Andover, Angelo Gordon Land $315M for Self Storage Portfolio

Andover Properties, in partnership with TPG Angelo Gordon, a real estate investing platform within TPG, has received $315 million in refinancing for a 43-asset self storage portfolio. Newmark arranged the loan, provided by Wells Fargo, Goldman Sachs and 3650 Capital.

The collection includes 21,300 units across 3.1 million rentable square feet. Under Andover’s self storage platform and brand Storage King USA, the properties are located in 24 markets across 11 states.

Newmark’s Co-Presidents of Global Debt & Structured Finance Jordan Roeschlaub and Jonathan Firestone, Vice Chairman Nick Scribani and Director John Caraviello arranged the transaction.

Another large refinancing deal took place earlier in June. A joint venture between Metro Storage and Fremont Realty Capital received a $185 million floating-rate loan for a 20-asset portfolio, provided by global alternative investment firm Värde Partners.

As one of the largest self storage operators in the U.S., Andover’s portfolio includes 160 properties valued at more than $2.8 billion, with a footprint of approximately 12 million square feet across 18 states. Back in August, the company acquired six Class A self storage facilities from Metro Self Storage. Totaling approximately 500,000 rentable square feet, the facilities are located in suburban Philadelphia and throughout Florida.

Despite the sector’s current weak fundamentals, there is now more certainty in the self storage investment market following the Federal Reserve interest rate cut in September.

Nevertheless, advertised asking rates remained negative on an annual basis as of September, while the self storage under-construction pipeline stagnated at 3.4 percent of the total stock, unchanged from the previous month.