Tucson, Arizona –A self-storage developer has closed on the sale of their third Storage Development Opportunity in the Tucson market. The 4.63 acres of vacant land at 4002-4032 East Fort Lowell sold fully entitled for a 3-story, two above ground and one below, with plans for over 1,000-units in front and 150 RV spaces in back, to ES – Gibralter Fort Lowell Self Storage, an affiliate of Gilbert-based, Gibralter Holdings LLC for $4.75 million ($23.55 PSF).
The asset closed on July 15, 2022. The buyer owns and operates other self-storage facilities in Tucson under the name of Extra Storage.
Abraham Slilaty is the seller, working under Fort Lowell Self Storage, LLC and has owned most of his land assets in Tucson for over 30 years. These sites have now become unique and strategically located within central areas of the City. The property was marketed as an asset offering with either a CofO sale or Development Opportunity sale built-to-suit. However, it sold as land along with fully engineered and approved development plans including architectural construction documents, and third-party engineering reports, even underground soils & geotechnical studies. The property is more than “shovel ready” it is literally being sold as a ready-to-build with permit in-hand property.
The seller / developer’s first self-storage project was sold in 2019 to a large private equity company. At the option of the buyer, the project was purchased as a Development Opportunity, whereby the buyer was able to break ground and oversee the construction themselves, yielding a newly constructed facility of 100,000 NRSF at a 45% discount from stabilized retail value.
This third sale is for land and entitlements only which included re-rezoning from R-2 to C-2 on the property.
The developer continues to hold in its land asset portfolio several one-of-a-kind sites in the heart of Tucson with un-met demand for storage. This makes the third of its kind projects are underway in the design & entitlement stage being made available for sale.
Bill Alter of Rein & Grossoehme Commercial Real Estate, LLC in Phoenix represents the seller in these transactions.
For additional information about this sale and current and future opportunities contact Bill Alter at 602.315.0771 or Bill@RGcre.com.
To learn more, see RED Comp #10044.