National Storage Affiliates Trust (NSAT), a Maryland real estate investment trust (REIT) specializing in self-storage, has agreed to purchase 29 self-storage properties in six states for a combined $190 million. The acquisitions will comprise about 2.1 million rentable square feet in 18,000 units. The deals include an unidentified, 22-property portfolio in California, which will be purchased for $154 million, according to a press release.
The structure of the transactions indicates 28 of the assets will be acquired by the REIT in “off-market, third-party transactions,” with one property becoming a participating regional operator (PRO). NSAT will pay about $187 million in cash and $3 million of equity from its operating partnership.
NSAT has either completed or has under contract approximately $390 million of acquisitions, representing 54 properties, since the end of the first quarter 2016. “These new acquisitions reflect our continued focus on increasing our ownership in existing markets in order to leverage our PRO operating platform and build further scale in markets where we have local expertise and further demonstrate our continued commitment to grow the company and drive shareholder value,” CEO Arlen Nordhagen said in a statement.
The REIT expects to complete the latest acquisitions during the third quarter.
Headquartered in Greenwood, Colo., NSAT is a self-administered and -managed REIT focused on the acquisition, operation and ownership of self-storage properties within the top 100 U.S. Metropolitan Statistical Areas throughout the United States. The company has 318 self-storage facilities in 18 states comprising approximately 19 million net rentable square feet. It's owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures.