GLENDALE, CA-Public Storage has purchased a six-property self-storage portfolio from Babcock & Brown and four lenders for $42 million. The portfolio consists of approximately 517,000 rentable square feet and 5,500 storage units, and all properties were developed within the last three years. Locations include Wayne, NJ; Randolph, MA; Philadelphia; Montclair, CA; and Pompano Beach and Hialeah, FL.
Marc Boorstein and Jeff Jacobson of Chicago-based MJ Partners Self Storage Group represented both the sellers and the buyer in the all-cash transaction. The four lenders included Bank of America, BMO Harris Bank, PNC Bank and Emigrant Realty Finance.
“This portfolio is approximately 65% occupied, and additional lease-up is anticipated to fill up each property within 24 months,” says Boorstein.
Boorstein tells GlobeSt.com that the purchase is a long-term hold and Public Storage will continue to lend out the storage units. Since the buyer owns other self-storage facilities in the area, the purchase is expected to satisfy overflow interest from the other properties. Babcock & Brown had built the portfolio roughly three-and-a-half years ago.
Boorstein adds that the portfolio represents the final six properties owned by Sydney, Australia-based Babcock & Brown, which is in the process of dissolving. “The four lenders still had mortgages on the properties, and they wanted to wind down all their businesses.”
As GlobeSt.com previously reported, the US District Court for the Southern District of Texas appointed Ann Arbor, MI-based McKinley as receiver for the former Babcock & Brown FX3 Loan apartment assets in six states. The former Babcock & Brown, which liquidated in 2009, had the 14 properties tied up in a $194 million CMBS loan that went bad. The properties, which consisted of 3,709 units, were in Nevada, Texas, South Carolina, Florida, Virginia and Maryland. Half of the properties were in Texas.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
