NexPoint Storage Partners, Inc., a self storage platform affiliated with NexPoint Advisors, today announced that it became the sole owner of 29 new, well-located and high-quality self storage properties developed by SAFStor. The acquisition brings NexPoint Storage to a total asset value of approximately $1.7 billion with 71 wholly owned and operating properties and one additional property expected to open in February 2023.
The SAFStor acquisition continues the strong execution of our strategy to own the newest and highest quality self storage portfolio in the United States and provides us with greater financial flexibility and unique opportunities to pursue new investments in the latest generation of self storage facilities.”
The newly acquired properties are in high-density, high-growth submarkets in major U.S. markets and benefit from demographics very similar to those of the existing NexPoint Storage portfolio, including strong household incomes, a high percentage of renters, and barriers to new development. The markets of the newly acquired properties include Baltimore, Cleveland, Detroit, Houston, Miami/Ft. Lauderdale, Nashville, New Orleans, Philadelphia and Washington D.C.
We spent five years building SAFStor into a leader in the storage space and placing the properties under NexPoint Storage’s leadership represents a winning outcome.”
“The SAFStor acquisition continues the strong execution of our strategy to own the newest and highest quality self storage portfolio in the United States and provides us with greater financial flexibility and unique opportunities to pursue new investments in the latest generation of self storage facilities,” said John Good, CEO of NexPoint Storage. “This platform, which includes 17 additional properties owned by Delaware Statutory Trusts that we have a right to acquire in the future, comprises a $2 billion asset value portfolio, which we believe would be one of the largest privately-held self storage portfolios in the U.S.”
“The NexPoint Storage acquisition represents the culmination of a wonderful partnership with NexPoint,” said Andrew Young, CEO of SAFStor. “We spent five years building SAFStor into a leader in the storage space and placing the properties under NexPoint Storage’s leadership represents a winning outcome.”
In conjunction with the SAFStor transaction, NexPoint Storage Partners and Extra Space Storage, a leader in the self storage industry, have agreed to modify the preferred equity investment that Extra Space made in November 2020 in connection with NexPoint’s acquisition of Jernigan Capital, extending the mandatory redemption date of the preferred stock from November 2025 to December 2028, while consolidating the investment into a single $300 million Series D preferred stock with a dividend rate of 8.5% per annum. NexPoint Storage will transfer management of 11 additional stores to Extra Space, and after consummation of the investment extension and SAFStor transaction, Extra Space will manage 100% of NexPoint Storage’s platform, equating to nearly 90 properties in total.
Commenting on the Extra Space modification, Mr. Good stated: “We are delighted to announce the expansion of our partnership with Extra Space Storage, providing us with another six years of best-of-class management and stable capital from the highest performing public self storage REIT over the past almost two decades. We believe the expansion of this partnership will significantly enhance our ability to continue growing the NexPoint self storage platform in the coming years.”
About NexPoint Storage Partners:
NexPoint Storage is a real estate investment platform that specializes in the self storage sector. A product of NexPoint’s 2020 acquisition of Jernigan Capital, NexPoint Storage invests in newly built, multi-story, climate-controlled, Class-A self storage facilities—known as “Generation V” facilities—located in dense and growing markets throughout the United States. NexPoint Storage acquires and selectively develops GenV self storage facilities. The platform leverages resources and expertise across NexPoint, especially in the areas of real estate financing, product strategy, and distribution. For more information visit www.nexpointstorage.com.
SAFStor is a vertically-integrated, volume-driven developer/owner of institutional-quality self storage. The Company’s focus is on mitigating market and development risk. Accordingly, we (1) employ a data-driven approach, (2) target a geographically-diverse portfolio, and (3) and partner with best-in-class capital providers, general contractors and management partners, including Extra Space Storage, CubeSmart, and Life Storage. To date, SAFStor has developed, constructed and managed over 7 million square feet and 55,000 units of class-A storage located through the continental United States. SAFSTOR’s principals bring over 75 years of in-depth real estate experience, having developed over $4.0 billion of mixed-use real estate since 2012, and over $1.5 billion of self storage since 2017.
About Extra Space Storage:
Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of September 30, 2022, the company owned and/or operated 2,327 self storage stores in 41 states and Washington, D.C. The company’s stores comprise approximately 1.6 million units and approximately 175.1 million square feet of rentable space. The company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. The company is the second largest owner and/or operator of self storage stores in the United States and is the largest self storage management company in the United States.
NexPoint Storage Partners:
Jonathan Marino (email@example.com)
Kristen Thomas (IR@nexpoint.com)
Andrew Young (firstname.lastname@example.org)
Extra Space Storage:
Jeff Norman (email@example.com)