News release
Intercontinental Real Estate Corp. in joint venture with LaTerra Development has acquired EZ Access Self-Storage, a 784-unit self-storage facility in Santa Clarita, in an off-market transaction for $27 million, according to a news release from Intercontinental.
Built in 2000 by the seller, a local property investor, EZ Access Self Storage consists of nine one-story storage buildings, a separate office and a residential unit used for on-site management.
The average customer tenure of six years highlights the asset’s strong retention, driven by its convenience as a single-story property with an abundant number of drive-up units (222 or 28% of the unit mix), according to the release.
Intercontinental and LaTerra plan a modest capital improvement program that will include modernizing the management office, upgrading hallway lighting, new landscaping and improving entry security.
Additionally, the property will be rebranded as Public Storage following the engagement of the world’s largest self-storage operator to manage it, the release said.
“Santa Clarita, the third-largest city in Los Angeles County, presents a compelling growth market for self-storage investment,” Jessica Levin, managing director and head of West Coast for Intercontinental out of the private equity firm’s Los Angeles office, said in the release. “Demand is underpinned by a robust 2.7% annual population growth rate and sustained residential development activity that includes both single and multifamily homes. Additionally, renters comprise approximately 30% of local households, suggesting the city offers a stable and expanding customer base for storage solutions.”
“The Los Angeles MSA is particularly supply-constrained when compared to the national average,” Ross Karetsky, associate director of acquisitions at Intercontinental, said in the release. “Only 5 square feet of self-storage product exists per capita within the L.A. metro, while the national average totals between 10 and 13 square feet per capita. The L.A. metro needs more but has less, reinforcing our belief in this asset and its location.”
According to Storage Café, a nationwide storage space marketplace powered by Yardi, approximately one-third of Americans currently utilize self-storage, and an additional 18% are planning to rent space in the near future, the release said.
“Self-storage demand is driven by life transitions — moving, downsizing, and lifestyle shifts that require flexible space solutions,” Bryan Miranda, managing director of Self Storge for LaTerra Development, said in the release. “Catering to both renters and homeowners whose living spaces are not big enough for the things they own, it is not surprising that self-storge has outperformed all real estate asset classes over the past 25 years.”