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Tuesday, October 11, 2016: Teardown Tuesday
A four-building, 1950s-era office and warehouse complex at 622-628 Capital Boulevard will soon be no more, making way for Raleigh’s newest self-storage facility.
In a way, today’s subject could be considered a sequel/spin-off (or in our preferred nomenclature, an update) of a post we did back in June about the new Glenwood Self Storage facility at 7901 Glenwood Ave.
The 3-story, 70,104 square-foot facility is being developed by a subsidiary of Baranof Holdings, a company that, according to Storage.com, is investing heavily in the self-storage market.
Their managing partner, Andy Hendricks, apparently told the website that Baranof decided to get into the storage game due to “superior fundamentals in the space that are not found in any other property type.”
“Large investors and institutions who have identified the storage sector for its performance during the downturn have a high demand for quality infill properties, yet few quality infill properties are available for acquisition as the public REITS rarely sell any properties of quality. The result is a void of quality infill product available for acquisition,” Hendricks told Storage.com
We noted back in June that Baranof had announced plans to develop both the Glenwood facility and another one on Capital, although we didn’t know exactly where, as the land had not yet been purchased.
The new facility at 622-628 Capital, named, shockingly, Capital Boulevard Self Storage, is described on Baranof’s website as a “four floor, 89,790 rentable square foot (123,000 sf gross) 100% climate controlled state-of-the-art Class A self-storage facility in the Glenwood South area of Raleigh, North Carolina.”
As far as self-storage facilities go, we think this is pretty nice-looking. It resembles but is slightly more interesting than many of the generic new apartment complexes that’ve been popping up around the City faster than pimples on the face of a greasy 16 year-old.
Maybe it’s something about the green offsetting the overly common white/beige/brown palette we’ve grown so accustomed to, or maybe it’s all the trees, but either way, we’d definitely consider this new building an aesthetic upgrade for the Capital Boulevard property.
The four buildings permitted for demolition that now occupy the space were built between 1950 and 1955 and acquired by a Baranof subsidiary for a total of $3.4 million in September of this year.
Interestingly enough, an old flier we came across from Mikels Jones Properties listed the asking price of the four-building property at $3.2 million. The total assessed tax value is about $2.6 million; the land is valued at $1.4 million while the buildings, which total just over 31,000 square feet, are valued at $1.2 million.
All of it will be torn down for $185,992 by Storage Development Inc. of Aiken, SC.
The flier also touts a recent roof replacement, but we’re not sure how old this flier is, and were unable to locate any permits issued for roof work over the past seven years. It doesn’t really matter at this point, but it would be unfortunate if someone had gone to the trouble of fixing up the roof so they could get a better sale price, only to have the buyer come in and turn the entire place to rubble.
Our research indicates that the buildings were originally used by the North Carolina State Highway Commission, and eventually parceled out into separate offices. We don’t imagine there will be many people crying over the loss of these dilapidated buildings, but we don’t imagine they’ll be jumping for joy about yet another self-storage facility, either. At least this one looks cool!
Besides, if Raleigh’s real estate values continue to rise at the same rate, we imagine the storage unit itself will be torn down sooner than later.