Extra Space Storage acquires Margate warehouse for $22M
Deal equates to $218 psf for the 101K sf self-storage facility
A Salt Lake City-based self-storage real estate company expanded its South Florida holdings with a $22.1 million purchase in Margate.
An entity tied to Extra Space Storage acquired the 101,300-square-foot industrial building at 750 and 780 South State Road 7 and an adjoining parking lot, according to records. The deal for the recently completed warehouse breaks down to $218 a square foot.
The seller is an affiliate of Winter Park-based self-storage developer Nuvo Development. In 2017, Nuvo paid $1 million for three parcels. It completed the facility this year, records show.
Headed by CEO Joseph D. Margolis, Extra Space Storage is a publicly traded REIT that owns and leases more than 2,000 self-storage properties totaling roughly 153 million square feet in 40 states, according to the company’s website. Extra Space has more than three dozen locations in Miami-Dade and Broward, 30 of which the company owns, according to records.
In 2018, the firm paid $24.7 million for a Fort Lauderdale self-storage facility.
Last year, Extra Storage provided about $300 million in financing to NextPoint Advisors in connection with a $900 million acquisition of self-storage warehouse investment company Jernigan Capital.
Over the past 18 months, the self-storage industrial submarket has bounced back after record construction of new warehouses outpaced demand, according to a September Marcus & Millichap report. In June, the national self-storage vacancy rate hit 5.5 percent, the lowest in decades. The average asking rent for a storage space rose to $1.24 in June from $1.13 a square foot in the second quarter of 2020, according to the report.
Marcus & Millichap also surveyed self-storage investors, finding that 42 percent of owners view the upcoming year as an ideal time to hold on to their properties. Self-storage sales prices are up more than 30 percent over the last five years, the report shows.