SecureSpace Self Storage today announced the biggest deal in the company’s history, acquiring 11 facilities with a total of 650,000 square feet in Texas, California and Oregon.
The company, part of InSite Property Group in Torrance, CA, strengthened its presence in the important California and Oregon markets, while also bringing its footprint to desirable Texas . Overall, SecureSpace has nearly 3.5 million square feet of premium storage and parking nationwide.
“We’ve been looking for a long time to get into Texas, and preferably through Austin,” said Nathan McElmurry, SecureSpace’s head of self-storage acquisitions. “Texas is one of the major areas in the country that we weren’t in. We now have a footprint in. The story of Austin is real and we’re waiting for our opportunity. You get true economies of scale.”
What does owning these 11 self-storage facilities enable SecureSpace Self Storage to do now that it couldn’t do before? Why was this such a good time to close the deal?
“This doubles our footprint in the (San Francisco) East Bay, which has significant marketing energy,” said Keith Wetzel, a partner with SecureSpace. “It’s a once-in-a-lifetime opportunity to gain so much scale in such a high-barrier market.”
“We love the Portland market. It’s in between two very huge high-growth markets, San Francisco and Seattle. We have two facilities there and there’s a high education base.”
The intricate deal went smoothly, McElmurry said.
“It was remarkable everyone worked together, and we had help from JLL,” he said. “Anytime you have this many stores and people involved, there’s potential for a lot of headaches.”
“Instead, we had a really good experience. Pegasus, as the seller, was very professional, didn’t have a whole bunch of people working on it. It went so smoothly, and everyone was so accommodating.”
McElmurry predicts the company will be fully absorbed by year-end. And Wetzel expects SecureSpace to make a strong impression in this niche.
“We’re long-term owners of SS, with a fully integrated platform,” Wetzel said. “What’s unique about us is we develop from the ground up, buying existing assets. You’ll see us continue to grow in the space.”
“We’re one of the fastest-growing self-storage companies out there. And we’ll continue to grow.”
The 11 Deals (California, Oregon, Texas)
324 S. Main St., Milpitas, CA 95035
355 W. Hedding St., San Jose, CA 95110
900 Lonus St., San Jose, CA, 95126
6880 Santa Teresa Blvd., San Jose, CA 95119
2100 A St., Antioch, CA 94509
2721 Shattuck Ave., Berkeley, CA 94705
13760 E. 14th St., San Leandro, CA, 94578
1323 NW 16th Ave., Portland, OR 97209
8200 S I-35 Frontage Road, Austin, TX 78745
8327 S. Congress Ave., Austin, TX 78745
14635 State Highway 71, Bee Cave, TX 78738