Affiliated self-storage operators Optivest Properties, Northwest Self Storage and SecurCare Self Storage have completed a formation transaction to create National Storage Affiliates, a Maryland-based real estate investment trust (REIT). The privately owned company comprises 64 self-storage facilities in 11 states with a committed asset value of more than $800 million, company officials said.
The company is owned and operated by its affiliated operators, who will continue to manage and self-brand their contributed portfolios under the National Storage Affiliates umbrella. The affiliates will contribute their interests in all of their self-storage assets over the next few years, as current mortgage debt matures, officials said in a press release. The company expects this activity to grow into a portfolio with approximately 220 facilities, 100,000 units and 12.5 million rentable square feet in 15 states.
“With market trends in our industry increasingly favoring size and scale, we feel that our collective teams and assets are greater as a whole than the sum of the parts,” said Arlen D. Nordhagen, CEO of National Storage Affiliates and SecurCare. “As affiliate owners of National Storage Affiliates, we have addressed our desire to continue to operate and grow our respective contributed portfolios, while improving our financial and operational positions through the REIT.”
The new company intends to capitalize on the local knowledge and experience of its affiliates while leveraging the scale of the REIT for marketing, operational best practices and financing, officials said. It expects to add additional affiliate operators as it completes its targeted exposure to the top 100 U.S. metropolitan areas.
U.S. Bank, Wells Fargo and a Prudential Real Estate Investors debt fund provided financing for the company. Clifford Chance will serve as legal counsel, and Knightsbridge Realty Capital will provide strategic advisory services.
National Storage Affiliates is a self-administered, self-managed REIT. The company’s 64 self-storage facilities comprise approximately 3.3 million net rentable square feet.