Rosewood Property Buys 12,000-Unit Storage Portfolio

This is the largest self storage acquisition in the company's history.

1289 FM518 Kemah, Texas

Rosewood Property Co. has acquired a 16-property self storage portfolio from Extra Space Storage. Newmark represented the seller in the transaction, while Talonvest Capital Inc. helped structure the acquisition financing on behalf of the buyer. The purchase adds nearly 12,000 units to Rosewood’s portfolio and marks the company’s largest self storage transaction to date.

Following this transaction, Rosewood’s expanded its footprint by 1.3 million square feet across 12 states in the South and the Midwest. The company now owns 73 self storage facilities across 21 states, totaling more than 5.8 million square feet.

Portfolio breakdown

The largest asset in the portfolio is a 245,062-square-foot facility at 1289 FM518 in Kemah, Texas, some 30 miles from downtown Houston. Developed in phases between 1983 and 2002, the property offers units ranging between 25 and 1,440 square feet, climate-controlled options, and RV and boat parking spaces. According to Yardi Matrix data, the property last traded in 2006, when Extra Space Storage acquired it for nearly $11.6 million from a private individual. 

READ ALSO: Top 5 Markets for Self Storage Transactions in 2021

The portfolio also includes a 224,015-square-foot facility at 990 Alta Mere Drive in Fort Worth, Texas. The 1975-built property features non-climate-controlled storage spaces ranging between 25 and 720 square feet. The property includes RV and boat parking spaces.

Rosewood Properties also acquired a 196,662-square-foot facility at 1406 Capital Circle NE in Tallahassee, Fla. Built in phases between 1979 and 1987, the property has climate-controlled units, as well as RV and boat parking spaces. Units range between 25 and 1,250 square feet. Extra Space Storage acquired the facility in 2006 for $7.7 million, according to the same data provider. 

The other 13 facilities are:

  •       1242 N Dean Road, Auburn, Ala.
  •       1412 Opelika Road, Auburn, Ala.
  •       215 Gold Star Highway, Groton, Conn.
  •       17531 NW 2nd Ave., Miami, Fla.
  •       2364 Tobacco Road, Augusta, Ga.
  •       355 Fry Road, Greenwood, Ind.
  •       6708 Preston Highway, Louisville, Ky.
  •       1742 Pass Road, Biloxi, Miss.
  •       14300 E Frontage Road, Grandview, Mo.
  •       201 Eubank Blvd. SE, Albuquerque, N.M.
  •       950 Cherry St., Kent, Ohio
  •       8850 Rivers Ave. North Charleston, S.C.
  •       10617 Fuqua St., Houston, Texas

The Talonvest team that arranged the acquisition loan for Rosewood included Principals Jim Davies, Erich Pryor and Tom Sherlock. At the end of 2021, the firm also helped arrange $112 million in self-storage loans for four of its clients, including The William Warren Group, The Jenkins Organization and Chicago Capital Funds.

The recent financing deals reflect investors’ and lenders’ confidence in the self storage market. Even with rent growth declining in the last quarter of 2021, rent gains over the last year remain high by historic standards. Approximately $9.9 billion worth of assets traded nationwide throughout 2021, representing 95 million square feet of storage, Yardi Matrix data shows. The figure is more than double the one recorded in the previous year, when self storage sales amounted to $4.1 billion. 

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