CBRE IM Buys Phoenix-Area Self Storage Asset

StorQuest Self Storage A fund sponsored by CBRE Investment Management has acquired a Class A,…

StorQuest Self Storage

A fund sponsored by CBRE Investment Management has acquired a Class A, 77,197 rentable-square-foot self storage facility in Surprise, Ariz. According to Yardi Matrix data, the previous owner was Omni Capital Management and in 2020, the property was subject to a construction loan of $4.2 million, originated by Western State Bank. The asset will operate under the StorQuest brand.

Completed in 2021, the property spans 4 acres, across four-story buildings, totaling 562 units, of which 431 are climate-controlled, ranging from 25 to 450 square feet. On-site amenities include LED lighting and 24-hour security, as well as RV and boat parking.

Located at 17061 W. Custer Lane, the facility is 16.3 miles from Glendale, Ariz., and roughly 33 miles from Phoenix, with access to Arizona State Route 303. The property is one of three storage facilities available within a 3-mile radius, offering residents 3.37 rentable square feet per capita, according to Yardi Matrix data.

The same data provider shows that the whole Phoenix market comprises 585 completed self storage facilities, totaling 36.6 million rentable square feet, with an additional 89 facilities under development or in the planning stages. Phoenix rates for standard 10×10 non climate-controlled units were up 6.7 percent year-over-year as of June, while rents for same size climate-controlled units were up 4.1 percent. As of July, the sales volume amounted to 32 properties year-to-date. Recently, SmartStop REIT acquired a 590-unit self storage facility in Chandler, Ariz.

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