Invesco Real Estate Secures $85.7M for Self-Storage Development Trust

Invesco Real Estate Income Trust Successfully Closes $85.7 Million Self-Storage DST Offering

By Invesco Real Estate Income Trust Inc.

Invesco Real Estate income Trust Inc. (INREIT) has successfully fully subscribed its IREX II Self-Storage Portfolio Delaware Statutory Trust (DST), attracting $85.7 million in total investor commitments.

This notable capital raise highlights the strong investor interest in tax-advantaged real estate opportunities.

The IREX II portfolio features eight institutional-quality self-storage facilities. These properties are strategically located across Tennessee, Texas, North Carolina, and Oregon.

With 3,894 rental units and 463,495 net rentable square feet, the portfolio offers geographic and asset class diversification.

This offering aligns with INREIT’s strategy to provide choice real estate solutions. These solutions are designed for tax-advantaged investors participating in 1031 exchanges.

As of May 31, 2025, INREIT manages a diverse portfolio valued at approximately $945.3 million across various property types and regions.

“The successful full subscription of IREX II reflects the growing interest among investors that are seeking tax deferral exchanges into institutional quality real estate assets,” said Kyle Connor, director, private markets and lead 1031 exchange specialist, Invesco Real Estate.

Chase Bolding, president and lead portfolio manager at INREIT, emphasized the self-storage sector’s strengths. He noted its resilience across market cycles and minimal ongoing capital expenditure requirements.

“The successful completion of the IREX II offering demonstrates the confidence from investors looking for tax-advantaged solutions,” Bolding added.

The self-storage industry has shown consistent demand, often considered a recession-resistant sector. Its appeal to 1031 exchange investors stems from the potential for passive income and tax benefits.

INREIT’s focus on institutional-quality assets aims to provide stable returns and long-term value gratitude for its investors.

Frequently Asked Questions

• What is a Delaware Statutory Trust (DST)? A DST is a legal entity used to hold title to real estate, enabling investors to participate in a fractional ownership of a property. It is often used as a vehicle for 1031 exchanges, allowing investors to defer capital gains taxes.
• what is a 1031 Exchange? A 1031 exchange, also known as a like-kind exchange, is a tax code provision that allows an investor to defer paying capital gains tax on the sale of an investment property if they reinvest the proceeds into a new, similar property within a specific timeframe.
• What makes self-storage properties attractive? Self-storage facilities typically require lower capital expenditures compared to other real estate sectors. They have also demonstrated a history of resilience during economic downturns,maintaining occupancy and rental rates.

What are your thoughts on this latest real estate offering? Share your insights in the comments below, and be sure to share this article with your network!

How does Invesco’s investment strategy of focusing on ground-up growth aim to capitalize on the current self-storage market dynamics?

Funding Details & investment Strategy

Invesco Real Estate has successfully secured $85.7 million in funding for its self-storage development trust, signaling continued investor confidence in the self-storage market.This capital injection will fuel the development of new self-storage facilities across key U.S.markets. The funding round was lead by a consortium of institutional investors,demonstrating the asset class’s appeal as a stable and growing investment possibility. This investment vehicle focuses on ground-up development, aiming to capitalize on favorable supply/demand dynamics in strategically selected locations.

Total Funding: $85.7 million

Asset Class: Self-Storage

Investment Focus: Ground-up development

Geographic focus: Key U.S. Markets (specific locations not publicly disclosed as of July 12, 2025)

The Growing Demand for Self-Storage

The demand for self-storage units has been steadily increasing over the past decade, driven by several factors. These include:

1. Household Mobility: Increased rates of relocation, both domestically and internationally, necessitate temporary storage solutions.
2. Downsizing & Decluttering: A growing trend towards minimalist lifestyles and smaller living spaces fuels demand for off-site storage.
3. life Transitions: Events like divorce, death, and job changes often require temporary storage of personal belongings.
4. Business Storage: Small businesses and entrepreneurs utilize self-storage for inventory, equipment, and records.

This sustained demand has resulted in high occupancy rates and rental growth within the self-storage industry. Analysts predict continued growth,making it an attractive sector for real estate investment. Related search terms include “storage unit costs,” “portable storage containers,” and “climate-controlled storage.”

Invesco’s Development Pipeline & Target Markets

While specific locations remain confidential, Invesco’s strategy centers on identifying markets with strong demographic trends and limited existing self-storage supply. Key considerations include:

Population Growth: targeting areas experiencing important population increases.

Household Formation: Focusing on regions with a high rate of new household formation.

Income Levels: Identifying markets with disposable income to support storage rental rates.

Competitive Landscape: Analyzing existing storage facilities and identifying underserved areas.

The trust aims to develop modern, Class A self-storage facilities offering a range of unit sizes and amenities, including climate control, security features, and online management tools. This focus on quality and convenience is designed to attract and retain tenants.

Benefits of Investing in Self-Storage Real Estate

Self-storage real estate offers several advantages for investors:

Relatively Low Capital Expenditures: Compared to other real estate asset classes, self-storage typically requires lower ongoing maintenance and operating expenses.

Scalability: The business model is easily scalable, allowing for portfolio expansion through new developments or acquisitions.

Recession Resilience: Demand for self-storage tends to remain relatively stable even during economic downturns, as people often downsize or relocate during challenging times.

Strong Cash flow: High occupancy rates and consistent rental income generate strong cash flow for investors.

Diversification: Adding self-storage to a real estate portfolio can provide diversification benefits.

Market Trends & Future Outlook

The self-storage market is evolving, with increasing demand for specialized services and amenities. Trends to watch include:

Technology Integration: Online booking, mobile payments, and smart access control systems are becoming increasingly common.

Climate-Controlled Units: Demand for climate-controlled storage is growing, particularly in regions with extreme weather conditions.

Vehicle Storage: The demand for secure vehicle storage (cars,RVs,boats) is increasing.

* Business Storage solutions: Providing tailored storage solutions for small businesses is a growing niche.

Industry experts anticipate continued growth in the self-storage sector, driven by demographic trends and evolving consumer needs. Invesco’s investment in this development trust positions them to capitalize on these opportunities and deliver strong returns for their investors. Further research into “REIT self-storage,” “self-storage investment trusts,” and “commercial real estate trends” will provide a more extensive understanding of the market.