Hines Acquires Tennessee Storage Portfolio

Self storage property. Image courtesy of Hines International real estate firm Hines has announced its…

Self storage property. Image courtesy of Hines

International real estate firm Hines has announced its Hines Global Income Trust (HGIT) has acquired a portfolio of self storage facilities in metropolitan Nashville, Tenn., totaling five Class A, climate-controlled properties. The assets are located in urban Nashville, Franklin and Hendersonville, as well as a pair of facilities in Murfreesboro. The portfolio encompasses a total of 3,200 storage units and 341,000 square feet.

HGIT is a public, non-listed real estate investment trust diversified by both geography and real estate sectors. The trust commenced operations in 2014. It invests in commercial real estate assets situated in the U.S. and international locations.

The portfolio focuses on stable assets with robust long-term income potential. This acquisition becomes part of a portfolio with an almost two-thirds weighting toward the industrial and living sectors. It is valued at $3.1 billion.

Appealing fundamentals

In a prepared statement, a Hines official reported the self storage portfolio provides HGIT with product diversification within an institutional market boasting appealing current and forecasted demographics. HGIT has an interest in creating scale within the self storage sector, and has therefore prioritized the expansion of the portfolio through incorporation of additional self storage facilities.

Another Hines official observed that given high demand growth and low comparative supply pipeline, Music City’s self storage market is primed for profitability. The official noted the properties are well located and are market-leading assets in economically flourishing areas. The acquisition positions Hines to continue to build the company’s presence in greater Nashville and in the self storage sector well into the future. Nashville’s multifamily rental market was characterized as “red hot,” according to Yardi Matrix’s latest report.

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