Chicago-based Harrison Street Real Estate Capital has completed the first part of a two-tranche, $223 million sale of 26 self storage properties, according to NGKF Capital Markets, which represented the seller and secured the buyer, CubeSmart, a self storage real estate investment trust.
The first tranche consists of 1.7 million square feet and includes 22 properties in California, Florida, Illinois, Nevada, New York, Ohio and Rhode Island. Ten of the properties were managed by CubeSmart, 10 by Morningstar and the remaining two were owned via a joint venture with StorQuest.
CubeSmart, a self storage real estate investment trust and the fourth largest owner and operator of self storage facilities in the U.S., is expected to close on the second tranche in connection with the repayment of property level financing by the end of March 2015.
“This is a rare opportunity to acquire such a geographically diverse and high-quality portfolio in the self storage industry,” said NGKF Capital Markets Executive Managing Director Aaron Swerdlin in Houston, who arranged the deal along with Senior Managing Director Kenneth Cox in Memphis, Tenn. “The portfolio allows the buyer in one transaction to significantly enhance its already expansive national footprint with a collection of carefully cultivated and maintained facilities by an established property owner.”
Last year, Mr. Swerdlin and Mr. Cox, arranged the portfolio sale of 36 self storage properties for $326.2 million on behalf of a partnership of Clarion Partners and Private Mini Storage, and Private Mini Storage, independently.
Mr. Swerdlin and Mr. Cox head up NGKF Capital Markets’ Self Storage Group and, together, have led more than $5 billion in self storage transactions during their careers. The group provides clients a range of services for every step of a self storage transaction, including strategic planning, value enhancement, pre-marketing consulting, operations analysis, dispositions, debt placement, proprietary lending and equity assignments.
About Harrison Street Real Estate Capital
Harrison Street Real Estate Capital is a real estate private equity firm founded in 2005 that directly and through its affiliates, has approximately $7.3 billion in assets under management (AUM) through commingled funds and public securities products. The commingled funds focus exclusively on the Education, Healthcare and Storage segments of the US real estate market. Since inception, the Firm has acquired or developed over 400 properties in 40 states including over 50,800 student housing beds, more than 11,600 senior housing units, over 4.8 million square feet of medical office space, and more than 82,000 self storage units. Additionally, Harrison Street Securities LLC, an affiliate currently manages over $760 million in REIT securities through distinct long only product offerings.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,000 professionals operate from more than 320 offices in established and emerging property markets on five continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive OfficerHoward W. Lutnick. For more information, please visit www.bgcpartners.com.