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CHICAGO-Four self-storage properties totaling 377,121 sf in the city and suburbs have been acquired for nearly $40 million, the first purchases for a $350-million joint venture sponsored by Murney and Partners and involving Investcorp. The properties, newly built or recently converted, were sold by StorageMart and will now be managed by Scottsdale, AZ-based Storage Today.

In addition to setting up the joint venture, Holliday Fenoglio Fowler, LP’s offices here and in Los Angeles arranged a three-year, $28.2-million loan through Lehman Brothers as well as equity through Investcorp. The loan covers properties at 2647 N. Western Ave. and 419 E. 25th St. in the city, as well as 565 W. Boughton Rd. in Bolingbrook and 9801 W. 55th St. in Countryside. In the shadow of McCormick Place, the 25th Street property fetched $14.3 million alone while the Western Avenue asset commanded $10 million, according to property records. The Countryside StorageMart was worth $9.3 million while the Bolingbrook piece of the deal was the smallest at $5.6 million.

“The asset class has many attractive operational and financial characteristics that make it a compelling new investment alternative for Investcorp,” says Investcorp managing director John Fraser.

Storage facilities are considered safe bets by lenders, adds senior managing director Mike Kavanau, who arranged the loan through Lehman Brothers. “Self-storage is the one of the fastest growing segments in the real estate market and features one of the lowest default rates as compared to multifamily, office and retail properties,” he explains.

Holliday Fenoglio Fowler executive managing director Scott McMullin organized the joint venture.

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