What's Happening?
Boardwalk Development Group has acquired the Sun Self Storage portfolio, a collection of seven properties located across the Auburn-Opelika market in Lee County, Alabama. Meridian Storage Group served as the exclusive advisor and broker for the sale on behalf
of Steve Benson and the Benson family, who founded Sun Self Storage in 1983. The financial terms of the acquisition were not disclosed. The portfolio encompasses over 79 acres and represents approximately one-third of Lee County’s existing self-storage inventory. The properties are strategically located near Auburn University and along key residential and commercial corridors, reflecting the significant growth in the region. Steve Benson highlighted the area's growth, driven by Auburn University's expansion, new businesses, and large subdivisions, as a key factor in the success of his self-storage business.
Why It's Important?
This acquisition signifies a major investment in the rapidly growing Auburn-Opelika market, underscoring the strong demand for self-storage facilities in areas experiencing significant population and economic expansion. For Boardwalk Development Group, this purchase marks the launch of their Fund V, which saw a capital raise four times larger than previous raises, indicating strong investor confidence in the self-storage sector and this specific market. The strategic locations of the properties, particularly near Auburn University, suggest a focus on serving both student and residential populations, which are often transient and require storage solutions. The transaction also highlights the increasing consolidation within the self-storage industry, as larger development groups acquire established, family-owned portfolios to expand their market presence and leverage operational efficiencies. This trend can lead to modernized facilities and potentially more competitive services for consumers in the region.
What's Next?
Boardwalk Development Group plans to integrate the newly acquired Sun Self Storage portfolio into its operations, utilizing its Management Operating System to enhance accessibility and convenience for customers in the Auburn-Opelika market. This integration may involve technological upgrades, improved customer service, and potentially facility expansions or renovations to meet growing demand. The successful launch of Fund V with this acquisition suggests that Boardwalk Development Group will continue to seek further investment opportunities in the self-storage sector, potentially targeting other high-growth markets. For the Auburn-Opelika community, the acquisition could lead to a more streamlined and modern self-storage experience, reflecting the evolving needs of a dynamic and expanding region.
Beyond the Headlines
The acquisition of the Sun Self Storage portfolio by Boardwalk Development Group reflects a broader investment trend in essential services and infrastructure that support population growth and economic development. Self-storage, often seen as a recession-resistant industry, benefits from demographic shifts, housing market dynamics, and the increasing mobility of the U.S. population. The strong demand for Fund V, with investments from leaders in the self-storage industry, indicates a robust and confident outlook for this sector. This transaction also underscores the value of long-term, disciplined ownership and reinvestment, as demonstrated by the Benson family's four decades of building the Sun Self Storage platform. The continued growth of university towns like Auburn, driven by educational institutions and associated economic activity, makes them attractive targets for real estate investors seeking stable and growing assets.
