QualReal Property Group and Store Space Self Storage have formed a strategic partnership to build a $1 billion portfolio of self storage assets across the U.S.
QualReal is planning to commit the majority of the capital for the partnership, while Store Space will bring its in-house technology, property management capabilities, marketing and call center services, as well as its experience with acquisition and developments in the sector.
The partnership’s strategy will focus on value-add and core-plus self storage properties and was seeded with the $200 million acquisition of a 13-property portfolio. The portfolio includes stabilized and recently-developed self storage assets located across seven states, totaling more than 1.1 million square feet in more than 9,000 units.
Following the seed acquisition, the partnership also closed on an off-market acquisition and expansion into New Jersey and developed a significant acquisition pipeline. On their own, both QuadReal and Store Space have years of experience with portfolios of self storage units in U.S. markets with strong demographic and migration trends.
Another strong year expected for self storage
Jameson Weber, managing director of international real estate and Americas at QuadReal, said in prepared remarks that the self storage sector offers steady growth and resiliency, while showing consistent fundamental and demographic tailwinds.
The major commitment from QuadReal and Store Space comes after the self storage sector demonstrated its resilience and growth in the last couple years. Earlier this year, Rob Consalvo, president & COO of Store Space, said that the sector’s overall trend of positive growth would likely continue into most of 2022.
Consalvo and Store Space aren’t the only ones who are confident in the self storage sector’s expected performance this year. Other industry experts are projecting another year of strong performance through growing valuations and high investor interest, following the sector’s record-breaking performance in 2021.