Marcus & Millichap Inc.
11/14/2024 | Press release | Archived content
Marcus & Millichap Arranges Sale of 54,100 Square Foot Hughes Springs Storage Facility
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Marcus & Millichap Arranges Sale of 54,100-Square-Foot Hughes Springs Storage Facility
November 14, 2024
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HUGHES SPRINGS, Texas, Nov. 14, 2024 - Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of Hughes Springs Storage Units, a 54,100-square-foot self-storage facility located in Hughes Springs, Texas.
"This transaction was a good example of why it is typically in a seller's best interest to formally list their property for sale rather than pursue an off-market transaction," says Danny Cunningham, senior vice president investments. "While our relationship with the seller began several years ago, we did not seriously discuss a potential sale until early 2024. At that time, he was hesitant to list the property for sale, so he asked us to reach out to a select few prospective buyers instead. Given our vast knowledge of the East Texas storage markets and the buyers that pursue them, we were able to find a group willing to offer the seller's desired price. Unfortunately, the buyer exited the deal during the escrow period, and we were back to square one. The seller then opted to follow our advice and formally market the property, and we were able to secure multiple list-price offers within a brief three-week marketing period. Through this process, we ultimately achieved a higher purchase price for the seller and leveraged multiple backup offers to keep the buyer on track during escrow."
Brandon Karr and Danny Cunningham, investment specialist in Marcus & Millichap's Fort Worth office and co-leaders of the Karr-Cunningham Storage Team, exclusively represented the seller, a Hughes Springs native who developed the property, and procured the buyer, a Dallas-based real estate investment company.
Hughes Springs Storage Units is positioned at 189 FM 250. The facility, built in 2019, spans approximately 54,100 rentable square feet across 260 units, including 240 drive-up units and 20 fully enclosed boat/RV spaces. The property features perimeter fencing, a gated entrance with key-pad access, and convenient access to local thoroughfares. The property has maintained a high occupancy rate of 94%.
"This transaction was a good example of why it is typically in a seller's best interest to formally list their property for sale rather than pursue an off-market transaction," says Danny Cunningham, senior vice president investments. "While our relationship with the seller began several years ago, we did not seriously discuss a potential sale until early 2024. At that time, he was hesitant to list the property for sale, so he asked us to reach out to a select few prospective buyers instead. Given our vast knowledge of the East Texas storage markets and the buyers that pursue them, we were able to find a group willing to offer the seller's desired price. Unfortunately, the buyer exited the deal during the escrow period, and we were back to square one. The seller then opted to follow our advice and formally market the property, and we were able to secure multiple list-price offers within a brief three-week marketing period. Through this process, we ultimately achieved a higher purchase price for the seller and leveraged multiple backup offers to keep the buyer on track during escrow."
Brandon Karr and Danny Cunningham, investment specialist in Marcus & Millichap's Fort Worth office and co-leaders of the Karr-Cunningham Storage Team, exclusively represented the seller, a Hughes Springs native who developed the property, and procured the buyer, a Dallas-based real estate investment company.
Hughes Springs Storage Units is positioned at 189 FM 250. The facility, built in 2019, spans approximately 54,100 rentable square feet across 260 units, including 240 drive-up units and 20 fully enclosed boat/RV spaces. The property features perimeter fencing, a gated entrance with key-pad access, and convenient access to local thoroughfares. The property has maintained a high occupancy rate of 94%.
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About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. As of December 31, 2023, the company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately $43.6 billion. For additional information, please visit www.MarcusMillichap.com.