EBS Acquires 84,000-SF Self Storage Facility

LAS VEGAS-Equity Based Services Inc., a San Diego-based owner of self-storage facilities, has acquired another asset here, paying $9.7 million for Silverado Self Storage, an 84,200-sf (net rentable) facility, that EBS will rebrand as American Mini Storage. Troy Downing, a principal and fund manager with EBS, tells GlobeSt.com the capitalization rate on the purchase is approximately 7.52% based on current NOI.

While Las Vegas has been getting negative press lately Downing says self storage deals still make a lot of sense because the product type has historically performed well in down economies. Silverado is the company’s seventh self-storage asset in the region. “Being a contrarian investment…we expect Silverado to have an above average return in cash flow immediately and we believe there is a high potential for above average appreciation when the Las Vegas real estate markets recover,” he says.

In addition, Downing says the property benefits from multiple revenue streams; they include 625 climate-controlled storage units, 26 RV parking spaces, a cellular tower and a three-sided billboard facing the highway. “Silverado is one of the better positioned assets that we have added to our portfolio this year in terms of cash flow, stability and upside potential,” he says.