Historic Denver Storage Changes Hands
The building will undergo renovations, maintaining the Renaissance Revival style facade.
Mini Storage Cos. has sold United Stor-All, a 42,123-square-foot self storage facility in central Denver, to California-based A-American Self Storage. The LeClaire – Schlosser Group of Marcus & Millichap arranged the transaction on behalf of the seller. The disposition marks Mini Storage Cos.’ exit from the self storage market.
This is the first time the asset changed hands since 1976 when Mini Storage Cos. acquired it from The Weiker Transfer and Storage Co., the firm that commissioned the tower’s construction in 1926. The building dubbed Weicker Depository will undergo interior renovations under the new ownership but will maintain the Renaissance Revival style facade.
The eight-story asset at 2100 E. Colfax Ave. offers a mix of climate- and non-climate-controlled units, ranging from 12 to 820 square feet. The property features storage spaces with drive-up access, business storage units and digital surveillance systems.
Located within the Capitol Hill neighborhood, the property is one of 24 facilities within a 3-mile radius, offering approximately 5.9 net square feet of storage per capita. The figure is under the Denver penetration rate of nearly 8 net square feet per capita.
Self storage inspires confidence
Construction activity in Denver stagnated in November 2021. Projects under construction represented 3.5 percent of existing inventory, registering no change from the previous month, a recent Yardi Matrix report shows.
When it comes to rent rates, the metro is not isolated from the nationwide deceleration trend. Still, year-over-year through November, rents increased by 7 percent for 10×10 non-climate-controlled units, on par with the national average rates. Rent gains for the same-size climate-controlled units slid to 6 percent over the same period, a significant 300 basis-point drop from October and trailing the national average by 200 basis points.
Nonetheless, self storage is considered one of the safest real estate investments, supported by the sector’s counter-cyclical nature. With demand still strong overall, the recent slowdown in performance doesn’t seem to phase out either investors or lenders. Just recently, Talonvest arranged a total of $122 million in loans for several self storage owners. The William Warren Co. benefited from a $60 million financing.