CBRE IM Lands $114M Loan for Self Storage Portfolio
Prudential Financial provided the financing for the 14-asset acquisition.
CBRE Investment Management, in a joint venture with The William Warren Group, has acquired a 14-property self storage portfolio in Southern California and Utah.
The 8,697-unit portfolio was purchased from KOAR Institutional Advisors, with Prudential Financial providing a $114 million loan, according to county records.
With this acquisition, the fund sponsored by CBRE Investment Management owns 100 self storage properties across the U.S., bringing the number of units in its portfolio to 55,477. The company previously acquired another self storage portfolio in 2021, located in Colorado, California and Washington. The assets traded for $118 million. CBRE purchased a 77,197-rentable-square-foot storage facility in Surprise, Ariz., last July.
The 14-asset portfolio is managed by the William Warren Group and will operate under the StorQuest brand. Most of the self storage facilities are single-story, drive-up units and include a mix of indoor, climate-controlled units and outdoor units. The portfolio is now 95 percent leased. The facilities are located in key markets, including Los Angeles, Inland Empire, San Diego and Salt Lake City.
CBRE Vice Chairman Nick Walker represented the seller. Vice Chairmen Tom Traynor and James Millon of CBRE’s Large Loans division, alongside Talonvest Capital, arranged the financing for the acquisition.
As of January, the national street rate for all unit sizes decreased by 2.8 percent year-over-year, a Yardi Matrix report shows. In terms of monthly changes, the West Coast registered a downward trend, with Inland Empire and San Diego having a 0.6 and 0.7 percent decrease month-over-month. Los Angeles remained stagnant with no street rate change.