Flatirons Buys 1.3 MSF Storage Portfolio

Located across the South and Midwest, the property collection totals 9,125 units.

Image courtesy of Joshua Coleman via Unsplash.com

Flatirons Asset Management has acquired a portfolio of 33 self storage properties from Red Dot Storage. The facilities include 9,125 units totaling 1.3 million rentable square feet.

The properties were 90 percent leased as of the end of August. They are located across several states, including Alabama, Iowa, Illinois, Indiana, Missouri, Mississippi, Tennessee and Wisconsin. The portfolio will continue to operate under the Red Dot Storage brand.

Flatirons is a subsidiary of Crosstimbers Capital Group, founded in 2016. The company led the initial investment in Red Dot Storage. Since its launch in 2019, Flatirons Asset Management has acquired 43 self storage properties across 11 states. According to Yardi Matrix data, the assets are operated under the Red Dot Storage brand.

Scott Smith, president & CEO of Flatirons, stated in prepared remarks that the acquisition of this self storage portfolio across the South and Midwest was due to the market’s strong fundamentals that haven’t been negatively affected by the pandemic, which instead boosted the sector’s growth. Smith added that the younger generation’s consumption habits are aligned with Red Dot Storage’s methods of operation. Red Dot offers customers a contactless experience with 24-hour access to the units.

As a recent Yardi Matrix report shows, the boost in the self storage market growth continues to be driven by in-migration trends, especially to secondary markets. Demand for storage space mostly comes from apartment users, with Gen Xers in the lead, followed by Baby Boomers and Millennials.

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