NexPoint Acquires 29 Self-Storage Properties

NexPoint Storage Partners Inc., a self-storage platform affiliated with NexPoint Advisors, announced that it acquired 29 self-storage properties developed by SAFStor.

The acquisition brings NexPoint Storage to a total asset value of approximately $1.7 billion with 71 wholly owned and operating properties and one additional property expected to open in February 2023.

The properties are in various submarkets in major U.S. markets which include Baltimore, Cleveland, Detroit, Houston, Miami/Ft. Lauderdale, Nashville, New Orleans, Philadelphia and Washington D.C.

“The SAFStor acquisition continues the strong execution of our strategy to own the newest and highest quality self-storage portfolio in the United States and provides us with greater financial flexibility and unique opportunities to pursue new investments in the latest generation of self-storage facilities,” said John Good, chief executive officer of NexPoint Storage. “This platform, which includes 17 additional properties owned by Delaware statutory trusts that we have a right to acquire in the future, comprises a $2 billion asset value portfolio, which we believe would be one of the largest privately-held self-storage portfolios in the U.S.”

“The NexPoint Storage acquisition represents the culmination of a wonderful partnership with NexPoint,” said Andrew Young, chief executive officer of SAFStor. “We spent five years building SAFStor into a leader in the storage space and placing the properties under NexPoint Storage’s leadership represents a winning outcome.”

In conjunction with the SAFStor transaction, NexPoint Storage Partners and Extra Space Storage have agreed to modify the preferred equity investment that Extra Space made in November 2020 in connection with NexPoint’s acquisition of Jernigan Capital, extending the mandatory redemption date of the preferred stock from November 2025 to December 2028, while consolidating the investment into a single $300 million Series D preferred stock with a dividend rate of 8.5% per annum.

NexPoint Storage will transfer management of 11 additional stores to Extra Space, and after consummation of the investment extension and SAFStor transaction, Extra Space will manage 100% of NexPoint Storage’s platform, which consists of nearly 90 properties.

“We are delighted to announce the expansion of our partnership with Extra Space Storage, providing us with another six years of best-of-class management and stable capital from the highest performing public self-storage REIT over the past almost two decades,” said Good. “We believe the expansion of this partnership will significantly enhance our ability to continue growing the NexPoint self-storage platform in the coming years.”

NexPoint Storage is a real estate investment platform that specializes in the self-storage sector. Since early 2015, NexPoint has underwritten more than $12 billion in prospective self-storage investments. The self-storage platform began with $110 million of initial capital on Apr. 1, 2015, and has developed an investment portfolio valued at more than $1 billion.

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