Buchanan Street Launches Self Storage Platform
The firm plans to deploy $350 million to $500 million over the next five years in both acquisition and development.
Buchanan Street Partners has launched a self-storage platform. Under the new platform, the firm plans to deploy $350 million to $500 million over the next five years in both acquisition and development, and it will target major metros in the Western United States. Feerooz Yacoobi has joined the firm as VP to lead the new platform.
“At Buchanan Street, we are focused on assets that we intend to hold for the long-term,” Timothy Ballard, president and CEO at Buchanan Street Partners, tells GlobeSt.com. “Self-storage’s combination of low capital costs and resiliency during economic downturns makes it an attractive asset class for Buchanan. Furthermore, self-storage remains a fragmented industry where opportunity continues to exist due to an abundance of assets that are held by private parties and less sophisticated owners. Historically, we’ve had exposure to the self-storage industry through our mortgage business and watched its performance over the last several years. We decided now was the time to pull the trigger, as our pool of investors favor low volatility cash flows and the asset type provides strong yield in today’s economic environment compared other investment alternatives. The sector aligns with Buchanan Street’s investment strategy.”
Yacoobi joins the firm from William Warren Group / StorQuest Self Storage, where he was VP. “One of Buchanan’s hallmarks is our people. Feerooz has not only made significant accomplishments in the development and acquisition of over 12,000 self-storage units, but he is also a perfect cultural fit for Buchanan,” says Ballard. “He has demonstrated throughout his life the ability to achieve his goals whether they are professional, academic or personal. He is the kind of leader Buchanan seeks.”
The self-storage market has continued to perform through the pandemic, and Buchanan is bullish on opportunities in the asset class. “We would like to see a minimum of $100 million of self-storage investments in 2021,” says Yacoobi. “As we build out our portfolio, we will also begin to build out the self-storage team. Given where we are in the cycle we don’t see ground-up development being a major focus for us in the next year. In terms of markets, we will stay focused in the Western US, specifically in the more dense and high growth markets, such as California, Phoenix, Denver, Texas, Las Vegas, Salt Lake City, Portland and Seattle.”