Investment firm Hines has stuck a deal to acquire a three-story self-storage facility in Cerritos, California for $91 million.
CBRE, which brokered the deal, called the sale of the Extra Space Storage asset, the “largest single-property self-storage sale in history.”
The property was first purchased by a joint venture between Carlotte-based Barings and Los Angeles-headquartered Capital 360 in 2018. CBRE represented them both on the deal.
Located at 17900 Crusader Avenue, the site spans 260,273 square feet and was initially constructed in 2020. Overall, the property features 2,460 units and was 88 percent occupied, as of the time of the sale.
“This asset offers cutting-edge technology and is strategically located within a highly populated area within Los Angeles County with superb demographics. The quality of the asset is truly unmatched,” Nick Walker, vice chairman of self-storage and capital markets for CBRE, said in a statement.
The 4.95-acre site is located near the I-605 freeway. More than 643,000 residents, holding an average household income of roughly $117,000, live within five miles of Extra Space, according to CBRE.
While much of CRE including the self-storage asset class has struggled with high vacancies and limited rent growth, the outlook is starting to improve. A recent midyear report from Marcus & Millichap said that private investors who are more active in rural and smaller markets will have opportunities thanks to migrants moving to tertiary cities to avoid high costs. But larger investors will favor the major markets.