Courtesy / Malone Commercial Brokers
A 99-unit self-storage business at 2501 Portland Road in Arundel sold above list for $1 million.
Updated: November 16, 2020
Maine self-storage properties stay strong as popular investment
Courtesy / Malone Commercial Brokers
A value-add self-storage facility at 16 Serenity Hills Estates in Naples sold to a Las Vegas, Nev., investor who owns storage facilities and mobile home parks across the country.
The self-storage sector has been active over the past year, as brokers from various firms handle transactions by Maine and out-of-state investors who view the properties as a solid buy with low-maintenance returns.
Naples: Vegas investor
Patriot Holdings LLC bought 16 Serenity Hills Estates in Naples from Naples Self Storage for $600,000. Brandon Mitchell of Malone Commercial Brokers brokered the transaction, which closed Sept. 15.
The five-acre self-storage facility with 122 units was built in 2002.
The property was originally listed on the market about a year ago as part of a larger package that included a nearby house and barn, said Mitchell, who represented both seller and buyer.
“After it sat for a while, we decided to break off the storage units from the residential unit,” he said. “It didn’t take much longer after that to get much more interest and a buyer.”
The seller was a family partnership that built the units and used the house as a summer camp, he explained.
“Fast-forward 20 years, they’ve moved on and they don’t get up to Maine as much,” he said. “They felt it was time to move it along to someone who would pick up where they left off.”
Queries came in from all over the country. The buyer, Patriot Holdings, is based in Las Vegas, Nev., and owns storage facilities and mobile home parks across the country, including other holdings in Maine. Patriot's agent in New Hampshire visited the facility, followed by a visit from the company owners.
“They liked it,” Mitchell said.
The facility needs a good deal of investment, including pavement, and possibly some added lighting, fencing and other upgrades, Mitchell said.
“This group will pump some money into it,” he added.
Arundel: Above list
Mitchell and Mike Anderson, also from Malone Commercial Brokers, represented the seller in the sale of a 99-unit self-storage business at 2501 Portland Road in Arundel.
Blue Chip Group bought the property from Arundel Self Storage LLC. Craig Church of Magnusson Balfour represented the buyer.
The buyer was a local businessman, said Mitchell.
Listed at $985,000, it sold above list for $1 million, The deal closed April 24.
“That one was turnkey,” said Mitchell. “Mike and I basically lived there four days, showing it on the hour. It went under contract within four days.”
Self-storage has been a popular investment for years, said Mitchell.
“They’re low-maintenance,” he said. “And depending on the size and the location, and the age, too, usually the ones that have been around a while are full and seem to stay full. So it’s a good income stream and it doesn’t cost a lot to manage that type of property compared with, say, an office building.”
Maine still has some good availability of storage facilities at a decent price, he added.
Fairfield: Expansion opportunity
Fairfield Storage LLC bought 216 Western Ave. in Fairfield from Evergreen Storage LLC for $1.285 million. Donald Plourde from Coldwell Banker Plourde Real Estate brokered the deal, which closed Oct. 16.
The property comprises about 130 units and an adjacent five-acre lot.
The seller began construction of the facility in 2005 and gradually built out, said Plourde.
“As he continued to build it, he had five or six buildings,” he said.
The seller is retiring. The property was on the market for 30 days at most.
“We had a lot of inquiries,” he said.
The buyer has similar holdings across New England and saw an opportunity to expand the Fairfield facility by acquiring the abutting five-acre lot, he added.
Another facility, located in Washington and due to finalize soon, received a dozen or more queries, said Plourde.
Why the interest?
“They’re good cash flow,” he said.
As a broker and as a former owner of self-storage facilities himself, Plourde said users include baby boomers who inherit family belongings and don’t want to get rid of anything, people moving between homes, and businesses that need extra storage space. One man, he said, rented half a dozen units from him every winter to store his collection of classic cars.
According to an October 2020 report by GlobeSt.com, the self-storage market has grown by 8% each year since 2012, and the average self-storage operator has a 41% profit margin.
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