LOS ANGELES—Storage Etc. Development LLC has acquired a three-property self-storage portfolio from AMS Group for $16.4 million, GlobeSt.com reports exclusively. The three properties are located in prime infill locations in Los Angeles and Riverside Counties.

“The buyer is a growing private company, and this was an opportunity to get some scale in the growing Southern California market with the purchase of a number of properties in good submarkets that have never traded before,” Fred Cordova, an EVP at Kennedy Wilson Brokerage Group who represented the buyer in the transaction, tells Globest.com.

The three properties are located at 8369 Garvey Ave. and 2747 La Presa Drive in Rosemead, a two building property, 21320 Golden Springs Drive in Diamond Bar and 863 Town Center Drive in Pomona, and total 158,000 square feet. The seller developed the property and operated it. This is the first time any of the assets in the portfolio have traded hands.

The seller wanted to sell the whole portfolio in one piece rather than as three separate transactions. “We had competition from REITs and private companies across the spectrum. The large REITS only control about 10% to 20% of the market nationwide, so there is a lot of smaller enterprises that make up 80% of the market,” says Cordova.

The self-storage facility industry has been performing very well this year, and Cordova expects the industry to continue to grow. In fact, according to a Marcus & Millichap report earlier this year, the vacancy rate in Los Angeles is trending below the national average, at 11% with the national vacancy rate at 14%.

Continue Reading for Free

Register and gain access to:

  • 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
NOT FOR REPRINT

© 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.

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

Los Angeles
National