CLEAR LAKE, TX-A subsidiary of WedgeReal Estate Holdings haspurchased Safe-Keeping Self Storage, a 539-unit self storagefacility totaling 50,332 square feet, from Weiss Realty LLC.

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Although the purchase price was undisclosed, local experts saysimilar assets in the Houston metro area would trade for $60 to$100 per square foot. Using those metrics, Safe-Keeping SelfStorage sold for $3 million to $5 million.

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Situated on a little more than seven acres at 900 West NasaPkwy. near Interstate 45, Safe-Keeping Self Storage is located in aformer lumber company building that was converted in the late1990s. At the time of purchased, the property’s occupancy rate wasin the low 80% range, according to Aaron Swerdlin, senior managingdirector with HFF’s Houston office. He and Doug McCarron, managingdirector of HFF, exclusively represented the seller.

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Swerdlin says Safe-Keeping Self Storage appealed to a variety ofbuyers because it offered a value-added opportunity. “There is thepossibility of upside with increased occupancy and rental rates,”he explains, estimating the property’s occupancy lagged the marketby 5% to 8%. Additionally, the property has enough land that thenew owner could expand or sell off a pad site.

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Swerdlin tells GlobeSt. that Safe-Keeping Self Storage receivedmore than 10 offers. Wedge Real Estate was not the highest bidder;however, the company has a strong track record for closing dealsand is known to be a strong sponsor, and since there was a loanassumption required as part of the deal, Wedge emerged as thebuyer.

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“The assumable loan drove the deal,” Swerdlin says. The sub-7%,fixed-rate, life company loan has 17 years left on its term. “Along-term loan has value to a buyer like Wedge because they arelong-term holders,” he adds. “There wasn't a lot of risk that Wedgewould decide the loan didn't have value.”

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