Marcus & Millichap brokerage is seeking buyers for its Advantage Storage Portfolio, a five-property portfolio of self-storage units located in Texas, New Mexico, and Oklahoma, listed for $47 million. The properties are being sold by a private owner, who asked not to be disclosed.
With a net total of 389,130 rentable square feet, the Advantage Storage portfolio brings amenities to the self storage market, and with a current pre-expansion occupancy of 80 percent, is positioned for continued growth. It features 2,229 climate-controlled, non-climate-controlled, dust-controlled, covered parking, and uncovered parking units, and sits on 27.7 acres of land.
With the April 2022 Amarillo expansion that doubled that facility’s size and provided both large shop space and enclosed boat/RV space, the portfolio offers amenities that don’t exist in the market. It includes more enclosed boat/RV expansions in Lubbock and Hobbs in Fall 2022. The Lubbock location is only about 3 miles from Texas A&M University campus.
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M&M represents the seller, and the firm sees demand growing for self storage marketplaces like Advantage Storage, according to Brett R. Hatcher, senior managing director for investments.
“Self storage is not a secret anymore in the real estate investment world,” he said, citing how investment in self storage facilities has become more and more common over the last few decades as a result of things like the 2008 recession.
The United States currently has over 2.3 billion square feet of rentable self-storage space spread throughout more than 60,000 storage facilities, and even when the pandemic hit, REITs that specialize in self-storage only fell about 11 percent during the first quarter of 2020. Comparatively, the Dow Jones Industrial Average fell 16.96 percent and hotels declined by 53.69 percent in the same period.
“Self storage for a long time was never an institutional player, it was never looked at as an institutional investment, it was looked as more of a mom and pop world,” Hatcher said.
“In this market, it’s a little more diversified when you have average facilities of 200-300 units. When you look at COVID and the injection of stimulus money, self storage has become a much needed commodity.”
[Marcus and Millichap] — James Bell