Buchanan Street Breaks Ground on 760-Unit Self Storage Project in Scotts Valley

Key Points

• Buchanan Street Partners has broken ground on a 760-unit self-storage facility in Scotts Valley, California.
• The 99,500 square foot, three-story project is being financed by East West Bank.
• Completion is expected in 2027, expanding Buchanan’s Western U.S. storage footprint.

What’s Happening

Buchanan Street Partners has officially started construction on a new self-storage facility at 10 Victor Square in Scotts Valley. The project marks the firm’s first self-storage asset on California’s Central Coast and continues its expansion across Western markets. The developer acquired the 2.6-acre site for $5.3 million last year. The property included an unoccupied office/flex building that will be redeveloped into a modern storage facility, reflecting continued repositioning of underperforming commercial assets into higher-yield uses.

Project Details

The planned facility will total 99,500 square feet across three stories and deliver 760 climate-controlled units. Amenities will include enhanced security and dedicated parking, aligning with institutional-grade storage standards. Development partners include DAI General Contracting and Valli Architecture. The property sits just west of the Santa Cruz Highway and approximately one mile from downtown Scotts Valley, providing strong local visibility and access.

Market Context

Within a three-mile radius, four other storage facilities provide about 8.83 square feet per capita, according to Yardi Matrix data. Nationally, the self-storage pipeline stood at 54.3 million net rentable square feet at year's end, representing 2.7 percent of existing inventory. While supply remains active, development has become more selective as lenders scrutinize absorption rates and market density.

Why It Matters

Self-storage continues to attract capital due to its relatively low operating costs, flexible lease structures, and resilience during economic volatility. For Buchanan, the Scotts Valley project expands its portfolio to 11 self-storage assets in various development stages, reinforcing long-term conviction in the sector. For investors, adaptive reuse of obsolete office product into storage reflects a broader strategy of value extraction from underutilized commercial sites, especially in land constrained California markets