Gilbert self-storage facility sells for $17.5 million, as industry remains hot in Arizona

Gilbert self-storage facility sells for $17.5 million, as industry remains hot in Arizona

Article Originally Posted On Phoenix Business Journal On June 10, 2021

A California-based buyer bought a 757-unit self-storage and RV storage facility in Gilbert for $17.5 million.

The purchase was part of a 1031 exchange, which gives favorable tax treatment to capital gained from the sale of a property if it is reinvested in a like-kind property.

Denise Nunez and Victoria Filice of NAI Horizon represented the seller, 202 Storage, in the sale of the property, Envy Self-Storage and RV, which was an off-market deal. The buyer was JLL Arizona Self Storage LLC, which according to Arizona Corporation Commission data, is led by James L. Ledwith and based in Sonoma, California.

“This was an off-market deal where the Nunez Self-Storage Group identified the property for a California 1031 exchange buyer,” Nunez said in a statement. “The owners had not planned to sell. However, this showstopper facility commanded an above-market offer which presented the owners with a unique selling opportunity.”

The property, located on Lindsay and Germann roads, features self-storage units as well as RV and boat storage, and has an in-progress expansion of RV parking, which will add 39 covered spaces.

Demand for self-storage has remained very high in Arizona, even during the Covid-19 pandemic. The Phoenix metro added 8.7 million square feet of self-storage buildings from 2011 to 2020, according to a study done by RentCafe, ranking the city fifth in the nation for most active self-storage markets. The influx of people moving to Phoenix, and Arizona as a whole, has fueled demand for self-storage.