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CHICAGO-Storage Specialists LLC acquired three U-Stor-It self-storage facilities aggregating 209,274 sf and 1,765 storage units. The portfolio traded for $15 million. Two are located on the city's southwest side and one is in a southwest suburb.
The single-story facilities opened between 2000 and 2003. They are located at 4222 S. Pulaski Rd. and 7131 W. 60th St., Chicago, and 4821 W. 67th St., Bedford Park, IL. All three are located in close proximity to the Midway Airport commercial real estate market.
Marc Boorstein and Jeff Jacobson, principals of MJ Partners, represented Elgin, IL-based U-Stor-It. All three properties will now be managed by Metro Self Storage of Lake Bluff, IL. According to Boorstein, Metro Self Storage is strictly a third-party manager.
Boorstein tells GlobeSt.com that "the seller felt it was time to sell. We've sold properties for them in the past, and they often describe it as a redeployment of capital, especially if they've decided to build elsewhere." He adds that "we marketed these properties all over the country." He describes the buyers as a group of investors who have created a new company to invest in storage facilities. This is their first purchase in the Chicagoland market.
The storage facility market in the Chicago area is very active, according to Boorstein. "Chicago is one of the core markets throughout the country. We hear from a lot of out-of-town buyers." He explains that investors would rather buy than build. "From the time it takes to buy the land, get the permits and the builder and to lease out the spaces, it could take at least four years or more. By buying existing facilities, they can take advantage of their investment right away."
The properties in this particular portfolio are approximately two thirds leased to residential users. The rest, Boorstein says, are commercial users. "Business is growing so quickly in the Midway area that they now need additional storage space as well."
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