Stein acquires three self-storage sites, expands three properties
In just four years, portfolio grows to 650,000 square feet, 5,000 units.
ATLANTA – Stein Investment Group acquired three sites in Marietta, Roswell and Cumming to develop its proprietary brand of self-storage facilities investing more than $25 million in this maturing asset class. The firm is also expanding three of its current self-storage properties in order to respond to continued market demand. While the Marietta site is a ground-up development, the Roswell and Cumming sites house existing storage facilities that will be redeveloped to align with the modern facility that defines the Space Shop brand. Construction at all properties is expected to commence second quarter. Together with its expansion initiatives, Stein expects to invest between $50-$75 million in this recession-resistant asset class throughout metro Atlanta and select southeastern markets over the next two years.
“With Space Shop, we are introducing storage solutions for the 21st century to residents in a way that reflects the surrounding urban and residential communities,” states Jeffrey L. Stein, founder and principal, Stein Investment Group. “Our substantial investment into this asset class makes the progressive design and state-of-the-art amenities a priority – along with other key features that are relevant and important to each market.”
Stacey Gorman, director of Marcus & Millichap’s National Self-Storage Group in Atlanta, represented the seller in both the Roswell and Cumming transactions.
“Located in areas of high population growth with above-average income levels, these two self-storage assets are extremely well positioned for renovation and expansion,” says Gorman. “Demand for self-storage investment real estate is at an all-time high and continues to attract investors like Stein Investment Group.”
In Marietta, the 70,000-square foot, three-story, 100% climate-controlled facility is planned for the 1.5-acre site at 3700 Roswell Road across from the recently opened WellStar East Cobb Health Park. The 525-unit Space Shop will be equipped with modern storage features such as a coffee bar, Wi-Fi access and community bulletin boards. To reflect the market’s high-income demographic, the facility will include larger unit sizes and climate-controlled wine storage. The architecture reflects the Federal/Williamsburg period blending with the surrounding, upscale communities. The facility is expected to open Spring 2016.
In Roswell, redevelopment of the former Quality Self Storage is set to deliver a modern, 100,000-square foot, self-storage facility bringing 1,000 units within three new buildings to this prominent Atlanta sub-market. Redevelopment plans at the six-acre site on State Route 9/Alpharetta Street transform this longtime unsightly parcel adding 45,000 square feet to the current footprint. Two one-story and one two-story buildings integrate a streetfront façade that complements Roswell’s downtown neighborhood feel. The facility is currently 88% occupied and was originally built in 1994; existing tenants will have full access during construction. The redevelopment of the Roswell Space Shop is slated to be complete early Spring 2016.
Also formerly home to Quality Self Storage, the Cumming site houses a 56,000-square foot self-storage facility originally built in 1987. Space Shop redevelopment plans will transform this outdated property into a modern, 76,250-square foot facility at 2016 Atlanta Highway. Once completed in late 2015, the state-of-the-art facility will feature 675 units (a 30% increase) and a new storage office with modern amenities closer to the street. The facility is currently 90% occupied; existing tenants will be have full access during construction.
“The success of our Space Shop product is driving the expansion of three of our existing self-storage facilities,” continues Jason E. Linscott, principal, Stein Investment Group. At 1461 Hudson Bridge Road in Stockbridge, Stein recently acquired three adjacent acres in order to add 305 units totaling 30,000 square feet to the perennially high-occupancy facility. Stein Investment Group originally acquired this asset in 2010. The facility at Hamilton Mill in Buford (2050 Gravel Springs Road) will gain an additional 30,000 square feet of self-storage at the current five-acre site allowing for 290 additional storage units. Stein Investment Group originally acquired this asset in 2011. Construction at the Loganville Space Shop at 530 Athens Highway will add 25,000 square feet to the existing footprint expanding to over 250 units. The expansion of all three facilities is expected to be complete this summer.
“We believe that a supply and demand imbalance exists within specific Atlanta submarkets and, therefore, see significant opportunity to build a self-storage portfolio of profitable, modern facilities that set a new standard for this asset class,” concludes Linscott. “The conditions for self-storage development are prime, with Wall Street considering this asset type as ‘recession resistant’ based on its performance since 2008. Our team is actively seeking those nodes with healthy residential growth and high barriers to entry.”
About Marcus & Millichap (NYSE: MMI)
With nearly 1,500 investment professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed over 7,600 transactions in 2014 with a value of approximately $33.1 billion. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com
About Stein Investment Group
Headquartered in Atlanta, Stein Investment Group is a third-generation, private real estate investment firm recognized for its integrity and investment acumen. With over 150 years of combined real estate experience, the firm seeks unique real estate acquisition opportunities throughout the Southeast. The firm’s 2 million-square foot portfolio includes 250,000 square feet of retail, 225,000 square feet of office, 1,400 multi-family units and over 650,000 square feet of self-storage facilities. The team is recognized for its ability to respond quickly and capitalize on investment opportunities. For more information, go to www.steininvest.com.