SPRING HILL, TN | Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of an 89,388 net rentable square foot storage facility located in the growing Nashville, Tennessee suburb of Spring Hill. The property sold for $9,100,000 which equates to $102 per square foot.
Chico LeClaire, senior vice president investments and Adam Schlosser, vice president investments both out of Marcus & Millichap’s Denver office represented the seller, a local developer, in the transaction. The pair also procured the buyer, Morningstar Properties, a national self-storage owner/operator based out of Charlotte, North Carolina. Marcus & Millichap’s broker of record in Tennessee is Anne Williams.
This transaction was unique in that the seller recently completed, but had yet to start the lease up of a 30,400 square foot expansion with a large climate controlled component, something that is in short supply in the submarket.
“This was a great opportunity for the buyer, who has a well-respected management company, to finish leasing the existing facility and grow value by leasing the newly built expansion in a timely fashion. The seller will move on to his many other projects including restaurants, new home construction, and other commercial endeavors while still working on additional self-storage development sites,” LeClaire said.
The property is located in a high growth area of Spring Hill along a commercial corridor adjacent to a Publix Supermarket, Super Walmart and across the street from various other big box retailers. Originally built in 2008 and expanded in late 2015, the facility consists of seven single-story buildings that are of brick construction with a total of 576 climate and non-climate controlled units. The property has numerous amenities that include video surveillance, electronic gate access, enclosed RV and boat storage, and a three-bedroom one-bathroom, on site manager’s apartment.