The real estate arm of Dallas-based Crow Holdings Capital — an asset manager of a private equity real estate firm — plans to invest more of the group's capital into the development and acquisitions of self storage properties.
The firm's foray into self storage properties began in April, which Crow Holdings Capital-Real Estate acquired 14 self storage facilities, which totaled 9,780 units totaling nearly 1.1 million square feet of net rentable space primarily in the primary and large secondary markets in the United States.
In December, the company closed on a new real estate fund with $1.85 billion in capital commitments. The fund was earmarked for all kinds of real estate investment, including self storage properties.
"We have been following this sector for quite some time, and believe the timing is right to focus our investment strategy to include self storage properties," said Ben Doherty, head of Crow Holdings Capital's self storage investment strategies, in a statement.
"This is particularly true because the sector is less reactive to the typical market swings that have impacted core asset classes during economic cycles," he added. "Moreover, the storage space has strong fundamentals but is a very fragmented asset class with a lack of institutional ownership, thus we are deploying a consolidation strategy of predominantly Class A product."
The private equity firm wants to form joint ventures to develop new Class A self storage properties. Along with developing new sites, Crow Holdings Capital plans to buy well-located properties, expand existing storage facilities or repurpose existing buildings.