CHICAGO-A REIT affiliate of New York City-based WP Carey & Co., CPA(R): 17 – Global, has purchased nine self storage facilities from Los-Angeles-based A-American Self Storage for $31 million. The properties, totaling 623,000 square feet, are located in California and Illinois.
The five California properties will be managed by Extra Space Storage. The other four properties will be managed by SecurCare Self Storage. The REIT’s portfolio now stands at 42 properties totaling 2.9 million square feet.
Ann Coolidge Taylor, managing director and head of WP Carey’s self-storage team, tells GlobeSt.com that her industry is doing almost as well as the high-speed multifamily market. “The success is in a big way related to the lack of new construction for the past three-to-four years, which was brought on by the fact that there’s no financing available to build any properties, usually a five-year endeavor,” Taylor says. “Of course, it’s also related to the economy. Self-storage typically leads a cycle out of a downturn and follows a cycle in.”
She says consolidation has begun to ramp up in self-storage, with the availability of aggressive debt financing. “The mid-level operators that have built up a good portfolio are now seeing that pricing is good,” Taylor says.
Reed Smith LLP represented the trust as general real estate and transaction counsel in connection with the acquisition and financing.
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