Leitbox Storage Partners Acquires Self-Storage Facility in Maryland

Leitbox Storage Partners, a Birmingham, Ala.-based self-storage investment and development platform, announced the acquisition of Main Street Storage located in Berlin, Md. This is the first asset acquired on behalf of Leitbox Portfolio Partners Self-Storage Fund III, LLC. The purchase price was not disclosed.

At the time of this article, the fund had raised approximately $7.4 million from accredited investors.

The Maryland facility has 344 units – the majority of which are climate-controlled, according to Leitbox – with approximately 48,000 of net rentable square feet across 22 buildings. The property was developed in phases from 2018 to 2023 and has additional space available for further expansion.

“I am excited to announce the acquisition of Leitbox III’s first asset. This investment has a lot of great characteristics that we look for, including an attractive going-in cap rate and the ability to drive performance the Leitbox Way with expansion, institutional management, and enhancing the mixed-use component,” says Bill Leitner, founding principal of Leitbox Storage Partners LLC.

Main Street Storage is located on the north end of Main Street, less than 1 mile off Highway 50, which sees an average of 32,000 vehicles daily. Known as Ocean Gateway, Highway 50 provides a direct route to Ocean City (average summer weekend population of 300,000) and Ocean Pines, Md., both less than 10 miles away.

Downtown Berlin is also a “Maryland Main Street Community,” an arts and entertainment district, and carries a National Register Historic District designation. Leitbox leadership said it is excited to be poised to succeed in this market and looks forward to using their expertise to improve the overall asset.

“The asset was purchased with a unique financing vehicle provided by Protective Life Insurance Corporation, and benefitted greatly from an attractive interest rate below what we are seeing from other lenders. This acquisition is right in line with our strategy of investing for higher returns with a lower risk profile,” added Leitner.

Leitbox is partnered with Access Capital Group to facilitate the capital raise for its third Leitbox offering, which launched in October 2022.

Earlier this summer, Leitbox opened a storage facility in Sanford, Fla., part of its Leitbox Portfolio Partners Self-Storage Fund II offering, which launched in October 2020 and sought to raise $50 million.

Leitbox Storage Partners is a real estate investment company that develops and acquires self-storage, often with mixed use and retail integration, in primary and secondary markets throughout the United States.

For more Leitbox Storage Partners news, please visit their directory page.