Double scoop: Extra Space Storage drops $29M for two West Palm Beach complexes

Salt Lake City-based firm is also the operator of the two self-storage facilities

Extra Space Storage's Joseph Margolis with 401 N Military Trl and 2300 N Military Trl
Extra Space Storage's Joseph Margolis with 401 N Military Trl and 2300 N Military Trl (Loopnet, Extra Space Storage)

Extra Space Storage hit a double play with a $29.2 million acquisition of two self-storage complexes in West Palm Beach.

Affiliates of the Salt Lake City-based self-storage real estate firm, led by CEO Joseph Margolis, bought a 56,307-square-foot self-storage facility at 401 North Military Trail for $12.4 million, records show. Extra Space Storage also paid $16.8 million for a 59,769-square-foot self-storage site at 2300 North Military Trail. The company is the operator of both facilities.

The deals break down to $220 a square foot, and $281 a square foot, respectively.

The seller, affiliates of Chicago-based InContext Advisors, bought the two properties for a combined $18.5 million in December 2020, records show. The complex at 2300 North Military Trail was built in 1986, and the facility at 401 Military Trail was completed in 1987.

Extra Space Storage, a publicly traded real estate investment trust, manages 164 million square feet of self-storage space across 40 states, according to the firm’s website. Extra Space Storage owns and leases 2,000 self-storage properties with 1.5 million self-storage units, the website states. In Miami-Dade, Broward and Palm Beach counties, Extra Space has more than three dozen locations, including 32 the company owns, according to records.

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In October of last year, Extra Space Storage paid $22.1 million for a 101,300-square-foot industrial building in Margate.

Self-storage real estate is booming with more than 131 million square feet of storage space under construction or in the planning stages across the country, according to a May RentCafe report. Demand is pushing rents up, as the national average rent for a self-storage unit is $128, a 6 percent gain year-over-year, RentCafe found.

In South Florida, self-storage firms are also expanding their footprints. This month, Basis Industrial, formerly Miami City Self-Storage, paid $37.5 million for a mixed-use industrial facility in Medley where the company plans to add a 125,000-square-foot self-storage facility.

In April, Morningstar Properties acquired a pair of self-storage facilities previously operated by Extra Space Storage in Fort Lauderdale’s Flagler Village. Morningstar paid nearly $30 million for the two sites.

A month earlier, New York-based Buyer Storage Deluxe paid $11.5 million for a three-property assemblage in Miami’s Wynwood.