A subsidiary of real estate investment trust and self-storage management company National Storage Affiliates Trust (NSAT) acquired 34 properties from investment management company Inland Private Capital Corp. (IPCC) for $ 265 million. The facilities include a total of 2.1 million square feet in four states. They were grouped into three IPCC-sponsored Delaware Statutory Trust (DST) programs, according to a press release.
The I DST self-storage portfolio sold for $ 129.8 million. It included 17 self-storage properties comprising over 1 million square feet in 7,612 units. Eleven of the sites are in Texas, including four in Kansas and two in Georgia. They were acquired in 2016.
The DST II self-storage portfolio, which sold for $ 54.7 million, included eight facilities in Tennessee. They include 416,135 square feet in 3,564 units. They were acquired in 2016.
The IV DST self-storage portfolio included nine properties in Texas comprising 667,826 square feet in 4,986 units. Acquired in 2017, they were sold for $ 80.4 million.
“The storage industry has seen a dramatic increase in institutional demand for large-scale self-storage transactions over the past 12 months; and therefore, we believed that a portfolio sale covering several of our early vintage DST offerings would maximize returns on investment for our investors, ”said Keith Lampi, President and COO of the IPCC. “This thesis was justified given the significant amount of institutional demand we received when marketing the portfolio for sale, which gave a favorable result to investors with average annualized returns ranging from 11% to 16.75 %. “
IPC was represented in the transaction by Charles “Chico” LeClaire and Adam Schlosser of the LeClaire / Schlosser group for Marcus & Millichap, a commercial real estate investment services firm with offices across Canada and the United States.
Based in Oak Brook, Ill., IPCC is a real estate title sponsor and part of the Inland Real Estate Group of Cos. Inc., which is made up of independent legal entities. The company specializes in multi-owner, tax-driven private placement investments as well as investments in nationwide qualified opportunity areas. It manages a diversified portfolio of over $ 9 billion across multiple asset classes spanning 43 states.
Headquartered in Greenwood, Colorado, NSAT is a self-administered and managed REIT focused on the acquisition, operation and ownership of self-storage properties in the top 100 metropolitan statistical areas of the United States. The company has ownership interests in 940 storage facilities in 38 states and Puerto Rico. Its portfolio comprises approximately 60.4 million net rentable square feet. It is owned by its affiliated operators, who contribute their interest in their self-service storage assets over the next several years as their current mortgage debt matures.