NEW YORK CITY AND AUSTIN, TEXAS – CBRE Investment Management and facilities operator William Warren Group have acquired a portfolio of 64 self-storage properties for $588 million. Austin-based World Class Holdings was the seller.
The self-storage portfolio includes more than 4.1 million leasable square feet in 10 states, including Texas, Ohio, Illinois, Colorado, Missouri, Mississippi, Tennessee, Indiana, New York and Nevada. The properties include a total of 28,601 units.
The self-storage properties will now be operated under the StorQuest brand. The facilities were previously operated by Great Value Storage. Assets are mostly single storey units with drive-in access. The portfolio was 82% leased at the time of the sale.
“We expect these assets to add significant value to our investment stack given the strong demand for self-storage facilities across multiple markets and end users amid the pandemic,” said Justin Shanahan. , Associate Portfolio Manager for CBRE Investment Management. “This specific portfolio offered a unique opportunity to acquire a diverse set of facilities in various states with high demographics. We believe the portfolio is well positioned to continue its strong rental momentum and generate long-term profitability.
With this transaction, CBRE Investment Management, a New York-based global real estate asset management firm and subsidiary of Dallas-based CBRE Group Inc., now owns 83 self-storage properties in the United States, with a total of 42,255 units. .
The demand for self-service storage space has increased due to the COVID-19 pandemic. According to CBRE research, 41% of investors say they are continuing to invest in self-storage this year.
Nate Paul, president and CEO of World Class, says his company plans to continue investing in the self-storage industry.
“We’ve been long-term investors in self-storage since entering the industry nearly 15 years ago,” says Paul. “The sale of this portfolio of mature assets to CBRE and the William Warren Group provided us with the opportunity to capitalize on this foresight, monetize our value creation strategy and realize a very favorable realization of our investment.”
The self-storage acquisition is one of the largest private transactions ever in the self-storage industry, according to World Class Holdings. The sale did not include any of Paul’s California facilities or any of the company’s new self-storage developments and conversions nationwide.