July 18, 2018
Two institutional-quality self-storage facilities in the Silicon Valley submarket of Los Gatos traded hands for $25 million. The 84%-occupied facilities, 688 University Ave. and 17443 Farley Rd. West, include a total of 785 units. The deal represents a record-high price for self-storage product in the region.
Marcus & Millichap Levin Johnston’s Adam Levin and Jacob Becher represented the unnamed buyer, a private high net worth family seeking to expand its portfolio, as well as the undisclosed seller, a private high net worth individual.
“This transaction is a strong example of value creation through diversification in the commercial real estate industry,” says Levin, noting that the buyer had historically invested only in multifamily properties, and was accustomed to very tight cap rates.
Levin says that the buyer understood the value in the strategy, and recognized that the higher sale price was the key to securing the property while remaining well within its acquisition criteria.
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