Morningstar Properties LLC, which operates self-storage facilities under the Morningstar Mini-Storage brand, has secured a $90 million fund through its private-equity real estate affiliate Blue Doors Capital Partners. Blue Doors Storage Fund III will be used to invest in the acquisition, development and refurbishment of self-storage properties in major and “strategic” secondary U.S. markets, according to a press release.

Backed by a handful of “high-profile institutional investors,” the fund is the latest in a series of vehicles launched by Morningstar specifically for self-storage investment. The Blue Doors funds were first launched in February 2013 and are independently sponsored by Morningstar Properties. “The current fund will allow Morningstar to take advantage of selective development and acquisition as the storage cycle wanes,” the release stated.

“After six years of clear growth, the landscape in the storage industry is changing, and changing quickly,” said Dave Benson, president. “Operating fundamentals are softening, and we are facing a glut of new supply in numbers we have never seen before. Not all of these new stores are going to make it. Few major markets will come through unscathed. With our latest Blue Doors Fund, we feel we are well-positioned to continue our selective acquisition and development program, and will be well-poised to take advantage of the displacement we expect in this next phase of the changing storage market.”

Founded in North Carolina in 1981, Morningstar Properties is a vertically integrated developer, operator and owner of real estate products focused primarily on self-storage and marinas in the Southeast. The company has acquired, developed and operated more than 170 self-storage projects across the country, totaling more than 11.5 million square feet. It currently owns and operates 50 self-storage centers in 10 states, with most concentrated in the South.

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