Bancap Self Storage Group, Inc., the “#1 Self Storage Broker in California,” recently announced that the firm had successfully brokered the sale of the Elsinore Valley Self Storage property located in the city of Lake Elsinore in Riverside County, California. Dean Keller, the firm’s president, was the exclusive listing agent and sole broker in the transaction. The seller was the original local developer of the property and the buyer was an affiliate of the Storage Solutions regional chain of storage facilities.
“Although much of the talk these days is about distressed properties, this sale is an example of the fact that our firm still has many qualified and motivated buyers that are willing to pay attractive prices for good properties,” Keller said.
The property sold for $5,280,000 which represented an attractive capitalization rate on the current net operating income. The buyer owns another property in the market area and expects to benefit from economies of scale operating the two properties together. Occupancy was approximately 75%, offering further upside potential to the buyer.
Located on nearly 6 acres of land, Elsinore Valley Self Storage contains nearly 60,500 net square feet of self storage space demised into approximately 435 units. The property also offers 170 exterior RV & boat storage spaces, including over 20 covered boat storage spaces. The attractive single story project was built in 2001 and is located on Central Avenue across the street from a Target – anchored shopping center. The buildings are constructed of concrete block and metal walls with metal partitions, roofs and doors.
“There have been very few non-distressed self storage properties that have sold in Southern California this year” Keller explained “Most owners think they cannot obtain a good price in today’s market, but that just is not the case. We have several motivated buyers that are aggressively looking for stabilized facilities in good markets. The key is to hire a self storage broker with a proven track record of getting the highest and best price possible. Self storage is such a unique property type and most real estate brokerage firms do not have specialists with the expertise and experience it takes to maximize value for the sellers in this unique property niche.”