DALLAS - Through a newly formed joint venture, Behringer Harvard Opportunity REIT II Inc. has taken an 85 percent stake in a 537-unit self-storage facility in San Antonio. The REIT's partners are Watson & Taylor Management Inc. and an investment group represented by Kennedy Wilson Austin Inc.
The 3.2-acre asset is located at 6366 Babcock Rd., north of Loop 410 and five miles south of the University of Texas at San Antonio. The JV will re-brand the property to Watson & Taylor, shedding its Noah's Ark Self Storage flag. The 11-year-old complex features 10 single-story storage buildings with 56,275 square feet of rentable space.
Watson & Taylor operates more than 34 self-storage facilities in Texas, Massachusetts and Tennessee. Kennedy Wilson Austin will provide partnership asset managed and back-office support.
The deal is possibly the REIT's first move into the self-storage arena. But, the JV made it clear in its release that more self-storage acquisitions are in the offing.
"The Babcock Road facility represents the type of self-storage acquisition opportunities we plan to target as we build a portfolio through future joint ventures with Watson & Taylor and Kennedy Wilson Austin," said Samuel A. Gillespie, COO of the Dallas-bssed REIT.
