Pegasus Group Buys Austin Self Storage Portfolio
- May 20, 2021
Pegasus Group has acquired two self storage facilities in the Austin, Texas, metro from Endeavor Real Estate Group. The Class A properties total 1,174 units. The company will operate the assets, known as All Stor South Congress and CubeSmart Bee Cave, under the Central Self Storage brand.
The South Congress facility, opened in July 2018, is located at 8327 S. Congress Ave. in an industrial area less then 8 miles from downtown Austin. The property consists of one two-story and eight single-story buildings. The 298 climate-controlled and 227 non-climate-controlled units range from 25 to 300 square feet and offer drive-up access. The asset has four rentable parking spaces.
The other property, located at 14635 W. SH 71 in the western suburb of Bee Cave, is on a 5.9-acre parcel 18 miles from downtown Austin. Constructed in 2019, the facility has three building with 590 climate-controlled and 55 non-climate-controlled drive-up units. Unit sizes are between 25 and 400 square feet.
A JLL Capital Markets team led by Managing Directors Brian Somoza and Steve Mellon worked on behalf of the seller. This isn’t the first time the duo have negotiated opposite Pegasus: In February, they represented another seller in the nearly $20 million disposition of an 87,597-square-foot Oregon self storage facility.
The sector’s continued growth
The self storage sector continues to flourish, even despite disruptions across most other real estate asset types over the past year. Street-rate rent growth at the national level has been positive, rising 2.6 percent year-over-year through March for non-climate-controlled 10×10 units and an even higher 3.1 percent for those with climate control, the latest Yardi Matrix report shows.
Austin has fared particularly well, with rent growth trending at 4 percent during the same period. The metro, alongside national trends, also maintains an active development pipeline, with projects under construction or in planning stages accounting for 6 percent of existing inventory.