NexPoint Acquires 29-Property SAFStor Self-Storage Portfolio

December 15, 2022

2 Min Read
NexPoint Acquires 29-Property SAFStor Self-Storage Portfolio

NexPoint Storage Partners Inc., the affiliate self-storage platform of alternative-investment firm NexPoint Advisors, has acquired the 29-property SAFStor self-storage portfolio. The facilities are in “high-density, high-growth submarkets” in major U.S. metropolitan areas including Baltimore, Cleveland, Detroit, Houston, Miami, Nashville, New Orleans, Philadelphia and Washington, D.C., according to a press release.

“The SAFStor acquisition continues the strong execution of our strategy to own the newest and highest quality self-storage portfolio in the United States, and provides us with greater financial flexibility and unique opportunities to pursue new investments in the latest generation of self-storage facilities,” said John Good, CEO of NexPoint Storage. “This platform, which includes 17 additional properties owned by Delaware statutory trusts that we have a right to acquire in the future, comprises a $2 billion asset-value portfolio, which we believe would be one of the largest privately held self-storage portfolios in the U.S.”

SAFStor ranked No. 49 on this year’s Inside Self-Storage Top-Operators list of facility owners, reporting a portfolio of more than 2.3 million rentable square feet across 14 states.

In conjunction with the SAFStor acquisition, NexPoint Storage and real estate investment trust (REIT) Extra Space Storage Inc. agreed to modify the preferred-equity investment the REIT made in connection with NexPoint’s $900 million acquisition of Jernigan Capital Inc. in 2020. The mandatory redemption date of the preferred stock has been extended from November 2025 to December 2028, with the investment consolidated into a single $300 million Series D preferred stock at an annual dividend rate of 8.5%, the release stated. Extra Space will also manage the entirety of the NexPoint Storage portfolio comprising about 90 facilities.

Launched in 2020, NexPoint Storage originates, executes, finances and manages self-storage investments, with a focus on newly built, multi-story, climate-controlled facilities. It’s an affiliate platform of Dallas-based NexPoint Advisors, which is comprised of investment advisers and sponsors, a broker-dealer, and a suite of related investment vehicles. The firm provides differentiated access to real estate and other alternatives through public and private REITs, tax-advantaged real estate vehicles, registered funds, and other offerings. It has interests across multiple property types and is part of an integrated network of investment-management and financial-services businesses.

Based in Daytona Beach, Florida, SAFStor has developed and managed more than 7 million square feet of self-storage nationwide. It’s developed more than $4 billion worth of mixed-use real estate since 2012 and more than $1.5 billion of self-storage since 2017, according to the release.

Headquartered in Salt Lake City, Extra Space owns or operates 2,327 self-storage properties in 41 states and Washington, D.C. The company’s properties comprise approximately 1.6 million units and 175.1 million square feet of rentable space.

Source: PR Newswire, NexPoint Storage Partners Acquires SAFStor to Expand Self-Storage Portfolio

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