SROA Capital Acquires 5-Property Storage Portfolio
The deal involved a $65 million loan secured by JLL.
SROA Capital has acquired a five-property, 2,327-unit self storage portfolio from Madison Capital Group. Three facilities are in Texas and two in Rhode Island.
JLL brokered the deal and secured financing. Northwestern Mutual provided a $65 million, 8-year acquisition loan, according to Yardi Matrix information, but the financing encompasses seven other assets as well.
All five properties bought from Madison Capital Group were operating under the Go Store It brand. The facilities are now part of SROA’s Storage Rentals of America brand. Completed between 1998 and 2014, the properties provide more than 340,000 rentable square feet in climate- and non-climate-controlled units, as well as RV and boat storage.
READ ALSO: Is the Self Storage Sector Getting Back on Track?
Directors Matthew Wheeler and Adam Roossien, together with Senior Managing Directors Brian Somoza and Steve Mellon, led the JLL Capital Markets Self Storage team representing the seller. Managing Director Griffin Guthneck led the JLL Self Storage Debt Advisory team that worked on securing the loan.
SROA’s new Houston properties
Two of the Texas properties are in Houston, at 12610 Tanner Road and 4100 W. 34th, while the third is in Bacliff, at 2919 S. Highway 146, also part of metro Houston.
The 117,960-square-foot facility on Tanner Road consists of 11 single-story buildings across 9 acres. Unit sizes range between 50 and 700 square feet. There are nine other facilities within 3 miles, offering residents some 9.2 rentable square feet per capita, Yardi Matrix data shows.
The second property in Houston totals 69,265 square feet, with eight single-story buildings across a 4-acre site. Its units are slightly smaller, between 50 and 400 square feet. There are 25 other facilities within a 3-mile radius, offering residents 12.7 rentable square feet per capita.
The 103,138-square-foot Bacliff storage facility has six single-story buildings across approximately 5 acres, with unis ranging between 25 and 520 square feet. There are seven other facilities available within 3 miles, offering residents some 18 square feet per capita.
When it comes to self storage fundamentals, Houston is currently outperforming the nation, according to a recent Yardi Matrix national report. Year-over-year as of January, Houston asking rents in 10×10 climate-controlled units were up 0.2 percent, also up 0.7 percent for 10×10 non-climate-controlled units. Meanwhile, the two figures stood at -0.9 percent and -0.8 percent nationally.
This comes as no surprise, as the pace of new supply across metro Houston lagged the nation over the past three years and the current pipeline is also trailing amid nationwide oversupply, according to the same data source.
SROA expands in Rhode Island
The storage properties in Rhode Island are at 3346 Pawtucket Ave. in East Providence’s Riverside neighborhood and 1115 Main St. in Hope Valley, some 35 miles southwest of the other facility.
The East Providence one offers 52,650 square feet and comprises three two-story buildings and units ranging from 25 to 200 square feet. There are six other facilities within 3 miles, offering residents 4.7 square feet per capita.
The second, 43,520-square-foot facility has units between 25 and 500 square feet in six single-story buildings. The property is one of two available within 3 miles, offering residents some 14.7 square feet per capita.
