Key Takeaways
- • Nuveen Real Estate, which manages more than $154 billion in assets under management, has invested in MyPlace, a newly launched vertically-integrated self-storage platform founded by industry veteran Kurt O'Brien.
- • MyPlace and Nuveen have been acquiring assets together since 2022, with approximately $300 million in AUM across value-add and core-plus strategies, and target roughly $1 billion AUM over the next two years.
- • MyPlace will operate nationally with a focus on secondary markets in the Midwest, Sunbelt, and Mountain West, using technology to automate facilities and streamline operations.
- • The deal gives Nuveen direct operating capabilities in self-storage, where it has been investing since 2003 and remains a top-15 private owner.
Summary
Nuveen Real Estate, one of the largest real estate investment managers globally with more than $154 billion in assets under management, announced that it has invested in MyPlace, a vertically-integrated self-storage platform recently launched by Kurt O'Brien, founder and former CEO of Simply Storage. According to the announcement distributed via PR Newswire, the investment is intended to give Nuveen direct operational control over self-storage assets in addition to its existing investment platform.
MyPlace will operate nationally but will concentrate on secondary markets across the Midwest, Sunbelt, and Mountain West, which the firm describes as having strong demographic trends and limited self-storage supply. The company plans to leverage technology to automate many of its facilities and streamline operations. MyPlace and Nuveen began acquiring assets together in 2022 and currently hold approximately $300 million of AUM across value-add and core-plus strategies. The partnership aims to grow AUM to approximately $1 billion over the next two years.
Michael Hunter, Global Co-head of Housing and Alternatives at Nuveen Real Estate, said the firm is "thrilled to partner with a proven leader" and that the investment allows Nuveen "to control best-in-class operations to drive further value for our investors." Melissa Reagen, Managing Director and Portfolio Manager of the U.S. Strategic Alternatives Fund, cited non-cyclical demand drivers, limited capital expenditure requirements, and favorable demographic tailwinds in the sector. Nuveen will continue investing in self-storage through one-off purchases and selective portfolio acquisitions funded by existing Nuveen accounts and dedicated third-party capital.
O'Brien, who is based in Orlando, FL, previously built Simply Self Storage, which was once the largest private self-storage operator before being sold in two parts to iStorage and Blackstone for a combined valuation of approximately $2.5 billion. According to the release, he has roughly $7 billion of total transactions experience and has worked with investors including Brookfield, Blackstone, GE Capital, and Oaktree. He said the investment climate favors efficient and well-capitalized operators.
Nuveen began investing in self-storage in 2003 and remains a top-15 private owner in the sector. The firm has nearly doubled its AUM since 2019, following the formation of Hunter's alternative real estate team focused on emerging and niche asset classes. Reed Smith (John Simonis and Dan Hagedorn) advised Nuveen, and Morrison & Foerster (Larry Medvinsky and Tushna Gamadia) advised O'Brien.
MyPlace will operate nationally but will concentrate on secondary markets across the Midwest, Sunbelt, and Mountain West, which the firm describes as having strong demographic trends and limited self-storage supply. The company plans to leverage technology to automate many of its facilities and streamline operations. MyPlace and Nuveen began acquiring assets together in 2022 and currently hold approximately $300 million of AUM across value-add and core-plus strategies. The partnership aims to grow AUM to approximately $1 billion over the next two years.
Michael Hunter, Global Co-head of Housing and Alternatives at Nuveen Real Estate, said the firm is "thrilled to partner with a proven leader" and that the investment allows Nuveen "to control best-in-class operations to drive further value for our investors." Melissa Reagen, Managing Director and Portfolio Manager of the U.S. Strategic Alternatives Fund, cited non-cyclical demand drivers, limited capital expenditure requirements, and favorable demographic tailwinds in the sector. Nuveen will continue investing in self-storage through one-off purchases and selective portfolio acquisitions funded by existing Nuveen accounts and dedicated third-party capital.
O'Brien, who is based in Orlando, FL, previously built Simply Self Storage, which was once the largest private self-storage operator before being sold in two parts to iStorage and Blackstone for a combined valuation of approximately $2.5 billion. According to the release, he has roughly $7 billion of total transactions experience and has worked with investors including Brookfield, Blackstone, GE Capital, and Oaktree. He said the investment climate favors efficient and well-capitalized operators.
Nuveen began investing in self-storage in 2003 and remains a top-15 private owner in the sector. The firm has nearly doubled its AUM since 2019, following the formation of Hunter's alternative real estate team focused on emerging and niche asset classes. Reed Smith (John Simonis and Dan Hagedorn) advised Nuveen, and Morrison & Foerster (Larry Medvinsky and Tushna Gamadia) advised O'Brien.
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