QuadReal Property Group, a global real estate company, and Store Space Self Storage, a national vertically integrated self-storage operator, announced the formation of a strategic partnership which is capitalized to build a $1 billion portfolio of self-storage assets. The companies share a long-term strategy focused on scaling a nationally diversified portfolio of institutional-quality self-storage assets across the United States in locations with strong demographic and migration trends.
The partnership’s value-add and core-plus investment strategy was seeded with the $200 million acquisition of a 13-property portfolio totaling over 9,000 units, or 1.1 million square feet. This portfolio includes a diverse mix of stabilized and recently developed self-storage assets in 7 states. Momentum continues to build with the subsequent closing of an off-market acquisition-expansion in New Jersey, and a significant acquisition pipeline.
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“The self-storage sector offers steady growth. Further, it has shown resiliency and demonstrates consistent fundamental and demographic tailwinds that align closely with QuadReal’s core investment convictions,” said QuadReal’s Jameson Weber, Managing Director, International Real Estate, Americas. “We are excited to partner with the Store Space team—an experienced self-storage operator with a proven track record of success. Together, we are very uniquely positioned to invest at scale in a highly fragmented sector.”
QuadReal will commit the majority of the capital for the partnership and will leverage its extensive experience investing in alternative asset classes globally. As a vertically integrated self-storage operator, Store Space brings to bear in-house technology, full-service marketing/call center services, acquisition/development experience, and property management capabilities. The company was named the fastest-growing self-storage operator in the United States in 2021 by Inside Self Storage.
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“We’re very enthusiastic to enter this partnership with QuadReal, with the shared goal of building a large, high-quality portfolio in this recession-resistant sector,” said Store Space CEO Chris Harris. “This also represents a significant milestone for us, as we’ve found an alliance that will help us grow our brand and bring our best-in-class platform to new markets at a rapid pace. QuadReal understands the significant value in our team’s ability to quickly drive outperformance across a growing portfolio and this investment will fuel even more rapid expansion across the country.”
QuadReal and Store Space are aligned in offering their self-storage customers a seamless experience of accessing high-quality, trusted storage solutions. Further, broad capabilities and an informed strategy position the partnership to deliver strong risk-adjusted returns to their respective stakeholders.
Store Space, whose motto is “Storage That Cares,” was founded in 2018 by Chris Harris and Rob Consalvo. The Store Space leadership team has more than five decades of experience acquiring, leasing, and managing self-storage properties. Harris and Consalvo previously helped grow, operate, and scale iStorage before its sale to a public REIT in 2016.
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