"Rivergate hit dead center in our most important acquisition criteria" -Troy Downing
Murfreesboro, TN (PRWEB) April 13, 2011
AC Self Storage Solutions, LLC of Newport Beach, CA., has acquired Rivergate Self Storage, a Class A, stabilized cash-flowing storage facility with 452 storage units, 17 parking spots for RVs and boats, and about 62,000 of net rentable square feet of storage in Murfreesboro, TN, a suburb of Nashville. The price was not disclosed.
Rivergate Self Storage and Truck Rentals, located at 1323 N.W. Broad St., is approximately 80% occupied with individual and commercial customers. AC Self Storage Solutions, a division of Axxcess Capital, LLC, bought the facility from Jeff Davis, a Murfreesboro entrepreneur. Ashley Compton, first vice president of CB Richard Ellis’s Self-Storage Advisory Group in Nashville, represented the seller.
AC Self-Storage “fast-tracked” the all-cash acquisition, closing it 60 days after signing the purchase agreement.
“Rivergate hit dead center in our most important portfolio acquisition criteria,” said Troy Downing, managing member of AC Self Storage Solutions who has been in the self storage real estate sector for 10 years. “It’s well occupied, situated in an established, in-fill location on a high-traffic road with good visibility and easy access. It is situated close to high-density housing, retail, a K-Mart across the street and solid economic anchors such as Middle Tennessee State University and Middle Tennessee Medical Center comprised of 10 facilities near Rivergate.”
Downing also cited Murfreesboro ranking as the fastest growing city in Tennessee as a major factor in acquiring the self-storage facility. Population grew 40,000 between 2000 and 2010 and census data is predicting a 14.4% gain in residents over the next five years.
Downing said AC Self Storage Solutions will “significantly enhance” Rivergate’s benefits to storage customers by adding a call center, longer hours, content insurance coverage, more frequent and creative marketing campaigns to attract new customers and providing “institutional level management and oversight” of the facility. The name and Internet address will remain the same – http://www.rivergateselfstorage.com - but will now be interactive customers can make monthly payments on the website.
Rivergate Self Storage will be managed by Westport Properties, Inc. of Newport Beach a national self storage operator/manager of approximately 40 facilities. “We’re fortunate to have premier self-storage operators as our partners,” said Downing. “Their attention to detail in collaborating with us on this acquisition and their professionalism and knowledge in transitioning to professional on-site management at this facility reinforced their industry leadership." The facility also has a two bedroom apartment and the manager will live on the property.
Compton, the CBRE broker representing the seller, said the “closing was flawless.” He added that AC Self-Storage Solutions “promised and delivered a short transaction timeline that provided a good, quick exit for the seller. Plus, Troy Downing and Jeff Davis worked closely and diligently together for a smooth sale.”
Davis agreed that he was “pleasantly surprised at how quickly the buyer was able to perform its due diligence and close the deal. They did exactly what they said they would do, all of the contractors were respectful and professional, and they were able to close the transaction on the date we agreed upon.”
The Rivergate Self Storage acquisition was not financed but AC Self Storage Solutions said it plans to finance 60% to 65% of the property in a secondary transaction.
Meantime, Downing said AC Self Storage Solutions is currently seeking to acquire other stabilized, cash-flow positive self storage facilities in the Southeast and Southwest U.S. “Our primary focus is the sunbelt but as cash buyers, we will look at the right opportunity regardless of where it’s located.”
About AC Self Storage Solutions, LLC
AC Self Storage Solutions, LLC of Newport Beach, CA. is an owner/operator of self storage commercial real estate. It is focused primarily on acquiring stable, cash flowing, self storage facilities mainly in the Sunbelt and select areas of the U.S. that exhibit strong local demographics needed for successful income-producing self storage operations. AC Self Storage Solutions is a joint venture between Axxcess Capital Ventures of Newport Beach, CA and Specialized Storage Management Holdings, LLC. The team is made up of professionals from diverse backgrounds in self storage, commercial real estate, asset management, investment banking, technology and finance.