Real estate investment trust W.P. Carey & Co. continues to show appetite for self-storage facilities with another reported acquisition of units.
This is a positive for CMBS with self-storage exposure, according to Standard & Poor's.
The REIT announced earlier in November that it had acquired nine self storage facilities from A-American Self Storage. The total purchase price was approximately $31 million.
Together with W. P. Carey's previously announced acquisitions of 33 self storage properties from the same firm, the portfolio acquired to date comprises 42 properties totaling around 2.9 million square feet.
According to a report from the Wall Street Journal, the REIT is purchasing another 40 self-storage facilities with 25,000 units for $163 million from A-American.
A-American said there were 50 bidders for the properties, located in California, Illinois, and Hawaii, and the initial yield will be less than 8%.
The sale indicates strong demand for the property type, S&P analysts said. Conduit CMBS has about 2% exposure to self-storage properties, according to CMBS data provider Trepp.