Devon Self Storage, one of the top 25 largest private self storage operators with 50 sites in 15 states, today announced the purchase of a three-property portfolio comprising 212,668 net rentable square feet in 1,296 units and 47 RV stalls with a portfolio occupancy of 94%. This offering provides the opportunity to acquire an institutional-grade portfolio of assets in two submarkets of Grand Rapids, Michigan. The portfolio has been family-owned and operated for the past twenty years. Each property has been well-maintained and will require nominal capital improvements.
The immediate markets of Holland and Jenison are bedroom communities of Grand Rapids. Grand Rapids is the second largest city in Michigan and home to more than 1,000,000 people in the combined MSA of Grand Rapids-Muskegon-Holland. It is a diverse market completely independent of the auto industry. It is home to Steelcase, Hermann Miller, Meijer Supermarkets and Amway. It is also known as the “Ale Trail” due to its more than forty breweries.
Kenneth E. Nitzberg, Chairman & CEO of Devon Self Storage, commented “the self storage markets are each underserved with the average saturation being 3.17." Saturation measures the square footage per capita for each person living in a three-mile radius market from each site. The competitive market set consists primarily of small, un-manned facilities to moderately-sized facilities lacking in curb appeal and amenities. The subject properties all benefit from attractive signage, good visibility and accessibility. Each has gate-controlled access, security cameras, management offices and on-site management. Construction varies from metal buildings with metal roofs to wood framed buildings with shingled roofs. All three of the properties have been well established in their respective local markets and benefit from substantial repeat business.