The William Warren Group, which operates the StorQuest brand of self-storage facilities, recently bought a five-facility portfolio in Texas from The Jenkins Organization.
The William Warren Group obtained $17.5 million in financing to purchase the portfolio. The purchase price wasn’t disclosed. Irvine, CA-based Talonvest Capital arranged the 10-year, fixed-rate loan.
Eyes on Texas
Gary Sugarman, chief strategy officer at Santa Monica, CA-based The William Warren Group, told The SpareFoot Storage Beat that expansion into Texas has been a primary goal for the company in 2014.
“These five properties give us a solid presence in the greater Houston market as well as an introduction to the exciting Austin market, both of which are very attractive to us,” Sugarman said.
The portfolio covers about 507,400 square feet and 3,218 units. At the time of the purchase, the overall occupancy rate for the portfolio was 72 percent.
Sugarman said The William Warren Group continues to seek self-storage opportunities in Texas. Earlier this year, the company entered the Texas market. Now, it owns eight StorQuest facilities in Texas and manages another 12 facilities in Texas under different brand names.
“We’re very eager to continue this aggressive expansion going forward,” Sugarman said. “We’re actively seeking acquisition, development and third-party management opportunities.”
Ricky Jenkins, president of The Jenkins Organization, said his Houston, TX-based company put the properties up for sale to take advantage of aggressive pricing in the self-storage real estate market. Jenkins said The Jenkins Organization owned the facilities for an average of 2½ years.
“The sale proceeds will go back into value-add acquisitions,” Jenkins said. “We’ll look at any top 50 market.”
The four facilities purchased by The William Warren Group in the Houston area are:
- New Territory Self Storage — 420 Sartartia Road, Sugar Land, TX (pictured in photo at top)
- Brazos 77469 Storage — 210 Gonyo Lane, Richmond, TX
- Friendswood Self Storage — 2300 Bay Area Blvd., Friendswood, TX
- Gosling Road Self Storage — 23103 Gosling Road, Spring, TX
The other facility is Plum Creek Self Storage, which is at 5500 FM 2770 in the Austin, TX, suburb of Kyle.