Self Storage Companies Complete Merger
Go Store It Self Storage and Snapbox Self Storage Merge own a combined portfolio of 146 properties in the U.S.
Go Store It Self Storage and Snapbox Self Storage have merged. The combined entity owns upwards of 10 million square feet of self storage space in 146 locations across 23 states. The company will be named Go Store It Self Storage.
The combined company will be a more robust platform for operational efficiency, according to Go Store It CEO Ryan Hanks., who will be co-CEO alongside Jake Ramage. Other executives include President Matt Lang, CFO Scott Hastings, CIO Evan Stephens and COO Beau Agnello.
Founded in Charlotte, N.C., in 2013, Go Store It Self Storage had 96 operating properties and nine properties under construction before this deal. From its hometown in Philadelphia, Snapbox Self Storage owns and manages a pre-merger portfolio of 50 properties. Snapbox was also founded in 2013.
Go Store It and Snapbox are portfolio companies of FrontRange, a private real estate group that has invested $100 million into Madison Capital Group. Madison Capital Group is a FrontRange platform company and will be a general partner to the new entity.
Madison Capital has been an active investor in self-storage. In February, the firm, alongside SLI Capital, acquired a controlling interest in self storage company Green Space. Green Space is distinctive in that it builds self-storage facilities out of stacked shipping containers.
Interest rates impact demand
Investors are still interested in self-storage, though not as aggressively as in the immediate post-pandemic years. As interest rates remain high, U.S. deal volume continues to be muted, with cap rates in the 5.5 percent to 7 percent range, according to Yardi Matrix, discouraging would-be sellers.
There are a handful of markets doing relatively better, including such urban locations such as New York, Chicago and Washington, D.C., as well as those with very little recently delivered supply, like Denver and Nashville. All markets are experiencing year-over-year declines in advertised rental rates.
Worldwide, however, the self-storage market is on a growth trajectory. The entire market is valued at an estimated $57 billion and will reach $83 billion by 2031, which represents a compound annual growth rate of 5.4 percent.
