Extra Space Storage Inc. has amended the terms of its previously announced joint venture with an affiliate of Harrison Street Real Estate Capital LLC (HSRE). Under the amended terms, HSRE will contribute approximately $15 million in cash to the joint venture in return for a 50 percent ownership interest. Extra Space will contribute 19 wholly owned properties and receive approximately $15 million in cash and a 50 percent ownership interest.
The joint venture will assume approximately $101 million of debt, secured by the properties, which are in California, Florida, Nevada, Ohio, Pennsylvania, Tennessee, Texas and Virginia. Extra Space will continue to operate the facilities.
The transaction is subject to customary conditions and the debt assumption, and is anticipated to close by the end of the fourth quarter.
In separate news, Extra Space has obtained $114.1 million of financing in the fourth quarter. The financing consists of four loans secured by 20 operating properties and totaling $93.7 million as well as three construction loans totaling $20.4 million. The company has obtained approximately $277.7 million in financing in 2009.