Southeast Storage, a regional self-serve storage business that operates or owns part of nearly a dozen storage complexes, is expanding into Tennessee with the purchase of one of Chattanooga's biggest self-storage facilities.
A group affiliated with Lumpkin Development Co., in the Atlanta area is buying the Total Storage complex at the intersection of Hixson Pike and Dallas Hollow Road in Lakesite, Tennessee. The complex is now 97% leased and the price of the property has grown with the increased demand for storage facilities in the area and record-low borrowing rates for developers.
Total Storage LLC of Knoxville bought the complex in 2012. The original structure was built in 1975 with 7,850 square feet and has been expanded over time to include 101,293-squre-feet of storage buildings on 4.9 acres in Hixson.
Marcus & Millichap, a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced the sale of the 80,902-square foot self-storage facility on Wednesday. Joseph W. McKibben, regional manager of the firm's Birmingham office, said the property sold for $5 million.
Jonathan Cobb, director of acquisitions for Lumpkin Development, declined to disclose the purchase price. He said the new owners may or may not change the business name to Southeast Storage, but he said he is confident in the Chattanooga market.
"This is a quality asset in a market that we think is going to be stable for the foreseeable future," Cobb said. "Chattanooga is a strong market."
Total Storage Inc. is located at 8810 Dallas Hollow Rod and includes 622 storage units.
The sale comes as other developers in Chattanooga are adding different types of self-storage and warehouse options, both for individuals and businesses. Developers Adam Kinsey and Eric Cummings are building garage condos for storage in East Brained as part of a $7 million development near the Council Fire golf course.
Contact Dave Flesssner at dflessner@timesfreepress.com or at 423-757-6340.