SSS Pays Record Price for Large Self-Storage Portfolio in Michigan
- Apr 16, 2015
The National Storage Centers, a 750,000-square-foot portfolio comprising of 12 self-storage facilities located across Michigan was sold last month at a record price.
According to Farmington Hills-based seller Pogoda Cos., the National Storage Center properties were transferred to Simply Self Storage (SSS) of Orlando, Fla., in a transaction valued at $61.3 million or $81.79 per square foot, the highest price ever paid for such an asset in the state.
“Cap rates for self-storage are at historic lows. I’ve owned some of these properties for almost 25 years and now was the right time to sell,” said Maurice Pogoda, president of Pogoda Cos., in a prepared statement. “We were able to achieve a phenomenal price based on double digit year over year growth that started in 2011. We are still very bullish on Michigan and have 28 other properties that we either own or manage. We will continue to look for value add opportunities to grow our portfolio,” he added.
Two of the National Storage Center properties are located in Ann Arbor, while the rest are in Chesterfield Township, Grand Rapids, Kalamazoo, Okemos, Lansing, Novi, Lake Orion, Westland, Wyoming and Ypsilanti. The portfolio features 5,505 storage units and almost 500 RV/boat parking units and was almost 85 percent occupied at the time of the sale. Marcus & Millichap represented the seller in the transaction.
As the economy has shown signs of improvement in Michigan, the portfolio of 12 self-storage properties can yield substantial monthly revenue. For example, the facility located at 24985 Haggerty Rd. in Novi—which is part of the National Storage Center portfolio—offers self-storage space with monthly rents ranging from $44 for a 25-square-foot unit to $1,275 for a 1,700-square-foot unit, according to prices listed on the SSS website.
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