CPA:18 – Global, an affiliate of global net-lease real estate investment trust (REIT) W. P. Carey Inc., has acquired five self-storage facilities in California, Florida, Hawaii, South Carolina and Texas for a combined purchase price of $32 million. The properties comprise more than 353,000 square feet in 2,895 units and 48 vehicle-storage spaces. The acquisitions are:
- Palm Desert, Calif.—93,098 net rentable square feet in 798 units
- Miami, Fla.—57,240 net rentable square feet in 598 units
- Kailua-Kona, Hawaii—39,500 net rentable square feet in 366 units
- Columbia, S.C.—63,121 net rentable square feet in 442 units and 48 RV-parking spaces
- Corpus Christi, Texas—100,100 net rentable square feet in 641 units
All five assets will be managed by Extra Space Storage Inc.
CPA:18 – Global is a publicly held, non-traded REIT managed by W. P. Carey.
"All five acquisitions represent attractive investment opportunities for CPA:18 – Global's portfolio and show opportunities for growth, revenue enhancement and bottom-line improvement,” said Liz Raun Schlesinger, managing director for W. P. Carey. “We believe that our existing management structure in these areas will enable us to achieve operational synergies that will accrue to the benefit of our investors over time. We are already working with Extra Space Storage in these markets and believe that their ability to manage these assets will, in conjunction with our own storage expertise, enhance their long-term value."
W. P. Carey's owned and managed self-storage portfolio now comprises 158 facilities totaling 9.6 million net rentable square feet. “W. P. Carey first entered the self-storage space in 2004 because the sector demonstrated the same solid, long-term income and cash-flow generating characteristics as the long-term net-leased assets in which we had invested for decades,” added Anne Coolidge Taylor, managing director for W. P. Carey. “While in the current low interest-rate environment, competition for the attractive risk-adjusted returns provided by self-storage assets remains intense. The combination of our access to capital, depth of capabilities, and ability to react to and quickly execute opportunities of all sizes allows us to continue to source and secure long-term investment opportunities in the sector."
New York-based W. P. Carey is an investment-management company that oversees a global investment portfolio. It manages a series of non-traded REITs with assets under management of approximately $8.2 billion. The company’s enterprise value is approximately $9.9 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.