Boston, MA NGKF Capital Markets has completed the sale of 13 self-storage properties for $186.4 million on behalf of its client, Harrison Street Real Estate Capital, LLC. The portfolio amounts to more than 1.1 million s/f, including over 55,000 s/f of surface parking, and encompasses 13 assets total – six in New England, three in Texas and four in California. The properties were purchased by Sovran Self Storage, Inc., which operates under the name Uncle Bob’s Self Storage. Aaron Swerdlin and Kenneth Cox led the NGKF team in the sale.
“This transaction is notable for a number of factors,” said Swerdlin, executive managing director of NGKF Capital Markets. “The sale of the Harrison Street portfolio marks the biggest transaction to close so early in a year, and its high-quality assets provided Sovran Self Storage with an entry into the competitive Los Angeles market. It is a big step forward for the company, which has been looking to make the right entry into the LA market for some time.”
“This transaction further underscores HSRE’s ability to acquire a number of disparate self storage properties, develop a comprehensive asset management strategy and then amalgamate the properties into a large, diversified institutional-quality portfolio. In doing so, we created a tremendous amount of incremental value for our investors and partners,” said Elliot Pessis, vice president of Harrison Street.
“The high-quality assets in this national portfolio attracted an unusually large amount of very diverse interest, and the large deal size supports the continued trend of portfolio investment sales in the self-storage sector,” said Cox, senior managing director of NGKF Capital Markets. “The capital is out there and the deep demand continues to support the aggressive portfolio environment. There is no question the storage industry is generating great interest in the institutional community as investor confidence in the product type has solidified over the last several years.”
Swerdlin, together with Cox, heads NGKF Capital Markets’ Self Storage Group. “We look at our team’s closings as a market barometer,” stated Cox. Swerdlin added, “In the past 30 months, Kenneth and I have completed nearly $1.5 billion in transaction volume. Using that as a gauge against overall industry transaction volume, the capital bench appears to be as deep as I’ve ever seen.”
About Newmark Grubb Knight Frank Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,800 professionals operate from more than 370 offices in established and emerging property markets on six continents. With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick.
Harrison Street Real Estate Capital LLC is one of the leading real estate investment management firms that offers innovative investment products across both private and public real estate segments. The firm has created a series of differentiated investment products across multiple risk/return platforms. Currently the firm and its affiliates manage $8.4 billion in assets on behalf of some of the world’s largest institutional investors.
