Scottsdale-based 1784 Capital Holdings LLC intends to develop a self-storage facility on 1.5 acres in Bethesda, Md. The company acquired the property at 5204 River Rd., for $11 million. It will redevelop the site, which is occupied by a tenant.
“The Bethesda area has extraordinary demographics and extraordinary market fundamentals,” said Shane Albers, chairman and CEO of 1784 Capital Holdings. “It is a significantly undersupplied market with three times the national average for rent. We chose the site because it’s one of the last zoned and developable parcels of land for self-storage in Bethesda.
“We have allocated $250 million for the development of Class-A, institutional-quality self-storage as we continue to expand our national portfolio under the direction of Executive Vice President Kelly McKone,” Albers said.
The Bethesda, Md., market is described as an affluent, “high barrier-to-entry community,” with “historically high occupancies and rental rates,” by The Mele Storage Group of Marcus & Millichap, the commercial real estate firm that brokered the deal.
“Very rarely does a development opportunity of this quality come to market,” said Robert Bloch, an investment associate in Marcus & Millichap’s Washington, D.C., office. “The unprecedented price per acre is a testament to the nature of the opportunity, and the buyer had a clear vision that enabled it to compress its due diligence and win the deal in a very competitive process.”
Michael Mele, senior vice president of investments in the Marcus & Millichap Tampa, Fla., office assisted Bloch in representing the seller, a single-asset corporation, and securing 1784 Capital Holdings as the buyer.