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Public Storage picks up industrial portfolio in Miami-Dade for $63M

Banner Real Estate completed the four properties in 2017

Public Storage CEO Ronald Havner (Credit: Twitter)
Public Storage CEO Ronald Havner (Credit: Twitter)

Public Storage bought four large storage facilities in Miami-Dade County for $63 million.

Banner Real Estate sold the properties at 91 Southwest Third Street, 180 West Sixth Street, 2190 Southwest Eighth Street and 5609 Northeast Second Avenue in Miami to Glendale, California-based Public Storage, according to property records.

The buildings total 411,438 square feet, which equates to a purchase price of $153 per square foot. Banner Real Estate completed the buildings in 2017.

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Over the past few years, self storage has been one of the hottest property types in South Florida.

Nationally, self-storage facilities have been outperforming all other major commercial property types in terms of earnings growth and company stock performance, according to a Green Street Advisors analysis. In November 2017, the annualized rate of new self-storage construction was $4.6 billion on a seasonally adjusted basis — double that of November 2016 and triple that of November 2015, the report found.

But there is a sign of weakness in the sector, as public self-storage companies are trading at a 2 percent discount to the estimated market value of the properties they own, per the Green Street research.

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