An affiliate company of global net-lease real estate investment trust (REIT) W. P. Carey Inc. acquired 22 self-storage properties in 15 separate transactions during the first six months of 2015 for $161 million. The facilities are spread across seven states and together comprise nearly 1.74 million net rentable square feet in 13,376 units. Individual transactions ranged from $3 million to more than $38 million, according to a press release.
The transactions were executed by subsidiary CPA:18 – Global, a publicly held, non-traded REIT managed by W. P. Carey. The deals expanded the REIT’s presence in California, Florida and Georgia and added holdings in Illinois, Kentucky, Missouri and Nevada. All of the properties will be managed by third parties, with four managed by self-storage REIT CubeSmart and the remaining 18 by Extra Space Storage. They are:
W. P. Carey also announced a new self-storage development project in Vaughan, Ontario, Canada, in partnership with locally based Budget Development Group, which builds and manages self-storage facilities in Canada, according to the release. The Vaughan facility will comprise 108,275 net rentable square feet in 1,137 storage units. It will be managed by Budget Development Group and is expected to open in August 2016, company officials said.
“Our experience in the sector, coupled with our management expertise and ability to assess new markets, allowed us to secure our first development opportunity and enter an attractive, growing and underserved Canadian market with an established local joint-venture partner,” said Liz Raun Schlesinger, managing director and head of self-storage for W. P. Carey. “Sourcing and executing on multiple transactions ranging from single properties to portfolios to solid development opportunities, our team continues to recognize attractive opportunities."
W. P. Carey is a New York-based investment-management company that oversees a global investment portfolio. It manages a series of non-traded REITs with assets under management of approximately $9.5 billion. The company’s enterprise value is approximately $11.2 billion. It provides companies worldwide with long-term sale leaseback and build-to-suit financing, and engages in other types of real estate-related investment.