Public Storage, one of the largest self-storage companies in the United States, has recently acquired Simply Self Storage from Blackstone Real Estate Income Trust, Inc. The transaction, valued at $2.2 billion, was facilitated by Newmark Group, Inc., a leading commercial real estate advisor and service provider.
Simply Self Storage is a portfolio of 127 properties spanning 18 states, with a total of 9 million net rentable square feet. These properties are geographically diversified and strategically located in markets that have experienced above-average population growth since 2018. Around 65% of the properties are situated in high-growth Sunbelt markets.
According to Aaron A. Swerdlin, Vice Chairman and Capital Markets National Self Storage practice leader at Newmark, the self-storage industry has shown resilience and consistent performance, even in challenging capital markets. Its historical track record has made it an attractive investment option, leading to a disproportionate share of overall commercial real estate transaction activity. Swerdlin expressed his satisfaction in advising BREIT on the sale of Simply Self Storage.
Public Storage funded the acquisition by issuing $2.2 billion in senior unsecured notes. The company utilized its growth-oriented balance sheet to quickly close the transaction in collaboration with the Simply Self Storage and Blackstone teams. Public Storage expects the acquisition to be accretive to its funds from operations (FFO) per share, with further accretion expected as the portfolio stabilizes.
As a global leader in commercial real estate, Newmark provides a wide range of services tailored to each client’s unique needs. The company combines global market intelligence with its extensive network of professionals to deliver superior service across the industry. In 2022, Newmark generated approximately $2.7 billion in revenues and operated from over 170 offices worldwide with more than 7,400 professionals.
It is worth noting that the COVID-19 pandemic could potentially impact Newmark’s business, results, financial position, liquidity, and outlook. The company undertakes no obligation to update any forward-looking statements, and any potential risks and uncertainties are detailed in Newmark’s Securities and Exchange Commission filings.
In conclusion, Public Storage’s acquisition of Simply Self Storage represents a significant move in the self-storage industry. With the guidance of Newmark, this transaction further solidifies Public Storage’s position as a dominant player in the market. The self-storage sector’s strong performance and the portfolio’s strategic geographic locations make this acquisition a beneficial addition to Public Storage’s growth-oriented strategy.