TPG, Andover Properties Secure $315M for Self-Storage Portfolio
The portfolio covers more than 21,000 units.
TPG Angelo Gordon and its partner Andover Properties have received a $315 million loan to refinance their large self-storage portfolio, which contains 43 assets.
The properties are spread out across 11 states and in 24 different markets, operating under the Storage King USA brand, Andover’s self-storage platform. This portfolio covers a total of 3.1 million rentable square feet and more than 21,300 units. The exact state and regions were not revealed.
It’s unclear when the duo first purchased it, but the portfolio has experienced net operating income growth of 40 percent since the acquisition.
According to Newmark, which arranged the financing, self-storage has been picking up steam. In the second, quarter, research from the CRE firm shows that transitions in the space surged 27 percent from the first three months of the year. But it may not stop there, as Newmark expects “activity to accelerate over the remainder of the year.”
“This transaction highlights the market’s continued appetite for well-performing alternative real estate sectors such as self-storage,” Jordan Roeschlaub, co-president of global debt & structure finance at Newmark, said in a statement.
“In today’s competitive landscape, credit investors are increasingly looking to diversify their portfolios beyond traditional real estate sectors with assets that demonstrate durable cash flow, long-term growth and resilience to macroeconomic shifts.”
The move comes as TPG is also putting a major emphasis on industrial outdoor storage (IOS). The company along with joint venture partner Triten Real Estate Partners, plans to acquire more than $1 billion in those properties over the next five years. That would be in addition to the 18 properties and the more than $500 million that they acquire and invest each year in IOS assets. TPG has $229 billion worth of assets under management.
Andover under its entire Storage King USA portfolio operates 162 facilities in 18 states, covering over 13.5 million rentable square feet.
Wells Fargo, Goldman Sachs, and 3650 Capital provided the financing for Andover and TPG’s portfolio.