The subject portfolio consists of more than 850,000 square feet across three states, offering significant geographic scale in the highly sought-after New England region. The portfolio was purchased by vertically integrated private equity real estate investment firm, SROA Capital, which is based in West Palm Beach, Florida. This acquisition will kick off its first investment into SROA’s 8th dedicated self-storage fund SROA Capital Fund VIII, LP and will be managed under its brand Storage Rentals of America (SROA).
“This transaction not only provides SROA a foothold into the Northeast and gives SROA the opportunity to add value through building several expansions on the existing properties, but it also allows SROA to further accumulate single- and multi-property owners looking for liquidity in a market that is seeing positive growth due to COVID-19-related housing disruptions,” says SROA Capital CEO Benjamin Shibe Macfarland III.
Storage Pros was represented by Newmark Vice Chairman Aaron Swerdlin and Executive Managing Director Kenneth Cox, in cooperation with local representation in Connecticut, Massachusetts and Rhode Island.
“This transaction presented a rare opportunity to establish mass in the New England self storage market in one transaction,” said Cox. “When combined with heightened interest in the storage sector as it fundamentally outperforms other real estate sectors, the sale garnered significant interest from all types of capital deploying into the space and resulted in a successful outcome for our client.”
“As we’ve seen throughout the challenges of the pandemic, the self storage industry has been extremely resilient both operationally and from a transaction perspective. This transaction further endorses that sentiment. I suspect we’ll continue to see elevated transaction activity given the amount, and diversity, of the capital pool trying to deploy into the space. I also suspect we’ll continue to see very strong operational performance from the sector which will prolong the positive storage bias,” commented Swerdlin.
Swerdlin and Cox head Newmark’s Self Storage Group. The team has completed nearly $500 million in transaction volume year-to-date and more than $1 billion in the last 18 months. The group provides clients with a single-source solution for every phase of a self-storage transaction, from strategic planning, value enhancement, pre-marketing consulting and operations analysis to dispositions, debt placement, proprietary lending and equity assignments.
About SROA Capital, LLC
SROA Capital, LLC is a real estate investment company focused on the acquisition and operation of self-storage properties nationwide. SROA owns and operates approximately 8 million rentable square feet under the brands Storage Rentals of America and Storage Zone. SROA Capital is seeking investment opportunities for SROA Capital Fund VIII, LP. For more information, please visit www.sroacapital.com.
About Newmark (Nasdaq: NMRK)
Newmark Group, Inc., together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2019, Newmark generated revenues in excess of $2.2 billion. To learn more, visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements About Newmark
Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.
SOURCE Newmark Group, Inc.