Located in 17 different states, the properties represent about 5% of the self-storage company's overall portfolio, according to the broker on the assignment, Charles "Chico" LeClaire, senior director of Marcus & Millichap's National Self-Storage Group and a senior investment associate in the firm's Denver office. LeClaire, who had a preexisting relationship with Storage USA, has assembled a team of regional M&M brokers to market specific areas. "This may be the largest one-off portfolio sale anyone has ever attempted," LeClaire tells GlobeSt.com.
LeClaire says Storage USA is selling off assets that do not fit with the company's future plans and market penetration strategies. "Some are older, some are smaller, some are in markets where they have newer assets and are trying to upgrade the quality of their portfolio," LeClaire tells GlobeSt.com. "There is a wide variety from (class) C's all the way to A's; some are in less than secondary markets and some are in primary markets, some are urban warehouse conversions and some are 1990s suburban-style construction."
The Storage USA properties are listed individually from $550,000 to $18.8 million with market capitalization rates ranging from 8% to 10.5%, based on in-place rents. The properties are located in markets from Long Island City, NY to Tucson, AZ. Sizes range from 30,000 sf to 140,000 sf, with all but two larger than 40,000 sf. Current occupancy ranges from 60% to more than 90%.
LeClaire says the majority of properties are suburban construction. The largest concentration of properties is in Tennessee, where LeClaire says there are eight facilities. The rest are located in Arizona, California, Kansas, New Mexico, Texas, Alabama, Georgia, Connecticut, Florida, Massachusetts, New York, New Jersey, Indiana, Ohio, Maryland and Virginia.
Le Claire says the properties already have been shopped at self-storage conventions and conferences on both coasts and "numerous" properties already are under contract, though back-up bids are being accepted. He says this is not a distressed sale and there's no point at which any unsold properties would go to auction. "If they don't get a price that's reasonable, they most likely won't sell them," he says.
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