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7/22/22
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A fund sponsored by CBRE Investment Management has acquired a 70k sf, self-storage facility located in a northwest suburb of Phoenix. The purchase is part of 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, AZ, 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.
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