QuadReal, Store Space Form $1B Partnership
The two kicked off their joint venture with a $200 million portfolio deal spanning 1.1 million square feet across seven states.
Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!Global real estate company QuadReal Property Group and Store Space Self Storage announced a strategic joint venture to develop a $1 billion portfolio of self-storage properties. The investment strategy was seeded with the $200 million acquisition of a 1.1 million-square-foot portfolio with 9,000 units across 13 assets. The facilities include value-add and core-plus assets, adding to the portfolio's diversified mixture of stabilized and recently developed facilities spanning seven states.
The joint venture will see QuadReal commit the majority of the capital for the partnership, leveraging its substantial experience with investing in alternative asset classes. Store Space — a national vertically integrated self-storage operator named 2021’s fastest-growing self-storage operator in the United States by Inside Self Storage — will provide in-house technology, marketing/call center services, and property management capabilities in addition to its wealth of experience with acquisition and developments in the sector.
Separately, both QuadReal and Store Space have extensive portfolio exposure within the self-storage sector in a range of U.S. markets. A press release states the group has a “significant acquisition pipeline” in place, pointing to an upcoming off-market acquisition in New Jersey.
The Saga Continues
No one can deny the meteoric growth that the sector has seen over the last two years. The pandemic era ushered in a wave of lifestyle changes that turned out to be potent demand drivers as people adapted to unprecedented conditions. While the dust finally seems to be settling, most industry experts agree that the future of self storage is still bright.
As this outlook from Multi-Housing News points out, despite the impressive occupancy rates coming into 2022, rent growth is starting to moderate as those pandemic-era drivers begin to dissipate. Even so, experts suspect the uncharacteristically high occupancy will lead to operators maintaining — if not doubling down on — their rent asks. The confidence of investors and operators is clearly still there, as forecasts all seem to outline strong fundamentals.
Possibly the largest factor to keep an eye on is Millennials’ shifts towards household formation — that is, settling down and forming a family — a phase that the industry typically benefits from once a generation. This, combined with the exodus-like migration trends towards Sun Belt metros and more affordable housing options, builds a solid argument for the industry in the long term, especially in a number of key, growing markets. That said, the downsizing being done by older generations should also prove to be a promising contributor to the ongoing health of the sector, as the good folks at Inside Self Storage posit. One thing is for sure, the sector may not be a runaway train anymore now that the pandemic shuffles towards the rear view, but it sure looks like it will be coasting at a comfortable pace throughout the year.
Related Questions
What are the benefits of QuadReal and Store Space's partnership?
QuadReal and Store Space recently announced a partnership to create a portfolio of self-storage properties across the United States. The partnership will combine QuadReal's expertise in real estate investment and Store Space's experience in self-storage operations. This partnership will allow QuadReal to expand its portfolio of self-storage properties and provide Store Space with access to capital for growth. The partnership will also provide both companies with access to new markets and opportunities for growth.
The partnership will provide QuadReal with access to Store Space's expertise in self-storage operations, allowing them to better manage their portfolio of self-storage properties. Store Space will benefit from QuadReal's access to capital, allowing them to expand their portfolio of self-storage properties and access new markets. The partnership will also provide both companies with access to new opportunities for growth.
What types of services does QuadReal offer to small businesses?
QuadReal offers a variety of services to small businesses, including SBA 7(a) and SBA 504 loans. The SBA 7(a) loan is a government-backed loan that can be used to purchase owner-occupied commercial real estate, as well as for working capital, equipment, and other business needs. The SBA 504 loan is a government-backed loan that can be used to purchase or improve commercial real estate. Both of these loan products offer competitive rates and terms, and can be used to help small businesses grow and succeed.
At SBA7a.Loans, we specialize in helping small businesses find the best loan product for their needs. We offer a free educational portal and a lender-matching service to help you find the best loan product for your business.
How does QuadReal's partnership with Store Space help small businesses?
QuadReal's partnership with Store Space helps small businesses by providing them with access to flexible, short-term leases. This allows businesses to rent space for a shorter period of time, which can be beneficial for businesses that are just starting out or are looking to expand. Store Space also offers a variety of services, such as marketing and design, to help businesses create a successful retail space. Additionally, Store Space provides access to financing options, such as SBA 504 loans, which can help businesses cover the cost of their retail space.
SBA 504 loans offer up to $5 million in funding, and can be used for specific needs such as purchasing real estate and building a new store, or purchasing an existing building. They can also be used to buy fixed equipment, such as fixtures, signage, and the like. While you cannot use 504 loan funds as working capital, they remain one of the most potent tools available for retail store owners looking to grow their businesses.
For more information on SBA 504 loans, please visit SBA 504 Loans.
What types of financing options are available through QuadReal and Store Space?
QuadReal and Store Space offer a variety of financing options for self storage properties, including Bank Loans, CMBS, Life Company Loans, and Small Balance Loans. Financing starts at just $1,000,000 with leverage up to 75% and amortizations as long as 30 years. For more information, please speak with a commercial mortgage banker or email us at [email protected].
How can small businesses access financing through QuadReal and Store Space?
Small businesses can access financing through QuadReal and Store Space by applying for an SBA 7(a) loan. The SBA 7(a) loan is a government-backed loan that provides up to $5 million in funding for small businesses. It can be used to purchase real estate and build a new store, purchase an existing building, or buy fixed equipment. It cannot be used as working capital. For more information on the SBA 7(a) loan, please visit this page.
What are the advantages of QuadReal and Store Space's financing options for small businesses?
QuadReal and Store Space offer a variety of financing options for small businesses. These options include Bank Loans, CMBS, Life Company Loans, and Small Balance Loans. These loans offer up to $5 million in funding, and can be used for specific needs such as purchasing real estate and building a new store, or purchasing an existing building. Additionally, these loans can be used to purchase fixed equipment, such as fixtures, signage, and the like. These loans also offer leverage up to 75% and amortizations as long as 30 years.
For more information, please visit Commercial Real Estate Loans and SBA 504 Loans for Retail Stores.