By Meghan Hall
Self-storage has long considered a niche asset class in the world of commercial real estate. However, over the past two years, self-storage has flourished as an industry–and investors are taking notice. A number of deals have closed in recent months for various self-storage assets, and most recently, a Renton asset was sold, adding to the trend. According to public records, Storage One Self Storage traded for $16.3 million and was acquired by an entity affiliated with The William Warren Group.
The property is located at 1105 Sunset Blvd NE. Records show that the seller of the property was a private owner affiliated with BPR Renton LLC. Data from the King County Assessor’s Office indicates that the facility was originally constructed in 2000 and totals 58,800 square feet. The warehouse sits on about 1.78 acres of land.
The William Warren Group (WWG), the property’s new owner, is a specialist in the self-storage industry at a time when the asset class is becoming increasingly popular with mainstream investors. According to the company’s website, WWG focuses on investing in major metro markets across the United States, targeting assets for their cash flow, revenue growth, or long-term appreciation potential. Since its founding in 1994, the company has expanded its portfolio to more than 190 locations. In Washington State, it owns nine assets.
In recent months, a number of self-storage assets have sold across the Puget Sound. In July of 2021, CBRE Global Investors paid $63.24 million for two self-storage facilities, while in September, Red Hat Enterprises acquired a Tigard self-storage asset for $20 million. KKR, another global investment firm, launched a platform to invest in self-storage real estate across the United States in December of 2021. Over the last few months of the year, KKR deployed $300 million in capital to acquire self-storage assets in major growth markets such as Denver, Atlanta, Austin and others.
Previous reporting by The Registry indicates that the sector has grown as a result of both work-from-home policies and the rise of e-commerce. Experts have generally noted that self-storage fundamentals are expected to continue to improve, and some of the best markets for self-storage are those with major population centers, like the Puget Sound.