Marcus & Millichap Agents Join Forces on Five-Property Storage Portfolio

From: Self Storage Promotions
Published: Thu Jul 12 2007


TAMPA, FL " July 6, 2007 " The sale of the Delta Self Storage portfolio in California demonstrates the Marcus & Millichap advantage: a national investor database and broker network that guarantees success. The portfolio sold for a combined $27.2 million, or $62.10 per net rentable square foot, with the cooperation of Marcus & Millichap brokers and financial experts in Florida, Seattle and Sacramento. The total net rentable square footage of the portfolio is a whopping 438,175.

The agents involved were Michael A. Mele, a Senior Investment Associate at Marcus & Millichap's The Mele Group and Scott Rutherford, an Investment Associate at The Mele Group, Joel Deis, an agent in the Seattle office of Marcus & Millichap, Christopher Secreto, a Director and Financial Expert for Marcus & Millichap Capital Corporation in Seattle, Michael Morgan, an agent in the Seattle office of Marcus & Millichap and Bobby Loeffler, Director of the National Self Storage Group at Marcus & Millichap in Sacramento.

The Delta Self Storage Ceres location sold for $7.4 million. The facility is built on 11.5 acres and offers 1,102 units in 149,550 square feet. Built in 2004, the eight, single-story metal self-storage buildings feature coiled roll up doors, electrical lighting, skylights, two-hour firewalls, fire extinguishers and security system. The seller had made plenty of improvements to this relatively new facility, which was a solid buy for existing storage owners, 1031 exchange buyers, cross-product buyers, and value-add investors. "The Ceres location offered investors an opportunity for growth, with Phase III recently opening land that will accommodate four additional buildings," Mele said. "This facility is shadow anchored by Wal-Mart in a high growth retail and residential area, helping to ensure a healthy traffic flow. Development-minded investors saw the clear opportunity here."

The Delta Storage Stockton location sold for $3.95 million. The facility is built on 7.1 acres and offers 552 units in 68,000 square feet. Built in 2005, the facility was 100 percent occupied in the first six months with a waiting list and then was expanded. This facility is strategically located just minutes from downtown Stockton with excellent visibility from the highway, monument signage and high traffic counts. "There is room to grow at the Stockton location. The facility is nearly halfway through three-year stabilization and offers excess land to construct four additional
buildings, " Deis said. "The site boasts high barriers to entry in an area that offers a clear path to residential and retail growth with close proximity to major highways."

The Delta Storage Escalon location sold for $5.6 million. The facility offers 614 units in 71,850 square feet. Built in 1990, the facility has been locally owned and operated in a location just 10 minutes from downtown Modesto. The facility has leveraged its centrally situated growth path with high traffic counts to continue expanding over the years. The Escalon location is poised for continued growth with a new housing development being constructed adjacent to the site. Additional land on the self-storage campus could accommodate new buildings. "The Escalon facility may be a bit older, but it's well maintained and has the upside of stabilization of recently added units," Rutherford said. "The campus has grown with multiple expansions over the years, the most recently in 2002. Investors recognized the benefits of this well-entrenched, high quality facility in a rapidly growing market."

The Delta Storage Sonora location sold for $5.45 million. The facility is built on 4.91 acres and offers 550 units on 77,475 square feet. Built in 2005, the facility's four metal buildings are 57 percent occupied after 18 months. This facility is strategically located along a main thoroughfare connected California's Central Valley to Sierra Nevadas and one mile from a retail trade area with high traffic counts. Halfway through three-year stabilization, this high-quality facility has limited competition with high barriers to entry. "With a stabilized local economy and a new 628-home subdivision being constructed nearby, the Delta Storage's Sonora location makes for an attractive member of this five-property portfolio," said Christopher Secreto, a Director and Financial Expert for Marcus & Millichap Capital Corporation in Seattle. "And with additional land that could be developed, the long-term upsides are bright."

