Challenge: Recess Storage had spent more than two years working through the complex maze of entitling six self-storage sites. At an inflection point, Recess Storage was faced with the decision to build these projects or promptly take them to market while the demand for storage projects was still strong.
Strategy: After taking the time to wholly understand the assets, Colliers self-storage experts developed a plan to offer the properties as a single portfolio to be sold per location upon receipt of entitlements. Pricing was established that would allow experienced self-storage developers to attain a 10% yield on development after a three-year lease-up to its fully stabilized value.
Result: Colliers introduced the Recess Storage portfolio to the market and developed a customized marketing campaign to meet the unique needs of each asset. The team capitalized on its extensive database of self-storage contacts, creating awareness of the opportunity on both a regional and national level.
Upon launching the marketing campaign, self-storage developers from across the U.S. soon began to show a strong interest. Based on interviews conducted to determine buyer qualifications and ability to perform, Colliers advised the sellers on the optimal deal structure to ultimately ensure a successful closing.