Prime Group Holdings, a New York-based real estate group that owns self-storage and other commercial and residential property, is seeking $100 million through a private-equity fund, which it intends to use to acquire additional self-storage assets, according to the source. The company filed a securities offering earlier this week with the Securities and Exchange Commission (SEC) citing Prime Storage Fund I LLC as the issuer.
Bob Morgan and Bob Moser are principals of the fund and directors of Prime Group, which has purchased 48 self-storage assets since May 2014 comprising more than 2.8 million rentable square feet, according to the company website. The group has made $94 million in self-storage acquisitions this year. "The opportunity to consolidate this asset class is unlike any other," Moser told the source. "About 83 percent of self-storage units are owned by one-ownership groups, so it's prime for consolidation unlike other real estate asset classes."
Prime Group has plans for a larger private-equity round after the current one is complete, Moser told the source. The current fund requires a minimum equity contribution of $500,000.
Alternative Access Capital LLC, a California-based company that helps raise money for hedge, private-equity and real estate funds, is listed as broker on the SEC filing.
Headquartered in Saratoga Springs, N.Y., Prime Group owns approximately $2.8 billion of commercial real estate in connection with its affiliate companies, which includes Morgan Management. Its portfolio includes more than 3.3 million square feet of self-storage in eight states, 25,000 apartment units, a “major amusement park” and other real estate holdings, according to its website.
- Albany Business Review: Why This Saratoga Springs Real Estate Group Wants to Raise $100 million in Private Equity