Investment Firm Rizk Ventures Launches SpareBox Storage Targeting $1B Portfolio

Rizk Ventures LLC, an investment platform specializing in healthcare, real estate and technology, has entered the self-storage sector behind the launch of SpareBox Storage. The company intends to create a national operating brand by amassing $1 billion in assets. SpareBox has an initial equity commitment of $200 million from Rizk Ventures and an unidentified institutional investor, as well as acquisition financing of up to $500 million, the source reported.

SpareBox has already acquired 10 facilities in the Amarillo, Texas, market that comprise 670,000 net rentable square feet in more than 4,000 units. It expects to purchase 15 more properties within the next year, founder Thomas A. Rizk told the source.

“The self-storage market has very strong fundamentals, a compelling growth profile and represents a great opportunity to create value and deliver the highest quality service to thousands of consumers, and we are excited about adding the self-storage platform to our real estate portfolio within Rizk Ventures,” Rizk said in a press release. “With approximately 50,000 standalone self-storage facilities and approximately 30,000 smaller operators, we see a unique opportunity to acquire high-quality, well-located businesses that require operational improvements, technology and infrastructure investment, and create a national platform at scale.”

SpareBox intends to target undervalued properties in suburban areas within secondary and tertiary markets as well as strategic opportunities in or near primary markets. “We were early in suburban office in identifying the dynamic demographic shifts occurring in markets across the country and believe the same trends will fuel our self-storage platform,” Rizk said.

Steve Treadwell, most recently chief operating officer of real estate investment trust National Storage Affiliates Trust, has joined SpareBox in the same capacity.

“I’m very excited to join Tom in launching SpareBox Storage. Tom and his team have a deep understanding of the dynamics in play, and they have the ability to leverage their relationships in the capital markets to take advantage of the great opportunities present in the self-storage sector today,” said Treadwell. “The Rizk Ventures team has successfully built multiple national real estate brands, and they are the ideal partners to propel SpareBox forward in building a scalable, national self-storage platform and creating value for our investors.”

Rizk Ventures’ real estate interests span the United States and Latin America. The firm has more than 30 years of real estate experience and currently operates commercial and healthcare properties in Arizona, Florida, Minnesota and Pennsylvania, as well as Colombia. Its portfolio comprises more than 10 million square feet.

Sources:
Bloomberg, SpareBox Storage Eyes $1 Billion in Deals as People Leave Cities
BusinessWire, Rizk Ventures Launches National Self-Storage Platform SpareBox Storage