Buchanan Street Partners Breaks Ground on $5.25M Self-Storage Development in Scotts Valley

Buchanan Street Partners has broken ground on a 99,500-square-foot self-storage facility in Scotts Valley, California, following a $5.25 million acquisition of a 2.6-acre site at 10 Victor Square. The project marks the Newport Beach-based firm's eighth self-storage investment in California over the past five years as it expands its institutional platform in high-barrier-to-entry West Coast markets.

The development will transform a vacant 39,000-square-foot office/flex building formerly occupied by a technology supply company into a three-story, climate-controlled Class A self-storage facility comprising 760 units. Buchanan acquired the site after 14 months of entitlement efforts and project due diligence.

Construction Timeline and Project Partners

Westbank is providing construction financing for the project. Demolition of the existing structure commenced in January 2026, with completion slated for April 2027. Buchanan Street Partners has partnered with DAI General Contracting as the general contractor and Valli Architecture as the project architect.

The Scotts Valley site is located within Santa Cruz County, just off Highway 17 and near a grocery-anchored retail center.

Addressing Supply Constraints in Self-Storage Market

"The Scotts Valley project aligns with our investment strategy of targeting high-rent, supply-constrained markets in desirable Western U.S. locations, particularly throughout California," said Jon Suddarth, Vice President at Buchanan Street Partners. "The current trade area has extremely limited availability of modern self-storage facilities, with the newest product in the market now nearly 25 years old."

Suddarth noted that the development addresses a clear gap in the marketplace by replacing an outdated office structure with a high-quality, aesthetically designed Class A facility that will meet storage needs for the surrounding residential and commercial communities.

Expanding Self-Storage Portfolio Across Western Markets

The Scotts Valley acquisition is part of Buchanan Street Partners' strategy to build a portfolio exceeding $1 billion in institutional-quality self-storage assets throughout the Western United States. The firm is pursuing growth through both development and acquisitions.

In addition to the Scotts Valley project, Buchanan is developing self-storage facilities in South San Francisco, California, and Upland, California. The firm recently acquired a newly constructed facility in Las Vegas, Nevada. Through an affiliate, Buchanan also provides bridge and construction financing as an active direct lender within the self-storage sector.

Buchanan Street Partners is a Newport Beach-based real estate investment management firm specializing in value-oriented investments across multifamily, commercial, and self-storage properties.

Sources

Buchanan Street Partners