WYLIE, TX—While activity continued into the first quarter of 2020 in the national self-storage sector, there was a decline going into April, according to JLL's self-storage REITs first quarter 2020 report. One exception is the acquisition of an 101,931-square-foot self-storage facility in Wylie. The 11-building facility has 760 units and 75 premium RV parking spaces.
Trez Capital and partner Hines recently purchased the property located at 570 Country Club Rd. for an undisclosed purchase price. The facility is located across from Wylie High School near the intersection of Highway 544 and Woodbridge Parkway.
"Our first self-storage acquisition with Hines has seen great success in the booming Plano market. We saw the Wylie self-storage facility as another opportunistic investment to add to our growing portfolio with Hines," said John Hutchinson, president, central and southwestern US, Trez Capital.
Moreover, the class-A self-storage facility fits with Hines' strategy to acquire visible properties in rapidly growing cities such as Wylie, says Luis Castellanos, director of Hines' self-storage platform.
"We are acquiring and developing class-A storage facilities in our region which require strong population and income demographics," Hutchinson tells GlobeSt.com. "Wylie is part of Collin County, which is ranked in the top 25 fastest growing counties nationally. Wylie is also a progressive city with solid median household incomes, so it aligns well with our strategy."
The self-storage industry is better positioned operationally today than at the time of the great financial crisis, given the advances in Internet marketing and sophisticated revenue management platforms, according to the JLL report. These platforms provide large operators advantages in capturing and holding market share. And, online rental programs have been expedited/expanded in order to facilitate contactless rentals.
However, new construction declined throughout first quarter and has essentially stopped due a lack of available financing and generally difficult economic conditions. Rental rate increases have generally been suspended in April and May, says the report.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
