Real estate investment trust (REIT) W. P. Carey Inc. has acquired four self-storage facilities in Midland and Odessa, Texas for approximately $33 million. The purchase was made through CPA: 17 Global, one of W.P. Careys publicly held, non-traded REIT affiliates.
The company financed $19.5 million through Wells Fargo. The properties comprise 361,490 square feet and will be managed by CubeSmart.
"The acquisition of this exceptional group of assets allows us to add four well-located properties that were recently built and benefit from modern amenities to our portfolio, said Anne Coolidge Taylor, W. P. Carey Managing Director. The solid financial metrics of the properties, combined with the desirable attributes of the properties themselves, support CPA:17 Global's long-term, income-oriented investment objectives.
The deal was brokered by Brandon Karr, a senior associate in the Fort Worth, Texas, office of Marcus & Millichap Real Estate Investment Services. The purchase is W. P. Careys first in West Texas, Karr said.
The Midland-Odessa area is thriving due to energy demand, with year-over-year economic growth of 13.5 percent, spurring the buyer to invest here even though it was unfamiliar territory, he said.
W. P. Carey is an investment-management company that oversees a global investment portfolio of approximately $13.7 billion. It provides companies worldwide with long-term sale leaseback and build-to-suit financing, and engages in other types of real estate-related investment.
CubeSmart owns or manages 508 self-storage facilities nationwide and operates the CubeSmart Network, which consists of approximately 800 additional facilities. According to the Inside Self-Storage Top-Operators List, the company is the fourth largest operator of self-storage facilities in the United States.