- Public Storage Grows Again
REIT Makes $2.2 Billion Acquisition
On July 24, Public Storage announced its plans to acquire the Simply Self Storage portfolio from Blackstone Real Estate Income Trust (BREIT) for $2.2 billion. According to Blackstone, which acquired the Simply Self Storage portfolio in October 2020 from Brookfield Asset Management for nearly half that price ($1.2 billion), the deal is expected to close in the third quarter of this year and generate more than $600 million in profit.The Simply Self Storage portfolio consists of 127 wholly owned properties within 18 states that comprise 9 million net rentable square feet of storage space. Approximately 65 percent of the properties within the portfolio are located in what the companies have referred to as “high-growth Sunbelt markets.”
We are pleased to welcome Simply’s team, customers, and third-party management partners to Public Storage’s industry-leading brand and platform,” said Joe Russell, chief executive of Public Storage. “This acquisition reflects the continued execution of our multi-factor external growth platform, which includes acquisitions, development, redevelopment, expansion, and third-party management. We are pleased to complete this important transaction with Blackstone, which further demonstrates our position as an acquirer of choice in the industry. Blackstone has done a tremendous job of growing and improving the quality and operations of the Simply portfolio over the past few years.”
Since 2019, Public Storage has expanded its portfolio by approximately 55 million net rentable square feet, or 34 percent, through $10.6 billion worth of acquisitions, development, and redevelopment, including this transaction, which came about as Blackstone faced redemption requests from its real estate income trust. The private equity firm had been exercising its right to block investor withdrawals from BREIT since November 2022, after requests exceeded a preset 5 percent of the net asset value of the fund.
“Where you invest matters, and this transaction demonstrates the strong investor demand for the high-quality assets and platforms we have assembled within BREIT,” said Nadeem Meghji, head of Blackstone Real Estate Americas. “This sale is a terrific outcome for BREIT stockholders and enables us to further concentrate BREIT’s portfolio in its highest growth sectors. Public Storage is a leader in its space and will be a terrific steward of this portfolio.”
Eastdil Secured served as financial adviser to Public Storage, whereas Wells Fargo and Newmark Group acted as lead financial advisers to BREIT.
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Industry Report
Tenant Receives Funding
On Aug. 9, Tenant Inc. announced that it had closed a third round of seed funding by raising $25 million in investments. The funds, provided by Tenant’s 100-plus strategic investors, most of which are self-storage owners who use Tenant’s products, will be spent on advancing product development, expanding its customer support and sales team, and increasing platform integration. The oversubscribed round was attributed to investor value and “demonstrated product market fit,” according to company officials. Tenant’s recent acquisition of Storelocal strengthened investor confidence as well. - Absolute Lands New Clients
Absolute Storage Management has added six more facilities to its growing list of professionally managed properties following recent ownership changes. They include MyPlace Self Storage in Apache Junction, Ariz., with 609 units totaling 4,293 rentable square feet; MyPlace Self Storage in Brighton, Colo., which has 742 units totaling 108,284 rentable square feet; Absolute Storage of Conway in Conway, Ark., with 305 units totaling 37,325 rentable square feet; Atlanta’s Best Storage, a 294-unit, 26,187-rentable square-foot facility in Atlanta, Ga.; SecureLoc Self Storage, a 238-unit, 24,281-rentable-square-foot facility in Hagerstown, Md.; and Albany Storage Annex, a 265-unit, 25,950-rentable-square-foot facility in Albany, La. - SAM Named Fastest
Growing Company
Central Penn Business Journal has selected Storage Asset Management as one of the “Fastest Growing Companies” in 2023. Fastest Growing Companies, which recognizes local business growth, ranks companies according to revenue growth over a three-year period, with both dollar and percentage increases taken into consideration. The ranking formula, coordinated by SEK CPAs & Advisors, leads to the recognition of both large and small companies. This year, eligible companies must show revenue growth in 2022 (as compared to 2020) and have revenue of at least $500,000 in each of the fiscal years ending in 2020, 2021, and 2022. Moreover, the Pennsylvania companies must be headquartered in Adams, Cumberland, Dauphin, Franklin, Lancaster, Lebanon, Perry, or York counties. The 50 Fastest Growing Companies will be honored Sept. 12 at the Sheraton Harrisburg Hershey Hotel and profiled in the Sept. 15 issue of Central Penn Business Journal. -
