FORT MYERS, FL—US 41 Self Storage, a 76,903-square foot self-storage facility, has traded hands. A Florida-based financial institution acquired the asset for $3.2 million at a 6.75% cap rate.
Michael Mele, a first vice president investments and senior director of Marcus & Millichap’s National Self-Storage Group in the Tampa office, had the exclusive listing to market the property on behalf of the seller. An unnamed partnership snapped up the asset.
Mele tells GlobeSt.com the velocity of self-storage trades has picked up over the last year. He recently listed a three-property Central Florida self-storage portfolio for Safeguard Self Storage at $25 million.
“I’m seeing increased cap rate compression for institutional quality deals in good locations,” Mele says. “I don’t expect deal flow to return to the height of 2005 any time soon, but the self-storage REITs are getting more aggressive.”
Constructed in 2006, US 41 Self Storage is 80.6% occupied. It has 438 self-storage units, 208 of which are climate-controlled units, 87 are non-climate controlled and 143 are RV/boat parking spaces. The facility consists of one two-story building and five one-story buildings.
“The speed with which buyers not only placed offers, but also competed heavily on terms, resulted in a deal that went from listing to closing in under three weeks,” Mele says. “We have seen incredible activity on distressed self-storage assets as buyers compete heavily on both price and terms for these opportunities.”