Marcus & Millichap Inc.
10/31/2024 | Press release | Distributed by Public on 11/01/2024 15:35
Marcus & Millichap Brokers Sale of 316 Storage Units in Growing Texas Market
Press Releases
Marcus & Millichap Brokers Sale of 316 Storage Units in Growing Texas Market
October 31, 2024
LinkedIn Email App
ATHENS, Texas, Oct. 31, 2024 - Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of Sentry Storage, a 47,356 rentable-square foot self-storage facility located in the east Texas town of Athens, approximately 50 miles southeast of Dallas.
"In November 2023, immediately after the facility's footprint had been expanded by 64 units, we brought this property to market in the traditional fashion. Having thoroughly analyzed the competitive trade area, we were confident the new units would lease up quickly," says Danny Cunningham, senior vice president investments. "Despite the fact that our growth rate projections proved to be fairly accurate, the self-storage debt markets were reticent to allocate loan dollars to an income stream that hadn't yet reached formal stabilization. Once this became clear, we proactively advised our client to take the facility off the market and focus on stabilizing the remaining square footage. The seller appreciated our objectivity and took our recommendation. From that point on, we consistently monitored the absorption rate of the new units and informally updated those buyers who had expressed the most interest in the deal originally. This proved to be an effective strategy, as one of the buyers submitted an acceptable offer immediately after the facility reached a particular physical occupancy rate. From that point on, we enjoyed a very smooth escrow period, and actually closed the deal two weeks early at the originally agreed-upon sales price."
Brandon Karr and Danny Cunningham, investment specialist in Marcus & Millichap's Fort Worth office and co-leaders of the Karr-Cunningham Storage Team, exclusively represented the seller, a Dallas-Fort Worth based private investor, and procured the buyer, a local investor with an existing Texas self-storage footprint.
Sentry Storage is located at 6187 TX-19. The facility, built in 1981 and recently expanded in September 2023, now offers 316 units spread across 47,356 rentable square feet on approximately 9.17 acres. The property includes drive-up access units, 24-hour video surveillance, key-pad gated entry, and three acres of additional land for future expansion.
"In November 2023, immediately after the facility's footprint had been expanded by 64 units, we brought this property to market in the traditional fashion. Having thoroughly analyzed the competitive trade area, we were confident the new units would lease up quickly," says Danny Cunningham, senior vice president investments. "Despite the fact that our growth rate projections proved to be fairly accurate, the self-storage debt markets were reticent to allocate loan dollars to an income stream that hadn't yet reached formal stabilization. Once this became clear, we proactively advised our client to take the facility off the market and focus on stabilizing the remaining square footage. The seller appreciated our objectivity and took our recommendation. From that point on, we consistently monitored the absorption rate of the new units and informally updated those buyers who had expressed the most interest in the deal originally. This proved to be an effective strategy, as one of the buyers submitted an acceptable offer immediately after the facility reached a particular physical occupancy rate. From that point on, we enjoyed a very smooth escrow period, and actually closed the deal two weeks early at the originally agreed-upon sales price."
Brandon Karr and Danny Cunningham, investment specialist in Marcus & Millichap's Fort Worth office and co-leaders of the Karr-Cunningham Storage Team, exclusively represented the seller, a Dallas-Fort Worth based private investor, and procured the buyer, a local investor with an existing Texas self-storage footprint.
Sentry Storage is located at 6187 TX-19. The facility, built in 1981 and recently expanded in September 2023, now offers 316 units spread across 47,356 rentable square feet on approximately 9.17 acres. The property includes drive-up access units, 24-hour video surveillance, key-pad gated entry, and three acres of additional land for future expansion.
# # #
About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. As of December 31, 2023, the company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately $43.6 billion. For additional information, please visit www.MarcusMillichap.com.