The deal was at an 8% capitalization rate for a portfolio that is now 81% occupied. Storage USA, owned by General Electric, retains the remaining 20% interest.
Heitman Value Partners executive vice president Lewis Ingall concedes the sector was overbuilt a few years ago, but believes the glut is waning. "Storage USA has a strong reputation and is an industry leader, and with the storage industry entering a period of recovery across the US, we believe the time is right for this investment," Ingall says. "We're expecting to see stabilization and increases in rental levels, and a burning off of concessions."
Formed in November, Heitman Value Partners Fund counts California State Teachers Retirement System, Colorado Public Employees Retirement Association and TIAA-CREF among its investors.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
