Andover Properties has formed a series of joint ventures with global real estate investment manager Heitman to expand a diversified portfolio of self-storage assets across the United States. The new platform launches with a portfolio of more than 106 self-storage properties spread across 16 states, with the partners planning to pursue both value-add and core-plus strategies. Financial terms of the joint ventures were not disclosed.
Andover president and CEO Brian Cohen described the timing as favorable for new investment in the sector. He said the company views self-storage as being at an inflection point within commercial real estate and pointed to the sector as an attractive opportunity in the current environment. Cohen noted that the market is emerging from a period of post-COVID-19 normalization and suggested that future gains in rents and occupancy could be supported by moderating new supply alongside improving demand.
Cohen also highlighted the industrys ownership profile as a key part of the investment thesis. He characterized self-storage as a highly fragmented sector where a large share of assets are still held by smaller owners. According to Cohen, this fragmentation creates room for larger platforms to add value through scale and through a vertically integrated operating model. He said the current backdrop offers an exceptional buying environment and that the joint ventures with Heitman position Andover to pursue those opportunities.
Heitman brings a long track record in self-storage to the new partnership. The firm first began investing in self-storage properties on behalf of its clients in July 1996. Since then, Heitman has directed more than $15 billion into approximately 1,600 self-storage properties across 14 countries. That total includes more than 1,200 properties across over 140 U.S. markets, underscoring the managers established national and international footprint in the asset class.
Together, the firms aim to leverage Andovers operating capabilities and Heitmans capital and sector expertise as they grow the joint venture portfolio. While specific markets, acquisition targets, and timelines were not detailed, both sides emphasized that the combination is intended to capitalize on current market conditions in U.S. self-storage and to scale the platform beyond the initial 106-property seed portfolio.
