Newmark Arranges $315 Million Refinancing for National Self-Storage Portfolio

Rhea-AI Summary

Newmark has secured a $315 million refinancing for a national self-storage portfolio owned by TPG Angelo Gordon and Andover Properties. The portfolio comprises 43 assets operating under the Storage King USA brand, spanning 24 markets across 11 states, with over 21,300 units and 3.1 million rentable square feet. The financing was provided by Wells Fargo, Goldman Sachs, and 3650 REIT. The portfolio has demonstrated strong performance with NOI growth exceeding 40% since acquisition. According to Newmark Research, self-storage transaction activity increased 27% from Q1 to Q2 2024.

Positive

• Portfolio demonstrated over 40% NOI growth since acquisition
• Successfully secured $315 million refinancing
• Portfolio spans 3.1 million rentable square feet with 21,300+ units
• Self-storage sector showing strong transaction activity growth (27% Q1 to Q2 2024)

Negative

• None.

NEW YORK, Nov. 4, 2024 /PRNewswire/ -- Newmark announces it has arranged a $315 million loan on behalf of TPG Angelo Gordon, a diversified credit and real estate investing platform within TPG, and Andover Properties for the refinancing of a national 43-asset self-storage portfolio. Newmark's Co-Presidents of Global Debt & Structured Finance Jordan Roeschlaub and Jonathan Firestone, Vice Chairman Nick Scribani and Director John Caraviello arranged the financing, which was provided by Wells Fargo, Goldman Sachs and 3650 REIT.

"This transaction highlights the market's continued appetite for well-performing alternative real estate sectors such as self-storage," said Roeschlaub. "In today's competitive landscape, credit investors are increasingly looking to diversify their portfolios beyond traditional real estate sectors with assets that demonstrate durable cash flow, long-term growth and resilience to macroeconomic shifts."

The portfolio totals more than 21,300 units across 3.1 million rentable square feet and is branded under Andover's wholly-owned self-storage platform, Storage King USA. The portfolio is strategically located in 24 different markets across 11 states. Since acquisition, the portfolio has experienced outstanding NOI growth in excess of 40%.

Self-storage properties are an in-demand property type among investors. According to Newmark Research, transaction activity increased 27% from the first quarter to the second quarter in 2024, with activity expected to accelerate over the remainder of the year.

About TPG
TPG is a leading global alternative asset management firm, founded in San Francisco in 1992, with $229 billion of assets under management and investment and operational teams around the world. TPG invests across a broadly diversified set of strategies, including private equity, impact, credit, real estate, and market solutions, and our unique strategy is driven by collaboration, innovation, and inclusion. Our teams combine deep product and sector experience with broad capabilities and expertise to develop differentiated insights and add value for our fund investors, portfolio companies, management teams, and communities. For more information, visit www.tpg.com. 

About Andover Properties
Andover Properties is an investment firm specializing in alternative real estate asset classes such as self-storage, manufactured housing, RV parks, small bay industrial, and car washes. Andover is one of the largest private owner-operators of self-storage facilities in the U.S., with a portfolio totaling over 13.5 million rentable square feet across 162 facilities in 18 states, under the Storage King USA brand. Founded in 2003 by Brian and William Cohen, Andover is headquartered in New York City, with offices in Miami and San Francisco.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the year ended December 31, 2023, Newmark generated revenues of approximately $2.5 billion. As of June 30, 2024, Newmark's company-owned offices, together with its business partners, operate from approximately 170 offices with 7,800 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

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SOURCE Newmark Group, Inc.

FAQ

What is the size of the refinancing deal arranged by Newmark (NMRK) for the self-storage portfolio in November 2024?

Newmark arranged a $315 million refinancing deal for the national self-storage portfolio.

How many properties are included in the Storage King USA portfolio refinanced by Newmark (NMRK)?

The portfolio includes 43 self-storage assets across 24 markets in 11 states.

What was the NOI growth of the self-storage portfolio refinanced by Newmark (NMRK)?

The portfolio experienced NOI growth in excess of 40% since acquisition.

Which lenders provided the $315 million refinancing arranged by Newmark (NMRK)?

The financing was provided by Wells Fargo, Goldman Sachs, and 3650 REIT.