Self Storage Facilities Selling Well in Challenging Real Estate Market

Posted on Sep 29 2010 - 3:49pm by Kim Kilpatrick

Although the real estate market is still struggling in response to the recession, one sector of the market is still doing well: self storage. Several self storage facilities have either opened or changed hands in the last few weeks, some in all-cash transactions. Below is a state-by-state breakdown of some recent self storage real estate news:

  • Alabama: A Fultondale self storage facility, containing 436 units, was sold this week.
  • California: Garfield Avenue Self Storage of Bell Gardens, California, an 873-unit facility, was purchased this week with cash. It will become part of the A-1 Self Storage chain of facilities.
  • Illinois: Four self storage facilities in Chicago sold earlier this month for $11.8 million. In addition, a new self storage facility is being planned for McHenry County, Illinois.
  • Kentucky: A new self storage facility, CITYSpace on Main, opened in Louisville this week. The property for the facility was sold in March of this year.
  • Michigan: Storage Pros Self Storage of Cedar Springs has expanded, purchasing a truck and trailer rental business.
  • Mississippi: Two self storage facilities were sold earlier this month. Lock Up Self Storage of Kiln was sold to an out-of-state investor for $337,500. In Biloxi, B&G Climate Control Warehouse sold for $1.3 million.
  • Ohio: A Hancock County fire department is building its own self storage facility, called Station 6 Storage.

Self storage is also doing well internationally:

  • Australia: Just Real Estates Investments announced earlier this month that it is looking for self storage investment opportunities in prime industrial areas. Just Real Estates is hoping to invest between $2 and $5 million in self storage.
  • Kingdom of Bahrain: The Takhzeen Warehousing and Storage Company announced Sunday that it has begun the construction of a $15 million self storage facility.

Sources used:

“Caster Properties acquires Garfield Avenue Self Storage in Bell Gardens, California.” Inside Self-Storage. Sept. 29, 2010.

“CITYSpace on Main Self-Storage opens in Louisville, holds grand opening.” Inside Self-Storage. Sept. 27, 2010.

Cooper, Lauren B. “U-Haul Co. purchases Fultondale storage facility.” Birmingham Business Journal. Sept. 28, 2010.

Dunlevy, Maurice. “Self-storage sheds find place in the sun: Gold Coast.” Business with the Wall Street Journal. Reprinted from The Australian. Sept. 23, 2010.

Haq, Robeel. “Takhzeen constructs self-storage warehouse.” Arabian Supply Sept. 26, 2010.

“New self-storage, retail complex proposed for McHenry, Ill.” Inside Self-Storage. Sept. 21, 2010.

Robinson, Holly. “OH fire department starts self storage business to raise money.” Self Storage Industry News. Sept. 20, 2010.

“Sovran Self Storage looking for the right properties for future acquisitions.” Inside Self-Storage. Sept. 28, 2010.

Stevens, John. “Australian investors looking for self storage opportunities.” Self Storage Industry News. Sept. 22, 2010.

“Storage Pros Self Storage Cedar Springs creates partnership with U-Haul brand.” PR Newswire. Sept. 22, 2010.

“Two Mississippi self-storage facilities sold to out-of-state investors.” Inside Self-Storage. Sept. 22, 2010.