HOUSTON – (Realty News Report) – Newmark Knight Frank has completed a 50-property self-storage portfolio sale, the largest self-storage property deal in the history of real estate investing.
The acquisition by SROA Capital Fund VII, L.P. includes 21,787 storage units containing a total of 3,150,819 SF of rentable space.
Located in six states – Tennessee, Georgia, North Carolina, South Carolina, Michigan and Florida —will be operated under the brand Storage Rentals of America.
Based on the number of assets, the sale is the largest widely marketed, non-merger transaction completed to-date in the self-storage market, NKF reported.
Vice Chairman Aaron Swerdlin and Executive Managing Director Kenneth Cox, who jointly lead NKF’s self-storage group, represented the seller, a joint venture between an undisclosed institutional investment advisor and a publicly traded storage REIT. Additionally, NKF”s Bert Sanders, Aaron Sommer and Fred Liesveld acted locally on behalf of the seller. NKF Valuation & Advisory Executive Vice President and Self Storage Co-Leader Chris Sonne appraised the properties. The buyer of the portfolio was a joint venture between a state pension fund and an investment fund.
“The level of interest generated by the portfolio transaction was a strong indicator of the health of the self-storage market, overall,” said Swerdlin. “Its successful sale gives the industry confidence that self-storage remains one of the strongest product types, one in which institutional investors are still eagerly interested.”
Known as national experts of the self-storage space, Swerdlin and Cox steer the direction and development strategies of the self-storage specialty practice group nationally.
“During the offering process, the portfolio of seasoned, mature properties with a long, stable cash flow history generated a wide range of interest from varied buyer profiles, validating that the self storage industry is mainstream and in high demand. From pension funds to private equity, family office to public REITs and private capital, the offer list read like the who’s who of international and national investors,” said Cox.
“The self storage sector continues to be well positioned to deliver exceedingly strong operating metrics,” Cox said. “The headline risk remains centered on new supply, but interest rates and stable revenue growth are driving any surprises to the downside.”
Based in West Palm Beach, Fla., SROA Capital is a vertically-integrated self-storage operator founded in 2013 by real estate entrepreneur Benjamin Macfarland in partnership with Sidney Kohl (co-founder of Kohl’s Department Stores) and James Jenkins (co-founder of Alliant). SROA operates under the brand Storage Rentals of America.
July 12, 2019 Realty News Report Copyright 2019
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