Mele Storage Group Taps National Investor Network to Close $2.3 Million Deal

From: Self Storage Promotions
Published: Thu Mar 08 2007

Marcus & Millichap’s Mele Storage Group is well-known for closing mega self-storage deals in Florida, but the team proved once again that it can partner with other brokers and employ the corporate platform to yield the best results for its clients with the $2.325 million sale of a 50,925-square foot self storage in Waterbury, Conn.

Michael Mele, Senior Investment Associate at Marcus & Millichap’s Tampa, Fla.-based Mele Storage Group, and Charles “Chico” LeClaire, Senior Investment Associate in Marcus & Millichap’s Denver office, co-listed the property. Marcus & Millichap’s co-listing strategy leveraged Mele’s East Coast track record and market knowledge together with LeClaire’s extensive institutional investor network and 17 years of experience to ensure the seller the best price for the facility. The Marcus & Millichap duo architected the deal on the foundation of the corporate platform, distributing the co-listing to 1,200 Marcus and Millichap brokers as well as their own database of over 5,000 self-storage investors. A Houston, Texas-based self-storage specialist with Marcus & Millichap, Don Clements, saw the listing and convinced one of his clients, a local Texas investor, to explore the value in the property. The Texan investor saw the opportunity and entered the highest offer. The deal was closed in just over 60 days.

“The Waterbury deal illustrates some of the advantages of the Marcus & Millichap platform,” said Mele, who is also President of the Florida Self Storage Association. “Most property owners hire a single broker and rely on his contacts and marketing skills to close the sale. But our system exposed the Waterbury property to thousands of brokers and investors. The Texan buyer probably wouldn’t have even known about the Connecticut property without our proprietary system. Our platform offers clients a means to get their facility in front of a network of qualified institutional and private client buyers.”

Indeed, the Mele Storage Group’s latest deal demonstrates that, although location is a primary function of a saleable property, a skilled broker with a breadth of industry contacts can broker a deal from anywhere. The team mentality and marketing resources that Mele and LeClaire tapped into helped the institutional seller get the highest offer for the facility. The facility is located on four acres close to a major interstate intersection and surrounded by two residential neighborhoods. The complex includes eight single-story buildings and an on-site manager’s office and apartment. There are 486 storage units, 43 RV parking spaces and one billboard behind a 24-hour electronic gate access system surveyed by cameras.

However, there were some potential setbacks to the sale. The facility was built in the mid-1980s and was suffering high vacancy rates, making it less desirable in some investing circles. Many investors aim to purchase recently completed or even mid-construction self-storage facilities in fast-growth communities at premium prices. Finding the right buyer for the Connecticut facility meant tapping into Marcus & Millichap’s extensive network of investors to find a buyer who could look beyond the age and vacancy rate to the upside: an opportunity to upgrade the facility, reduce vacancy rates, and enjoy higher yields in the near-term.

“When you work with the Mele Storage Group, you enjoy the backing of one of the deepest commercial real estate brokerages in the nation in Marcus & Millichap,” says Mele. “In addition to our East Coast connections with investors, our relationship with other Marcus & Millichap brokers, like Chico LeClaire and Don Clements, guarantees our clients that their property will gain maximum exposure among active investors. While the Waterbury sale isn’t a mega deal, we are proud of the team effort and the opportunity to show self-storage owners that Marcus & Millichap can help them gain the most value from their property â€" no matter where it’s located.”

About The Mele Storage Group
Led by East Coast Self Storage Specialist Michael A. Mele, The Mele Storage Group has sold over 70 self-storage properties totaling over $294 million in sales. Mele has over $117 million in Active and Under Contract listings and a database of approximately 3,200 buyers seeking to expand their self-storage portfolios on the East Coast. Mele closed more than $86 million in self-storage sales in 2006 alone. Each member of the group is a specialist in the fields of financial analysis, market research, contract management and marketing.

About Marcus & Millichap
With more than 1,100 investment professionals in offices nationwide, Encino, Calif.-based Marcus & Millichap is the largest commercial real estate brokerage in the nation focusing exclusively on real estate investments. In 2006, the firm closed more than $22 billion in transactions. Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization; local market expertise; the industry’s most comprehensive research and analysis capabilities; state-of-the-art technology; and established relationships with the largest pool of qualified investors nationally.

PR Contacts:

Self Storage Promotions
Jennifer LeClaire
1913 S. Ocean Drive, Suite 237
Hallandale Beach, Fla. 33009

Mele Storage Group
Darlina Conto
7650 Courtney Campbell Cswy., Suite 920
Tampa, FL 33607
813.287.9777, ext. 187
Company: Self Storage Promotions
Contact Name: Jennifer LeClaire
Contact Email:
Contact Phone: 954.454.0072

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