100,000-SF Facility Breaks Ground

PHOENIX-A Southern California real estate development and investment banking company has broken ground on a $5.5-million project, with more planned in the Phoenix area. Blackhawk Capital Partners of Beverly Hills will complete its first 100,000-sf self-storage facility by January 2007.

Located at Broadway Road and 35th Avenue, the combination storage facility and RV park project is being developed on 10 acres that were purchased some months ago from residential developers Symphony Builders. As construction is under way on the Glendale site, Blackhawk Capital is conducting due diligence on potential sites in Mesa and Gilbert as well.

"What we look for are added-value and distressed properties, along with land," says Darin Feinstein, Blackhawk's CEO. "We look for deals we can buy and fix up." The Phoenix area is particularly attractive, he continues, because of its high growth. "We've targeted specific high-growth markets around the country, and Phoenix meets our criteria for our overall goals," he tells GlobeSt.com.

The ideal location for any self-storage facility is one with a high density of residential development. Feinstein indicates that areas with new construction and homes, as well as high-end shopping centers are also desirable, adding that a typical self-storage development, depending on the asset acquired, can range between $5 million and $50 million.

Though Feinstein's self-storage activities are new to Phoenix, he is already well situated in the area, having developed and financed high-end residential properties. "We've invested probably between $20 million and $30 million and hope to expand on that through self-storage development," he says.

Archi-Cad Architects is the project designer while Asset Construction Services LLC is handling general contracting duties. Both firms are in Phoenix. Blackhawk Capital will handle the management and leasing of the facility.