News

  • MICHAEL MELE RECEIVES PRESTIGIOUS SELF-STORAGE ASSOCIATION ACHIEVEMENT AWARD
    By Tara Paronto
    TAMPA, FLA., February 12, 2015 –Marcus & Millichap is pleased to announce that Michael Mele, a senior vice president investments in Marcus & Millichap’s Tampa office, was just ranked the number one self-storage broker within the firm’s National Self-Storage Group for 2014, and was 16th out of nearly 1,300 Marcus & Millichap investment professionals, according to Richard D. Matricaria, vice president and regional manager of the firm’s Tampa office. Mike had another banner year in 2014 with $259 million in sales volume with 52 properties sold in 23 separate transactions.
  • Marcus & Millichap Brokers $5.6M Sale of Self Storage Facility in Miami Lakes
    By John Nelson - RE Business Onlin
    MIAMI LAKES, FLA. — Marcus & Millichap has brokered the $5.6 million sale of Security Self Storage, a 99,757-square-foot self storage center in Miami Lakes. Michael Mele and Luke Elliott of Marcus & Millichap’s Tampa office represented both the buyer and seller in the transaction. Security Self Storage was built in 1999 and is located off Red Road. The facilities are fully gated with an onsite apartment. - See more at: http://rebusinessonline.com/marcus-millichap-brokers-5-6m-sale-of-self-storage-facility-in-miami-lakes/#sthash.hCIsTD4g.dpuf
  • MELE GROUP OPENS A NEW YORK OFFICE
    By Alexander Harris
    http://news.sparThe Mele Group self-storage real estate brokerage has planted its flag in the Big Apple.

    The Mele Group self-storage real estate brokerage has planted its flag in the Big Apple. Kevin Menendez, who joined the Mele Group in 2012, has relocated from the group’s headquarters in Tampa, FL, to lead the firm’s new office in Manhattan, NY. “Really, our main goal is to provide better service to our clients in this area and help them have more exposure,” Menendez told The SpareFoot Storage Beat. The Mele Group is part of the Marcus & Millichap National Self-Storage Group.
  • Self-Storage Still Attractive, but Good Deals Will Be Harder to Find in 2015
    By Robert Carr- National Real Estate Investor
    Self-storage properties remain one of the hottest commodities in commercial real estate, generating steady returns for investors while supply has remained somewhat constrained. But experts say the sector could experience a mild slowdown this year, as attractive assets become harder to find and investors revise their return expectations.

    Occupancy averaged above 90 percent in the self-storage sector in 2014, a record high. In the third quarter of the year, the top four sector REITs, including Public Storage, Extra Space Storage, CubeSmart and Sovran Self Storage, were trading at 22.1 times stock price to FFO, the highest price-to-FFO multiple in the REIT universe, according to SNL Financial, a Charlottesville, Va.-based research firm. All four companies were included in SNL’s top 25 U.S. REITs for five-year total returns.

    The sector’s strength led to immense competition by investors to acquire self-storage facilities in 2014, says R. Christian Sonne, executive managing director in Cushman & Wakefield Inc.’s self-storage industry group.

    “Self-storage is now legit, it’s not anymore like that odd business model that nobody really understood,” he says. “We’ve had entities from family money to equity firms and hedge funds jumping into the sector, which is now considered at least core, if not core-plus.”

    A few firms announced plans for further expansion in the self-storage arena. Ernst & Young Capital Advisors LLC advised LifeStorage LP on a $120 million equity raise to extend the company’s footprint from the East Coast to across the country. Demand has been so strong, Los-Angeles-based DealPoint Merrill recently launched a $25 million fund that will convert former retail properties, in particular stand-alone big boxes and strip centers, into self-storage properties.

    Cap rates for self-storage assets are at all-time lows, with strong competition for every deal, according to Sonne. Buyers are facing immense competition for even less-than-great product as sellers know their properties are hot.

    “We were seeing stabilized assets trading at 5.5 percent cap rates, where this sector doesn’t usually see rates of less than 6 percent,” Sonne says. “Some of the portfolios went down to 5 percent. It’s just getting harder to find anything. The class-A stuff gets picked up before it’s even marketed, in quiet deals. The pace of acquisitions should slow in 2015, though, as the low-hanging fruit has been picked.”

    Portfolio sales continued in the fourth quarter, including CubeSmart buying up the first part of its 36-property acquisition from Chicago-based Harrison Capital. Newmark Grubb Knight Frank arranged the 26-site sale for $223 million, with the second part of the transaction expected to close with the repayment of property level financing by the end of March 2015.

    New construction in the sector remains below pre-recession levels. Michael Mele, senior director with Marcus & Millichap’s national self-storage group, says he doesn’t expect a significant increase in supply in 2015. Developers were on pace to deliver about 4.7 million sq. ft. in 2014, up from 3.2 million sq. ft. the year prior. “While there are projects in the pipeline, most will not be completed until after 2015,” he says.

    Mele expects that institutional players in the sector will continue consolidating and that there will be a rush toward new development projects and expansion in the future. He says he doesn’t believe a hike in interest rates would hamper growth in the self-storage industry.

    “Most markets are still undersupplied. It may slow down sales of existing facilities, but the sector as a whole will continue to be strong,” he says.
  • MEMPHIS-AREA SELF-STORAGE PORTFOLIO SELLS FOR $16.6 MILLION
    By Marcus & Millichap- Tampa Office
    MEMPHIS-AREA SELF-STORAGE PORTFOLIO SELLS FOR $16.6 MILLION

    MEMPHIS, Tenn., Dec. 15, 2014, 2014 – 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 a seven-property, 2,861-unit, 383,175-net-rentable-square-foot self-storage portfolio located in the Memphis, Tenn., metropolitan area. The commercial real estate asset’s $16,600,000 sales price equates to $43.32 per square foot.