Self-Storage Asset Gets Scooped Up Before Activity Lull
The Wylie class-A self-storage facility was an opportunistic investment for Trez Capital’s growing portfolio with Hines and it also fits with Hines’ strategy to acquire visible properties in rapidly growing cities such as Wylie.
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.