East Property Management buys North Naples Storage

BUYER: East Storesmart Naples Two LLC (principals: Kim Pegula, Adam Gusky and John Sieminski), Boca Raton
SELLER: Old 41 Industrial LLC
PROPERTY: 14970 and 14980 U.S. Old 41, Naples
PRICE: $3.64 million
PREVIOUS PRICE: $3.8 million, June 2006 and $2.1 million, March 2007

SELLER: North Naples Storage Inc.
PROPERTY: 15600 Old U.S. 41, Naples
PRICE: $2.54 million
PREVIOUS PRICE: $800,500, August 1997
LAW FIRM ON DEED: Vogel Law Office PA, Naples

PLANS, DESCRIPTION:
East Property Management purchased the 83,100-square-foot North Naples Storage and an associated parking lot for a total of $6.18 million.

The combined price equated to $74 per square foot. That figure is higher than the two-year average price per square foot for industrial space ($50) in Southwest Florida, according to the CoStar Group.

Built in 1998, the facility has a total of 73,950 rentable square feet, covering 10.74 acres, with 567 storage units and 257 parking spaces. It is 92% occupied.

The buyer owns and manages a number of self-storage facilities under the StoreSmart brand name.

“We are looking for properties that are in great locations, but that have something wrong with them that can be fixed,” says Lew Pollack, property manager. “One of those sites that the large national chains would say is too much trouble. This property has a lot of deferred maintenance.”

Over the next five months, the new ownership plans to gut the office and convert it into a showroom, change the traffic flow to improve security, install wider lights throughout the property and paint it. The facility is also being renamed StoreSmart Naples II.

Michael Mele and Luke Elliott of Marcus & Millichap handled the transaction.