Investment-management firm Harrison Street Real Estate Capital LLC (HSRE), which has extensive interests in “needs-based” real estate, including self-storage, has acquired a portfolio of 15 Trojan Self Storage properties in Arizona, California, Colorado and Minnesota. Together, the assets comprise approximately 1.4 million net rentable square feet in 10,900 units. The purchase was made on behalf of the company’s open-end Core Fund, according to a company press release.
The portfolio includes 10 properties in California, two each in Colorado and Minnesota, and one in Arizona, according to CBRE Group Inc., the commercial real estate services and investment firm that represented the seller and procured the buyer.
“Given our focus on demographically driven real estate, self-storage has been a core area of investing for Harrison Street since inception, and we are pleased to expand our presence in this highly attractive sector,” said Christopher Merrill, co-founder, president and CEO.
HSRE launched the Core Fund in 2011 “to target stabilized assets exclusively invested in the education, healthcare and storage segments of the real estate market,” according to the company website. The Core Fund focuses on “income-producing” assets expected to be held by the company for at least 10 years.
The transaction is the first major self-storage acquisition announced by HSRE since it raised $850 million in 2015 for its Harrison Street Real Estate Partners V LP fund.
HSRE is a real estate private-equity firm with more than $12.2 billion in assets under management through commingled funds and public securities products. The commingled funds focus exclusively on the education, healthcare and self-storage segments of the real estate market. Affiliate Harrison Street Securities LLC manages publicly traded real estate securities on behalf of institutional clients and high-net-worth individuals.