Real estate management

Reliant Real Estate Management purchases self-storage portfolio

2909 Log Cabin Drive, Smyrna. Image courtesy of Your Extra Attic

Reliant Real Estate Management, a subsidiary of Midgard Self Storage, has acquired a portfolio of six self storage properties totaling 3,070 units in the Metro Atlanta area. The properties traded for more than $ 67 million, according to Fulton and Cobb County records. The seller was Your additional attic, a family business.

Marcus & Millichap arranged the transaction on behalf of the seller and helped locate the buyer. The facilities will operate under the Midgard Self Storage pavilion.

Portfolio breakdown

The transaction included the installation of 536 units at 2909 Log Cabin Drive SE in Smyrna, Georgia. The property traded for more than $ 17 million, according to Cobb County records. Completed in 2006, the three-storey building has 536 units. All storage spaces are air conditioned, with the larger units providing drive access.

Reliant also acquired a 519-unit facility at 6075 Post Road in Cumming, Ga., For $ 13.6 million, according to data from Yardi Matrix. Built in 2020, the 76,356 square foot rental asset offers air-conditioned units ranging between 25 and 300 square feet.

Another Cumming facility traded for more than $ 10 million, according to the same data provider. Located at 1715 Peachtree Parkway, the 516-unit property offers 85,381 square feet in nine single-story buildings. Storage spaces include air-conditioned units and parking spaces for motorhomes and boats.

The portfolio also included:

  • A 538 unit facility at 130 Peachtree Industrial Blvd. in Sugar Hill, Ga., which traded for $ 10.5 million, according to Fulton County records. Built between 1999 and 2002, the property offers air conditioning options, as well as parking spaces for motorhomes and boats.
  • A 529-unit facility at 13700 Highway 9 North in Alpharetta, Ga., Acquired for nearly $ 10.9 million. Built in phases between 2001 and 2005, the asset offers drive-in options, air-conditioned units, and RV and boat storage.
  • A 538 unit property at 5534 Highway 92 in Acworth, Ga. That sold for $ 5.4 million. Completed in 1999, the facility includes parking spaces for motorhomes and boats as well as air-conditioned units.

A flourishing market

The assets are located in a highly penetrated self-storage market, with nearly 8.5 square feet of storage space per capita. Even so, the portfolio is well positioned to attract occupation from Atlanta’s growing demographics, said Stacey Gorman, senior vice president of investments in the Atlanta office of Marcus & Millichap, in prepared remarks. Atlanta’s population has grown by nearly 19% over the past decade, according to data from the US Census Bureau.

Additionally, as national storage rents continued to decline in the last quarter of 2021 after record gains since the start of the COVID-19 pandemic, Atlanta has not seen any slowdown in rental growth. In the 12 months ending in November, rents in the metro have increased by 15% for the standard 10 × 10 non-air-conditioned unit and 16% for the air-conditioned unit of the same size, according to the latest Yardi Matrix report. That figure is more than double the national average rate gain and marks the biggest rent increase in U.S. markets.

In November 2021, Reliant Real Estate Management partnered with Harrison Street to acquire a portfolio of 26 properties spanning six states. The properties were almost fully occupied at the time of the sale. Reliant also provides asset management services.


Source link