NEW YORK CITY-After acquiring 78 U-Haul facilities in 2004 for a whopping $312 million, investment firm WP Carey & Co. LLC’s non-traded REIT affiliate, CPA:17 Global, has further expanded its self storage portfolio by acquiring nine self-storage facilities from A-American Self Storage for $46 million. GlobeSt.com has confirmed that four of the properties are located in California, three in Illinois and two in Hawaii, totaling 662,000 square feet.
The properties include two in Bakersfield, CA, amounting to 165,009 square feet; a 48,267-square-foot facility in National City, CA; a 69,444-square-foot building in Palms Springs, CA; a 92,645-square-foot location in Kihei, HI; a 72,365-square-foot facility in Pearl City, HI; a 53,634 square-foot facility at Lake Street, IL; a 69,931 square-foot Rockford, IL building and a 90,591-square-foot facility in Mundelein Townline, IL.
The transaction continues WP Carey’s presence in the self-storage arena. The firm also acquired $86 million worth of sites from A-American in July 2011, amassing 1.6 million square feet. “We’re pleased to further leverage our expertise in the self-storage space by adding these properties as a follow on to our recent acquisition of 24 storage properties-all of which are expected to provide consistent long-term income and diversification to our managed funds,” says Trevor Bond, WP Carey president and CEO, in a statement following the deal.
In this most recent transaction, the California and Hawaii properties will be managed by Extra Space Storage, and the Illinois properties will be managed by SecurCare Self Storage. WP Carey’s managing director and head of its self storage team, Anne Coolidge Taylor, adds that the company is attracted to the self storage market due to its “resilience” during various economic cycles. “The relationships we have established with seasoned players provide us with the capability to identify and purchase good assets and manage them on a day-to-day basis, with oversight by our own team,” Coolidge Taylor says, in a statement.
Reed Smith LLP represented CPA:17 Global as general real estate and transaction counsel on the acquisition and financing of the portfolio. Ziad Hammodi, a partner in the firm’s New York City office, led the team of attorneys that included associates Joshua Leventhal in New York and Krista Kim in San Francisco.
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