Our clients were regional investors, owning multiple asset types across the Southwest and specializing in distressed assets and repositioning. They had acquired the storage at a trustee’s sale 9 months prior to seeking out our services to help them maximize exit value of the property so that they could redeploy capital into another asset. The facility was located at a less-than-ideal location (at the end of a cul-de-sac) and was not visible from the main road.
The property was softly taken to market unpriced during the holiday season to allow our team the time to help revise the marketing campaign of attracting new tenants. By employing these modern techniques and technology, the previous visibility issues were minimized, making the facility more known to the neighborhoods surrounding it. Although the marketing helped increase community visibility, the discount that the market would assign to the storage for lacking street views was still indeterminate and the self storage was taken to market unpriced in mid-January. Offers immediately came in and a subsequent bidding war followed.
The escrow process began and the property sold within a month of opening contract, about five weeks after being fully taken to market. The sellers were awarded an all cash buyer at a price significantly higher than their own expectations and pricing methods had suggested, creating capital for our clients to redeploy. In the end, our clients were very satisfied with both the price they received and the speed at which they were able to sell their property.
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