Hampshire Sells 1 MSF Self-Storage Portfolio to Extra Space
- Sep 13, 2012
The Hampshire Cos. has completed the disposition of a 1 million-square-foot portfolio of self-storage facilities in New York and New Jersey. With the assistance of commercial real estate and capital markets services provider HFF, the company sold the group of unencumbered assets to Extra Space Self-Storage.
It may not be as high on investors’ radar as the thriving apartment sector, but self-storage is certainly garnering a great deal of attention. Extra Space, a self-storage REIT, had the inside track on Hampshire’s Class A portfolio.
“We struck a deal with Extra Space prior to going to market,” Aaron A. Swerdlin, senior managing director with HFF, told Commercial Property Executive. “However, given the extremely high quality nature of the real estate and the portfolio overall, had we gone to market, we no doubt would have had an extremely high level of interest from all active buyers including insurance companies, REITs, equity firms and all of the privately held top operators.”
Featuring an aggregate 7,433 units, the properties are located in Poughkeepsie and Central Valley, N.Y., as well as eight cities in New Jersey. In a prepared statement, James E. Hanson II, Hampshire president and CEO, said, “The timing for this deal was right, and we felt confident entering into it, given Extra Space’s strong reputation and service standards.”
Major self-storage portfolio transactions do not happen every day, but they do happen, and this summer appears to have been particularly active. In August, HFF facilitated Storage Deluxe’s sale of a 1.6 million-square-foot portfolio to CubeSmart in a transaction valued at $560 million. Additionally, Sovran Self Storage sold a 1 million-square-foot group to World Class Capital Group L.L.C.
“For high quality portfolios in core markets, investor appetite is as high as I’ve ever seen it,” Swerdlin said. “I think because most of the deals that are getting done are bigger deals, it feels like transaction activity is on the rise. However, I think it’s simply that the deals that are getting done are much higher profile in nature than what we saw closing in 2008 and 2009.”