REITs buy self-storage and hotel portfolios for $1.7b
REITs have been big acquirers of U.S. property portfolios. Last week, several REITs purchased portfolios of U.S. property for a total of more than $1 billion — and the spending continues.
In the self-storage sector, Extra Space Storage has agreed to acquire SmartStop Self Storage for $1.4 billion. Extra Space will pay $1.29 billion, and the remaining $120 million will come from the sale of certain assets by SmartStop at or prior to the closing.
SmartStop, based in Ladera Ranch, Calif., is currently the seventh-largest owner and operator of self-storage facilities in the United States, operating 169 self-storage properties in 21 states as well as Canada.
Upon completion of the acquisition, Extra Space will own 121 SmartStop stores and will assume the property management of