A joint venture between CubeSmart and Heitman has sold a 50-facility self-storage portfolio, according to CubeSmart’s second-quarter earnings report.
The sales price is estimated to be $293.5 million. The new owner is SROA Capital Fund VII, managed by West Palm Beach, Fla.–based real estate investment firm SROA Capital.
The 50 facilities — in Florida, Georgia, Michigan, North Carolina, South Carolina and Tennessee — contains 21,787 units across more than 3.15 million net rentable square feet. They’ll now operate under SROA’s Storage Rentals of America brand. Georgia, Michigan, North Carolina and Tennessee are new markets for SROA.
“We had a very active and productive second quarter. Our HVP III venture came full circle, as we and our partner each achieved our strategic objectives for the investment. The venture sold 50 of its 68 stores to an unaffiliated third-party buyer, enabling us to unlock our promoted interest and buy out our partner in the 18 assets we targeted at the outset for an attractive valuation,” commented Christopher Marr, president and CEO. “Additionally, we added 59 stores to our third-party management platform during the quarter and opened two development properties. We remain focused on maintaining a disciplined approach to capital allocation and generating attractive risk-adjusted returns for shareholders.”
Heitman held a 90 percent stake in HVP III, and CubeSmart held 10 percent. In a separate deal, CubeSmart has acquired Heitman's 90 percent ownership interest in the venture’s remaining 18 properties. The purchase price for its partner’s ownership interest was $128.3 million.
And during the second quarter, the company’s other joint venture with Heitman, HVP IV, acquired one property in Florida, one asset in Pennsylvania and two facilities in Texas for $42.2 million. Additionally, HVP IV has three properties under contract for $71 million that are expected to close during the remainder of 2019.
