Update 8/9/18 – Hines has acquired a 4-acred parcel in Tempe, Ariz., on which it intends to build a 65,275-square-foot self-storage facility. The property at 8575 S. Priest Drive is the company’s second land acquisition in the Phoenix market for storage development.
“This site, in South Tempe, is situated adjacent to IKEA, Life Time Fitness and Dick’s Sporting Goods, as well as the on/off ramp to Interstate 10—all great generators of traffic for the new facility,” said Norman Herd, president of brokerage firm Quantum Property Advisors, in a press release.
Herd represented Hines in the transaction and is also representing the company in its acquisition of other development sites in the Phoenix metropolitan area, according to the release.
Based in Phoenix, Quantum is a real estate services firm specializing in self-storage. Its services include brokerage, financial analytics and market related consulting. It operates a satellite office in Seattle.
6/8/18 – Hines is considering self-storage developments in Glendale, Scottsdale and Surprise, Ariz., as well as Colorado and Texas. In addition, it has tapped self-storage real estate investment trust and third-party management firm CubeSmart to manage the Val Vista Self Storage property in Gilbert upon completion, according to the source.
Though the Phoenix metropolitan market is projected to experience a 9 percent increase in self-storage supply within the next 12 months, according to data analytics firm STR Inc., Hine remains bullish on the area for the addition of strategically planned developments.
“Hines strives to be the best real estate developer in all building types, and storage is an area which serves our existing clientele well, especially the significant single-family and for-rent multi-family customers we have throughout our markets,” Drew Steffen, managing director, told the source. “We also see a lot of lower-class storage, but not well-placed class-A storage. We strive to fill this void with a better Hines-quality product.”
5/14/18 – Hines, an international real estate development, investment and management firm, intends to diversify its commercial portfolio with three self-storage facilities planned for the Phoenix metro market. The projects will comprise more than 250,000 square feet of storage space in Gilbert, Litchfield Park and Tempe, Ariz. The firm plans to develop three to five new storage projects annually and partner with established industry management companies to operate its portfolio, according to a press release.
The first development, expected to open early next year, will be Val Vista Self Storage at the northwest corner of Val Vista Drive and Queen Creek Road in Gilbert. Part of a 20-acre mixed-use commercial project, the facility will comprise 75,000 square feet in about 510 units.
The two other projects are expected to break ground this fall. The Litchfield Park facility will comprise 83,000 square feet, while the Tempe project is expected to be 96,000 square feet. Hines is also considering future self-storage sites in Glendale, Scottsdale and Surprise, Ariz.
“Hines is known for landmark office projects and large-scale, mixed-used developments which can take years to develop from start to finish. We are diversifying our portfolio and increasing our volume of projects with self-storage facilities, which are becoming a desired amenity and take a year or less to build,” said Chris Anderson, managing director and Arizona team leader. “In addition, the timing is right. High-end self-storage projects are becoming a new trend as people live in smaller houses and need more storage.”
The company has several other commercial projects either planned or underway in Arizona.
Founded in 1957, Hines is a privately owned global real estate investment firm with a presence in 24 countries. It has approximately $111 billion of assets under management and 108 development projects underway around the world. The firm’s current management portfolio includes 506 properties comprising more than 210 million square feet, the release stated.
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