Transactions in Los Angeles, San Jose and San Diego Reflect Ongoing Strong Demand
San Diego CA— Cushman & Wakefield announced it completed the sale of three separate self storage transactions across California during the first quarter of 2018 totaling $84.5 million in value and more than 340,000 rentable square feet (rsf). The transactions consisted of:
Magellan Storage – Commerce is a Class A, institutional quality asset located in central Los Angeles and totals in excess of 140,000 rsf. The property was purchased by a joint venture between US Storage Centers, a national self storage operator, and an institutional private equity firm. Cushman & Wakefield’s Greg Wells of the firm’s Self Storage Practice Group and David Hasbrouck of the firm’s Capital Markets group in Los Angeles handled the transaction on behalf of the seller.
Storage Solutions – San Jose is a converted warehouse building located in the Diridon Station area of downtown San Jose. The project was purchased by a joint venture between Trammel Crow and Google, Inc and is planned to be a part of the proposed new Google campus in downtown San Jose. Wells, along with Eric Fox and Adam Lasoff of Cushman & Wakefield’s Northern California Capital Markets group represented the seller.
Fenton Street Self Storage is located in the Eastlake area of San Diego County and totals 86,000 rsf. The project was sold at completion and is a best-in-class asset located in a dynamic, high growth trade area. The buyer was Strategic Storage Trust who will operate the store under their brand name, SmartStop Self Storage. Wells represented both buyer and seller in the transaction.
“The self storage market continues to see strong demand from all capital sources,” said Wells. “The Magellan Storage – Commerce asset offered a very rare opportunity to acquire Class A institutional quality asset located in a densely populated, core urban central Los Angeles market. Storage Solutions – San Jose was a rare covered land play, allowing the buyer to buy and hold a cash flowing asset while waiting for an area to redevelop. Fenton Street Self Storage was sold at completion of construction offering the buyer higher yields vs stabilized assets,” commented Wells. “The different dynamics and buyer profiles of the three separate sales demonstrate the attractiveness of the self storage sector to a wide variety of buyers.”
The Cushman & Wakefield Self Storage Practice Group is a full service real estate platform dedicated to the self storage asset class. The group offers investment advisory, valuation, consulting, feasibility and data services in all major markets in the U.S.