The Inland Real Estate Group of Companies, Inc., has agreed to purchase a majority interest in the business of Devon Self Storage Holdings (US) LLC, a large privately owned national self-storage operator. Currently, Devon manages 202 properties and approximately 109,000 units nationally.
Founded in 1988 by Ken Nitzberg, Devon has owned, managed or developed more than 350 self-storage facilities in 27 states and three European countries.
“Acquiring a vertically integrated self-storage platform aligns perfectly with Inland’s long-term strategic plans,” commented Tony Chereso, chief financial officer of Inland. “Ken and his team have built a powerful brand and platform that will not only integrate well within Inland, but also provide tremendous growth opportunities across our many investment and commercial real estate operating companies.”
Since entering the self-storage sector in 2016, Inland has amassed a $1.7 billion self-storage portfolio of both stabilized assets and development projects across 30 states. For example, the deal follows Inland Private Capital Corporation and Devon’s delivery of an 807-unit self-storage property outside of Detroit.
According to Inland, the acquisition allows the company to leverage Devon’s existing senior management team which has been together for more than two decades, while at the same time providing additional capital and infrastructure necessary to further drive the platform’s innovation and expansion plans going forward, including growth of Devon’s third-party management and development platform.
“For over 30 years Devon has been doing what we do best – acquiring, redeveloping and operating high-quality self-storage properties,” said Ken Nitzberg, chairman and chief executive officer of Devon. “I am thrilled to continue that work with Tony, Keith, and the entire Inland team, as well as Devon’s more than 270 employees dedicated to delivering best-in-class self-storage properties and services.”
“Devon has been an integral strategic partner as Inland has expanded our presence in the self-storage sector,” commented Keith Lampi, president and chief executive officer of Inland Private Capital Corporation. “As the sector continues to institutionalize, creating operational efficiencies for the benefit of our investors through scale has never been more important. I am looking forward to the synergies created by this transaction.”
The Inland Real Estate Group of Companies has been creating, developing, and supporting member companies for more than 50 years that provide real estate-related investment products and commercial real estate services for both third parties and Inland member companies.
Inland’s member companies provide commercial real estate-related services and alternative investment funds, including limited partnerships, institutional funds, a real estate investment trust, and private placement offerings/Section 1031 exchange programs.