LOS ANGELES—Storage Etc. Development LLC hasacquired a three-property self-storage portfoliofrom AMS Group for $16.4 million, GlobeSt.comreports exclusively. The three properties are located in primeinfill locations in Los Angeles and Riverside Counties.

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“The buyer is a growing private company, and this was anopportunity to get some scale in the growing Southern Californiamarket with the purchase of a number of properties in goodsubmarkets that have never traded before,” FredCordova, an EVP at Kennedy Wilson BrokerageGroup who represented the buyer in the transaction, tellsGlobest.com.

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The three properties are located at 8369 Garvey Ave. and 2747 LaPresa Drive in Rosemead, a two building property, 21320 GoldenSprings Drive in Diamond Bar and 863 Town Center Drive in Pomona,and total 158,000 square feet. The seller developed the propertyand operated it. This is the first time any of the assets in theportfolio have traded hands.

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The seller wanted to sell the whole portfolio in one piecerather than as three separate transactions. “We had competitionfrom REITs and private companies across thespectrum. The large REITS only control about 10% to 20% of themarket nationwide, so there is a lot of smaller enterprises thatmake up 80% of the market,” says Cordova.

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The self-storage facility industry has been performing very wellthis year, and Cordova expects the industry to continue to grow. Infact, according to a Marcus & Millichapreport earlier this year, the vacancy rate in LosAngeles is trending below the national average, at 11% with thenational vacancy rate at 14%.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.