One of the world’s largest real estate investment trusts paid $8.85 million for a newly completed self-storage facility in Arvada.
Developer Blue Wing Capital Management sold the 637-unit Life Storage property at 14872 E. 69thAve. to Public Storage, the largest self-storage REIT.
Adam Schlosser, first vice president investments, and Charles “Chico” LeClaire, executive managing director investments, in Marcus & Millichap’s Denver office listed the property for the seller.
Schlosser said the deal demonstrates that, “Lease-up and certificate-of-occupancy transactions are still working for buyers and sellers under the right conditions.
“We were selling a lot of deals in this market on speculation over the last three to four years, but recently, with new construction and headwinds like occupancy falling and rent dropping, those C-of-O lease-up, kind of speculative deals have really dropped off. The pricing just isn’t there because buyers are pricing more risk into them,” he said.
Although completed in early 2018 and still in lease-up, the Arvada Life Storage traded because Public Storage wanted to be in the market but couldn’t get City Council approval for a new development.
“While the project is well positioned for long-term success, our attractive development cost basis gave us flexibility to choose exit timing,” said Blue Wing Capital’s Peter Shaw. “With storm clouds building in the Denver metro storage market, we took the opportunity to sell during lease-up and generate a compelling return for the partnership.”
The 64,320-square-foot Class A self-storage facility is in a high-growth area 2 miles from two new, large residential communities: Leyden Rock and Candelas.
It is climate-controlled and offers a spacious leasing office, multiple elevators, two covered drive-in loading/unloading areas, spacious drives for large vehicles and 24-hour surveillance.
