Public Storage picks up industrial portfolio in Miami-Dade for $63M
Public Storage bought four large storage facilities in Miami-Dade County for $63 million.
Banner Real Estate sold the properties at 91 Southwest Third Street, 180 West Sixth Street, 2190 Southwest Eighth Street and 5609 Northeast Second Avenue in Miami to Glendale, California-based Public Storage, according to property records.
The buildings total 411,438 square feet, which equates to a purchase price of $153 per square foot. Banner Real Estate completed the buildings in 2017.
Over the past few years, self storage has been one of the hottest property types in South Florida.
Nationally, self-storage facilities have been outperforming all other major commercial property types in terms of earnings growth and company stock performance, according to a Green Street Advisors analysis. In November 2017, the annualized rate of new self-storage construction was $4.6 billion on a seasonally adjusted basis — double that of November 2016 and triple that of November 2015, the report found.
But there is a sign of weakness in the sector, as public self-storage companies are trading at a 2 percent discount to the estimated market value of the properties they own, per the Green Street research.