HOUSTON-A Los Angeles-based investment group has added to its self-storage facility portfolio with the acquisition of the 76,000-sf Nations Storage. Sold by a limited liability company from South Texas, the holding was marketed for $3.8 million.

Don Clements, senior investment associate with Marcus & Millichap Real Estate Investment Brokerage Co. in Houston, tells GlobeSt.com that the Nations Storage, located at 22300 State Highway 249 in far northwest submarket, sold for "3% south" of the asking price. Clements says the seller from the City of Spring developed the complex in 1999 and later expanded it. He says the storage facility was the only product of its type in the seller's commercial portfolio. Nations Self Storage, situated on 3.6 acres, was 88% occupied at the time of closing.

Clements says the listing generated a good deal of interest. In fact, it was under contract one other time, but it fell out of escrow, according to the seller's broker. Then, Desert Palms Mobile Village LLC came along, made an offer and took the deal to closing. Kenneth Hitchcock with Hitchcock Commercial Investments in Southern California represented the buyer.

Clements says there has been a great deal of real estate activity recently in the northwest sector as well as a growing demand for mini-storage facilities. "There's a lot of money, a lot of activity in that area," he adds. "I've actually closed similar deals with different fragments of this group. They have a strong track record."

Clements says the buyer is seeking similar properties in Texas. "They're definitely in buying mode," he says. "I just sold them a property in Tyler (TX) and they're looking for more."