A fund sponsored by CBRE Investment Management has acquired a portfolio of 14 self-storage assets located in San Diego and throughout Southern California.
The purchase, with units in Utah as well, totals 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 key infill markets. Outside of San Diego, the sites include Los Angeles, the Inland Empire and Salt Lake City, with a mix of indoor, climate-controlled units and outdoor units. The portfolio is currently 95% leased.
Sondra Wenger, a divisional head for CBRE Investment Management, called self-storage investment “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.”
“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,” she added.
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.
“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,” Walker said.
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 research. The recession-resilient sector remains attractive to investors as 41% indicated that they are pursuing such investments in 2022, CBRE researchers found.