Andover, Heitman Partner to Grow National Self-Storage Portfolio

Andover Properties has formed a series of joint ventures with Heitman, focused on growing a diversified portfolio of self-storage assets across the U.S. Launched with a portfolio of more than 106 self-storage properties across 16 states, the JVs span both value-add and core-plus strategies. Financial terms were not disclosed.

“We believe the self-storage sector is at an inflection point and represents an attractive opportunity in commercial real estate today,” said Brian Cohen, president and CEO of Andover Properties. “Following a period of normalization in the wake of COVID-19, we believe a recovery in rents and occupancy may be driven by declining new supply and strengthening demand.

“Further, the sector’s fragmented ownership presents an opportunity to create value through our vertically-integrated operating platform. We therefore believe the current market environment presents an exceptional buying opportunity. Our joint ventures with Heitman help position us for these opportunities.”

Heitman began investing in self-storage properties on behalf of its clients in July 1996. Since then, Heitman has invested more than $15 billion in 1,600 self-storage properties across 14 countries globally, including more than 1,200 across 140-plus U.S. markets.