Inland Real Estate Group to Acquire Majority Stake in Devon Self Storage

Inland Real Estate Group of Cos. Inc., an organization comprised of independent commercial real estate and finance entities, has agreed to purchase a majority interest in Devon Self Storage Holdings LLC, which operates approximately 200 facilities in 24 states. The companies already share a long history, having collaborated on development projects and property management through affiliates Inland Private Capital Corp. (IPCC) and Inland Real Estate Acquisitions LLC, including several joint ventures.

Inland entered the self-storage sector in 2016 and has amassed a $1.7 billion portfolio across 30 states. Devon already manages many of its properties, according to a press release.

“Acquiring a vertically integrated self-storage platform aligns perfectly with Inland’s long-term strategic plans,” said Tony Chereso, chief financial officer for the Inland Real Estate Group. “[Devon founder Ken Nitzberg] and his team have built a powerful brand and platform that will not only integrate well within Inland, but also provide tremendous growth opportunities across our many investment and commercial real estate operating companies.”

Inland intends to leverage Devon’s existing senior-management team while providing additional capital and infrastructure to grow the operator’s third-party management and development platforms, the release stated.

“Devon has been an integral strategic partner as Inland has expanded our presence in the self-storage sector,” said Keith Lampi, president and CEO of IPCC. “As the sector continues to institutionalize, creating operational efficiencies for the benefit of our investors through scale has never been more important. I am looking forward to the synergies created by this transaction.”

“For over 30 years, Devon has been doing what we do best: acquiring, redeveloping and operating high-quality self-storage properties,” Nitzberg said. “I am thrilled to continue that work with Tony, Keith and the entire Inland team, as well as Devon’s more than 270 employees dedicated to delivering best-in-class self-storage properties and services.”

Founded in 1988 and based in Emeryville, California, Devon has owned, managed or developed more than 350 self-storage facilities in 27 states and three European countries, the release stated.

Headquartered in Oak Brook, Illinois, Inland specializes in multiple-owner, tax-focused, private-placement investments as well as Qualified Opportunity Zone investments nationwide. It manages a diverse portfolio of more than $10 billion across several asset classes spanning 43 states.

Source: Business Wire, Inland Acquiring Majority Interest in Devon Self Storage Business