This article originally appeared in AZ Big Media
June 23, 2023
Buchanan Street Partners, a Newport Beach, CA-based real estate investment management firm, has acquired two recently constructed Class A self-storage facilities in the Phoenix MSA. Located at 29640 N Tatum Blvd, Cave Creek, AZ and at 2862 S Signal Butte Rd, Mesa, AZ, the facilities total 160,500 rentable square feet and 1,620 units. The properties were acquired at a total purchase price of $41 million or $255 PSF. The seller was Garrett Development Corporation, and the transaction was brokered by CBRE’s Nick Walker and Walter Brauer. The acquisitions represent entry into a new market for Buchanan’s self-storage team as these two properties are Buchanan’s first storage acquisitions within the greater Phoenix MSA.
“Closing this transaction in the current economic environment is a testament to our team’s capabilities and relationships on both the equity and debt side of the business. It was a pleasure working with the CBRE team, and we thank them for their efforts in helping to get this deal closed,” said Feerooz Yacoobi, vice president, Buchanan Street Partners. “We’re excited to add these two institutional quality assets into our portfolio and look forward to growing our presence in the greater Phoenix MSA. Buchanan continues to pursue well-positioned facilities across the Western U.S. and is an active investor in high quality self-storage properties.”
“Self-storage investment continues to be a preferred strategy for so many large institutional groups as user demand in this sector has continued to broaden and grow significantly in recent years due to structural and demographic trends,” said Nick Walker, vice chairman, CBRE, Inc. “Feerooz and his team were wonderful to work with and did everything they said they were going to do, which in this market is not always the case. I know they will do well with these best in market assets.”
Both facilities were constructed in 2021 and offer state-of-the-art self-storage space with interior climate-controlled units, onsite video surveillance, and security access controls. The Cave Creek facility is in an affluent market of north Phoenix and is favorably situated within a high traffic retail shopping center. The Mesa facility sits in a high population growth trade area in southeast Phoenix and is also favorably located in a retail center, offering strong traffic and visibility for the property. Westport Properties, Inc. will act as third-party manager for the facilities, operating the properties under their US Storage Centers brand.