Since 2016, The Inland Real Estate Group of Companies, Inc. has been actively involved in the self-storage sector with a $1.7-billion portfolio spanning across 30 states. Recently, the Oak Brook-based company solidified its commitment to this industry by acquiring a majority interest in Devon Self Storage Holdings (US) LLC – one of the largest privately owned national self-storage operators.
This acquisition not only adds scale to Inland’s existing platform but also allows them to utilize Devon’s experienced senior management team who have been leading their operations for over two decades. For Devon, this deal means access to additional capital and infrastructure that will support their growth plans and expansion into third-party management and development.
According to Tony Chereso, CEO and President of The Inland Real Estate Group LLC: “Acquiring a vertically integrated self-storage platform aligns perfectly with our long-term strategic plans.” This sentiment was echoed by G.Joseph Cosenza – Vice Chairman of The Inland Real Estate Group LLC- who noted that they had previously utilized companies like Devon for managing their own self-storage properties.
However, it was ultimately decided that bringing these operations in-house would be more beneficial as it allows for greater control over the product and investment outcomes while reducing costs for investors. This decision was driven by late founder Daniel Goodwin about a year ago when he questioned why they were relying on external management firms instead of utilizing their own resources.
The negotiations between Tony Chereso , Matthew Tice (SVP atInlandRealEstate Acquisitions)and Keith Lampi(CEO atInLand Private Capital Corporation), resulted in an advantageous deal both parties involved which is expectedto create operational efficiencies through scale as well as synergies within both companies’ portfolios.
For further coverage on this topic please refer Connect CRE articles titled “InLand Private Capital Blazes Trailin Tax-Oriented CRE Investing”and”InLand Sees Brighter Days Ahead for CRE”.
