Madison Capital Group, which operates the Go Store It self storage brand, has purchased The Vault on 17th in Wilmington, N.C., for $8 million in an off-market transaction. The seller was The Vault on 17th LLC, a partnership involving the principals of Crete Investments LLC and GHK Cape Fear Development, according to the source.
The property at 1113 S. 17th St. comprises 76,000 square feet of storage space in 552 units, the majority of which are climate-controlled. Madison also operates a Go Store It facility at 7135-A Market St. in Wilmington.
“This acquisition presented a unique opportunity for Go Store It that allowed us to expand our presence in Wilmington, which is a target market for us,” said Neil Dyer, director of acquisitions for Madison. “There's big demand for high-quality storage, and the Wilmington market has high barriers to entry as well.”
The Vault on 17th was the first self storage development by the Crete/GHK partnership. “It was our goal to deliver an extremely high-quality, safe, secure and attractive facility to serve unmet demand within the submarket. The facility and Vault Self Storage brand were well-received by the market, and I am pleased with how the project turned out,” said Mike Brown, managing member of The Vault and a partner with GHK. “As with any long-term investment or business venture, you must be receptive and open to evolving opportunities. In this case, Madison Capital Group and Go Store It made a compelling offer, and we were further assured that our customers would be well taken care of.”
Brown noted the Wilmington area still has demand for self-storage, and new projects in the region will meet some of it. “We're still on the lookout, and if we see sites that have the right market dynamics, if we found a good site where the numbers looked good from a demand standpoint vs. supply, we would certainly be interested,” he said.
Madison is also seeking new acquisition and development opportunities in the Wilmington area, Dyer said. The firm had hoped to develop apartments and townhomes at South 17th Street but withdrew its proposal after the planning commission denied a request to rezone the properties for residential development, the source reported.
Based in Charlotte, N.C., Madison specializes in the acquisition, development and management of self storage assets throughout the county. It currently has more 2 million square feet of storage space under management and construction. The company has offices in Charleston, S.C. and Nashville, Tenn.
Crete was established in 2008 as a privately held entity to provide funding for projects that were stalled or in need of capital during and after the Great Recession. Headquartered in Wilmington, it primarily owns apartments, commercial-flex space and single-family homes.
GHK is a privately held company that has developed 3 million square feet of gross leasable space. It specializes in industrial, medical, multi-family, office and retail projects.