A fund sponsored by CBRE Investment Management has acquired a 70,070-square-foot self-storage facility located in a northwest suburb of Phoenix. The acquisition is aligned with the Fund's strategy to acquire high-quality self-storage assets across the U.S. as demand remains strong for this sector.
Located at 17061 W. Custer Lane in Surprise, Arizona, the self-storage asset, which will operate under the StorQuest brand, is a recently built, Class A, four-building, single-story facility comprised of 562 total units, of which 431 are interior climate-controlled units. The property also features LED lighting, 24-hour security, and convenient tenant access.
"With demand driven by forces outside the general economy, the U.S. self-storage sector has positive fundamentals that are likely to continue to strengthen as increased home ownership and flexible work-from-home policies drive demand for extra storage space across a diverse set of household demographics," said Justin Shanahan, Deputy Portfolio Manager for CBRE Investment Management. "We believe that this newly-built, well-located self-storage asset has a high degree of operating upside and will provide long-term value for our investors."
The Phoenix self-storage market has benefited from healthy demographic growth, the migration of both new residents and companies to the area, and robust home sales activity. According to research by CBRE Investment Management, the Phoenix market has a self-storage vacancy rate of 5.5%. The area is also forecasted to have a population growth averaging 1.1% annually over the next five years according to the research, supporting long-term demand for self-storage space.
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $146.8 billion in assets under management* as of March 31, 2022, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.
CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world's largest commercial real estate services and investment firm (based on 2021 revenue). CBRE has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE's data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management's presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.
CBRE Clarion Global Real Estate Income Fund published this content on 21 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2022 01:43:06 UTC.