This was truly a throwback to the early days of the self storage industry. It is rare in this decade to find a storage facility in Los Angeles County that still has gravel driveways, a manual sign-in sheet and no computerized operations. The three adult siblings had owned the facility ever since their father, the original developer of the property, had passed away years ago. Previous efforts to sell had not been successful, but the time had come to close this chapter of the family history.
Bancap Self Storage Group, Inc., the ”#1 Self Storage Broker in California,” announced it recently completed the successful sale of A-1 Sierra Storage in the city of Santa Clarita, California in Los Angeles County. Dean Keller, the firm’s president, was the exclusive listing agent and sole broker of the transaction. Although many regional chains and local operators expressed interest in the facility, the ultimate buyer was a newly formed LLC sponsored by a Southern California based sponsor operating as “SuperStorage” with a successful track record of owning and operating properties “under the radar” of the national firms.
The sales price was $2 million, with the transaction structured with “no contingencies” and “all cash to seller” upon closing. In spite of the relatively short escrow period, the buyer was still able to obtain a moderate leverage, fully-amortized loan for the purchase.
A-1 Sierra Storage is a first generation, single-story self storage facility located in the Canyon Country area in the city of Santa Clarita. The property has over 37,000 net rentable square feet of storage space demised into nearly 400 units. Family owned and operated since it first opened in 1982, the property consists primarily of custom converted storage containers. The property drive aisles are all gravel. Although the parcel is approximately six acres, due to mountain terrain and a flood channel, less than half the land is actually usable. The facility is fenced with a manually controlled gate. Also, zoning had changed since the original development making the storage facility a legal non-conforming use. “Thank you very much for all you did in selling Sierra Storage. Without a doubt, we couldn't have done it without you. It was a pleasure working with you” said one of the selling partners.
The buyer intends to re-brand the property as a “SuperStorage” and make changes in marketing and operations which it believes will result in significant increases in cash flow and value. “This was one of those deals that everyone says they want, but few are ever able to actually buy - especially in Southern California. With a strong Los Angeles County market location, no professional management, no computerized operations and significant upside potential, I expect the buyer to do very well with this property” said Dean Keller, President of Bancap Self Storage Group.
Bancap Self Storage Group is one of the top self storage specialist brokers in the industry with a track record of over $1.35 billion in completed self storage sales. The company has specialized exclusively in self storage properties for over 30 years. Dean Keller, President, is currently the Chairman Emeritus of the California Self Storage Association Board of Directors and a member of the Board of Governors for the national Self Storage Association Foundation.
For more information about this transaction, contact Bancap Self Storage Group at 949-715-2233 or visit the company web site at www.bancapselfstorage.com.