Global
Storage Marketplace Wins Awards
The United Kingdom startup known as Explorage Ltd. recently won the “Rising Star Award” at the 2023 StartUp Awards in Wales. Additionally, Explorage was named “Best Use of Social Media Promoting Business and Industry” from the Container Self Storage and Traders Association (CTSA). Explorage, which was launched eight months before receiving these recognitions, is an online self-storage marketplace that enables consumers to compare storage rates and services; they can also filter search results and reserve units through the site.Ivanhoé Seeks U.S. Investments
Ivanhoé Cambridge, a global institutional investor based in Montreal, has formed a strategic partnership with Safely Store Self Storage, an investment platform formed by the principals of Iron Point Partners, LLC and the self-storage platform of Taylor/Theus Holdings, Inc. The alliance allows Ivanhoé Cambridge to enter and invest in the U.S. self-storage sector. Alongside another global institutional investor, Ivanhoé Cambridge and Safely Store will invest an initial $400 million (USD) in equity into Tier I and Tier II markets. -
Community Outreach
IRE Announces Scholarship Winners
Three individuals with ties to Investment Real Estate Group of Companies (IREGC) have been awarded Self Storage Association Foundation (SSAF) scholarships: Corinne Steinis-Maffei, whose husband Phillip Maffei manages Moove In Self Storage in Connecticut, received $5,000 to put toward her accounting studies at Central Connecticut State University; Sarah Clark, a manager at Moove In Self Storage in York, received $5,000 for her funeral directing studies at the Pittsburgh Institute of Mortuary Science; and Morgan Brandenburg, whose mother Kelly Maas is a senior property manager at Moove In Self Storage in Maryland, was awarded $3,000 for her pediatric speech language pathology studies at Towson University. IREGC CEO John Gilliland, a former chair of SSAF, is matching each scholarship. -
Storage Oddities
Missing Woman Found
The body of Fanta Xayavong, a woman who had been missing for two years, was found within a storage unit in Coon Rapids, Minn. St. Paul police reported that her death has been linked to Joseph Jorgenson. Although Jorgenson has not yet been charged in Xayavong’s death, the 40-year-old man was recently charged with second-degree murder in the death of Manijeh “Mani” Starren, whose dismembered body was found in a storage unit in Woodbury, Minn. - Fake Finds
While responding to reports of gunshots at an Extra Space Storage facility in Shrewsbury, Mass., on June 17, police uncovered $11.3 million in counterfeit goods. According to an officer, the merchandise was arranged on shelves, tables, and boxes within the unit like displays in a retail store. The 16,644 counterfeit items seized from the unit included handbags, sunglasses, hats, shoes, clothing, backpacks, cologne, phone cases, earbuds, and umbrellas. Some of the upscale brands imitated were Rolex, Gucci, Nike, and North Face. - Hair Today, Gone Tomorrow
Police in Smyrna, Ga., are investigating the theft of luxury hair extensions worth an estimated $300,000 that were stolen from Ricola Elizabeth’s climate-controlled unit at Space Shop Self Storage on June 30. After recently restocking her inventory, which she sells online and at her two Perfect Distraction Hair Gallery locations, Elizabeth returned to discover that her numerous plastic storage bins had been emptied. While there were no exterior signs of forced entry to her unit, police noticed the wire mesh ceiling had been cut. Space Shop cameras caught the culprits, and detectives have the footage for their investigation. Unfortunately, Elizabeth’s insurance won’t cover all the loss, and it’s unlikely that the hair extensions will be recovered by police. -
Finance
10 Federal Raises Capital
10 Federal has announced the capital raise of over $27 million during the second quarter of 2023 for its fourth self-storage offering, bringing the total capital raised by 10 Federal to $60 million for the year. These funds will be used to further fuel the company’s growth strategy, facilitating the acquisition of self- storage assets in strategic markets, such as its recent acquisition of a three-property portfolio in Spartanburg, S.C. - Fund III Acquires Sites
