Self-storage real estate investment trust (REIT) Public Storage Inc. has secured a one-year, $700 million loan from Wells Fargo Bank. The company intends to use the money to fund acquisitions and development projects as well as general corporate purposes, according to John Reyes, senior vice president and chief financial officer.
“Given the state of the preferred equity market, we have decided to take advantage of the attractive rate on a short-term bank loan,” Reyes said. “Wells Fargo, our bank for over 30 years, once again has supported us with this financing.”
Public Storage has been actively pursuing self-storage property acquisitions, including the October purchase of 43 facilities from investment management firm Harrison Street Real Estate Capital LLC and operator Morningstar Properties LLC for $315 million. The deal is believed to be the largest self-storage portfolio transaction of the year. The facilities comprise more than 2.9 million square feet in 22,500 units across five states: Georgia, North Carolina, South Carolina, Texas and Virginia.
During the third quarter that ended Sept. 30, the REIT also acquired 29 self-storage facilities comprising approximately 2.2 million net rentable square feet for $371 million. The properties are located in California, Florida, Massachusetts, Rhode Island and Texas.
Based in Glendale, Calif., Public Storage has interests in more than 2,110 self-storage facilities in 38 states with approximately 135 million net rentable square feet. Operating under the Shurgard brand name, the company also has 188 facilities in seven European countries, with approximately 10 million net rentable square feet.