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Self-storage owner sells properties
Three self-storage facilities in West Michigan are under new ownership.
Colliers International West Michigan said this spring it assisted in the sale and purchase of three Your Space Self-Storage facilities over the past several months.
A positive economic outlook, investment in the community, job growth and population growth have all given the West Michigan storage market a significant value appreciation, said David Rapp, associate vice president, Colliers.
“Your Space Self-Storage received interest from local, regional and national self-storage investors,” Rapp said. “The seller took advantage of the current economic cycle’s compressed cap rates, and the buyers were able to lock into today’s low interest rates and secure assets that are well-positioned to capitalize on long-term rent appreciation and occupancy growth.”
Space Storage bought the 93,400-square-foot facility at 4254 Central Parkway in Hudsonville in December 2017.
Cedar Storage purchased two properties in March: one at 12505 Northland Dr. NE in Cedar Springs with 53,200 square feet; and one at 505 10 Mile Rd. NW in Sparta with 44,500 square feet.
Sale prices were not disclosed.
Rapp, along with Trent Wieringa, an associate vice president at Colliers, facilitated the transaction.
Opportunities for self-storage investment are scarce, due to the market nearing its peak, according to research by Colliers International West Michigan.
West Michigan’s average self-storage occupancy rate is 95 percent, compared to the national average of 92.8 percent.
The three Your Space Self-Storage facilities averaged 73-percent occupancy, which Colliers hopes will provide an opportunity to increase operational efficiencies and value.