posted on December 30, 2010 23:20
Virtus Real Estate purchased 20 self-storage properties representing more than 1,000,000 square feet for about $50 million, officials announced Tuesday.
The Austin-based private equity firm closed a $40 million fund this year and just launched another $100 million storage fund to be raised in 2011. The new storage properties span the southwestern United States.
Officials also plan to spend at least $150 million on self-storage and $100 million on student housing projects next year. The fund will raise another $500 million in 2012.
“In times of fiscal decline, the self-storage market has demonstrated resilience, while also posting solid gains throughout economic resurgence,” Virtus founder and CEO Terrell Gates said.
The recent self-storage investments were focused on acquiring, adding value and disposing of primarily second- and third-generation, cash-flowing storage assets in major metropolitan areas. The properties are in Memphis, Tenn.; Nashville, Tenn.; and Knoxville, Tenn.; Shreveport , La.; Baton Rouge, La.; Montgomery, Ala.; Hattiesburg, Miss.; and Atlanta.
Virtus Real Estate, a division of Virtus Financial Group LP, was founded in 2003 as Sapient Solutions LLC. The company, which employs 20 workers, has purchased 125 properties with an acquisition price of nearly $1.6 billion.
12/28/10, Austin Business Journal