Sovran Self Storage will pay $1.3 billion to acquire the 84 self-storage facilities from LifeStorage, the country’s sixth largest private operator.
The Buffalo, NY-based REIT announced terms of the deal on May 19. Sovran will use a $1.35 billion bridge loan to close the cash deal with Roseville, CA-based LifeStorage, but will permanently finance the transaction with new equity and debt offerings.
“LifeStorage has built a high-quality national portfolio, and these stores will enhance and complement our physical footprint and digital presence,” said David Rogers, Chief Executive Officer of Sovran.
In addition to the existing stores, Sovran will also receive three certificate of occupancy deals that will be delivered between late 2016 and early 2017.
The facilities will grow the company’s footprint in existing markets, including the addition of 25 stores in Chicago, and 19 in Texas cities.
The company will also gain entry to Northern California and Las Vegas.
The deal is expected to close during the third quarter of 2016.