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HOUSTON-Storage Choice has expanded its portfolio of properties in the Bayou City from two to six, picking up 334,000 sf for more than $20 million.
"This is one of the largest, if not the largest, self-storage transaction this year," says Aaron Swerdlin, manager of CB Richard Ellis Inc.'s Self Storage Advisory Group who represented the Dallas-based Storage Choice in the deal. The properties, which were sold by local developer and owner, 24-Hour Self Storage, are scattered across the metropolitan area with one property in Houston and one each in Stafford, Dickinson and Webster. "I know at least two other investors made runs at the portfolio," Swerdlin confides.
Swerdlin tells GlobeSt.com that Storage Choice has plans to grow their business in the city. "This buy gave them a base in every submarket in Houston," he says. "Storage Choice is a long-term operator looking for stable cash flow." The company owns eightself-storage properties throughout Texas in addition to other types of commercial real estate property.
The properties, which range from one- to five-years old, have an occupancy rate around 85% and generate market-rate rents. The average occupancy rate for self-storage properties in Houston is 84% with rents ranging from $8.50 per sf to $12 per sf, according to Swerdlin. "Compared to other markets, Houston is one of the better performing markets," says Swerdlin, who's closed more than $220 million of self-storage deals so far this year.
According to Swerdlin, Storage Choice received 10-year, fixed-rate mortgage loan from GE Capital for the portfolio. Moreover, the company used GE Capital to put debt on its other two self-storage assets in Houston, which are worth about $6 million. The just-sold properties are 10430 S. Kirkwood in Stafford; 8633 W. Airport Blvd. in Houston; 14640-B Highway 3 in Webster; and 5741 FM 646 Road E in Dickinson.
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