Finally, the Delta Storage Riverbank location sold for $4.8 million. The facility is built on 3.51 acres and offers 600 units in 71,300 square feet. Built in 2003, the property consists of four single-story metal warehouse buildings each measuring 75' x 280'. The site is strategically located with direct access to several major highways is the only Class A facility in Riverbank. "The Riverbank location is centrally located in the city's retail core," said Mele, who is also President of the Florida Self Storage Association. "The seller has leveraged its location by providing retail services, such as copying, faxing, UPS pick up and delivery, mailboxes, and locks. The investor saw the opportunity in self-storage and ancillary retail sales at this unique site."

About The Mele Group
Led by East Coast Self Storage Specialist Michael A. Mele, The Mele Group has sold over 80 self-storage properties totaling over $340 million in sales. Mele has over $150 million in Active and Under Contract listings and a database of approximately 5,000 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. Scott Rutherford is an Investment Associate at The Mele Group. He ranked seventh in the nation in self-storage sales in 2006 and has played a key role in over $165 million in self-storage sales. Scott has individually closed about 20 deals reaching over $105 million in sales. He is a member of the Florida Self Storage Association. Each member of The Mele Group is a specialist in the fields of financial analysis, market research, contract management and marketing. Visit the firm online at http://www.melestoragegroup.com.

About Joel Deis
Joel Deis is currently an Associate with the National Self Storage Group and National Office & Industrial Properties Group of Marcus & Millichap Real Estate Investment Services. Joel specializes in sales of self storage and industrial properties on the West Coast. Joel has been with Marcus & Millichap for two years. Prior to joining Marcus & Millichap in Seattle, Joel worked at Prudential CRES for two years in San Francisco specializing in the sales and leasing of Bay Area office properties. Joel was instrumental in sourcing the lead on the Delta Self Storage portfolio sale.

About Christopher Secreto
Chris Secreto is currently a Director of Marcus & Millichap Capital Corporation specializing in the placement of debt capital for the acquisition or refinance of commercial real estate in the U.S. Chris specializes in financing certain "niche" properties such as self storage. Chris has been with Marcus & Millichap for three years and has over 20 years of real estate and corporate finance experience. Chris, along with Joel Deis, procured the Delta Self Storage listings and represented the Seller throughout the sale.

About Mike Morgan
Mike Morgan is currently an Associate with the National Self Storage Group and National Office & Industrial Properties Group of Marcus & Millichap Real Estate Investment Services. Mike specializes in sales of self storage and industrial properties on the West Coast. Mike has been with Marcus & Millichap for two years. Prior to joining Marcus & Millichap, Mike was a project manager at Swinerton Builders in Seattle specializing in commercial real estate development. Mike played a key role in managing the sales and transaction process of the Delta Self Storage portfolio.

About Bobby Loeffler
Bobby Loeffler is a Senior Associate and Director at Marcus & Millichap's National Self-Storage Group, which provides investors and owners with local market knowledge, property-specific expertise and custom-tailored marketing plans to help them achieve their investment goals. Bobby has closed transactions ranging from a $30 million lease-up portfolio to an $800,000 self-storage facility.

About Marcus & Millichap
With more than 1,300 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 $20.5 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.

About Marcus & Millichap Capital Corporation
Marcus & Millichap Capital Corporation, based in Irvine, Calif., is a subsidiary of Encino, Calif.-based Marcus & Millichap Real Estate Investment Services, the largest commercial real estate brokerage firm in the nation focusing exclusively on real estate investments. Through its network of national and regional lenders, MMCC provides capital markets products for a wide variety of investment properties, including apartments, shopping centers, office buildings, industrial facilities, single-tenant net-lease properties, seniors housing, hotels/motels, manufactured home communities and self-storage facilities. Last year the firm sourced more than $1.5 billion of commercial real estate financing.

PR Contacts:

Self Storage Promotions
Jennifer LeClaire
1913 S. Ocean Drive, Suite 237
Hallandale Beach, Fla. 33009
jennifer@selfstoragepromotions.com
954.454.0072

The Mele Group
Darlina Conto
7650 Courtney Campbell Cswy., Suite 920
Tampa, FL 33607
Dconto@marcusmillichap.com
813.287.9777, ext. 187

Company: Self Storage Promotions
Contact Name: Jennifer LeClaire
Contact Email: jennifer@selfstoragepromotions.com
Contact Phone: 954.454.0072

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