A Crow Holdings Capital fund executed an excellent example of the premium for scale in the self-storage space, as well as the firm’s discipline in constantly monitoring the market for opportunities to sell. After seeing the pricing that other owners had achieved on portfolio sales, the team assembled a portfolio of six assets in the Self Storage Fund to take to market. Three of these were value-add acquisitions where we engaged institutional REIT managers to replace mom-and-pop owners and grow net operating income through active management. The other three were new developments, each with different joint venture partners. This allowed the partners to take advantage of the portfolio sale and get the favorable pricing achieved through the aggregation. All six of the deals were located in markets with strong supply-demand fundamentals with the high-growth demographics that CHC traditionally targets: Atlanta, Tampa, Dallas, Houston, and Sacramento. The portfolio sold to Extra Space in late 2021, proving that the self-storage REITs are an active buyer in the space.
“Do the right thing because it’s the right thing to do.” “ ”
- Trammell Crow