GLP Capital Partners Closes $1.5B Self Storage Fund – Multifamily Real Estate News
GLP Capital Partners Inc. had the final closing of its inaugural value-add North American self storage real estate fund at $1.5 billion, making it the largest self storage fund ever raised.
GCP SecureSpace Property Partners had commitments from a diverse group of limited partners, including domestic and international investors such as public and corporate pensions, insurance companies, asset management firms and family offices.
Operating as GCP US, the firm is a registered investment advisor and part of GLP Capital Partners Ltd., a global alternative asset manager with $115 billion in assets under management. GCP US’ self storage platform is GCP Storage Advisors, which operates its assets under the SecureSpace brand. The fund is aggregating a scaled portfolio of high-quality, modern self storage assets in dense, under-supplied population centers that aims to provide exceptional customer service with GSA’s vertically integrated SecureSpace operating platform. At its final closing, the fund was significantly pre-specified with more than 7 million square feet of assets closed or controlled that are primarily newer assets with strong local demographics.
Daniel Ward, head of asset management at GCP US, said in a prepared statement the closing of the inaugural value-add fund marks a milestone for its self storage platform. He added that the firm is excited about the portfolio they are assembling in densely populated, high barrier-to-entry markets.
Investor support was strong, enabling GCP US to hit its hard cap of $1.5 billion within about eight months of its initial closing, according to company executives. Paul Brown and Zack Linford, GSA co-founders & senior managing directors, said that was a testament to the quality of the team and their strategy to focus on Class A assets in supply constrained markets. The properties have modern amenities and upgraded security features. The GSA team has also developed an operating and marketing platform, which optimizes lease-up and revenue management.
Growing SecureSpace
Through its wholly owned operating subsidiary InSite, a developer, operator and manager, GSA has been rapidly expanding the SecureSpace Self Storage brand with acquisitions and new developments. In October 2021, InSite purchased Gibsonton Storage, an 82,770-square-foot facility in Riverview, Fla., from a private investor, and rebranded the newly built property as SecureSpace Riverview.
More recently, there have been numerous acquisitions including the purchase of G&M Self Storage, a two-story, 45,588-square-foot property in the Van Nuys neighborhood in Los Angeles, that is now operating under the SecureSpace brand.
Also in October, SecureSpace acquired a development site in Coral Gables, Fla., near Miami International Airport. The ground-up development will consist of a seven-story, 123,232-square-foot facility with an additional 9,000 square feet of ground-floor retail. In September, SecureSpace purchased Go Store It Self Storage in Coral Gables, a multistory facility with more than 78,000 square feet and 1,070 units. Completed in 2019, it includes 5,500 square feet of ground-floor retail that the firm was expanding.
Numerous acquisitions were made throughout the month of September stretching from Hawaii to the Bay Area of northern California to Queens, N.Y., on the East Coast.
In early August, SecureSpace made the largest transaction to date, acquiring 11 facilities from Central Self Storage totaling more than 650,000 square feet of space in the Bay Area; Portland, Ore.; and Austin, Texas, markets.
