Banner Acquires Climate-Controlled Facility in St. Paul to Expand Real Estate Portfolio
- Banner Real Estate Group acquires an 88,514-square-foot climate-controlled facility in St. Paul, Minnesota, enhancing its portfolio.
- The acquisition supports Banner's strategy to invest in high-demand markets and capitalize on growth opportunities in self-storage.
- Banner has invested over $2 billion since 1989, focusing on favorable supply-demand dynamics in its expansion efforts.
Banner Real Estate Group Expands Footprint with Strategic Acquisition in St. Paul
Banner Real Estate Group makes a significant move in the self-storage sector by acquiring an 88,514-square-foot climate-controlled facility located at 875 Montreal Way in St. Paul, Minnesota. This acquisition, executed in partnership with RGA ReCap Inc. on behalf of Reinsurance Group of America, Inc., marks a pivotal step in Banner's strategic expansion into high-growth markets across the United States. Trent Acuff, the Chief Investment Officer of Banner, highlights the company’s commitment to investing in premier self-storage assets located in robust markets, underlining the long-term vision that guides their investment strategies.
The St. Paul facility, which was redeveloped from a warehouse into Class A self-storage in 2020, presents significant opportunities for lease-up and rate growth, making it an attractive addition to Banner's portfolio. Located on 8.3 acres at the intersection of the Highland Park and Summit Hill neighborhoods, the property enjoys a prime location just 3.6 miles from downtown St. Paul and 7.5 miles from Minneapolis. The surrounding area is experiencing substantial growth, with 14,300 multifamily units within a 3-mile radius and a reported 14% increase in supply either under construction or in the pipeline. This demographic data signals a strong demand for self-storage services, positioning the newly acquired facility to thrive in a competitive market.
The strategic acquisition aligns seamlessly with Banner's broader goals to enhance its portfolio across multifamily, self-storage, and industrial properties nationwide. The company’s focus on locations characterized by favorable supply-demand dynamics reflects a calculated approach to capital preservation and value creation. The financing for this deal is facilitated by Highland Bank of St. Paul, with Talonvest Capital, Inc. acting as the mortgage broker, thereby cementing Banner's commitment to securing favorable financial partnerships as it continues to grow.
In addition to this acquisition, Banner Real Estate Group has a long-standing history of successful investments, having deployed over $2 billion since its founding in 1989. The firm’s strategic focus on high-demand markets ensures that it remains competitive in the ever-evolving real estate landscape. As Banner continues to expand its geographical reach, it aims to leverage opportunities that not only enhance its portfolio but also provide value to its investors.