Real estate developer Titan Development has partnered with Extra Space Storage Inc., a self-storage real estate investment trust and third-party management firm, to build six storage facilities in Arizona and New Mexico. Together, the projects comprise about 570,000 square feet in approximately 4,200 units. All the developments are expected to break ground before the end of March, with completion expected by the end of December, according to press releases. Each facility will be operated by Extra Space.
All six facilities are part of Titan Development Real Estate Fund I, a $200 million private-equity fund launched by Titan last April to raise capital and provide investment management for more than 20 projects in the company’s pipeline across industrial, multi-family, self-storage and senior-living sectors, according to the source. Titan expects to pursue developments in multiple states including Arizona, Florida, New Mexico, South Carolina and Texas.
The Arizona facilities will be built in Gilbert, in partnership with WDP Partners LLC, a Phoenix-based real estate development and management firm. The first will comprise 755 units near Gilbert and Warner Roads. Groundbreaking is scheduled this month. The second will comprise 91,000 square feet and be built near Coronado and Ray Roads. Construction is expected to begin in March.
The New Mexico projects will serve the Albuquerque and Santa Fe markets. The first Albuquerque facility will comprise 88,000 square feet in 650 units. It will consist of three buildings, according to an earlier report, as well as 92 outdoor parking spaces. Groundbreaking is scheduled this month. The second project will comprise 107,000 square feet in 790 units. The three-story structure will be built near Ladera Drive and Unser Boulevard. Construction is scheduled to begin in February.
In Santa Fe, a 100,000-square-foot facility will be built in the Rodeo Business Park. The two-story, climate-controlled structure will offer 750 units. The second facility will comprise 88,000 square feet along Vegas Verdes Drive. Both projects are scheduled to begin this month.
“The self-storage industry is seeing a lot of disruption due to best-in-class operators like Extra Space Storage who are raising the bar on expectations for self-storage,” said Brian Patterson, director of self-storage development for Titan. “These new facilities [will] have innovative features that customers now expect with self-storage.”
All three cities will open new markets for Titan. Founded in 1999, the company provides real estate services including acquisitions, design/build leaseback, joint ventures, land entitlement, and private-equity real estate fund management. It has land holdings across Florida, New Mexico and Texas.
Headquartered in Salt Lake City, Extra Space owns or operates 1,513 self-storage properties in 38 states; Washington, D.C.; and Puerto Rico. Its properties comprise approximately 1.03 million units and 114 million square feet of rentable space.
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