Newmark Facilitates Major Self-Storage Portfolio Recapitalization in Dallas-Fort Worth

Major Recapitalization in Self-Storage Sector

In a significant development within the self-storage sector, Newmark has announced the successful broker of a recapitalization deal involving a joint venture between Hines and CubeSmart. This transaction concerns a large portfolio comprising 14 self-storage properties located across the expansive Dallas-Fort Worth Metroplex. Led by Aaron Swerdlin, Vice Chairman and head of the National Self Storage Capital Markets practice at Newmark, alongside Andrew Warin, Executive Managing Director, the firm played a pivotal role in guiding Hines through this complex recapitalization process.

This venture is marked as one of the largest transactions in self-storage portfolio history for the year 2024. Swerdlin emphasized the significance of this deal by stating, "This transaction is a testament to the strength of the Dallas-Fort Worth market. It indicates the durability and attractiveness of high-quality storage assets across the United States." This sentiment highlights the robust landscape of the real estate market in the region, as it continues to display resilience amid changing economic conditions.

The portfolio in question boasts over 9,700 storage units and more than 1.25 million net rentable square feet, all operating under the CubeSmart brand. The strategic positioning of these properties within key submarkets in Dallas and Fort Worth—specifically in rapidly growing areas such as Arlington and Plano—capitalizes on the soaring demand for self-storage solutions driven by increased local population and economic diversification.

According to Newmark’s Q3 2024 Self-Storage Report, Dallas ranks as the third-highest city nationwide for projected population growth. This thriving growth can be attributed to favorable macroeconomic trends, including significant net migration, job opportunities, and rising household incomes. Such factors contribute to a thriving real estate market which, in turn, attracts substantial investment activity.

Hines, the global real estate investment management firm, has a notable reputation for managing $93 billion of assets across various property types, serving a wide range of institutional and private clients. With a workforce of approximately 5,000 employees deployed across 31 countries, Hines remains committed to enhancing its portfolio through strategic partnerships and innovative development approaches.

CubeSmart, which is known for its self-administered and self-managed real estate investment trust services, ranks among the top self-storage property operators in the U.S., as identified in the 2024 Self-Storage Almanac. Their focus is on providing affordable, accessible, and often climate-controlled storage options essential for residential and commercial users alike.

As for Newmark, the firm is recognized as a leader in commercial real estate services and investment management. With a diverse offering tailored to clients ranging from startups to blue-chip companies, Newmark generated approximately $2.6 billion in revenues over the past twelve months. Their extensive network of nearly 170 offices worldwide positions them strategically to capitalize on emerging market trends, ensuring exceptional service across various industry sectors.

In a complex deal like this, there’s often a noteworthy effort involved in navigating the intricacies of real estate partnerships. The collaboration between Hines and CubeSmart exemplifies how two major players can strategically align to enhance their market presence while addressing the escalating demand for self-storage solutions. Both companies expressed gratitude toward Newmark for their guidance and expertise in bringing this joint venture to fruition, highlighting the importance of capable partners in achieving such ambitious transactions.

As self-storage continues to grow in relevance amidst shifting consumer needs, this recapitalization not only underscores the potential for substantial returns within the sector but also serves as a strong indicator of ongoing economic vitality in the Dallas-Fort Worth area—a region that remains fertile ground for future real estate investments and developments.