Updated 12/21/2015 to reflect purchase price
Farmington Hills, MI-based Storage Pros Self Storage has just sold a huge chunk of its portfolio to an institutional joint venture group.
David Levenfeld, president and CEO of Storage Pros, told the SpareFoot Storage Beat that the company sold 37 properties in total. Thirty of the facilities transferred to the unidentified purchaser last week; closing of the remaining seven properties is pending.
“After the other seven close, we will still own 14 facilities,” Levenfeld said. “We will remain active in acquisitions and development.”
The total portfolio sold for $242.5 million, according to an announcement made by NGKF on December 17. The portfolio covers 2.4 million square feet of storage space.
Of the 30 facilities that have changed hands already, three are in Florida, six are in Massachusetts, five are in Tennessee and 16 are located in Michigan. The pending seven facilities are located in Tennessee with one each in Massachusetts and Michigan. The sold facilities are now managed by CubeSmart on behalf of the new ownership group.
Levenfeld said the portfolio was quietly marketed over the summer.
“It was target marketed where not everbody could see it, just a few dozen logical would-be buying groups,” Levenfeld said.
Levenfeld said Storage Pros put the portfolio up for sale because market conditions were favorable. Storage Pros were represented by the NGKF Self Storage Group.
“As a midsize owner that isn’t going to own our assets indefinitely, in contrast to the REITs that may hold their good properties through many cycles, we weren’t going to hold the properties forever so it seemed like a great time to sell,” Levenfeld said.
Levenfeld said that he and the other principals of Storage Pros are moving ahead with some development projects through an affiliated company.
“We have five development deals under contract and in permitting in the Northeast,” Levenfeld said.