Capital continues to flow into the self-storage sector as two self-storage operators, LifeStorage and Morningstar Properties, announced new funding for acquisitions.
Roseville, CA-based LifeStorage said it secured a $100 million revolving line of credit from Citigroup Global Markets. CEO Mark Good said the money will be earmarked for acquisitions in the top 50 U.S. markets.
“Citi’s credit facility confirms our success in selectively acquiring institutional-quality properties and significantly improving operating results,” Good said.
Good said the line of credit will allow LifeStorage to “opportunistically” expand its portfolio. The company, founded in 2011, owns and operates more than 70 facilities in nine states.
“As one of the most stable real estate asset classes, self-storage is an appealing market,” said Matthew Greenberger, a managing director at Citigroup.
Morningstar Properties creates second fund
Meanwhile, Matthews, NC-based Morningstar Properties unveiled a $75 million private equity fund called Blue Doors Storage Fund II. The company says the money will go toward buying or building self-storage facilities in major metro markets and “strategic” secondary markets in the U.S.
The fund is the second such investment vehicle sponsored by Morningstar through an affiliate, Blue Doors Capital Partners. The first fund, totaling $55 million, is fully committed. That fund launched in February 2013.
Both funds are backed by “a handful of high-profile institutional investors,” according to Morningstar CEO and President Dave Benson.
“Blue Doors Storage Fund II will allow Morningstar to continue to grow its portfolio of high-quality storage facilities,” Benson said.
The company, founded in 1981, owns and operates 35 facilities under the Morningstar Mini-Storage brand.