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ntercontinental Real Estate Corporation, in partnership with LaTerra Development, has acquired a 784-unit self-storage facility in Santa Clarita, CA for $27 million. This off-market deal marks Intercontinental's entry into the self-storage sector and highlights growing institutional interest in this high-performing asset class.
Located on 4.18 acres at 23715 Carl Court, the 100,000-square-foot facility features nine one-story storage buildings, a management office, and an on-site residential unit. Originally developed in 2000, the property has demonstrated long-term stability with an average tenant retention of six years, a notable figure in the self-storage industry.
Santa Clarita's strong population growth and residential development make it an attractive market for self-storage investment, according to Jessica Levin, Managing Director and Head of West Coast at Intercontinental. The joint venture partners plan to implement capital improvements, including modernizing the management office, upgrading lighting and landscaping, and enhancing site security.
The facility will be rebranded under the Public Storage name, with the world's largest self-storage operator overseeing day-to-day management. This transition is expected to bring greater operational efficiencies and enhance tenant experience.
Intercontinental's move into self-storage is driven by the sector's strong performance history and growing demand. According to Storage Café, nearly one-third of Americans currently use self-storage, with an additional 18% planning to rent in the near future. The Los Angeles metro area has a significant under-supply of self-storage space, with just five square feet per capita compared to 10-13 square feet nationally.
The acquisition complements LaTerra's broader footprint in the self-storage sector and signals Intercontinental's strategic expansion into alternative real estate sectors poised for continued institutional growth. The transaction adds to the growing list of investments tapping into evolving consumer lifestyles and urban space constraints, factors expected to continue fueling the self-storage boom.
