A self-storage facility on Narcoosee Road changed hands on May 29 for an estimated $11.6 million after being appraised for $2.95 million last year.
The 304,000 square feet, or roughly seven acre property is at 6707 Narcoosee Rd. and contains 107,460 square feet of storage space.
The site's original owner paid $350,000 for it in March 2002, although it may have been nothing but a vacant parcel then.
The purchaser was Westport Orlando Self Storage LLC, a Florida company created in mid-May as an affiliate of Irvine, Calif-based Westport Properties. Westport is the owner of US Storage Centers, a national chain of storage center properties.
"We believe heavily in the state of Florida and are growing a portfolio in Central Florida," said Howard Bryor, director of operations for US Storage Centers. "Florida continues to see business and population growth."
This is the third self-storage site in Central Florida for US Storage. The other two are in Winter Park and Orlando. Bryor said the company is scouting for other sites in the Orlando area.
But he would not comment on the price or the appraisal of the Narcoosee Road facility.
While properties can be appraised below their saleable value, the wide discrepancy in this case touched off discussion by Orlando brokers and builders regarding how fairly valued the property was.
Brokers who specialize in self storage said there is no cookie-cutter approach to valuing these facilities. It depends on the revenue they are each pulling in and their proximity to businesses and residences, they said.
"Either somebody grossly underestimated the appraisal or significant improvements were made to the property in the interim," said Brett Kingstone, CEO of Max King Realty.
A Lake Nona influence was also cited, as land values in the area increase.
"I haven't seen a jump like that in some time, but everything in the Lake Nona area has been increasing," said Victor Del Pilar, head of Kevstin Services, a property and construction management firm. "You have a lot of people moving in and Narcoosee is very close to that area. The median income in Kissimmee is about $40,000 and over by Lake Nona income just about doubles."