DALLAS – (Realty News Report) – In a major self-storage deal, Hines and CubeSmart have formed a joint venture and recapitalized a portfolio of 9,700 storage units in the Dallas-Fort Worth area.
Houstonian Aaron Swerdlin, Newmark’s Vice Chairman and leader of the firm’s National Self Storage Capital Markets practice and Newmark’s Andrew Warin advised Hines on the recapitalization.
The joint venture covers 14 self-storage properties with a total of 1.25 million SF all operating with the CubeSmart Self Storage brand
“As one of the largest national self-storage portfolio transactions of 2024, this transaction was a testament to the strength of the Dallas-Fort Worth market and further validation of the durability and appeal for high-quality storage assets across the U.S.,” said Swerdlin.
Hines Built Two Self-Storage Facilities in D-FW
A year ago, Hines announced plans to develop two new self-storage facilities in the Dallas area:
- Custer Self-Storage in Frisco, a two-story building offering 76,675 net rentable SF and 709 climate-controlled units.
- Jupiter Self-Storage in Garland, consists of one single-story building and one three-story building, offering 90,650 net rentable SF of 100% climate-controlled storage space.
“While it has emerged into a mature asset class in the U.S. over the past 20 years, self-storage is in its infancy in other parts of the world, including Europe, where the amount of self-storage per capita is a fraction of that in the U.S.,” Hines said in a self-storage research report.
Josh Scoville and Erik Thomas of Hines Research reported in-depth on how self-storage presents a compelling risk-adjusted return in the PREA Spring Quarterly 2024.
A New Self-Storage Deal in the Permian Basin
In a separate self-storage transaction, another sale was reported this week in the oil-producing Permian Basin of West Texas.
Capital Markets announced that it has completed the sale of a nine-property, 5,180-unit self-storage portfolio in Midland and Odessa, Texas.
JLL represented the seller, Salt Lake City-based Extra Space Storage, and procured the buyer, Dallas-based AVAD Capital.
The institutional-quality portfolio totals 782,998 rentable SF in the Permian Basin, the highest producing oil field in the U.S., generating a thriving and affluent community with outsized self-storage demand. JLL’s Capital Markets team was led by Steve Mellon and Brian Somoza, and Adam Roossien and Matthew Wheeler.
Feb. 5, 2025 Realty News Report Copyright 2025
Image: Courtesy Newmark
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