CT Realty Acquires 2 Storage Sites in Los Angeles County

Newport Beach-based CT Realty Corp. has purchased two properties in Los Angeles County and plans to develop them as self-storage facilities under the company’s Storage Outlet brand name.

Slated to start construction in October, with grand openings set for next April, the new locations raise the number of Storage Outlets in southern California to 11. CCA Associates of Newport Beach is the general contractor for both projects.

CT Realty paid $2.65 million to Gold Realty Co. for a 63,000-sq.-ft. industrial building in Gardena. The city of Gardena has already approved a conditional-use permit for 97,000 sq. ft. of gross self-storage area on the property. The building will be converted into 595 interior self-storage units in one- and two-story configurations. A new 13,000-sq.-ft. single-story building will be constructed on surplus land.

In the second transaction, CT Realty purchased an option and entered into a long-term ground lease for $485,000 with Weber Metals Inc. The 2.7-acre parcel of undeveloped land is in Paramount. The property will be developed into an 810-unit Storage Outlet facility in a three-story building.

Equity financing for both self-storage projects is being provided by CT Realty-owned CT Self-Storage Fund II LLC. Construction financing for the properties is being provided by Fremont Investment and Loan.

CT Realty represented itself in both acquisitions. Grubb & Ellis’ South Bay office represented Weber Metals on the Paramount transaction. Los Angeles Real Estate in Carson represented Gold Realty on the Gardena transaction.

“The Gardena and Paramount properties are prime examples of the locations we’re interested in, given their prominent locations in strong markets with high barriers to entry,” said Lance Watkins, development partner with CT Realty for the Storage Outlet enterprise.

The company plans to open three new Storage Outlets by the end of the year. An 834-unit facility will open this month in Fullerton and construction begins this fall on a 360-unit RV storage park in Bellflower.

A Storage Outlet in Pomona opened in February. A 675-unit facility in Escondido opened in July. The Escondido facility was developed with a Home Depot and Albertsons on a former Fedco site.