New York City, NY-based alternative investment firm Angelo Gordon & Co. LLP recently raised more than $2.75 billion for a new real estate fund. And it’s almost a certainty that some of that money will flow into the self-storage sector.
Primarily through off-market transactions, Angelo Gordon invests in various segments of commercial real estate, including self-storage, multifamily, office, retail, residential, senior housing and student housing. Angelo Gordon likely will collaborate with its self-storage partner, New York City-based real estate company Andover Properties LLC, on self-storage investments made from the new fund — Angelo Gordon’s largest-ever fund.
Angelo Gordon, which has $33 billion in assets under management, and Andover Properties, which does business as Storage King USA, have teamed up on a number of self-storage acquisition and development deals in recent years. This includes the purchase of Socrum Self Storage in Lakeland, FL, and the development of a 110,000-square-foot storage facility on a 3-acre site in Homestead, FL.
Storage King USA owns and manages 33 self-storage facilities in nine states, comprising 17,300 units across 2.4 million rentable square feet.
Repeated attempts to reach Angelo Gordon for comment were unsuccessful. Michael Wachsman, director of acquisitions at Andover Properties, declined to comment.
“For over 25 years, we have developed and maintained a distinctive value-add approach to investing in U.S. real estate, which is focused on mitigating cyclical risk and does not rely on macro-thematic bets to generate returns,” Reid Liffmann, co-portfolio manager of U.S. real estate at Angelo Gordon, said in a news release. “Our wealth of experience and strong operating partner relationships create a competitive advantage when it comes to deal sourcing and enable us to improve asset performance and create value for our investors.”
Outside self-storage, notable holdings in Angelo Gordon’s portfolio include the Crunch Fitness chain of gyms and the Benihana chain of Japanese restaurants.