Virtus Real Estate Capital, a real estate private equity firm, has acquired the 97,800-square-foot Outback Storage facility in Horn Lake, Miss. The transaction is the company's ninth self-storage acquisition in the greater Memphis area.
Built in 2005, Outback Storage contains 636 units. The site is just west of the heavily traveled intersection of Highway 51 and Goodman Road, according to a press release. Horn Lake is situated in one of the fastest growing areas in the mid-south region, which includes Arkansas, Mississippi and Tennessee.
"Outback Storage is a welcome addition to our portfolio of eight other Memphis area self-storage properties. With local population growth expected to average two to three percent for the next five years and significant retail and residential development along the Goodman Road corridor, this site was a prime target for Virtus to add to our existing portfolio of Memphis stores," said Scott Humphreys, acquisitions manager.
Extra Space Management, the facility-management arm of Extra Space Storage Inc., has been hired to run the onsite operation. Outback Storage is the company's 26th management contract in the Memphis area.
Since its inception in 2003, Virtus has acquired more than $2 billion in commercial real estate assets, including more than $100 million in self-storage. The companys strategy is to acquire commercial niche properties that serve the high-growth segments of the U.S. population, including medical offices, self-storage, senior living and student housing. Virtus is actively seeking opportunities to acquire self-storage properties in its target markets.
Headquartered in Salt Lake City, Extra Space is a fully integrated, self-administered and self-managed real estate investment trust. The company owns or operates 1,007 self-storage properties in 35 states; Washington, D.C.; and Puerto Rico. The companys properties comprise approximately 667,000 units and 74 million square feet of rentable space.