X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the industrial market, click here.)

BUFFALO-Sovran Self Storage Inc. has acquired a 20-property self-storage portfolio from Dallas-based Cornerstone Development Corp. for $90 million, or about $69.23 per sf. The buy adds 1.3 million sf to the locally based specialty REIT’s portfolio and also marks its entry into the St. Louis market.

Seven of the properties are in St. Louis. Of the remainder, six are in Dallas, three in San Antonio, three in Tampa and one in Southeastern Louisiana. They are all markets in which Sovran already has a presence. “The properties were built between 1994 and 2000,” David Rogers, CFO, tells GlobeSt.com, and adds the portfolio is 82% occupied.

The acquisition included the assumption of $32 million in mortgage debt. Additional funding consisted of a $40-million draw on Sovran’s line of credit and $18 million in cash, which remains from the company’s recent issuance of 10-year term notes.

Sovran now owns and/or operates 316 properties under the Uncle Bob’s Self Storage brand. They encompass more than 19 million sf in 22 states. “The Dallas, San Antonio and Tampa stores will fit in very well with the stores we already operate in those cities,” Rogers says.

According to a 2006 self-storage research report from Marcus & Millichap, returns generated by self-storage REITs throughout the first three quarters of 2005, “significantly outpaced other property sector returns,” with an average return of 24.3%. The highest median prices for self-storage assets were in the Northwest, according to the report, where the median was $82.73 per sf. The median in the South Central region, according to the report, was $45.58 per sf at the end of 2005.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.