New York, NY
CBRE Investment Management Acquires 14-Asset Self-Storage Portfolio In Southern California and Utah
Investment is Fund’s Second Major Acquisition in the Recession-Resilient Sector in Less Than a Year
March 13, 2023
A fund sponsored by CBRE Investment Management has acquired a portfolio of 14 self-storage assets located in Southern California and Utah totaling 8,697 units. The fund now owns 100 self-storage properties across the U.S., totaling 55,477 units.
The self-storage assets, which will operate under the StorQuest brand, are primarily single-story drive-up units in the key infill markets of Los Angeles, The Inland Empire, San Diego and Salt Lake City. The portfolio includes a mix of indoor, climate-controlled units and outdoor units, and is currently 95 percent leased.
“Self-storage investment continues to be a preferred strategy for us as the user demand in this sector has continued to broaden and grow significantly in recent years due to structural and demographic trends,” said Sondra Wenger, Head of Americas Commercial Operator Division for CBRE Investment Management. “This specific portfolio offered a unique opportunity to acquire a high-quality set of units that are positioned at optimal locations for traffic counts, customer accessibility, site security and strong local market economic fundamentals. We believe that our investors will find long-term value from our continued expansion in this high-conviction sector.”
Nick Walker, Vice Chairman of CBRE’s National Self Storage Advisory Group, represented the seller in the transaction. In addition, Tom Traynor and James Millon of CBRE’s Large Loans division, along with Talonvest, arranged the financing in the transaction.
“This portfolio offered an investor the rare opportunity to enter some of the best performing markets in the country with a set of 14 attractive self-storage facilities that are nearly impossible to replicate,” said Mr. Walker. “All of the properties are situated in optimal locations for maximum traffic count, visibility, customer density and site security.”
Demand for self-storage space in the U.S. remains strong as the national vacancy rate for the sector is at 5.6% as of 2022, according to CBRE Investment Management’s research. The recession-resilient sector remains attractive to investors as 41 percent of them indicated that they are pursuing investments in self-storage in 2022, according to research by CBRE.
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $149.3 billion in assets under management* as of December 31, 2022, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.
CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2022 revenue). CBRE has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.