicle storage, as opposed to a more profitable mini storage building. We circulated the facility through our database of self storage investors and advertised through a number of channels. Within a few weeks we had over a dozen offers, including some from publicly traded REITs.
Using our top tier underwriting and marketing practices, we were able to recapture 100% of our client’s equity in the project after a fairly short and uneventful escrow. The self storage sold at a record low cap rate for the year and our client was happy that they were able to redeploy capital into another business venture. The buyer of the facility used the extra lot to add an extra building.
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