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W. P. Carey REIT Affiliate Acquires 2 Florida Self-Storage Properties for $25M


CPA:18 – Global, an affiliate of global net-lease real estate investment trust (REIT) W. P. Carey Inc., has acquired two self-storage facilities in Florida for a combined purchase price of $24.6 million. The acquisition increases the company's managed self-storage assets in the state to 10 properties totaling 699,674 square feet.

Pleasant Hill Self Storage at 4390 Pleasant Hill Road in Kissimee, Fla., has 83,280 net rentable square feet in 981 units. Constructed in 2006 and expanded to include two additional storage buildings in 2009, it is the newest self-storage facility in the Kissimmee area, stretching across 14.7 acres. In addition to self-storage, the property offers 234 parking spaces for boat/RV storage. It sold for $12 million.

Michael Mele, first vice president of investments at the Marcus & Millichap Real Estate Investment Services Tampa, Fla., office, along with Douglas Mandel, a first vice president of investments, and Todd Everett, senior associate, both in the firm’s Fort Lauderdale office, brokered the transaction. The seller was a limited liability company in West Palm Beach, Fla.

“This sale has an aggressive price per square foot for the Orlando market,” Mele said. “However, the extremely high barriers to entry that exist for new competition and the property’s potential upside justify the sales price for the new owners. The facility also fits nicely into their portfolio."

The second acquisition, a self-storage facility in St. Petersburg, Fla., has 85,842 net rentable square feet in 882 units. Both properties will be managed by Extra Space Storage Inc.

"Following on the heels of our robust acquisition volume in 2013, the acquisition of these two properties is a good start to 2014," said Anne Coolidge Taylor, managing director for W. P. Carey.

The company recently announced $121 million of self-storage acquisitions in 2013 on behalf of its managed REITs. The properties are in California, Florida, Georgia, Hawaii and New York. Active in the self-storage sector since 2004, W. P. Carey owns and manages 153 properties totaling 9.26 million net rentable square feet.

"In terms of the overall storage-investment market, recent reports indicate that over the past two years, competition among buyers has caused self-storage values to increase. As we evaluate new investment opportunities, we continue to monitor local market conditions that indicate growth in new self-storage construction in the coming years," said Liz Raun Schlesinger, another managing director for W. P. Carey. "Having added four Florida storage assets to our managed portfolios during 2013, we continue to be attracted by the overall strength of the Florida storage market."

CPA:18 – Global is a publicly held, non-traded REIT.

New York-based W. P. Carey is an investment-management company that oversees a global investment portfolio of approximately $15.4 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.

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