Marcus & Millichap Agents Collaborate on Sale of California Storage Facility
The All Size Storage facility in Elk Grove, Calif. sold quickly and profitably thanks to the collaborative approach of Marcus & Millichap agents across the country.
Tampa, FL, July 09, 2007 --(PR.com)-- Marcus & Millichap's national platform has paid off for its clients once again, connecting an East Coast client to a West Coast property in a $7.35 million sale. Marcus & Millichap's The Mele Group, in cooperation with Bobby Loeffler in Sacramento, brokered the sale of All Size Storage in Elk Grove, Calif.
Michael A. Mele and The Mele Group Investment Associate Scott Rutherford joined forces with Bobby Loeffler, Director of the National Self Storage Group at Marcus & Millichap, combining their self-storage expertise and investor connections to ensure the All Size Storage property earned top dollar in the competitive California market.
"The All Size Storage property was a prime acquisition as it is quickly approaching stabilization and offers Class A construction quality," said Michael, who is also president of the Florida Self Storage Association. "Although there are markets in California that are overbuilt, this Elk Grove facility assures the investor a strategic advantage with little competition."
All Size Storage is located in one of the fastest growing cities in high-growth California. The property is a strategic infill project in Laguna with freeway visibility. All Size boasts 387 units with sizes ranging from 5X5 to 12X40 in a facility totaling 80,489 rentable square feet. Built in 2007 on 4.39 acres, this eight-building-plus-office complex offers ample parking with 200 feet of street frontage. "All Size Storage offered investors a gem of a location in a California market that has scared less educated investors away," Loeffler said. "With its diverse unit mix and the sheer size of the facility, All Size is sure to meet the market demands for storage in this area."
All Size Storage's developers bore the burden of high impact fees and high developer fees to secure the location and satisfy local government. These high fees raise a high barrier to entry for developers who may not be willing to take the risk, especially with a formidable competitor in All Size that is now entrenched in the market. The state-of-the-art facility secured a dominant position in the market before its doors ever opened, a desirable quality in the eyes of investors. "All Size Storage offered an attractive opportunity for the right investor based on location and construction alone," Rutherford said. "But the fact that impact and development fees prohibit new competition from locating with a three-mile radius made this a steal at the asking price."
All Size sold for $91.32 per net rentable square foot at a CAP rate of 7.03%. According to Mele, the long-term prospects for this facility make it sure to appreciate in value even quicker than other facilities in the region: "There's a lesson here for investors: market conditions are never too volatile to buy the right property."
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 fifth 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 $80 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 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. Since joining the firm in 1999, Bobby has closed transactions ranging from a $30 million lease-up portfolio to an $800,000 self-storage facility. From 2004 through the first quarter of 2007 he has sold over $148 million worth of self-storage properties. Bobby earned a National Achievement Award in 2005 and is currently a member of the Marcus & Millichap Self-Storage Advisory Group.
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.
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
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Michael A. Mele and The Mele Group Investment Associate Scott Rutherford joined forces with Bobby Loeffler, Director of the National Self Storage Group at Marcus & Millichap, combining their self-storage expertise and investor connections to ensure the All Size Storage property earned top dollar in the competitive California market.
"The All Size Storage property was a prime acquisition as it is quickly approaching stabilization and offers Class A construction quality," said Michael, who is also president of the Florida Self Storage Association. "Although there are markets in California that are overbuilt, this Elk Grove facility assures the investor a strategic advantage with little competition."
All Size Storage is located in one of the fastest growing cities in high-growth California. The property is a strategic infill project in Laguna with freeway visibility. All Size boasts 387 units with sizes ranging from 5X5 to 12X40 in a facility totaling 80,489 rentable square feet. Built in 2007 on 4.39 acres, this eight-building-plus-office complex offers ample parking with 200 feet of street frontage. "All Size Storage offered investors a gem of a location in a California market that has scared less educated investors away," Loeffler said. "With its diverse unit mix and the sheer size of the facility, All Size is sure to meet the market demands for storage in this area."
All Size Storage's developers bore the burden of high impact fees and high developer fees to secure the location and satisfy local government. These high fees raise a high barrier to entry for developers who may not be willing to take the risk, especially with a formidable competitor in All Size that is now entrenched in the market. The state-of-the-art facility secured a dominant position in the market before its doors ever opened, a desirable quality in the eyes of investors. "All Size Storage offered an attractive opportunity for the right investor based on location and construction alone," Rutherford said. "But the fact that impact and development fees prohibit new competition from locating with a three-mile radius made this a steal at the asking price."
All Size sold for $91.32 per net rentable square foot at a CAP rate of 7.03%. According to Mele, the long-term prospects for this facility make it sure to appreciate in value even quicker than other facilities in the region: "There's a lesson here for investors: market conditions are never too volatile to buy the right property."
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 fifth 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 $80 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 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. Since joining the firm in 1999, Bobby has closed transactions ranging from a $30 million lease-up portfolio to an $800,000 self-storage facility. From 2004 through the first quarter of 2007 he has sold over $148 million worth of self-storage properties. Bobby earned a National Achievement Award in 2005 and is currently a member of the Marcus & Millichap Self-Storage Advisory Group.
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.
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
###
Contact
The Mele Storage Group
Jennifer LeClaire
954.454.0072
www.melestoragegroup.com
Jennifer LeClaire
954.454.0072
www.melestoragegroup.com
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