AUSTIN–Virtus Real Estate Capital has purchased two self-storage facilities in Arkansas from A&A Stor It. The properties include a 57,700-square-foot facility in Bentonville, and a 72,025-square-foot facility in Rogers. The sales price was not disclosed.
“This was an excellent opportunity to aggregate a portfolio, starting with two assets that were historically mismanaged, uncared for from a deferred maintenance standpoint, and yet still in the 80 percent occupancy range was a tremendous win,” Scott Humphrey, acquisitions director for Virtus Realty Estate Capital, tells GlobeSt.com.
Absolute Storange Management partnered with Virtus Real Estate Capital in the deal and will manage the properties.
“We felt installing a strong regional management team – Absolute Management – would lend itself to extensive improvements in operations, revenue management and online marketing,” Humphrey says.
The two class B properties total more than 800 units in the northwest of Arkansas. The facilities have occupancy rates in the high 80s, but Humphrey says there area number of units that are un-rentable because they are damaged and need to be repaired.
Virtus Real Estate Capital has plans in place to pour more than $120,000 into facility upgrades. The improvements will asphalt repairs, painting and repairing doors, office rehabilitations and security elements.
“We feel these improvements will help us attract more corporate clients that tend to be more stable in the long-term,” Humphrey says. “These types of tenants, and pretty much all tenants, want units that are safe, clean and secure with friendly management teams at easily accessible facilities. We believe we have all the ingredients in place to provide exactly what these types of tenants are looking for, and as we aggregate further stores, we will have greater optionality in location, unit size and price.”
The Arkansas purchases are part of an expansion effort by Virtus Real Estate Capital. Humphrey says the properties help to fill in gaps across the middle of the US. The company now has nearly 50 assets across the country, but has been focusing its efforts lately in the Texas, Oklahoma, Arkansas and Tennessee markets.