VanWest Partners, a Denver-based commercial real estate investment company specializing in self-storage, has acquired two more properties for VanWest Storage Fund III (Fund III)—the tenth and eleventh facilities purchased for Fund III. The facilities, both of which are in Cheyenne, Wyo., have a combined total of 823 units and 140,289 net rentable square feet; they will be rebranded as ClearHome Self Storage – Cheyenne and operated by VanWest’s in-house management company, ClearHome Self Storage. Fund III, which launched in April 2022 as a $150 million fund, now represents over $80 million in total capitalization, including more than 5,500 units and approximately 895,000 net rentable square feet. - Fund IX Update
SROA Capital completed the first closing of SROA Capital Fund IX in June, securing $230 million of capital commitments for its target of $750 million. The firm also plans to expand its bridge financing program, with up to 15 percent of the new fund focused on originating senior bridge loans, mezzanine loans, and preferred equity investments to self-storage developers and operators—a lending need that has been increasing. Turmoil within the banking industry could create an opportunity for SROA to become a source of credit for other operators, especially with Morgan Stanly estimating that $1.5 trillion in commercial debt will be coming due before the end of 2025, but the firm intends to adhere to its investment strategy of acquiring facilities. At that end, SROA expects to host two more closes in 2023 for Fund IX and a final close next year. -
People
Janus International Group, Inc.,
recently promoted three of its leaders: Dianne Hammond to vice president of inside sales, Roc Hughes to vice president of self-storage sales, and Dennis Owens to vice president of commercial sales. Hammond, who started her career in the door industry at DBCI and has been with Janus since 2005, most recently served as the director of inside sales. She currently leads a team of over 30 professionals. Before this promotion, Hughes was the vice president of business development for BETCO, a sister company to Janus. He’s been with the Janus family of brands for more than 20 years. Owens previously excelled as the director of commercial sales, driving growth and innovation across the Janus family of commercial brands. He has more than 40 years of all-encompassing experience in the overhead door industry. - The Investment Real Estate Group of Companies (IREGC) has hired Brandy Meyer as controller. Meyer, who previously worked as the director of finance for a construction and development company, received her bachelor’s in accounting from Juniata College. Her responsibilities include translating multiple assumptions into a balanced accounting and reporting plan, leading the accounting team, providing support and administration in banking and treasury, accounts payable and receivable, financial reporting, and general bookkeeping.
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Acquisitions & Sales
This section of the news is now located on MSM’s enhanced website. Recent acquisitions and sales are posted on a regular basis.
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New Developments & Openings
This section of the news is now located on MSM’s enhanced website. New developments and openings are posted on a regular basis.
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Products
MakoRabco Launches New Division
MakoRabco recently announced that it has launched a doors and hallways division to streamline the company’s design/build process. The new division, led by Hans Matthey, also enables MakoRabco to procure unit doors directly from Janus International Group’s manufacturing plant. Matthey, who joined MakoRabco in January to launch the new division, most recently served as Janus’ sales representative for the Northwest. - Adverank Enters Prop-Tech Space
Adverank, a Software as a Service (SaaS) provider, has entered the property technology (prop-tech) space through multiple strategic partnerships with leading self-storage property management systems, including Storable, Tenant, and Self Storage Manager Inc. With its proprietary software, Adverank introduces features that could redefine self-storage advertising, such as the first real-time integration into Property Management Systems (PMS) and websites through Adverank.cloud, a browser and mobile-based software as a service. This subscription-based service utilizes proprietary APIs, algorithms, and processes to optimize marketing spend, streamline decision-making, and drive occupancy growth. For more information, visit www.adverank.com. - SVN As A Resource
SVN Commercial Real Estate Advisors is positioning itself as a resource to owners, investors, and operators of self-storage facilities by offering complimentary and confidential valuations, feasibility studies, and consulting services, as well as complete brokerage and marketing services to owners who want to sell their properties. Contact Connie Neville at (781) 696-6241 or nevillec@svn.com for additional details. - PTI Offers Support, Training
