An affiliate of self-storage real estate investment trust and management company National Storage Affiliates Trust (NSAT) has acquired 34 properties from investment-management firm Inland Private Capital Corp. (IPCC) for $265 million. The facilities comprise a total of 2.1 million square feet across four states. They were packaged in three IPCC-sponsored Delaware statutory trust (DST) programs, according to a press release.
Self-Storage Portfolio I DST sold for $129.8 million. It included 17 self-storage properties comprising more than 1 million square feet in 7,612 units. Eleven of the sites are in Texas, with four in Kansas and two in Georgia. They were acquired in 2016.
Self-Storage Portfolio II DST, which sold for $54.7 million, included eight facilities in Tennessee. They comprise 416,135 square feet in 3,564 units. They were acquired in 2016.
Self-Storage Portfolio IV DST included nine properties in Texas comprising 667,826 square feet in 4,986 units. Acquired in 2017, they sold for $80.4 million.
“The storage sector has seen a dramatic increase in institutional demand for large scale, self-storage transactions over the past 12 months; and as a result, we believed a portfolio sale spanning several of our early vintage DST offerings would maximize returns to our investors,” said Keith Lampi, IPCC president and chief operating officer. “This thesis was vindicated given the significant amount of institutional demand we received upon marketing the portfolio for sale, resulting in a favorable outcome to investors with average annualized returns ranging from 11% to 16.75%.”
IPC was represented in the transaction by Charles “Chico” LeClaire and Adam Schlosser of the LeClaire/Schlosser Group for Marcus & Millichap, a commercial real estate investment services firm with offices throughout Canada and the United States.
Based in Oak Brook, Illinois, IPCC is a sponsor of real estate securities and a part of the Inland Real Estate Group of Cos. Inc., which is comprised of independent legal entities. The company specializes in multiple-owner, tax-focused, private-placement investments as well as Qualified Opportunity Zone investments nationwide. It manages a diverse portfolio of more than $9 billion across several asset classes spanning 43 states.
Headquartered in Greenwood, Colo., NSAT is a self-administered and -managed REIT focused on the acquisition, operation and ownership of self-storage properties within the top 100 U.S. Metropolitan Statistical Areas. The company has ownership interest in 940 storage facilities in 38 states and Puerto Rico. Its portfolio comprises approximately 60.4 million net rentable square feet. It's owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures.