Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Storhouse at Paxton Street, a 57,806-square foot self storage facility located in Harrisburg, PA, according to Ari Ravi, regional manager of the firm's Tampa office.
Michael A. Mele, Robert Bloch and Noah E. Obuchowski, self storage investment specialists in Marcus & Millichap's Tampa and D.C. offices, had the exclusive listing to market the 598-unit facility on behalf of the seller, a partnership. The buyer, a limited liability company, was also secured and represented by Mele, Bloch and Obuchowski. Anthony Palumbo, broker, assisted in closing this transaction.
"This transaction is testament to our understanding of the market for storage assets," Bloch says. "We were able to achieve a low cap rate for the seller in a third-tier market, by demonstrating a clear path to higher revenue. There was still sufficient runway for the buyer to achieve the results that they were seeking."
Storhouse at Paxton Street is located at 420 Amity Rd in Harrisburg, PA. The facility offers multiple entry points from Amity Road, Sycamore Street and State Road 441, a primary connector in Dauphin County. The property provides convenient access to Paxton Street and Interstate 83. Paxton Street sustains a traffic count of over 17,000 vehicles per day. The subject is within 0.5 miles of Interstate 83, with an average daily traffic count of 101,000 vehicles per day. Harrisburg is the centerpiece of the Harrisburg-Carlisle Metropolitan Statistical Area, a region that is home to approximately 570,000 residents.
Obuchowski adds, "Overall, this transaction was the culmination of partnering with a seller to allow them to achieve their current and long-term goals. Procuring interest and offers from both local and national buyers, The Mele Group of Marcus & Millichap ultimately secured a buyer who closed within 99.2 percent of list price."