PTI Security Systems has enhanced its technical support by extending its live helpline to all its customers. PTI’s North America-based team of technical support specialists are available weekdays from 10 a.m. to 7 p.m. (EST) by calling (866) 240-7602 and suppling your customer pin number. For customers who are interested in learning more about their PTI products, the company also offers a training series. To access the library of training courses, visit www.ptisecurity.com, click on the Continuous Learning link within the Get Support dropdown menu, and submit a completed request form. -
Stocks
Life Storage CFO Passes
On July 9, 2023, Life Storage’s CFO Alexander “Alex” Gress unexpectedly passed away. Gress, 50, is survived by his wife Jennifer and their three children. CEO Joseph Saffire described Gress as “a tremendous leader and brilliant financial mind,” as well as someone of incredible integrity, passion, and commitment to his colleagues and Life Storage, where he worked for two years. He was devoted to advocating for positive change and served on the Canisius High School Board of Trustees. To continue his legacy, his family has established the Alex Gress Scholarship Fund to support local students. Interested parties may make donations out to the Alex Gress Scholarship Fund c/o Canisius High School, 1180 Delaware Ave., Buffalo, NY 14209. Life Storage’s COO David Dodman has taken on the CFO responsibilities. - Public Storage Acquires Facility
Public Storage acquired Andover Street Self Storage, a newly opened 76,396-square-foot facility on 2.4 acres in Peabody, Mass. LCI Management sold the three-story, 1,100-unit asset for $19 million. Marcus & Millichap’s Senior Vice President Nathan Coe and Senior Managing Directors Brett Hatcher and Gabriel Coe marketed the property on behalf of the seller. Vice President Thomas Shihadeh assisted in closing the deal. - REIT-Managed Facility Sold
The Hatcher Coe Group of Marcus & Millichap recently closed on the sale of a new 67,850-net-rentable-square-foot facility in Apopka, Fla., managed by Extra Space Storage. Located within the Orlando MSA, the 729-unit, Class-A, climate-controlled property serves a rapidly growing population of 104,899 people within a five-mile radius. - SmartStop Buys Canadian Facilities
Strategic Storage Trust VI Inc. and Strategic Growth Trust III, affiliates of SmartStop Self Storage REIT Inc., have purchased an eight-property portfolio in the Greater Toronto Area for $300 million (CAD). The recently acquired portfolio has a combined total of approximately 7,400 units and 758,000 rentable square feet. Now with 33 facilities that comprise 3 million square feet, SmartStop is the fifth-largest operator in Canada. The facilities are located throughout Ontario in Toronto (East York and North York), Mississauga, Burlington, Hamilton, and Vaughan (Woodbridge). - CubeSmart Portfolio Sold
Nathan Coe, Gabriel Coe, and Brett Hatcher of Marcus & Millichap represented the seller and procured the buyer in the sale of a three-property CubeSmart portfolio. The newly built, Class-A facilities are located in Jacksonville, Tallahassee, and Middleburg, Fla. The Jacksonville facility is a six-building, 618-unit property with 69,750 net rentable square feet on four acres. The Tallahassee location has five buildings and 583 units. The Middleburg facility has four buildings, 53,115 net rentable square feet, and 455 units on three acres. - Error Makes Way For Facility
Due to a clerical error that was overlooked by the Atlanta City Council and Staff in 2019, a Public Storage facility will be built near the Atlanta BeltLine’s Eastside Trail entrance to Piedmont Park as part of a land swap between the REIT and the Atlanta Botanical Garden (ABG). Public Storage’s existing building on Westminster Drive and Piedmont Avenue will be razed to make way for the ABG’s expansion plans that include about seven acres with a direct connection to the Eastside Trail. The oversight allowed ABG to gain city approval to build a new Public Storage building in the Virginia-Highland neighborhood on Monroe Drive, between Kanuga Street and Cooledge Avenue. The two-acre site for the new Public Storage facility is zoned light industrial, but the plans violate a 2017 ordinance approved by the city council that prohibits self-storage buildings within 500 feet of the BeltLine because they“are incompatible with the objectives, purposes, and intent” of the BeltLine. However, in 2019, when the council approved hundreds of amendments to the zoning code, the 2017 ordinance banning self-storage units within 500 feet of the BeltLine was inadvertently erased. This June, the city council corrected the mistake and passed an ordinance banning self-storage buildings, warehouses, and distribution centers in light industrial districts. -
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