ezStorage Corp., which operates 48 self-storage facilities in Maryland, Virginia and Washington, D.C., is reportedly marketing its book of assets to a limited pool of public and private buyers. A deal for the mostly stabilized portfolio, which is approximately 92 percent occupied with an average facility age of 12 years, could top $2 billion, a source affiliated with a potential buyer told the “SpareFoot Storage Beat,” an industry blog.
ezStorage ranked No. 24 on the Inside Self-Storage 2020 Top-Operators List of facility owners, with its portfolio comprising 5.1 million net rentable square feet in 52,000 units. When the company reported its figures last summer, it indicated plans to add up to 600,000 net rentable square feet through expansion of existing facilities.
Founded in 1987, the storage operator hasn’t commented publicly about the offering. Its portfolio is allegedly being offered through Eastdil Secured LLC, a private real estate investment-banking firm.
Marc Boorstein, a partner with real estate brokerage and investment-banking company MJ Partners Real Estate Services, told the blog he’s been contacted by multiple groups evaluating a potential deal, which could trade at a low capitalization (cap) rate. “They may be seeking a valuation with as little as a 3.5 percent cap rate. That might be unrealistic, but they are going to try because the investment market for portfolios is very aggressive.”
Recent large self-storage deals that have closed with cap rates of less than 5 percent include CubeSmart’s $540 million acquisition of an eight-property New York City portfolio from Storage Deluxe, and the $1.2 billion purchase of Simply Self Storage, acquired by Blackstone Real Estate Income Trust Inc. from Brookfield Management Inc., Boorstein said.
SpareFoot Storage Beat, Maryland-Based ezStorage Shops Portfolio for a $2B Payday