NKF Capital Markets Completes Sale of 22-Property Self-Storage Portfolio, Market briefs

Aaron Swerdlin

In Houston, NKF Capital Markets has completed the sale of a 22-property self-storage portfolio purchased by a Texas-based investment firm.

The buyer, Etude Capital Storage Holdings LLC, said the transaction includes land that allows for the construction of additional self-storage properties.

The self-storage segment has attracted considerable investor interest, as stated by NKF Capital Markets, which originated debt and equity for the purchase.

“The self storage product type continues to broaden its esteem within the real estate investment community. As we’ve observed for the last several years, there continues to be more capital looking to deploy into the space than there are deals into which that capital can land,” commented Aaron Swerdlin, Vice Chairman of NKF Capital Markets.

The 1.1 million SF portfolio includes 22 properties in nine markets in Texas, Oklahoma and Florida.

“Fewer large portfolios have come to market during the last several months so interest in this deal was very deep and very diverse,” said Kenneth Cox, executive managing director of NKF Capital Markets.

“Raising the preferred equity and the senior debt as a part of the purchase made this a challenging deal, but given the strength of the deal and the upside opportunities within the portfolio, there was a strong appetite from various capital sources,” said Swerdlin.

“The ability to achieve scale in a single transaction was key to this purchase. 1.1 million SF packaged with 500,000 SF of planned expansion provides a platform to take advantage of future opportunities,” said Steven Stein, President of Etude Capital.

The property management of the portfolio has been outsourced to a publicly traded self-storage REIT.

Swerdlin and Cox head up NKF Capital Markets’ Self Storage Group and together have led more than $6.5 billion in self-storage transactions during their career.