Andover and Heitman form self-storage JVs with more than 106 properties

Andover Properties and Heitman have formed a series of joint ventures around a portfolio of more than 106 self-storage properties across 16 states, IREI reported. Andover is a vertically integrated alternative real estate investment firm; Heitman is a global real estate investment management firm.

The joint ventures span value-add and core-plus strategies, and the two firms say they expect to expand the portfolio across US markets. Andover and Heitman say current conditions create opportunities to buy high-quality assets at discounted valuations, which they expect to build long-term value.

Brian Cohen, Andover's president and chief executive, said the self-storage sector is at an inflection point. He said a recovery in rents and occupancy may be driven by declining new supply and strengthening demand, after what he called a period of normalization in the wake of COVID-19. Cohen also cited the sector's fragmented ownership as an opportunity for Andover to create value through its vertically integrated operating platform, and noted that Heitman's experience in self-storage investing dates to 1996.

The IREI report does not give a purchase price for the seed portfolio or a breakdown of the equity split between the two firms.