CubeSmart, a self-storage real estate investment trust (REIT), has agreed to acquire 26 storage facilities in seven states from Maryland-based HSRE REIT I and HSRE REIT II for $223 million. The agreement was made by CubeSmart LP, the company’s limited partnership that owns its assets and conducts its operations. The properties will be allocated to two groups, with the sales closing in two tranches, according to a Form 8-K filing with the Securities and Exchange Commission.
The first transaction, containing 22 properties and costing $195.5 million, will be complete by Oct. 31. The second transaction, containing the remaining four properties and costing $27.5 million, will close by March 31, 2015. The self-storage facilities are in California, Florida, Illinois, Nevada, New York, Ohio and Rhode Island, and the purchase will also include “related real and personal property,” CubeSmart officials said.
CubeSmart has deposited $5 million into escrow and is expected to deposit another $5 million following standard due diligence of the properties, according to the filing. The company will fund the acquisitions with cash and advances drawn from a $300 million line of unsecured credit, officials said.
CubeSmart owns or manages 559 self-storage facilities across the United States and operates the CubeSmart Network, which consists of more than 800 additional self-storage facilities.