MacKenzie Commercial Real Estate Services brokered the sale of a four-property, 883-unit self-storage portfolio in Cecil County, Maryland to Boundary Ventures, LLC for $18.8 million.
Tom Mottley, senior vice president & principal with MacKenzie Commercial Real Estate Services represented the seller, Acorn Investment Company, and Andrew Meeder, also a senior vice president & principal with MacKenzie Commercial Real Estate Services represented the buyer in this sales transaction.
The properties, known as the Cecil, Chesapeake, Elkton and Rogers self-storage facilities are positioned in the Elkton and Northeast sections of Cecil County and total nearly 125,000 square feet of space. The buildings are located at 804 E. Pulaski Hwy. in Elkton (20,425 square feet of space and 84 units), 1089 Augustin Herman Hwy. in Elkton (39,350 square feet of space and 362 units), 4 Coachman Drive in Elkton (53,115 square feet of space and 288 units), 1882 W. Pulaski Hwy. in North East (20,425 square feet of space and 149 units).
According to data from StorageCafe.com, more than 1.6 billion square feet of self-storage space presently exists in the United States, more than 44 million square feet of space was delivered this year, and an additional 50 million square feet of space is expected to be constructed in 2022. An estimated one in every three American use a self-storage facility and, according to Neighbor.com, total annual revenue for all units nationwide approaches $40 billion.
The self-storage sector continues to be among the most prolific real estate asset class based on the strong multifamily market and the need among apartment renters to have additional storage space. Other factors impacting its growth include its use by retailers for the inventory management of goods and by businesses to store documents, office equipment and furniture. Life-cycle events, including divorce and death, have long driven self-storage needs and displacement and disaster are also influencing demand.
The self-storage units and buildings themselves, as well as the technology that surrounds them, have come a long way. Originally introduced as a parking garage-like concrete bunker with garage doors, self-storage facilities now feature climate-controlled environments, advanced security systems and 24/7 video monitoring systems. The units are now available in both climate-controlled and non-climate-controlled environments, and the popularity and use of self-storage units has grown from its original solution for homeowners and renters who needed to store overflow household items.