Prime Group Acquires New Asset for $2.5B Self Storage Fund

Prime Group Holdings has purchased Prime Storage, a 98,000-square-foot storage facility in Rocklin, Calif., for $20 million, or $149.29 per square foot, Yardi Matrix data shows.

JLL Capital Markets represented the seller, Banner Real Estate Group. The purchase lands on the heels of Prime’s closure of a $2.5 billion self-storage fund aimed to expand its footprint in undersupplied markets.

JLL Senior Managing Director Brian Somoza led the Investment Sales and Advisory team on behalf of Banner Real Estate Group.

The three-story facility encompasses 993 units spread throughout more than 133,000 square feet across 1.72 acres, out of which 98,240 square feet are rentable, according to Yardi Matrix data. Prime Storage features drive-up access, parking, security cameras, covered loading areas, dollies and carts, as well as climate-controlled units.

Sacramento’s self storage market

Located at 6025 Park Drive, the property is roughly 4 miles west of Interstate 80 and less than 2 miles east of California State Route 65. Rock Creek Plaza, an 84,000-square-foot shopping center with tenants such as Safeway and Chase Bank, is adjacent to the self-storage facility. A 3-mile radius scan of the area unveils 19 additional storage facilities totaling 1.5 million rentable square feet. This equates to more than 17 rentable square feet per capita, Yardi Matrix data indicates. Five self-storage facilities traded in Greater Sacramento last year, according to the same source.

The national street rate per square foot dipped by 2.7 percent year-over-year as of December, according to a Yardi Matrix report. Despite this decline, the Sacramento market showed signs of rejuvenation, with a month-over-month rent growth of 0.7 percent in December, the same report reveals.