Crow Holdings Capital Real Estate Enters Self-Storage Investment Market

Crow Holdings Capital Real Estate (CHCRE), a Dallas-based asset manager of private-equity real estate funds, has entered the self-storage sector with an investment strategy to develop new facilities and acquire existing properties. As of April 1, CHCRE had either acquired or provided joint-venture development equity for 14 self-storage assets across the United States. The portfolio comprises more than 1 million square feet of net rentable square feet in 9,780 units, according to a press release.

"We have been following this sector for quite some time and believe the timing is right to focus our investment strategy to include self-storage properties,” said Ben Doherty, head of self-storage investment strategies. “This is particularly true because the sector is less reactive to the typical market swings that have impacted core asset classes during economic cycles. Moreover, the storage space has strong fundamentals but is a very fragmented asset class with a lack of institutional ownership. Thus, we are deploying a consolidation strategy of predominantly class-A product. We are excited by the opportunities we have seen in the market thus far and look forward to deploying more capital in this space."

The company intends to acquire “newer vintage” properties or form joint ventures to develop new facilities. It’s focused on major and large, secondary U.S. markets. “Specifically, CHCRE will target well-located properties that provide an opportunity for operational improvement, expansion of the existing property, or the repurposing of existing buildings and development sites, where fundamentals warrant new product,” the release stated.

CHCRE is the investment advisor to the remaining real estate funds first sponsored by parent company Crow Holdings. Since 1998, the funds have raised more than $6.25 billion in equity, including $800 million from Crow Family Holdings, a related entity formed in 1987 as a family office to own and manage the capital of the Trammell Crow family. CHCRE is managed and directed by a team of seven members, according to the release.

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