- The $315M loan covers a portfolio of 43 self-storage facilities with over 21.3K units and 3.1 MSF of rentable space.
- The portfolio operates under Andover’s Storage King USA platform and has enjoyed 40% net operating income growth since its acquisition.
- Newmark arranged the financing, which reflects increasing investor interest in alternative real estate sectors that are seen as resilient, cash-flow-generating assets.
As reported in GlobeSt, TPG Inc. (TPG) and Andover Properties secured a $315M loan to refinance a major self-storage portfolio, comprising 43 properties across 11 states and 24 markets under the Storage King USA brand.
Look Inside
The portfolio spans 3.1 MSF of rentable storage space housing over 21.3K storage units. Wells Fargo (WFC), Goldman Sachs (GS), and 3650 REIT provided financing, which highlights the resilience and appeal of self-storage within the broader real estate investment landscape.
The 43-property portfolio is part of Andover’s larger Storage King USA platform, which now operates 162 facilities across 18 states, totaling over 13.5 MSF of rentable space.
The platform’s success highlights the ongoing growth and operational efficiencies that make self-storage an attractive investment segment.
Growing Demand
According to Newmark (NMRK), which arranged the financing, self-storage has seen a surge in investor interest. Newmark’s recent research revealed 27% higher transaction activity in 2Q24, and projections suggest further growth by year-end.
This persistently strong demand underscores self-storage’s post-pandemic durability and consistent cash flow, which remain very attractive to investors amid broader economic shifts.
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Broader Focus
Beyond self-storage, TPG is actively expanding in the industrial outdoor storage (IOS) sector. Partnering with Triten Real Estate, TPG plans to invest over $1B in IOS properties over the next five years, adding to the more than $500M invested annually in this area.
With $229B in assets under management, TPG’s focus on alternative asset classes aligns with investor appetite for stable, high-yield sectors.g affordability, prioritizing incentives for new development over strict rent caps in hopes of addressing the state’s growing housing shortage.
