Self-storage operator Store Here Self Storage recently added 13 new facilities to its portfolio at a total cost of $48 million.
The acquired facilities are in Georgia, Kansas and Texas. The facilities span 855,000 square feet and contain 6,100 units.
James Hanrahan, acquisitions director at Store Here, said the properties were purchased from four sellers over the past three months. The latest acquisition was the six-facility Storage Village portfolio in Georgia.
“We look for upside in all of our acquisitions,” Hanrahan told The SpareFoot Storage Beat. “We thought that these had substantial upside that we could move forward on.”
Hanrahan said that for the most part, the purchased facilities were “undermanaged.” A few of them need a substantial amount of renovations to bring them up to Class A or Class B standards, he said.
“These were more run in the ‘ma and pa’ style. We thought we could bring higher-caliber operations to them,” Hanrahan said.
The 13 facilities are being converted to the Store Here brand.
Joint venture partner
Store Here, formed in 2012, is operated by Orange, CA-based RHW Capital Management Group. The firm’s three partners — Hanrahan, Ryan Rogers and Christopher Weber — have a combined 70 years of experienced in the self-storage industry.
The company owned seven facilities before the recent acquisitions.
To buy the 13 facilities, Store Here teamed up with joint venture partner Westport Capital Partners, a real estate investment firm with U.S. offices in Wilton, CT, and Los Angeles, CA. Hanrahan said the recent acquisitions were financed with debt and equity.
More growth ahead
Hanrahan said his company plans to buy another 20 facilities over the next 12 months, which would bring its portfolio to 40 properties. The firm is focusing on states where it already operates — California, Georgia, Indiana, Kansas and Texas — but will consider facilities in any state that’s experiencing growth.
“We look for opportunities where there are smaller regional operations that would benefit from a large operator coming in and running a national-style platform,” Hanrahan said.
Dale Eisenman, a broker at Midcoast Properties, represented Storage Village in its sale to Store Here. The six-facility portfolio received several bids, according to a news release. Facilities in the 434,000-square-foot portfolio are:
Storage Village Jonesboro
8898 Tara Blvd., Jonesboro, GA
Storage Village Griffin
749 Carver Road, Griffin, GA
Storage Village Griffin II
2976 North Expressway, Griffin, GA
Storage Village Clayton
53 Highway 138 SE, Riverdale, GA
Storage Village Fayetteville
923 Highway 85S, Fayetteville, GA
Storage Village Jackson
1228 Brookwood Ave., Jackson, GA
Kansas and Texas facilities
Three of the Kansas facilities that were acquired are in the Kansas City market:
Attic Storage of Shawnee
6410 Vista Drive, Shawnee, KS
K-7 Self Storage
7804 Meadow View Drive, Shawnee, KS
78th Street Self Storage
235 N. 78th St., Kansas City, KS
Two of the Texas facilities that were acquired are both in Denton:
1002 Dallas Drive (pictured at top)
3919 E. McKinney St.
Locations for the two other facilities that were acquired weren’t available.