Self-storage real estate investment trust CubeSmart has formed a joint venture with an affiliate of Harrison Street Real Estate Capital LLC (HSRE). The newly formed business consists of nine self-storage facilities valued at $90 million.
Located in Florida, New York, New Jersey, Pennsylvania and Virginia, the assets were previously part of CubeSmart's third-party management platform. The company will continue to operate them and will rebrand them under the CubeSmart name.
CubeSmart and HRSE each have a 50 percent ownership interest in the joint venture. CubeSmart contributed approximately $15 million in cash. HSRE contributed the self-storage properties and received approximately $15 million in cash. The venture has approximately $60.25 million of debt, secured by the properties.
"We are pleased to close the joint venture transaction and deploy capital into assets within our core markets, said Christopher Marr, CubeSmart president and chief investment officer. "We continue to leverage off of our third-party management program as a way to create off-market acquisition opportunities. We already had a great relationship with our new partner and look forward to working with them going forward."
Formerly known as U-Store-It Trust, Wayne, Pa.-based CubeSmart owns or manages 451 self-storage properties across the United States and operates the CubeSmart Network, which consists of approximately 813 additional self-storage facilities. CubeSmart services include storage customization, logistics services, moving services, organizational services and office amenities.
Founded in 2005, HSRE is a real estate private equity firm with more than $3 billion in assets under management through private equity funds and public securities products. The private funds focus exclusively on the self-storage, education and healthcare segments of the U.S. real estate market. The firm owns approximately $2.7 billion in real estate assets including more than 62,100 self-storage units.