Previously Foreclosed Property Sold for $2.6 Million
Today I announced that Bancap Self Storage Group has successfully brokered the sale of the AAA Stor-Stuff Self Storage property located in the city of Lancaster in Los Angeles County, California. I was the exclusive listing agent for the property.
The seller was a private investment firm that had purchased the mortgage on the property from a special servicing firm after they had begun the foreclosure process. After the foreclosure of the property was completed, the group elected to list the property for sale. The buyer is a private limited liability company owned by local investors who are new to the self storage industry.
AAA Stor-Stuff Self Storage was built in1986 and is a well-designed single story facility with all drive-up units. The building walls, roofs, partitions and doors are all metal construction. Located on 4.2 acres of land, the property contains over 61,600 net feet of self storage space divided into approximately 520 units. There are also 39 uncovered vehicle storage spaces for RVs, boats and automobiles.
The property sold for $2.6 million (approximately $42 per net square foot) on a “cash to new loan” basis. Occupancy at the facility was about 65% and climbing. This was a rare opportunity to purchase a temporarily under-performing self storage property in Los Angeles County with significant upside potential.
There have only been a handful of foreclosed storage properties listed for sale in Southern California in the past few years and we have been the exclusive listing broker for most of them. There are plenty of buyers looking to “steal” lender owned properties, but we have been able to obtain very good prices for sellers – and always more than the “unsolicited” or “direct offers” received from potential buyers or other brokers before our listing and marketing of the property. Self storage is such a unique property type and it takes a specialist with proven expertise and experience to maximize value for sellers in this unique property niche.