Property is first foreclosed (REO) self storage in Southern California to sell in 2009.
Bancap Self Storage Group, Inc., the “#1 Self Storage Broker in California,” recently announced that the firm had successfully brokered the sale of the All Storage self storage property located in the city of Lancaster in Los Angeles County, California. Dean Keller, the firm’s president, was the exclusive listing agent who represented both parties in the transaction. The seller was the original construction financing lender who obtained the property through foreclosure. The buyer was American Self Storage Center, a family owned independent owner/operator of self storage properties.
The property contains approximately 30,000 net square feet demised into approximately 330 units. The single story project was built in 2005 and is located on a signalized intersection with very good visibility and access. The project is constructed of metal walls with metal partitions, roofs and doors.
The property sold for $1,650,000 which represented a capitalization rate of approximately 8.8% on the 2008 net operating income. Occupancy was approximately 65%. The property had been experiencing decreasing income during the time it was lender owned. The seller provided financing of 75% of the purchase price to provide the buyer time to improve the property’s occupancy and income over the next few years, along with the expected improvement of the overall economy and the return of more normal financing market conditions.
“This is the first lender-owned self storage property in Southern California to be sold in this economic recession” Keller said “But there are more coming down the pipeline. Self storage is such a unique property type and even most of the major real estate brokerage firms do not have the expertise and experience it takes to maximize value for the sellers in this unique property niche.”
Bancap Self Storage Group is the “#1 Self Storage Broker in California” with over $850 million in completed self storage sales, including many lender-owned properties, numerous portfolio sales, and a record setting single-property sale at over $31 million. For more information contact Bancap Self Storage Group at (949) 888-5355 or visit the company web site at www.bancapselfstorage.com