Self-storage REIT CubeSmart just spent more than $50 million to buy five facilities in the super-hot South Florida market. The storage operator acquired the facilities in two deals.
In a deal that closed July 2, CubeSmart bought two facilities in Fort Myers, FL, from StoreSmart Self-Storage. CubeSmart paid $7.55 million for a facility at 13271 Metro Parkway and $8.25 million for a facility at 11200 Gladiolus Drive, according to local property records.
Buford, GA-based StoreSmart bought the facilities in 2011, paying $4.5 million and $5.5 million, respectively.
Safe & Secure Self Storage
CubeSmart also acquired a trio of properties in Palm Beach County, FL, for a combined $35 million. The facilities were owned by companies led by Bruce Manley of Blue Bell, PA, according to the South Florida Business Journal. The facilities operated under the Safe & Secure Self Storage brand.
Together, the facilities span more than 372,000 square feet. Manley’s companies owned the facilities for six years and sold them to CubeSmart at a 22 percent premium over what he paid, South Florida Business Journal reported.
CubeSmart paid $15 million for a 141,758-square-foot facility at 2512 N. Federal Highway in Delray Beach, $11 million for a135,429-square-foot facility at 8970 Belvedere Road in West Palm Beach and $9 million for a 95,478-square-foot facility at 3010 S. Congress Ave. in Boynton Beach.
Picking up the pace
CubeSmart has spent more on acquisitions so far this year than it did in all of 2013. The company bought 20 facilities last year for $189.8 million.
During the first quarter of this year, company purchased 10 properties in seven states for $103.3 million. With the most recent acquisitions in Florida, the company has forked over at least another $130 million in 2014.
In a recent call with Wall Street analysts, CubeSmart President and CEO Chris Marr said larger portfolio deals had a mix of poorer-quality and higher-quality facilities.
“We tend not to look at and spend a lot of time on deals that we think are dilutive to the quality portfolio that we have worked very hard over the last few years to assemble,” Marr said.