An affiliate of Los Angeles-based investment firm Kayne Anderson Capital Advisors LP has acquired three Milwaukee-area self-storage facilities for $34.3 million. All three properties are branded as Extra Space Storage, with at least two being managed by that real estate investment trust. They were acquired by a joint venture between Boston-based real estate investment firm The Davis Cos. and Highland Development Ventures, a New York-based real estate developer and investment company specializing in self-storage and student-housing conversions, according to the source.

The facility at 1131 N. 8 St. in Milwaukee was purchased for $13 million. The 1,000-unit facility is on the lower level of a large, mixed-use project in Building 42 of a former Pabst Brewing complex. Other parts of the development include an event venue, office space and a rooftop bar. The project was spearheaded by local investor Scott Lurie and constructed by the Davis/Highland joint venture, which acquired the lower level of the project in 2016 for $3 million, the source reported. 

Highland also served as developer of the 80,000-square-foot storage facility at 6805 S. 27th St. in Franklin, Wis., which Kayne Anderson acquired for $12.5 million. The property was converted from unused warehousing space in the back of a former Hobby Lobby store.

The third facility, at 232 S. Curtis Road in West Allis, Wis., was acquired for $8.75 million. No property specifics were reported.

Founded in 1984, Kayne Anderson is an independent, alternative-investment management firm specializing in energy infrastructure, oil and gas companies, specialized real estate, and other niches. It manages $27.5 billion in assets for family offices, high-net-worth individuals, institutional investors and retail clients. It has more than 300 employees across eight offices nationwide.

Founded in 1976, The Davis Cos. is an integrated real estate investment, development and management firm. The firm owns a real estate portfolio of approximately 12 million square feet of bioscience, healthcare, hospitality, light-industrial, multi-family, office and retail properties.

Based in Valhalla, N.Y., Highland is a real estate development and investment firm with interests throughout Canada and the United States. Its primary focus is the adaptive reuse of older buildings and small urban sites, specializing in self-storage and student-housing projects, according to the company website.

Source:
BizTimes, Self-Storage Buildings Sell for $34.4 Million