Hines Sets Record With SoCal Buy
This deal marks the highest price ever paid for a single self-storage asset.
Hines has acquired Extra Space Storage in Cerritos, Calif., for $91 million. This marks the largest single-property self storage sale in history, according to CBRE.
Extra Space Storage features 2,460 storage units. At the time of sale the facility was more than 88 percent occupied.
The 260,273-square-foot, three-story facility is located at 17900 Crusader Ave. on a 4.95-acre site adjacent to the Interstate 605 freeway. More than 634,000 residents live within a five-mile radius of the property, with an average household income of approximately $117,000.
Nick Walker and Trevor Roberts of CBRE’s Self Storage Advisory Group represented the seller, a joint venture between Capital 360 and Barings.
Self storage metrics show a downturn
Nationally, six out of the top 30 self storage metros saw monthly improvement, according to the September Self Storage Report from Yardi Matrix.
Advertised asking rates have remained negative annually as of August as the overall advertised street rate per square foot fell to $16.31, a 4.3 percent decline year-over-year. Annually, advertised street rates for the 10 by 10 non-climate-controlled and climate-controlled units declined in all of the top 30 metros.
The decline in advertised asking rents is fueling uncertainty about self storage acquisition and development. Nevertheless, investor interest remains high with an expectation of interest rate cuts and moderation in the decline of self storage rental rates over the following months.
