Hines made a big foray into Southern California’s self-storage market with the $91M purchase of a facility in Cerritos.

The Extra Space Storage facility was a joint venture between Capital 360, an LA-based self-storage developer, and Barings. The JV developed the roughly 261K SF, three-story facility at 17900 Crusader Ave. in 2020. It holds roughly 2,460 units. It was more than 88% occupied at the time of sale.

Hines has been branching out lately, exploring townhomes, data centers and self-storage as it looks to put money into product types outside its typical pool in search of yields, Hines Managing Director Tom Lawless told attendees at a Bisnow event earlier this month. At the time, Lawless mentioned that Hines had just made its first self-storage purchase in California.

“From identifying the ideal location to optimizing the facility design and achieving rapid stabilization, we’ve demonstrated our ability to create exceptional value in the self storage sector during a time when there is significant distress in commercial real estate,” Capital 360 CEO Brian Shniderson said in a press release from CBRE.

CBRE's self-storage advisory team represented the seller.

Data on self-storage shows that what began as a relatively niche institutional investment vehicle has grown considerably, Hines wrote in a blog post in May.

As of the fourth quarter of 2023, there were 1,090 self-storage properties in the U.S. worth $23.6B in the National Council of Real Estate Investment Fiduciaries database.