ASB, Arcland Acquire 8-Building Self-Storage Portfolio in Mid-Atlantic
A joint venture between ASB Real Estate Investments and Arcland Property Co. has acquired an eight-building portfolio of self-storage facilities throughout Virginia and Maryland as part of the $7.4 billion ASB Allegiance Real Estate Fund.
Chesapeake Resources sold the 595,888-square-foot, mid-Atlantic portfolio for an undisclosed price.
Arcland develops, acquires, and manages self-storage facilities throughout the Washington and Baltimore regions.
“These are properties we purchased out of our managed pool,” Noah Mehrkam, Arcland’s CEO, told Commercial Observer. “One of the reasons we acquired a management company was to have an acquisitions pipeline. We knew we wanted to control our own destiny and not outsource the management to the [real estate investment trusts].”
All eight properties were built between 2000 and 2019, and consist of a total of 5,663 units. Most units are climate-controlled with favorable ground-floor access and average more than 100 square feet of space. At the time of the sale, the portfolio was near 96 percent occupancy.
“It’s a big market, a growth market and a stable market, given the anchor industry is the federal government,” Mehrkam said. “There’s constantly people coming and going, we have major universities here, the hospitality industry is here in a big way, as is the life sciences industry.”
With the deal, the ASB Allegiance Real Estate Fund’s self-storage holdings now comprise a nationwide portfolio totaling 26,600 units and 2.3 million square feet located in 10 metropolitan areas: New York, Miami, Portland, Ore., Los Angeles, Seattle, San Diego, Washington, Northern Virginia, Baltimore and Phoenix.
“This was a great addition to our existing self-storage portfolio, given complimentary geographic footprint and strong partner with critical mass of product,” Nicolas Franzetti, ASB Real Estate Investments’ managing director, told CO. “As a whole, we continue to be very bullish on self-storage’s long-term demand drivers.”
Kieran O’Shea, a managing director at Eastdil Secured, represented the joint venture on the deal.
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