Portland-Area Self Storage Commands $20M

Red Hat Enterprises acquired a five-story facility in a highly competitive market.
ExtraSpace Storage Tigard. Image courtesy of Colliers

Red Hat Enterprises has acquired a 950-unit self storage facility in Tigard, Ore., for $20 million. Colliers’ Senior Vice President Tom de Jong worked on behalf of the seller, Trailblazer Development.

Completed in 2002, the Class A property is operated by ExtraSpace Storage, which will continue to manage the asset under the new ownership. Red Hat Enterprises’ portfolio comprises 12 facilities, all of which are operated by ExtraSpace Storage.

The five-story building at 7600 SW Atlanta St. totals 86,623 net rentable square feet. All units are climate-controlled, ranging in size between 25 and 300 square feet. The property features storage spaces with drive-up access and digital surveillance.

Located in Tigard’s retail and industrial area south of Pacific Highway West, the facility is some 2 miles from a Portland Community College campus and roughly 9 miles southwest of downtown Portland.

The asset is situated in a highly competitive market—with 11.73 rentable square feet of storage space per capita within a 3-mile radius, according to Yardi Matrix data. Even so, the facility was 80 percent leased at the time of the sale. With no other projects under development in Tigard, the ExtraSpace Storage location is the newest self storage property in the area. 

In July, ExtraSpace Storage expanded its portfolio with the acquisition of two Dallas-Fort Worth properties, totaling 1,321 units.  The owner-operator was already managing both facilities prior to the transaction.