Hines Spends $91 Million to Buy Massive Cerritos Self-Storage Facility
Hines, a Texas-based developer, has purchased a 2,460-unit self-storage facility in Cerritos, California, for $91 million. The 260,300-square-foot facility, operated by Extra Space Storage, is located at 17900 Crusader Avenue, next to the 605 Freeway.
Record-Breaking Deal
The deal, which works out to $350 per square foot, is the largest single-property self-storage sale in history. According to Cushman & Wakefield, the average price for self-storage facilities in the US was $139 per square foot in the second quarter.
The facility, which was developed by Manhattan Beach-based Capital 360 and Barings, North Carolina-based, was purchased at an undisclosed price in 2018. The joint venture opened the facility two years later.
About the Property
The 5-acre site is home to a three-story building, which is currently 88% occupied. Extra Space Storage, a third-party management company based in Salt Lake City, operates the facility.
Market Trends
The self-storage sector saw a surge in investment during the pandemic, with $50 billion in transactions from 2020 to 2022. The market is considered to be in a "return to normal," with deal volume of $3.36 billion in the first half of the year, representing a less than 1% increase from the same period last year.
About Hines
Hines, founded in 1957 by Gerald Hines, has $93 billion in real estate assets under management in 31 countries. The company is led by Jeffrey Hines and Laura Hines-Pierce.
Additional Self-Storage Projects
Hines has other self-storage projects in the pipeline. This spring, the company and Canada-based Trez Capital secured a $108 million loan for a 13-property self-storage portfolio across Dallas-Fort Worth. Hines is also developing two self-storage facilities nearby.
Conclusion
The purchase of the Cerritos self-storage facility marks a significant milestone in Hines’ portfolio, solidifying its position in the self-storage market. With its strong presence in the industry, Hines is poised to continue to make a significant impact in the coming years.
FAQs
Q: What is the price per square foot of the facility?
A: The price per square foot is $350.
Q: Who operates the self-storage facility?
A: Extra Space Storage, a third-party management company based in Salt Lake City, operates the facility.
Q: What is the current occupancy rate of the facility?
A: The facility is currently 88% occupied.
Q: What is Hines’ total real estate asset under management?
A: Hines has $93 billion in real estate assets under management in 31 countries.
Q: What are Hines’ plans for the facility?
A: Hines has not disclosed plans for the facility, but it is likely to continue operating the facility as is or develop it further.
