Encanto & 83rd Self Storage – Phoenix, Arizona

This client had recently begun a process of transition into other other investments markets and, in order to continue this transition, they contacted us about selling this asset. We immediately conducted an analysis of his facility and his competitors and found one big challenge in taking this property to market: his current unit mix included a section that presented a chronic leasing challenge.

We see numerous self storage unit mixes every year and are adept at determining problems in offerings and pricing that diminish a facility’s profitability and resulting sale price. We immediately proposed a reconfiguration of the unit mix in order to boost revenue so that our client could receive the highest sale price possible. The seller was confident in our proposal but was primarily interested in selling the facility and moving on to other investment opportunities. He did not want to take the time required to reconfigure the property and build occupancy, so we pivoted and took the property to market as is, but included a forecast pro forma for the reconfigured unit mix. We found many interested parties, but in the end got the highest offer from a buyer who was happy to find a newer project in the Phoenix metro that had a value add component. We guided the parties through the due diligence and escrow phases of the transaction which were, for the most part, quick and uneventful.

In the end, both parties were happy with the results. The seller was happy to liquidate this asset at a favorable price and the buyer was excited with this new value add opportunity in a major metro area. Our specialization in the self storage niche provided a huge advantage to our client in the end for two major reasons. First, our knowledge and experience in this industry allowed us to quickly assess the property and identify a value add opportunity that others without our specialization would miss. Second, due to our activity in the self storage market over the years, we have amassed an enormous network of buyers for self storage and can use it to spark interest in properties quickly.