Investment-management firm Harrison Street Real Estate Capital LLC (HSRE), which has extensive interests in “needs-based” real estate, including self storage, has acquired a two-property portfolio in the Nashville market from Mallory Station Self Storage for nearly $38 million. Together, the facilities comprise more than 147,500 rentable square feet. Both are expected to be renamed as US Storage Centers, the operating brand of Westport Properties Inc., according to a press release from Colliers International, the real estate firm that helped broker the deal.
The property at 7102 Bakers Bridge Ave. in Cool Springs, Tenn., comprises 71,338 square feet. It sold for nearly $21.5 million. The facility at 6346 Nolensville Pike in Nolensville, Tenn., comprises 76,168 square feet. It sold for about $16.5 million. The purchase prices “easily eclipsed the previous known price per square foot paid for self storage in Tennessee by more than 120 percent,” the release stated.
“This transaction is reflective of the evolution that has occurred in recent years propelling self storage facilities from a relatively undesirable asset class into one of the most sought after commercial real estate investments,” said Ashley Compton, national director for the Colliers Self Storage Group, who represented the seller in the transaction and procured the buyer. “The sale of the Mallory Station properties establishes a new high-water mark for institutional-quality self storage in the Southeast.”
Colliers International is a global commercial real estate services firm employing more than 16,000 professionals who operate out of 554 offices in 66 countries. The company offers a variety of services for investors, business owners and developers. These include consulting, market research, real estate intermediation for sale and rent, project management, property management, and valuation.
HSRE is a real estate private-equity firm with more than $12.5 billion in assets under management through commingled funds and public-securities products. The funds focus exclusively on the education, healthcare and self storage segments of the real estate market. Affiliate Harrison Street Securities LLC manages publicly traded real estate securities on behalf of institutional clients and high-net-worth individuals.
Founded in 1985 and based in Irvine, Calif., Westport Properties is a real estate investment company that acquires, develops and operates self storage facilities as well as provides third-party management services. Its portfolio comprises 8 million rentable square feet in 15 states.