U-Haul Expands Minnesota Footprint

U-Haul has acquired a five-property portfolio located in Cass and Crow Wing counties of northern Minnesota. The facilities were previously under KO Storage ownership, which purchased them in 2019 for $4.5 million.

The self storage assets total 790 drive-up units. Apart from the facility in Brainerd, Minn., all properties will be operated remotely. U-Haul amenities feature 24-hour access, video surveillance, easy access to drive up units and boxes and packing supplies, among others.

The self storage collection includes the following properties:

• U-Haul Storage N. Baxter offers 379 units, located at 15237 Edgewood Drive in Brainferd, Minn.
• U-Haul Storage Baxter South includes 129 units, located at 6897 Foley Road in Baxter, Minn.
• U-Haul Storage of Nisswa has 179 units, located at 4745 County Road 77 in Nisswa, Minn.
• U-Haul Storage of MN-210 features 51 units, located at 3118 MN-210 in Pillager, Minn.
• U-Haul Storage of Pillager offers 52 units, located at 1768 Alfalfa Trail SW in Pillager, Minn.

Investment interest in self storage

A recently completed self storage transaction took place last month when the company purchased a four-property portfolio in Minnesota and Kansas from NexPoint Storage Partners. The facilities in the Minnesota collection, previously under the Extra Space brand, were part of the Twin Cities market.

With the Federal Reserve announcing last week the second interest rate cut of this fall, investor interest in the self storage market could potentially increase. Nevertheless, advertised asking rates have remained negative on an annual basis as of September, as the overall advertised street rate per square foot had a 3.5 percent decline year-over-year, down to $16.55, a recent Yardi Matrix report shows.