Amsdell Cos., a Cleveland-based self storage investment company is rapidly growing its portfolio in metro Detroit, Mich. The company purchased properties in Flat Rock, Fraser and Shelby Township. It has added to three other Michigan self storage facilities and one Pittsburgh, Pa. facility purchased by them since August.
“We’re bullish on the Detroit market,” said President Todd Amsdell. “We like the metrics, we like the quality of the facilities, and we like the locations.”
Previously operated by Simply Self Storage, the properties comprise an additional 174,000 net rentable square feet of self storage. The company has existing locations throughout Florida and Ohio. All of the sites are operated by Compass Self Storage LLC, an Amsdell company. Amsdell plans to expand throughout the greater Midwest and grow the Compass Self Storage brand, according to Amsdell.
“The goal isn’t to go into a market, be able to buy two or three and then be done,” he said. “In Detroit, there’s an opportunity to own nine, 10, even 12 stores. The way that self-storage works, if you own nine or 10 properties, you’re one of the 100 biggest owners in the country. Ownership is very segmented.”
The seller was Orlando, Fla.-based Simply Self Storage. MJ Partners of Chicago was the broker on the deal. In September, Amsdell bought the self-storage center at 32000 John R. Road in Madison Heights for $4.5 million. The company entered the market in August with the $6.5 million purchase of a storage center at 160 W. Avon Road in Rochester Hills and 40900 Grand River Ave. in Novi.
Amsdell has experience in Southeast Michigan. Before taking the company public in 2004, his family owned U-Store-It, which grew to 211 stores including one in Ecorse. After his father retired, Amsdell left the company to start his own firm. Amsdell Cos. started as a family-owned construction business in 1928 and has since been active in several billion dollars’ worth of real estate ventures, with a primary focus on self-storage. The company has experience in property acquisition, construction and property management.
“Amsdell Cos. Buys 3 Self-Storage Properties in Michigan.” Inside Self-Storage. March 31, 2011.
Duggan, Daniel. “Amsdell Self-Storage Company Adds 3 More Centers to Detroit-Area Holdings.” CrainsDetroit.com. March 30, 2011.