A Chicago real estate investment firm has put the for-sale sign on a 26-facility storage portfolio, The SpareFoot Storage Beat has learned. The portfolio is priced in the mid-$200 million range.
The facilities are in seven states: California, Florida, Illinois, Ohio, New York, Nevada and Rhode Island. Three management companies operate the facilities. Harrison Street owns 24 of the facilities outright; the two other facilities are controlled by joint ventures.
Further details about the portfolio weren’t available.
Representatives of Harrison Street and NGKF declined to comment.
Major storage investor
Founded in 2005, Harrison Street owns over 230 properties valued at more than $5 billion. In addition to more than 36,000 self-storage units, Harrison Street has invested in student housing, senior housing and medical office space.
The company is involved in joint ventures with regional self-storage operators such as Advantage Storage, and as well as with national players such as CubeSmart and Extra Space Storage.
The 26-facility portfolio is likely to attract attention from storage REITs and other big players in the industry. The size and quality of this portfolio is similar to that of a portfolio recently purchased by Public Storage, the country’s largest self-storage operator.
Public Storage recently outbid private operators and competing REITs to buy the 25-facility Veritage Management portfolio for $240 million. The number of suitors interested in that deal suggests that demand remains strong for large self-storage portfolios.
In October, Harrison Street sold a large self-storage portfolio. Public Storage bought the 43-facility portfolio, which was co-owned in a joint venture with Morningstar Properties, for $315 million.
At the time of the Morningstar deal, Harrison Street said it still owned “a sizable storage portfolio” and would “look at a similar exit strategy when the time is right,” according to Crain’s Chicago Business.
In a 2012 interview with Commercial Property Executive, Harrison Street co-founder, President and CEO Christopher Merrill (pictured at top) said his firm’s interest in self-storage recognizes the needs of an on-the-move society.
“Storage is an asset class in which demand is driven by life events, such as moving, downsizing, marriage and retirement,” Merrill said. “Additionally, many businesses find that storage can be a very efficient way to run a business.”