Key Takeaways
- • Heitman LLC launched an open-end core-plus self-storage investment vehicle with $275 million in commitments and an additional $200 million in co-investment commitments secured at launch.
- • The strategy acquired a 79-property seed portfolio spanning 16 states, comprising approximately 4.9 million rentable square feet with roughly 550,000 square feet of expansion potential across select properties.
- • Core-plus positioning targets income-producing stabilized assets alongside lease-up and selective development opportunities, seeking cash flow generation and long-term capital appreciation through operational enhancements.
- • Heitman's investment thesis emphasizes favorable acquisition pricing below replacement cost, declining new supply, market rents below construction-incentive levels, and demographic tailwinds from aging Millennials and Baby Boomers entering higher self-storage demand life stages.
- • The strategy leverages Heitman's 30-year self-storage operating history and established operator relationships to identify markets with high barriers to new supply and strong growth demographics.
Summary
Heitman LLC, a global real estate investment management firm with three decades of self-storage experience, announced the launch of an open-end core-plus self-storage investment strategy on May 14, 2026. The vehicle has secured $275 million in investor commitments alongside $200 million in co-investment capital, positioning it for significant capital deployment across the U.S. self-storage sector.
At launch, Heitman completed acquisition of a diversified seed portfolio comprising 79 self-storage assets across 16 states, totaling approximately 4.9 million rentable square feet. The portfolio includes stabilized income-producing properties, lease-up assets, and selective development opportunities designed to generate both current cash flow and long-term appreciation. Select properties within the portfolio offer approximately 550,000 square feet of expansion potential, providing operational upside through capital deployment and asset management enhancements.
Jen Boss, Head of Portfolio Management at Heitman and Portfolio Manager for the strategy, characterized the launch timing as attractive, citing multiple tailwinds: assets acquired well below replacement cost, declining new supply in the market, and current market rents remaining below levels required to justify new construction. The firm's investment conviction extends to demographic fundamentals, specifically the aging of Millennial and Baby Boomer cohorts entering life stages historically associated with increased self-storage demand. This thesis supports the strategy's focus on markets exhibiting high barriers to new supply and favorable growth demographics.
The core-plus strategy represents a differentiated approach within Heitman's portfolio, targeting risk-adjusted returns between conservative core and higher-yielding value-add investments. By combining stabilized cash-flowing assets with selective development and lease-up opportunities, the vehicle aims to deliver revenue growth through both market expansion and operational efficiency improvements while maintaining relative downside protection from the stabilized asset base.
At launch, Heitman completed acquisition of a diversified seed portfolio comprising 79 self-storage assets across 16 states, totaling approximately 4.9 million rentable square feet. The portfolio includes stabilized income-producing properties, lease-up assets, and selective development opportunities designed to generate both current cash flow and long-term appreciation. Select properties within the portfolio offer approximately 550,000 square feet of expansion potential, providing operational upside through capital deployment and asset management enhancements.
Jen Boss, Head of Portfolio Management at Heitman and Portfolio Manager for the strategy, characterized the launch timing as attractive, citing multiple tailwinds: assets acquired well below replacement cost, declining new supply in the market, and current market rents remaining below levels required to justify new construction. The firm's investment conviction extends to demographic fundamentals, specifically the aging of Millennial and Baby Boomer cohorts entering life stages historically associated with increased self-storage demand. This thesis supports the strategy's focus on markets exhibiting high barriers to new supply and favorable growth demographics.
The core-plus strategy represents a differentiated approach within Heitman's portfolio, targeting risk-adjusted returns between conservative core and higher-yielding value-add investments. By combining stabilized cash-flowing assets with selective development and lease-up opportunities, the vehicle aims to deliver revenue growth through both market expansion and operational efficiency improvements while maintaining relative downside protection from the stabilized asset base.
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