Prime Group Holdings LLC, a New York-based real estate group that owns self-storage and other types of real estate, has acquired a 13-property self-storage portfolio valued at more than $100 million from Ziff Real Estate Partners. The facilities are in “high-growth” areas of Florida, Kentucky, North Carolina, South Carolina, Tennessee and Virginia, according to a press release issued by Ziff.
The deal comes after Prime announced its intention in May to launch a third private-equity fund, Prime Storage Fund III LP, to raise $1.5 billion for self-storage acquisitions nationwide. Under Ziff ownership, the newly acquired facilities were managed by real estate investment trusts CubeSmart, Extra Space Storage Inc. and Public Storage Inc. and branded under their names, the release stated.
Ziff is a vertically integrated real estate development, investment and management firm. It’s strategy has been to pursue new self-storage development as well as the acquisition of underperforming properties that can be renovated and sold at greater profit. In the last five years, the company has developed or refurbished 13 class-A storage facilities comprising more than 1 million square feet, according to the company website.
“[Ziff] is well-positioned to continue to execute its successful storage redevelopment and new-development strategy, and the firm has an active pipeline of investments under consideration,” company officials said. Among its plans is to launch a self-storage fund for accredited investors, according to the release.
Prime was represented in the transaction by Cowles M. “Monty” Spencer Jr., CEO and group president of The Storage Acquisition Group (TSAG), and David Spencer, vice president and senior advisor for TSAG, which specializes in acquiring off-market self-storage facilities and portfolios nationwide. Ziff was represented by its in-house disposition team.
Headquartered in Saratoga Springs, New York, Prime Group operates the Prime Self Storage brand and has more than $4 billion in real estate under management in 26 states. Its operating self-storage portfolio of 255 facilities comprises more than 18.7 million rentable square feet.
Founded in 1991 and based in Charleston, South Carolina, Ziff invests in office, retail, self-storage and small-bay warehouse properties. It manage all aspects of the investment process with an in-house team of property managers, maintenance and construction professionals, and leasing agents, according to its website.