Safely Store Scores $160M Credit Facility
A portfolio of 11 self storage properties backs the financing.
Safely Store Self Storage has obtained a $160 million credit facility backed by a portfolio of 11 storage facilities across seven major U.S. markets. J.P. Morgan provided the financing, which consists of a $60 million term loan and a $100 million accordion feature, in a deal arranged by JLL Capital Markets.
Safely Store is a self storage platform created by the principals of Taylor/Theus Holdings Inc. and Iron Point Partners. It is backed by a $400 million investment from La Caisse, previously known as CDPQ, and another global institutional investor.
The seed portfolio amounts to 872,000 rentable square feet and comprises a mix of properties, from multi-story, climate-controlled facilities to single-story, drive-up assets. Extra Space Storage oversees the collection located across Arizona, California, Florida, Georgia, New Jersey and Texas, according to Yardi Matrix information.
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One of the properties is the 115,644-square-foot Extra Space Storage at 2661 Briarcliff Road in Atlanta. The four-story facility, completed in 2021, comprises only climate-controlled units.
Currently, the platform’s collection encompasses six existing properties, one facility under construction and five in the pipeline.
JLL Senior Managing Director Brian Somoza, Senior Director John Bauman, Associate Jordan Buck and Analyst Shishir Reddy led the Capital Markets Debt Advisory team representing the borrower.
Self storage draws investor interest
Despite ongoing challenges in the multifamily industry, the self storage market continues to attract institutional investors, according to a DXD Capital report.
The sector is still readjusting, with the first quarter of the year marking a new cyclical low. Weighted REIT occupancy fell below the 92 percent threshold long considered the industry’s long-term average, reaching 91.5 percent. At the same time, the recent growth in mega-mergers and strategic joint ventures suggests that self storage has become a core institutional asset class and points to continued consolidation.
