SpareBox Storage strengthens its balance sheet with a successful $463 million refinancing with Bank of America

DENVER–(BUSINESS WIRE)–SpareBox Storage, the self-storage industry’s leading unmanned operator, today announced that it has successfully strengthened its balance sheet with a $462.5 million refinancing from Bank of America. SpareBox is one of the fastest growing self-storage companies helping to consolidate the highly fragmented industry and, in just over two years, has acquired 7.4 million square feet of storage assets in nine states and 21 markets. The Company is a joint venture between investment funds advised by Davidson Kempner Capital Management LP and Rizk Ventures.

SpareBox’s portfolio of 108 stores includes stores located in fast-growing markets in nine states: Texas, Michigan, Ohio, Arkansas, Oklahoma, New Hampshire, South Carolina, Florida and Georgia. SpareBox is built on a proprietary platform for contactless rentals and 24/7 customer service availability, and the company’s unique unmanned operations improve both customer satisfaction and efficiency operational.

“Self-service storage continues to be one of the strongest sectors in commercial real estate,” said Steve Treadwell, CEO of SpareBox Storage. “Since our launch in August 2020, we have outperformed our underwriting and grown rapidly, expanding to 21 markets in nine states across the country. Today, we are the nation’s first unmanned operator in self-storage. We are excited about our growth trajectory in 2023 and beyond as we execute our strategy of targeting markets with strong demographic fundamentals. »

“We are thrilled with the support of Bank of America, which clearly understands SpareBox’s unique position in the self-storage consolidation industry,” said Tom Rizk, President and Founder of Rizk Ventures. “Accessing the debt markets and securing funding of this size in this environment has not been an easy task and is a testament to the strengths of our platform, our unique and successful operating model in one of the fastest growing categories real estate dynamics, led by one of the best management teams in the business. With a strong balance sheet and a clear path forward, we look forward to achieving our goals of building a multi-billion business over the next coming years.

“Looking ahead, we see huge opportunities to continue to acquire stores in our existing territories, while also expanding into new markets, particularly in the South East and South West. storage is one of the best performing commercial real estate segments, and we are in an ideal position to grow, backed by our sponsors and lenders and a very strong balance sheet,” noted Treadwell.

According to the Company, demand for self-storage is growing faster than population or employment growth, driven by two enduring demographic trends: (1) the accumulation of wealth and the growth of families among millennials and (2) the residential downsizing of baby boomers. When you consider these trends in the context of the work-from-home movement, the explosion of last-mile distribution in retail, and the ongoing housing shortage, self-storage is in better shape than ever.

SpareBox storage

Founded in August 2020, SpareBox Storage is a joint venture between investment funds advised by Davidson Kempner Capital Management LP and Rizk Ventures, and led by industry veterans Steve Treadwell, Chuck James and Kate Matheny. SpareBox owns 108 properties in 21 markets across nine states, representing approximately 7.4 million square feet.

Davidson Kempner Capital Management LP

Davidson Kempner Capital Management LP is a global investment management firm with over 39 years of experience and a focus on fundamental investing with a multi-strategy approach. Davidson Kempner has over $38 billion in assets under management and over 450 employees across six offices: New York, Philadelphia, London, Dublin, Hong Kong and Shenzhen. Additional information is available at: www.davidsonkempner.com.

Rizk Ventures

Rizk Ventures is a special situation investment and operating platform focused on real estate, technology and healthcare. Rizk Ventures has built real estate operating platforms across a number of industries in the United States and Latin America. With over 30 years of experience in a number of real estate industries, the company currently owns and operates commercial, healthcare and self-storage properties in 19 states and the country of Columbia totaling over of 25 million square feet. The company’s suburban commercial office platform – Workspace Property Trust – recently acquired 53 suburban office properties valued at $1.132 billion from Griffin Realty Trust.