Andover Properties and Heitman Launch Joint Ventures Across 106-Property U.S. Self-Storage Portfolio

New York, NY, October 7, 2026 — Andover Properties, a vertically integrated alternative real estate investment firm, announced a series of joint ventures with Heitman, a global real estate investment management firm, to grow a diversified portfolio of self-storage assets across the United States.

The joint ventures were launched with a portfolio of more than 106 self-storage properties across 16 states. They span both value-add and core-plus strategies, and the partners expect to expand the portfolio across markets throughout the country.

Andover Properties and Heitman Joint Venture Structure

Andover Properties and Heitman said the relationship reinforces both firms' conviction in the self-storage sector. The firms said they believe the venture comes at an attractive point in the self-storage cycle, with current market conditions creating opportunities to acquire high-quality assets at discounted valuations that can help build long-term value.

The ventures were launched with an existing portfolio, which suggests a platform-level transaction rather than a single acquisition. Andover is the sponsor and owner, while Heitman participates as an equity partner.

Executives Cite Inflection Point in Self-Storage

"We are excited to partner with Heitman, whose experience in self-storage investing dates back to 1996," said Brian Cohen, President and CEO of Andover Properties. "We believe the self-storage sector is at an inflection point and represents an attractive opportunity in commercial real estate today. Following a period of normalization in the wake of COVID-19, we believe a recovery in rents and occupancy may be driven by declining new supply and strengthening demand. Further, the sector's fragmented ownership presents an opportunity to create value through our vertically integrated operating platform. We therefore believe the current market environment presents an exceptional buying opportunity. Our joint ventures with Heitman help position us for these opportunities."

Zach Harding, CIO of Andover Properties, said the ventures represent "a significant milestone for our platform and enhances the strength of our operating capabilities, investment strategy, and portfolio." He added, "We believe that Heitman's long-standing expertise in the self-storage sector coupled with Andover's ability to source opportunities and drive operational improvements at the property-level will help maximize the value of the investments."

Doug Gurr, Head of U.S. self-storage acquisitions at Heitman, said: "We are focused on markets with strong fundamentals, which we believe, should benefit from demographically driven demand and limited new supply. Today's entry point provides the opportunity to acquire assets well below replacement cost."

Self-Storage Market Conditions Behind the Venture

The partners are entering the market during a reset in self-storage fundamentals. Marcus & Millichap projects 2026 inventory growth of 2.2%, the lowest delivery rate since 2016, with national vacancy forecast to decline to 10% by year-end. Average asking rent is projected to fall 0.8% to approximately $1.18 per square foot in 2026, extending four consecutive years of annual declines.

A 2026 industry update puts national street rates at $16.27 per square foot on an annualized basis, down 0.2% year over year. Occupancy varies by ownership type, with REIT portfolios averaging roughly 84% to 93%, compared with about 82% for private and CMBS assets. Supply pressure remains pronounced in parts of the Sunbelt, although new deliveries are expected to slow in markets including Atlanta, Tampa, Phoenix and Orlando.

Another industry report places U.S. self-storage capitalization rates generally in the mid-5% range, while noting that pricing in brokered transactions remained relatively aggressive. High construction costs, tighter underwriting, labor constraints and longer development timelines are limiting new supply.

Platform Scale at Andover Properties and Heitman

Andover Properties specializes in alternative real estate asset classes, including self-storage, manufactured housing, RV parks, small-bay industrial and car washes. The firm is one of the largest private owner-operators of self-storage facilities in the United States, with a portfolio exceeding 15 million square feet across more than 180 facilities in 20 states. Founded in 2003 by Brian and William Cohen, Andover is headquartered in New York City with offices in Miami and San Francisco. In September, the firm said its Storage King USA portfolio had surpassed 15 million square feet and 100,000 units.

Heitman began investing in self-storage properties on behalf of its clients in July 1996. Since then, the firm has invested over $15 billion in 1,600 self-storage properties across 14 countries. Heitman is one of the largest private owners of self-storage in North America and has acquired more than 1,200 stores across more than 140 markets nationally.

Heitman is a global real estate investment management firm with $48 billion in assets under management as of September 30, 2026. Founded in 1966 and headquartered in Chicago, it has 10 offices worldwide and makes real estate investments through private equity, debt and publicly traded real estate securities.

Outlook for the Self-Storage Joint Ventures

The partners expect to add assets across U.S. markets, combining Andover's sourcing and property-level operating capabilities with Heitman's institutional self-storage investment experience. The partners' thesis rests on slowing new supply, demographically driven demand and the sector's fragmented ownership, which they say allows scaled operators to create value at the property level.

Sources

• Andover Properties and Heitman Expand Self-Storage Portfolio Through Joint Venture Acquisitions