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PHOENIX-Although local developer Tom Barnes had no interest in selling his new self-storage property, he changed his mind after receiving two unsolicited offers for the asset on the same day. Affordable Self Storage, located at 22025 South Scotland Court in the Queens Creek submarket, went under contract after a bidding war and sold to Queen Creek Self Storage LLC, an entity headed up by private investors out of San Diego, for $4.3 million.

“Investor interest for self-storage is just boiling,” says Kent Greenwald, vice president of investments for Coldwell Banker Commercial Metro LLC, who brokered the deal. “This asset was on the market a grand total of eight hours.”

Greenwald tells GlobeSt.com investors are so hungry for properties that they will pay more than market value for properties that are not yet stabilized. “This property was just 56% occupied at closing and traded for a cap rate under 8%.”

The buyer developed and owns another self-storage asset in Phoenix and had been looking to expand in the area, Greenwald says. The submarket where Affordable Self Storage is located is experiencing rapid growth. “The in migration and robust residential market lends itself to self storage.”

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