State-of-the-art storage facility commands $14m

Real Estate Weekly, Sept 29, 2004

Marcus & Millichap Real Estate Investment Brokerage Company recently announced the sale of an 82,000 s/f Storage Deluxe property in the Bronx, N.Y.

The state-of-the-art facility commanded a sales price of $14.175 million, representing a 7.9 percent market capitalization rate. Michael Mele, a self-storage investment specialist with the firm, had the exclusive listing to market the property on behalf of a New York investment partnership.

Mele and Charles (Chico) LeClaire, a self-storage investment specialist in the firm's Denver office, secured and represented the buyer, Extra Space Storage, based in Salt Lake City.

The Storage Deluxe facility is located at 245 W. Fordham Road, just off exit 9 and the Major Degan Expressway in the Bronx. The building was completely renovated and 'converted to self-storage by the seller

in 1999 and is considered a completely state-of-the-art storage facility. The property's 1,270 storage units are stabilized with occupancy at 87 percent. The $14.175 million sales price represents $11,161 per unit and $242 per square foot.

"This facility provided the buyer the relatively rare opportunity to enter the exclusive New York City market with a stabilized income-producing property," comments Mele.

"The facility is the highest caliber in the market, strong management is in place and there exists ample room for investment upside."