KKR Sells Southwest Self Storage Assets

In separate deals, buyers acquired assets in California, Texas and Arizona.

Image by SeventyFour/iStockphoto.com

KKR has recently sold off four self storage properties located in Texas, Arizona and California. The firm sold the Class A self storage facilities to undisclosed buyers for a combined $80 million in two separate transactions.

The self storage properties totalled 2,897 units. The two Austin projects were sold to one buyer, with the other two assets, located in in Riverside, Calif., and Phoenix, sold to another. The facilities were owned by KKR’s Americas opportunistic equity real estate fund, KKR Real Estate Partners Americas III.

The fund closed in October 2021, raising $4.3 billion from a group of investors that included public pensions, sovereign wealth funds, insurance companies, family offices, high net worth individuals and other institutional investors. According to KKR, the third fund in the series had already committed more than $1 billion as of September 2021.

KKR started investing into the self storage sector in 2021, launching Alpha Storage Properties, which was tasked with acquiring and managing a portfolio of self storage assets in high-growth markets and strategic infill locations across the U.S. KKR started its self storage portfolio with the acquisition of three self storage facilities in Austin, Texas, and Nashville, Tenn., in separate transactions totaling $36 million in July 2021. KKR owns 25 self storage assets with more than 18,000 units in 10 U.S. markets.

Beyond self storage properties, KKR has been investing in multifamily properties globally through KKR Real Estate Select Trust, known as KREST, which, late last year, acquired two Class A multifamily properties in downtown Brooklyn and in Philadelphia totaling 1,380 units, as well as 39 communities in Tokyo.

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