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W.P .Carey, Inc. Invests Big in Self Storage, Acquires 7 Facilities for $53M
Posted 2/6/2015
Author Stephen Hollowell
 
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 W.P .Carey, Inc. Invests Big in Self Storage, Acquires 7 Facilities for $53M

New-York based global net-lease real estate investment trust (REIT) W.P. Carey, Inc. recently announced their acquisition of seven self storage facilities in the United States with CPA:18 - Global, a W.P. Carey REIT affiliate. With a purchase price of approximately $53M, this recent acquisition pushed W.P. Carey to a total of 14 self storage deals in 2014.

Comprising nearly 500K square feet with approximately 5,000 self storage units, the seven properties include the following facilities across five states:

·         Kailua-Kona, HI: 56,352 square feet - 507 units

·         Pompano Beach, FL: 74,927 square feet - 771 units

·         Jensen Beach, FL: 63,650 square feet - 755 units

·         Dickinson, TX: 76,800 square feet - 660 units

·         Humble, TX: 59,325 square feet - 468 units

·         Temecula, CA: 89,228 square feet - 660 units

·         Cumming, GA: 73,237 square feet - 513 units

All properties will be managed by W.P. Carey’s two main self storage operators; Extra Space Storage, Inc. and CubeSmart.

Extra Space Storage, Inc.

Extra Space Storage, which will manage five of the recently acquired properties, is headquartered in Salt Lake City, UT with 1,050 locations in 35 states, Washington DC and Puerto Rico.

CubeSmart

CubeSmart, which will manage two of the properties, has more than 1,200 locations nationwide. Formerly known as U-Store-It Trust, CubeSmart is recognized as the fourth largest operator of self storage facilities in the United States.

W.P. Carey’s Investment into the Self Storage Sector

Out of W.P. Carey’s total investment volume of $1.8 billion (as of 2013), self storage properties represent a small but important share. The REIT also invests in the industries of office, retail, manufacturing, and research and development.

On the recent acquisition and W.P. Carey’s investment in the self storage space since 2006, Managing Director Liz Raun Schlesinger stated:

“The self-storage industry has shown resilience in both good and bad economic times… Higher post-recession housing costs, both for rental and for-sale housing, has led more people to live in smaller spaces, creating greater need for storage units.”

WORKS CITED:

Harris, Alexander. “In 2014, W.P. Carey Expects to Match Last Year’s Self-Storage Acquisition Pace.” The Storage Facilitator. http://blog.selfstorage.com/self-storage-reits/w-p-carey-acquisitions-3655  Jan. 24, 2014.

“CPA:18 - Global Completes Self-Storage Acquisitions Totaling $53 Million.” W.P. Carey. http://ir.wpcarey.com/file.aspx?IID=4054624&FID=27330408  Jan. 29, 2015.

“W.P. Carey Completes Self-Storage Acquisitions Totaling $32 Million on Behalf of CPA:18 - Global.” PR Newswire. http://www.prnewswire.com/news-releases/w-p-carey-completes-self-storage-acquisitions-totaling-32-million-on-behalf-of-cpa18---global-551952304.html  Oct 22, 2014.

“W.P. Carey REIT Affiliate Acquires 7 Self-Storage Properties for $53M.” Inside Self-Storage. http://www.insideselfstorage.com/news/2015/01/w-p-carey-reit-affiliate-acquires-7-self-storage-properties-for-53m.aspx  Jan. 30, 2015.

 

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