"Investor interest for self-storage is just boiling," says Kent Greenwald, vice president of investments for Coldwell Banker Commercial Metro LLC, who brokered the deal. "This asset was on the market a grand total of eight hours."
Greenwald tells GlobeSt.com investors are so hungry for properties that they will pay more than market value for properties that are not yet stabilized. "This property was just 56% occupied at closing and traded for a cap rate under 8%."
The buyer developed and owns another self-storage asset in Phoenix and had been looking to expand in the area, Greenwald says. The submarket where Affordable Self Storage is located is experiencing rapid growth. "The in migration and robust residential market lends itself to self storage."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
