The portfolio includes 56 self-storage facilities totaling 7.5 million net rentable square feet. Of the 56 properties, 52 are in the Dallas-Fort Worth market. The others are in Oklahoma City and Killeen, Texas.
The deal brings Public Storage’s holdings in the Dallas-Fort Worth area to 172 locations and 15.5 million net rentable square feet.
Many of the properties acquired from All Storage were recently built. The properties had an average occupancy of 75% during the third quarter, which presents “significant growth opportunity,” according to Public Storage.
“We are pleased to welcome the majority of the All Storage operations team and their customers to Public Storage’s industry-leading brand and platform,” Joe Russell, chief executive of Public Storage, said in a statement. “The acquisition is a direct reflection of how the team at Public Storage is committed to driving growth through our four-factor platform, which includes acquisitions, development, redevelopment and third-party management. We continue to see a wide range of opportunities to acquire and develop properties in desirable markets as part of Public Storage’s broader growth initiatives.”
CBRE Group Inc. represented All Storage on the transaction.
Public Storage is using unsecured debt for the acquisition, which is part of its larger growth strategy.
Last year, the company closed on the first phase of its acquisition of the Beyond Self Storage portfolio from Missouri-based NorthPoint Development for $528 million. The first phase was for 24 existing properties, and the second phase included 12 properties under development in 2021 that go to Public Storage as they are completed.
Since 2019, Public Storage has added 36 million net rentable square feet to its portfolio through $6.3 billion in acquisitions, development and redevelopment.
In the third quarter, Public Storage acquired 27 self-storage facilities with 2.2 million net rentable square feet for $327 million.
It was also under contract on 107 self-storage facilities with 11.8 million net rentable square feet worth $2.3 billion.
The company reported net income of roughly $492 million in the third quarter compared with $326 million during the year-ago period.
