WPC Maryland Self Storage Portfolio - EP_Property for Sale

Various locations

WPC Maryland Self Storage Portfolio - EP

Portfolio description

Jones Lang LaSalle, Americas (“JLL”), on behalf of Washington Property Company (“WPC” or the “Company”), has been exclusively retained to facilitate a recapitalization of the Company’s existing self storage portfolio and identify an equity partner to capitalize the Company’s ongoing acquisition and development strategy.

The WPC portfolio currently consists of two fully stabilized Class-A facilities in Rockville, MD and one soon to be completed project in Laurel, MD (“Existing Properties”) and two development projects (“Development Properties”) across two different Maryland submarkets (collectively, the “Portfolio,” “Properties,” or “Projects”).

The Portfolio totals over 365,000 NRSF across core markets surrounding the Washington, DC Metro. The Company is requesting $35.5 million in equity investment, which equates to 36% of the total portfolio cost of $98.5 million.

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Attributes

Building area net

19,358 m²

Land area gross

12,384 m²

WPC Maryland Self Storage Portfolio - EP (5 Properties)

Media

Investment Highlights

Highly Concentrated, Affluent Population

The Seed Portfolio, of 4 & 44 Research Place and Cherry Lane Court, is located within very dense areas with 3-mile populations of over 125,000 and 97,500, respectively. Both of the Research properties and Cherry Lane Court are well under that supply threshold with 7.74 and 4.97 sf/capita respectively – signaling a lack of storage supply.

Resilience To Economic Turbulence

Amongst current economic turbulence, investors remain optimistic about the self-storage sector thanks to its resiliency. Self storage has been among the top- performing sectors in recent years, benefiting from pandemic-induced tailwinds including increased household mobility, the rise of makeshift offices and classrooms, elevated home sales, and broad-based disruption to daily life.

Future solar panel program

WPC is currently discussing the implementation of a solar panel program at its storage properties with OME Solar. The addition of this program would offset the current electricity utility expense at both Rockville properties and at Cherry Lane once delivered.

Deceleration of new storage supply

Between 2017 and 2020, new self storage deliveries averaged ~4.7% of existing inventory. However, it’s important to note that during that time period, average in-place effective rents across Public Storage’s – the largest self storage owner in the world - portfolio still increased. Over the next three years, average new deliveries across the country are expected to represent only ~1.7% of existing inventory.

Experienced institutional sponsorship

During the nearly 20 years since WPC’s inception, the Sponsor has successfully developed over 1,600,000 square feet of office properties and over 1,600 multi- family units throughout the Washington, DC metro area. The Sponsor has also developed and owns over 250,000 rentable square feet of retail.