An affiliate of Los Angeles-based investment firm Kayne Anderson Capital Advisors LP has acquired three Milwaukee-area self-storage facilities for $34.3 million.
All three properties are branded as Extra Space Storage and are being managed by the entity, which is a real estate investment trust. They were acquired from joint venture between The Davis Companies, a Boston-based real estate investment firm and Highland Development Ventures of Valhalla, New York.
The facility at 1131 N. 8th St. in Milwaukee was purchased for $13 million. The 1,000-unit facility is on the lower level of a large, mixed-use project in Building 42 of a former Pabst Brewing complex.
Other parts of the development include an event venue, office space and a rooftop bar.
The upper level of the mixed-use project was spearheaded by local investor Scott Lurie and the lower level self-storage facility was constructed by the Highland/Davis joint venture. The Davis Companies and Highland Development acquired the lower level of the project in 2016 for $3 million, according to state records.
Highland also developed the 80,000-square-foot storage facility at 6805 S. 27th St. in Franklin, which Kayne Anderson acquired for $12.5 million. The property was converted from unused warehouse space in the back of a former Ashley Furniture store and currently features a Hobby Lobby store, in addition to the self-storage.
The third property is located at 232 S. Curtis Road, selling for $8.75 million.
Self-storage facilities often sell for high prices because they have constant cash flow.
Kayne Anderson Capital manages $27.5 billion in assets across the country, according to its website.
A spokeswoman for Kayne Anderson Real Estate said the company does not comment on transactions.
