Key Takeaways
- • Heitman LLC launched an open-end Core Plus self-storage strategy with $275 million in commitments to date and an additional $200 million in co-investment, according to Business Wire.
- • The strategy launched with a seed portfolio of 79 self-storage assets across 16 states, totaling approximately 4.9 million rentable square feet, with about 550,000 square feet of expansion potential.
- • Portfolio manager Jen Boss cited assets acquired well below replacement cost, declining new supply, and favorable demographics driven by Millennials and Baby Boomers as the investment thesis.
- • Heitman, which had $47 billion in AUM as of March 31, 2026, has invested over $15 billion in 1,600 self-storage properties across 14 countries since beginning self-storage investing for clients in July 1996.
Summary
Chicago-based Heitman LLC, a global real estate investment management firm, announced the launch of a Core Plus strategy focused on self-storage assets across the United States, according to a Business Wire release. Heitman has received commitments totaling $275 million to date, plus an additional $200 million in co-investment. The strategy targets a core plus return profile, seeking strong cash flow and long-term growth through a diversified mix of stabilized, lease-up, and selective development assets.
In connection with the launch, Heitman completed the acquisition of a seed portfolio of 79 self-storage assets across 16 states, totaling approximately 4.9 million rentable square feet. The company expects the portfolio to benefit from continued revenue growth through operational enhancements, and select properties offer roughly 550,000 square feet of expansion potential.
Jen Boss, Head of Portfolio Management at Heitman and portfolio manager for the strategy, said the firm views the current entry point as attractive, citing assets that can be acquired well below replacement cost, declining new supply, and market rents that remain below levels needed to incentivize new construction. She also pointed to favorable demographics as the Millennial and Baby Boomer cohorts enter life stages that historically increase self-storage demand. Brian Pieracci, Head of North America Private Equity at Heitman, said the strategy will invest alongside operating partners, some known for 30 years, and leverages the firm's sector expertise, research platform, and underwriting discipline.
Heitman began investing in self-storage on behalf of clients in July 1996 and reports having invested over $15 billion in 1,600 self-storage properties across 14 countries. The firm says it is one of the largest private owners of self-storage in North America, with more than 1,200 stores across over 140 national markets. The strategy will target markets with high barriers to new supply and strong growth demographics.
Heitman, founded in 1966 and headquartered in Chicago with 10 offices worldwide, reported $47 billion in assets under management as of March 31, 2026, and invests through private equity, debt, and publicly traded real estate securities.
In connection with the launch, Heitman completed the acquisition of a seed portfolio of 79 self-storage assets across 16 states, totaling approximately 4.9 million rentable square feet. The company expects the portfolio to benefit from continued revenue growth through operational enhancements, and select properties offer roughly 550,000 square feet of expansion potential.
Jen Boss, Head of Portfolio Management at Heitman and portfolio manager for the strategy, said the firm views the current entry point as attractive, citing assets that can be acquired well below replacement cost, declining new supply, and market rents that remain below levels needed to incentivize new construction. She also pointed to favorable demographics as the Millennial and Baby Boomer cohorts enter life stages that historically increase self-storage demand. Brian Pieracci, Head of North America Private Equity at Heitman, said the strategy will invest alongside operating partners, some known for 30 years, and leverages the firm's sector expertise, research platform, and underwriting discipline.
Heitman began investing in self-storage on behalf of clients in July 1996 and reports having invested over $15 billion in 1,600 self-storage properties across 14 countries. The firm says it is one of the largest private owners of self-storage in North America, with more than 1,200 stores across over 140 national markets. The strategy will target markets with high barriers to new supply and strong growth demographics.
Heitman, founded in 1966 and headquartered in Chicago with 10 offices worldwide, reported $47 billion in assets under management as of March 31, 2026, and invests through private equity, debt, and publicly traded real estate securities.
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