SROA Capital has acquired a 16-property self storage portfolio spanning across three states in the Northeast region. The acquisition marks SROA’s first investment through its eighth self storage fund, SROA Capital Fund VIII. The facilities will be managed under the SROA brand.
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Newmark’s Vice Chairman Aaron Swerdlin and Executive Managing Director Kenneth Cox worked on behalf of the seller, Storage Pros, in the transaction. The deal represents Newmark’s fourth-largest portfolio sale with Storage Pros’ leaders David Levenfeld, Ian Burnstein and John Price.
The portfolio encompasses more than 850,000 square feet of storage space located in Connecticut, Massachusetts and Rhode Island. Besides the chance to establish a significant presence in the Northeast, the portfolio also provides the opportunity to add value and build expansions on the existing properties, noted SROA Capital CEO Benjamin Shibe Macfarland III.
Despite economic headwinds due to the coronavirus outbreak, the self storage sector proved to be resilient. Thanks to strong occupancy and positive rent performance in recent months, there’s been an uptick in buyer interest. Given the amount and diversity of the capital pool trying to deploy into self storage space, transaction activity will remain elevated, according to Newark’s Swerdlin.