Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of 7th Street and Dunlap Self Storage, a five-story, 706-unit, 69,910-net-rentable-square- foot storage facility in Phoenix. The facility was sold for an undisclosed amount and represented a reported record-breaking price within this market.
“The property, which has high physical and economic occupancies and an excellent cash flow, was reportedly sold for the highest price per square foot ever achieved by a self-storage asset in Phoenix,” says Michael Mele, senior director of Marcus & Millichap’s National Self-Storage Group (NSSG).
Mele, along with Sean Delaney, also a senior director of the NSSG, and Devin Beasley, associate, represented the seller and procured the buyer. Donald Morrow, regional manager of Marcus & Millichap’s Phoenix office, is the firm’s broker of record in Arizona.
Built in 2007, the facility is located at 533 East Dunlap Ave. in Sunnyslope, one of Phoenix’s most well established and socioeconomically diverse neighborhoods. Within a five-mile radius, the population is 345,540 and there are 12 shopping centers, including the 61-store enclosed Christown Spectrum Mall. Interstate 17 and the Piestewa Freeway (Arizona State Route 51) are three miles away.
“After a comprehensive marketing campaign, we received numerous offers from both private and institutional capital,” adds Delaney. “This was a fantastic opportunity to acquire a pristine, Class A facility in a top 20 MSA that was locally owned and operated. Despite paying a record price per square foot, the buyer is inheriting a property that produces a solid cash flow with real upside through professional on-site management, a more robust marketing platform and revenue management systems.”