HOUSTON—The metro posted the second largest population gain of any US area in 2016 and was named the third best city for future job growth by Forbes in 2017. As a result of the increased population, self-storage facilities are gaining in popularity here.

In the latest transaction, Passco Companies, in joint-venture partnership with Patriot Self Storage Management, acquired a self-storage property in the River Oaks residential community. The purchase is comprised of a self-storage facility with 54,294 square feet of rentable space and 1,000 square feet of wine storage.

“This purchase offered the opportunity to acquire a high performing self-storage asset in a market that is primed for strong economic growth,” says Scott Allen, president of Passco Companies Development. Indeed, Houston has continued to experience strong population gains, quality demographics and year-over-year job growth. Its diverse and growing local economy will continue to drive demand for these types of properties during the next several years.

“As the migration of companies and residents to the Houston region continues, the demand for self-storage facilities will expand as well,” says Hal Perdew, president of Patriot Self Storage Management.

“This adds to the long-term value of our assets, and strategically positions them to perform over time. Beyond the fundamentals, these properties are especially well-positioned to meet the needs of the affluent Houston community. ”

Furthermore, there is a high concentration of Fortune 500 companies and a wide range of industries including health services, education, hospitality, oil and gas, and government, among others. The region is also home to Houston Medical Center, one of the top medical destinations in the world, which employs more than 106,000 people.

“The Houston market is thriving and is expected to add up to 70,000 jobs in next year alone. This strong job growth, coupled the region's quality demographics and diverse local economy, strategically positions this already high-performing asset for long-term growth,” Allen tells GlobeSt.com. “Self-storage facilities will remain in high demand, which is especially true for self-storage facilities that feature unique amenities such as temperature-controlled wine storage, which our newly acquired facility offers.”

Passco Companies and Patriot Self Storage Management plan to rebrand the properties as Patriot Self Storage.

Aaron Swerdlin at NKF Capital Markets represented Passco and Patriot Self Storage Management as the buyer, and also represented the seller, a partnership between Clarion Partners and Private Mini Storage.