William Warren Group has more than doubled the size of its Self Storage Income Fund through a $110.9 million contribution of nine operating StorQuest Self Storage facilities, expanding the portfolio to 17 properties across six states.
The Santa Monica, Calif.-based real estate company, parent of StorQuest Self Storage, announced that investors in the contributed properties rolled approximately 80% of their equity into Fund units through a tax-deferred Section 721 exchange.
The transaction increases the Fund’s gross asset value to $196 million, up from eight properties before the contribution. The nine facilities add approximately 410,000 rentable square feet in West Coast and Sunbelt markets.
The properties are located in San Rafael, Oakland, West Los Angeles, West Sacramento, Bakersfield and Palm Springs, Calif.; Sun City, Ariz.; Reno, Nev.; and Hilo, Hawaii.
Following the transaction, the Fund holds more than 845,000 rentable square feet across approximately 9,100 units.
The transaction was financed in part through a new $200 million credit facility from Wells Fargo, which the company said provides additional capacity to support the Fund’s continued growth.
“This Fund Contribution reflects the strength of our strategy, our operating platform and the self storage sector,” said Bill Hobin, CEO of William Warren Group. “Our investors chose to stay invested rather than cash out because they believe in what we’re building. The cycle is turning in self storage’s favor, and the Fund is well positioned to capture the opportunity.”
Founded in 1994, William Warren Group acquires, develops and manages self-storage properties across the United States. Its StorQuest brand combines property operations, technology and customer service to serve residential and commercial storage customers.