Intercontinental Enters Storage Sector With LA Acquisition
The buyers will implement capital improvements at the property.
Intercontinental Real Estate Corp., in joint venture with LaTerra Development, has acquired EZ Access Self Storage, a 784-unit facility in Santa Clarita, Calif., from a private seller. The partnership paid $27 million for the 100,000-square-foot asset. The off-market transaction marks Intercontinental’s entering in the self storage sector.
Completed in 1999 by the former ownership, the property is at 23715 Carl Court, covering a 4.2-acre site. The facility consists of nine single-story buildings, as well as a separate office and a residential unit used for on-site management. Out of the total number of units, 222 of them have drive-up access.
A soon-to-be Public Storage facility
The new ownership already plans to invest capital for an improvement program that will include renovations to the management office, hallway lighting, entry security and landscaping. The facility will be rebranded as Public Storage, taking after the management company that has been retained to oversee day-to-day operations at the property.
The storage facility is located near interstates 5 and 210, as well as California State Route 14, which connect EZ Access Self Storage to downtown Los Angeles, 30 miles southeast. The property is one of eight within a 3-mile radius, offering residents more than 15 rentable square feet per capita, according to Yardi Matrix information.
Los Angeles’ overall advertised street rate rose 4.0 percent year-over-year, with an annualized average rent per square foot of $30.37 in July, almost double the national figure of $16.91 and the second highest nationwide.
July saw 3,043 storage properties in all stages of development across the U.S, the latest Yardi Matrix self storage report shows. The pipeline included 703 facilities under construction, which made up 2.7 percent of the total stock, down 10 basis points from the previous month.
