background-Austin Self-Storage Portfolio | Properties

Austin Self-Storage

Corner view of building


GCREIT is providing floating rate whole note financing for the acquisition of two newly constructed class A+, climate controlled self-storage facilities located in Austin, TX.

The two properties are new construction, class A+ facilities built to modern standard with convenient amenities including 100% climate-controlled units, best-in-class management, and top-end security desired by the high-income surrounding communities. The facilities include 1,548 units and additional ground floor retail. The loan basis represents a deep discount to current self-storage trades and new development in the area.

The deal’s sponsor and property manager are both strong repeat business partners of Nuveen Real Estate; the sponsor will be investing new equity showing its alignment for the deal and commitment to the business plan.

The Austin market is one of the most attractive markets for self-storage demand. Of the top 50 largest metro areas, Austin ranks #1 in terms of population growth, growing by an average rate 2.6% from 2013-2023 (according to Moody’s Analytics). We believe strong sponsorship, experienced property management, and population growth provide for an opportunity to generate a strong risk-adjusted IRR on this mortgage financing.
-Richard Kimble, Portfolio Manager


Further information:

Global city:

Austin is a “Tomorrow’s City” and is a target market for self-storage investment due to strong rent and population growth. Austin has benefitted from a number of corporate relocations in recent years and employment growth is projected to continue to outperform. Median household income in Austin remains above the national average and the combination of healthy job growth, population growth, and high income should translate to healthy demand for storage space.

The two assets within the Austin Self-Storage Portfolio offer diversification benefits as they are located in two distinct submarkets of the city and will benefit from different economic drivers. The area surrounding the Georgetown asset is in a higher income suburb north of the city, while the area surrounding the San Marcos asset is a lower income area southwest of the city midway between Austin and San Antonio. Both areas, however, are poised to maintain 2.0% annual population growth over the next 5 years, higher than the U.S. average of 0.4%.

Sego Lily, GCREIT holding
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Source: Stratodem Analytics

The properties pictured in the presentation represent select holdings at the time of publication and are not meant to represent the entire portfolio. The opinions expressed are reflective of the manager's views at the time of acquisition.