November 8, 2011 12:30 PM
Yesterday, CubeSmart purchased a 16-property self storage portfolio from Storage Deluxe for $357.31 million dollars. CubeSmart also has another deal in process with Storage Deluxe that should close in the first quarter of 2012 once the loan-assumption process is completed.
Storage Deluxe has worked hart to develop facilities in the best locations. Because of this, their facilities are very attractive to investors.
"This transaction validates once again the opportunity to create value when well-designed, state-of-the-art buildings are developed in strategic locations and are coupled with top quality property management. We believe we have capitalized on a unique opportunity to monetize the value of the majority of our portfolio and this transaction will be a win-win for both CubeSmart and Storage Deluxe," said Nick Coslov, CEO of Storage Deluxe.
Steve Novenstein, President of Storage Deluxe Realty indicated that the capital from the transaction will allow them to continue to develop and expand their storage and real estate portfolio. Storage Deluxe is based in Manhattan. It was founded in 1998 and over the past 13 years its portfolio grew to include 32 storage facilities with over 2 million rentable square feet, 30,000 storage units, and over 150 employees. It is the largest owner of self storage facilities in the New York City metro area.
Storage Deluxe will continue to own and operate four facilities in New York. It will open two new properties during the first quarter of 2012 and has plans for future growth for 2012 and 2013. They will keep its brand as well as SD Fine Art Services, which is their art storage business.
CubeSmart is the fourth largest owner and operator in the United States. It has 45,000 self storage facilities with 2.1 billion rentable square feet. CubeSmart is the new brand and new name of the company previously called U-Store-It.
"$357.31 Million Sale of 16-Property New York City Metro Self Storage Portfolio Closed by HFF." Market Watch; 7 November 2011.
"U-Store-It Is Becoming Cubesmart." Market Watch; 6 September 2011.