Saturday, July 16, 2011

Self-Storage Investment Sales to Increase Through Year's End, Marcus & Millichap Predicts

 WALNUT CREEK, CA—Marcus & Millichap Real Estate Investment Services Inc. reports self-storage investment activity will increase this year as banks sell off REO properties, drawing regional syndicates from the sidelines to target Class B/C assets throughout the Sun Belt.

California and Florida will register a sizable share of closings as maturing loans and soft operations push properties into foreclosure, especially with banks still hesitant to refinance devalued assets.

 Financing for new buyers seeking properties below $5 million and with a stable operating history will emerge in the form of SBA loans, helping to accelerate activity.

At the top of the market, cash-heavy REITs and institutions are moving back into the self-storage arena, leveraging operating efficiencies to add value to recently purchased properties.

Class A assets in primary markets, including those in the Northeast, will garner the most attention. Such properties generally will trade for more than $10 million and at initial yields in the mid-7 percent to low-8 percent range, depending on location and age.

For a complete copy of the company’s report, please contact Stacey Corso,


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