JLL Facilitates Notable Sales Transaction in Germany’s Self-Storage Market
- Apr 17, 2015
JLL’s Capital Markets team has orchestrated a $74.5 million transaction that serves as evidence that the heat of the self-storage market in the U.S. has made its way to Germany. Acting on behalf of Secur Self Storage, the commercial real estate services firm sold Project Horreum, an eight-property portfolio featuring 9,481 individual units, to Shurgard, the German operator for leading U.S.-based self-storage company Public Storage. The portfolio was pounced on even before it hit the market.
“Many of the same factors fueling the growth of self-storage development and expansion in the U.S., such as population growth, minimal new development and improving operating fundamentals, are carrying over to certain European markets,” Brian Somoza, Managing Director with JLL, told Commercial Property Executive. Among those markets is Berlin, which is home to part of Project Horreum, as are Hamburg and Hannover.
Not only is the 518,000-square-foot Project Horreum located in leading German markets, it boasts the distinction of being the first and only green self-storage portfolio in the country. Shurgard acquired five of the properties and the business at a price that marks one of the lowest cap rates in Germany’s self-storage sector. Shurgard also walked away with an option to purchase the remaining three assets down the road. In the meantime, those three facilities will operate under Shurgard’s management.