Gelt Expands Portfolio with Acquisition of 678-Unit Self-Storage Property in Napa
TL;DR
Gelt Venture Partners' acquisition of a 678-unit self-storage property in Napa offers investors a strategic advantage in a high-demand, recession-resistant sector with potential for value appreciation.
Gelt Venture Partners acquired a 678-unit self-storage property in Napa, Calif., planning to rebrand it as Public Storage and improve operational efficiencies to increase rents to market rates.
The acquisition and improvement of the self-storage property by Gelt Venture Partners in Napa supports local storage needs and contributes to the area's economic growth.
A 678-unit self-storage property in Napa, surrounded by vineyards and hills, is set for a rebrand and operational upgrade under new ownership by Gelt Venture Partners.
Gelt Venture Partners has recently acquired a 678-unit self-storage property located at 1025 Golden Gate Drive in Napa, California, marking a significant addition to its portfolio. The property, previously known as Southgate Mini Storage, is set to be rebranded as Public Storage, leveraging the latter's extensive experience in the sector. This acquisition highlights Gelt's focused strategy on identifying and revitalizing under-managed assets in high-demand areas.
The property features 653 drive-up, non-climate-controlled units, 23 RV parking spaces, and additional facilities including a house, manager’s apartment, and site office. Spanning 4.27 acres with 72,400 square feet of space across 18 single-story buildings, the property offers storage units ranging from 50 to 360 square feet. With an average unit size of 106 square feet and an occupancy rate of approximately 90%, the property is well-positioned for operational improvements and rent adjustments to meet market rates.
Keith Wasserman, Partner with Gelt Ventures, emphasized the strategic value of this acquisition, noting the property's location in an affluent demographic area with limited competition due to its unique geographical setting. Kartikeya Kejriwal, Managing Partner of Self Storage at Gelt, further elaborated on the firm's value-add strategy, aiming to capitalize on the rising demand for self-storage and increasing property values in the Napa region.
Public Storage, a leader in the self-storage industry with over 50 years of operational experience, has been appointed to manage the property. This partnership is expected to bring operational efficiencies and enhance the property's value. Gelt's portfolio now includes self-storage assets in California and Colorado, with ongoing interests in expanding through private market transactions nationwide.
The self-storage sector's resilience to economic downturns has made it an attractive investment for major real estate private equity firms. This acquisition by Gelt Venture Partners not only reinforces the sector's stability but also demonstrates the firm's commitment to leveraging strategic opportunities for growth and value creation in the commercial real estate market.
Matthews Real Estate Investment Services facilitated the transaction, representing the seller, a Napa-based private, family-owned developer/operator, while Gelt acted as its own representative in the deal.
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