Self-storage real estate investment trust Extra Space Storage Inc. has agreed to purchase 20 self-storage facilities from All Aboard Mini Storage and Lance D. Alworth for $196 million. The California properties comprise 14,800 units and approximately 1.5 million square feet of net rentable space. The deal is expected to close by the end of September.
As part of the transaction, Extra Space will take on $100.1 million in existing loans and pay an additional $10.1 million related to the defeasance and prepayment costs associated with the loans. The company will also issue $33.6 million of newly designated Series B Redeemable Preferred Units and $62.3 million of common Operating Partnership units to the sellers.
To help pay for the assets, Extra Space also announced the private offering of $250 million in Exchangeable Senior Notes, settled in cash and shares at a rate to be determined through negotiations. The funds will also be put toward general corporate and working-capital purposes, company officials said.
Headquartered in Salt Lake City, Extra Space owns or operates 965 self-storage properties in 35 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 640,000 units and 70 million square feet of rentable space.