There is a new self storage REIT in the market and it has lofty goals. Many self storage operators and the bigger REIT’s have already taken notice.
Optivest Properties, Northwest Self Storage and SecurCare Self Storage recently completed the transaction to create National Storage Affiliates. They are based out of Maryland, are privately owned and so far have 64 self storage facilities in 11 states with an asset value of more than $800 million.
The three affiliates will continue to contribute their storage facilities to the Storage Affiliates umbrella over the next few years as current mortgage debt matures. They expect the portfolio to grow to about 220 facilities and 12.5 million rentable square feet in 15 states relatively soon.
National Storage Affiliates intend to use the knowledge, experience and size of its affiliates to leverage the scale of the REIT for marketing, operations and financing all while targeting the top 100 U.S. metro areas. Arlen Nordhagen, CEO of National Storage Affiliates and SecureCare Self Storage said, “With market trends in our industry increasingly favoring size and scale, we feel that our collective teams and assets are greater as a whole than the sum of the parts.” He added, “As affiliate owners of National Storage Affiliates, we have addressed our desire to continue to operate and grow our respective contributed portfolios, while improving our financial and operational positions through the REIT.”
This is an innovative concept and idea. It will be interesting to see the results of this model and how many other private self storage companies jump on board.
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