The Mele Group of Marcus & Millichap has been selected to exclusively market for sale the Storage King USA Philadelphia Portfolio.
Acquisition of the self-storage portfolio demonstrates a rare opportunity to acquire three, recently-renovated self-storage facilities that are each in their respective lease-up phases. The facilities have undergone major capital expenditures to ensure strong presences within their respective markets. The portfolio provides multiple upsides through raising occupancies and growing rental rates to reflect the market, paired with expansion potential across the portfolio. Each location features strong visibility and an ideal demographic profile for self storage, with heavily-populated areas dominated by high ratios of renter-occupied housing units, all within the populous Philadelphia Metropolitan Statistical Area. Overall, the facilities are conveniently located at a maximum distance of 7.8 miles, allowing for efficient management of the three assets.
Of the three self-storage facilities, the portfolio has 2,146 total units across 161,586 rentable square feet; each facility has multiple stories and fully-heated units. The offering has a current physical occupancy of 79.9 percent and an economic occupancy of 59.1 percent, indicating the portfolio’s lease-up phase that will yield substantial returns upon stabilization. Each facility offers the opportunity to further expand within a metro area without any new storage developments underway given the lack of building area. The properties are each secured with video surveillance, gated access and optimal lighting, and feature convenient elevator access, loading areas and tenant insurance programs for an additional stream of revenue. In 2017, the Lancaster and Germantown locations underwent office renovations to match the significant capital improvements invested throughout the portfolio.
Philadelphia is the largest city in Pennsylvania and the sixth-most populous city in the United States. With an estimated population of approximately 1.57 million individuals and a median age of 34.1 according to the 2016 U.S. Census, this market is both active and growing. Throughout the Delaware Valley, also referred to as the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metropolitan Statistical Area, Philadelphia is the major economic and cultural anchor. This metropolitan area is the eight largest in the nation, with Philadelphia housing numerous colleges and universities making it a top education destination.
- Rare Opportunity to Acquire Three Self-Storage Assets Ideally-Located in Philadelphia, a Principal City of the 8th Most Populous Metropolitan Statistical Area
- Substantial Upside Through Continuing Lease-Up Activity at the Respective Locations with a Current Portfolio Physical Occupancy of 79.9 Percent
- Situated at a Maximum Distance of 7.8 Miles, Allowing for Efficient Management and Ease of Travel Through Major Highway Proximity
- Facilities Advantageously Feature Expansion Potential in a Densely-Populated Market Without New Self-Storage Developments Due to the Lack of Building Space Within the City of Philadelphia
- Enormous Capital Improvements Made Throughout Each Facility to Ensure Little to No Deferred Maintenance
- Portfolio Showcases an Average Three-Mile Population of Over 366,000 Individuals and a High Ratio of Renter-Occupied Housing Units