New York, NY
CBRE Investment Management Acquires 64-Asset Self-Storage Portfolio Across the United States
Investment Significantly Expands Firm’s Exposure to Resilient Alternative Property Type
March 24, 2022
A fund sponsored by CBRE Investment Management has acquired a portfolio of 64 self-storage assets in 10 states across the U.S. Together, these facilities include a total of 28,601 units. The fund now owns 83 self-storage properties across the U.S., totaling 42,255 units.
The self-storage assets, which will operate under the StorQuest brand, are primarily single-story drive-up units in key markets with large established population centers including Texas, Ohio, New York, Illinois, Colorado, Nevada, Mississippi, Tennessee, Indiana and Missouri. The portfolio is currently 82 percent leased.
“We expect these assets to add significant value to our investment stack given the high demand for self-storage facilities across multiple markets and end-users amid the pandemic,” said Justin Shanahan, Deputy Portfolio Manager for CBRE Investment Management. “This specific portfolio offered a unique opportunity to acquire a diverse collection of facilities in various states that have strong population demographics. We believe that the portfolio is well-positioned to continue its robust leasing momentum and yield long-term profitability.”
Demand for self-storage space in the U.S. surged during the COVID-19 pandemic, largely driven by household migration and fluctuation in operations for small businesses. According to research by CBRE, 41 percent of investors indicated that they are pursuing investments in self-storage in 2022, positioning the sector as one of the most targeted alternative real estate investments. The U.S. self-storage market is expected to maintain positive rent growth through 2026, according to Moody’s Analytics REIS.
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $141.9 billion in assets under management* as of December 31, 2021, 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 2021 revenue). CBRE has more than 105,000 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.