Hines and CubeSmart are entering a joint venture to recapitalize a huge self-storage portfolio that includes 14 assets, which are all located in Dallas-Fort Worth.
Newmark is brokering the deal for the properties that are operating under CubeSmart's brand. The portfolio covers more than 1.25 million rentable square feet and over 9,700 units.
Newmark said in a statement that they are in "key submarkets" in the Dallas-Fort Worth metro, which includes Plano and Arlington. The cost of the portfolio was not revealed.
"As one of the largest national self-storage portfolio transactions of 2024, this transaction was a testament to the strength of the Dallas-Fort Worth market and further validation of the durability and appeal for high-quality storage assets across the U.S.," said Aaron Swerdlin, vice chairman and leader of Newmark's self-storage capital market practice.
"Special thanks to Robb DeJean and Michael Holder at Hines for their leadership in getting this transaction across the finish line."
Additionally, Newmark spoke on the fundamentals of the market. A third-quarter self-storage report from the CRE firm ranked Dallas third for forecasted population growth. This speaks to the city's job growth, net migration, investment activity, and increasing household earnings.
The move by Hines marks another investment in self-storage for the real estate manager. In October, it acquired a three-story self-storage facility in Cerritos, California for $91 million. At the time it was considered the largest purchase for a self-storage asset ever.
But the overall self-storage market has been negatively impacted by less moving activity, according to an analysis of the asset class market by DXD Capital principal Cory Sylvester. However, there are favorable trends in the sector that could prime it for a boon. This includes stable occupancy for the asset class, a decrease in the size of homes, and more people have been shifting to renting — with home buying out of the realm of affordability for many.