ICYMI, self-storage projects in Nashville and Greeneville made headlines earlier this month.
The Nashville Post reported that an eight-story facility that was planned in SoBro will not move forward.
Meanwhile, the Greeneville Sun reported that town planners have signed off on a project on Emory Road.
On a national level, Globe Street featured a Q-and-A with Mark Whitehead, who discussed his firm’s effort to integrate self-storage with residential development.
Earlier this month, the Times Free Press reported that a former Big Lots store in Brainerd will be converted to a storage facility with more than 250 units.
Tennessee Storage Broker’s Josh Flory, of NAI Knoxville, asked developer Bernard Frogel about the project in an email Q-and-A.
JF: You’re converting a former Big Lots store to self-storage – what factors led you to make that decision?
Frogel: The property is located across from the Chattanooga airport. The airport authority has purchased most of the property along Brainerd Road for future expansion of the airport and the construction of a business park and has demolished the buildings used by the former retail occupants of this property. As this area is changing from retail to industrial, the self-storage concept looked like a feasible option.
JF: In addition to converting the existing 50,000-square-foot building, you’re doubling the size of the facility. What convinced you that there’s enough demand for a project with more than 100,000 square feet of storage space?
Frogel: We had a market survey of the demand for self storage and this resulted in our move in that direction.
JF: Was there anything about this particular retail shell that made it ideal for a storage conversion?
Frogel: The building was over 30 years old but in excellent structural condition, and with over 9.5 acres of land this made for an easy storage conversion. Continue reading
A California REIT has purchased a portfolio of 11 self-storage facilities in Western North Carolina for more than $92 million.
Strategic Storage Trust II, which is sponsored by SmartStop Asset Management LLC, closed the deal on December 30. It included approximately 4,850 units.
“Collectively, these 11 properties have averaged an overall occupancy of 95% during 2016 and require little capital expenditure,” H. Michael Schwartz, chairman and CEO of SST II, said in a news release. “The dynamics of this portfolio are a great balance to our existing self storage facilities located throughout the U.S. and Canada.”
In addition, Strategic Storage Growth Trust — which is also sponsored by SmartStop Asset Management — announced this month that it has acquired a vacant industrial building in Asheville that will be converted to 650 units of climate-controlled and drive-up storage.
A pair of self-storage deals in November helped the Knoxville market end 2016 on a high note.
Aaron Super Storage, at 6626 Asheville Highway, was sold for $3,875,000, while a portfolio of eight facilities that included 415,616 square feet of storage space was sold by Storage Pros Management LLC. The Storage Pros transaction totaled more than $34 million.
2016 was also a strong year for development activity. New projects in the pipeline include a multi-story facility at the corner of Middlebrook Pike and Joe Hinton Road, and a facility at the intersection of Pellissippi Parkway and Hardin Valley Road.
For a market report that summarizes 2016 activity, contact Josh Flory at 865.253.0896.