The recent $18.775 million sale of a 49,922 square-foot self-storage facility in Fremont, California, underscores strategic portfolio adjustments occurring within the Bay Area commercial real estate market. Levin Johnston of Marcus & Millichap facilitated the transaction involving the 568-unit Extra Space Storage property, representing a private real estate investor who sold to an institutional self-storage developer and operator.
According to Adam Levin, Executive Managing Director of Levin Johnston, the seller had held the professionally managed self-storage asset for five years, providing stability during uncertain economic periods. The decision to sell emerged from leveraging favorable market momentum and heightened regional interest, with the seller planning to reinvest in multifamily assets supported by the Bay Area’s strong economic foundation and enduring appeal as a residential and employment hub.
The transaction demonstrates the brokerage team’s ability to generate competitive bidding through their extensive investor network. Levin noted that their experience across multiple asset classes, including self-storage and multifamily properties, enabled them to attract a broader pool of motivated buyers. This approach resulted in a higher price per square foot despite a lower capitalization rate compared to recent market comparables.
For the buyer, the acquisition represents an opportunity to expand their Bay Area portfolio while planning future value-enhancement strategies. Matthew McCaffrey, Self-Storage Specialist at Levin Johnston, explained that the buyer operates over 80 self-storage properties nationwide, with several already located in the Bay Area. The firm’s development expertise positions them to increase the asset’s long-term value and better serve growing demand from local populations.
Demographic trends support the investment thesis, with McCaffrey noting that the Bay Area’s population aged 65 and older is expected to grow significantly in coming years, creating a strong customer base for self-storage services. The property’s strategic location in Fremont benefits from economic drivers including major employers like Facebook and Tesla, while its proximity to transportation infrastructure including Interstate 680, Interstate 880, and BART provides convenient access.
Robert Johnston, Executive Managing Director of Levin Johnston, emphasized that this transaction illustrates self-storage’s role as both an alternative and complement to multifamily investments, depending on investor diversification objectives. The property at 38491 Fremont Boulevard features competitive amenities including drive-up access for most units, controlled gated entry, 24-hour surveillance, and on-site moving supplies. For more information about available properties, visit https://www.levinjohnston.com.
This sale marks the Levin Johnston team’s 64th transaction in 2025, bringing their total dollar volume to over $370 million year-to-date. The transaction reflects ongoing investor confidence in the Bay Area market and the strategic repositioning occurring within commercial real estate portfolios as market conditions evolve.
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