Quick turnaround: Year-old West Gardiner self-storage site sells for $2.1M

Photo / Courtesy, Malone Commercial Brokers Malone Commercial Brokers announced the sale of a newly constructed 26,000± square foot self-storage facility at 17 Town House Road in West Gardiner.

Write a Comment

By Peter Van Allen

Malone Commercial Brokers led the sale of a newly constructed 26,000-square-foot self-storage facility at 17 Town House Road in West Gardiner.

The 7.5-acre property, with five storage unit buildings, sold to 17 Town House Road LLC for $2,134,000. The seller was West Gardiner Self Storage LLC.

Completed in April 2023, the self-storage complex features all-new buildings with a lot that was paved and finished last August. The facility is situated in a prime location along the busy Town House Road corridor.

Brandon Mitchell of Malone Commercial Brokers represented the seller, while Jordan Stolt of Summit Real Estate represented the buyer. The transaction closed May 1.

“We were very pleased to facilitate the sale of this top-quality self-storage facility,” said Mitchell. “The self-storage industry continues to experience significant popularity. The brand-new construction and demand for self-storage facilities made this a highly desirable investment opportunity.”

Mitchell, based in Portland, is building a track record in the self-storage industry, and has several self-storage facility listings.

The self-storage market

Maine has some 211 self-storage facilities, with at least 3.8 million square feet of storage space, according to selfstorage.com. That works out to about 3 square feet per Mainer, far less than the national average, which is 5.4 square feet of storage per person.

That seems to indicate the the market could use more self storage — and investors may find it a safer bet than other types of real estate.

Self-storage remains a steady performer in the real estate market, according to an August 2023 report from Cushman & Wakefield, citing several factors:

Transaction volume subsided in the first half of 2023 with the trailing 12-month volume down by 57% year-over-year. "While this decline is significant, self storage remains a top performer, with volume remaining above the 12-month levels leading up to the pandemic," the Cushman & Wakefield report said.
Despite the rising cost of debt, capitalization rates for self storage remain relatively stable, averaging 5.1% in the second quarter of 2023.
The sector continues to "show resiliency" as valuations remain in tact, averaging $165 per square foot. Though down slightly from the 2022 peak, the average price per square foot marked a 2.5% increase year over year.

Processing Your Payment

Event Info

Award Honorees

Topics

Regions

Biweekly Issues

Special Editions

Event Info

Award Honorees