Multi-state self-storage portfolio sale
Two self-storage portfolios, owned by the same operator but with different capital partners, sold a total 300,000 s.f. to a single buyer in one transaction.
The Colorado and Arizona self-storage portfolio and the Twin Cities self-storage portfolio were each comprised of newly constructed self-storage facilities (4 facilities in total, with a combined 300,000 square feet) with locations in Denver, Phoenix and Minneapolis/St Paul. Both portfolios were owned by the same operator; however, different capital partners provided equity in the capital stack. The operator and all capital partners decided that the timing was right to sell the properties and hoped to achieve a portfolio premium on the aggregate, even though the deal would have to be presented as two separate offerings due to the different ownership structures.
Through our structured marketing process, we identified a single purchaser with interest in both offerings. The purchaser was willing to make an aggressive offer for the aggregate portfolio due to their desire to make a large capital outlay in the self-storage sector, thus allowing the seller to achieve a portfolio premium for all four properties. The purchaser partnered with different operators for each offering; however, we had completed previous transactions with all parties involved and had an understanding potential hurdles and how to ensure a smooth closing. The result was a transaction that accomplished the objectives of both the seller and the purchaser.
