Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of two Add A Room Self Storage facilities in Southwest Florida, one in Sarasota and one in Bradenton. Together, the properties total 182,268 net rentable square feet and 1,622 units.
"This transaction proves that with all of the talk of rising interest rates and cost of capital, cap rates for cash-flowing self storage facilities are still at historic lows," says Michael Mele, senior managing director investments in Marcus & Millichap's Tampa office.
Mele and Luke Elliott, vice president investments, represented the seller, a private investor, and procured the buyer, a privately held self storage company.
The seller comments, "I have a ton of respect for The Mele Group of Marcus & Millichap. This transaction required all of their expertise and guidance."
The portfolio features 1,554 self storage units, which range from 25 square feet to 1,200 square feet. There are also 68 parking spaces for vehicle, boat and recreational vehicle parking. Both facilities are located in Florida's Bradenton-Sarasota-North Port Metropolitan Statistical Area.
Elliott, in Tampa's Marcus & Millichap office, adds, "This purchase will allow the buyers to significantly expand their footprint in Florida, solidifying the trend as investors have continued interest in secondary and tertiary markets."