Real estate firm Suburban Capital Inc. has sold its entire Happy Boxes self-storage portfolio for $75 million. Real estate investment trust Public Storage Inc. acquired the majority of the 12 facilities, while an undisclosed buyer purchased the remaining sites. Suburban made the sale to focus on growth within its hospitality real estate holdings, according to a press release.
The Happy Boxes locations are primarily in Virginia. One is still under development, Chris Perry, founder and CEO of Suburban, told a source.
Suburban entered the self-storage sector nearly 20 years ago. Though the company intends to focus on its hospitality business, it hasn’t ruled out a return to storage in the future, according to Perry. Other assets within its portfolio are also under review, he told a source. The company has hotel developments underway in Norfolk and Virginia Beach, Va. Its development and management division works with Choice Hotels International, Hilton Worldwide, Hyatt Hotels and Marriott International, among others.
Based in Glendale, Calif., Public Storage has interests in 2,429 self-storage facilities in 38 states, with approximately 162 million net rentable square feet. Operating under the Shurgard brand name, the company also has 232 facilities in seven European countries, with approximately 13 million net rentable square feet.
Founded in 1999 and based in Virginia Beach, Suburban is a privately held real estate company with interests in the industrial, hotel, office and retail sectors. It’ll continue to own and manage the remaining properties in its commercial portfolio, the release stated. Its holdings include more than 25 assets throughout the Southeast.
Sources:
The Virginian-Pilot, Suburban Capital Sells Self-Storage Facilities for $75M to Focus on Hotel Developments
SpareFoot Storage Beat, Virginia Company Sells Self-Storage Portfolio for $75 Million
Suburban Capital, Website
Happy Boxes, Website