Update 1/31/23 – Prime has closed its third acquisition fund after reaching $2.5 billion in investment, exceeding its $1.5 billion target. It received capital infusion from a variety of investors in more than 30 countries. Participants included banks, family offices and foundations, insurance companies, public pension plans, sovereign wealth funds, and university endowments, according to a press release.

The fund will pursue self-storage acquisitions, including off-market deals, in undersupplied U.S. markets. “We are pleased to have closed our third flagship fund, the largest in history in the self-storage sector,” Moser said.

“We continue to identify opportunities to aggregate and institutionalize ownership and management across the North American self-storage market,” said Douglas Kotelly, chief investment officer. “We have deployed capital from Fund III into assets for which we believe we can execute value-add business plans and best utilize our management capabilities. We look forward to leveraging our team’s real estate investment experience as we pursue superior returns for our investors.”

5/21/21 – Prime Group Holdings LLC, a New York-based real estate group that owns self-storage and other property types, intends to launch a third private-equity fund, Prime Storage Fund III LP, in an effort to raise $1.5 billion for self-storage acquisitions nationwide. Proceeds will be re-invested over four years, CEO Bob Moser told the source.

The company is under contract to acquire up to $400 million in self-storage assets in Florida as well as throughout the mid-Atlantic states and on the West Coast, Moser said. The fund follows Prime’s second such endeavor, which raised about $700,000 and closed in May 2018. “This will be the same business model. It will just be much larger than what we’ve done before,” he told the source.

The minimum investment in Fund III will be $100,000, according to a May 17 filing with the Securities and Exchange Commission. Prime typically raises capital through “wealthy investors, state pension funds, insurers and university endowments,” the source reported.

Prime is also in the process of expanding its office and personnel, Moser said. The company intends to build a $25 million headquarters in Saratoga Springs, New York. If approved, the six-story building would include offices, a restaurant, ground-floor retail and two levels of underground parking. The firm also intends to purchase an office building for staff in Jupiter, Florida.

Headquartered in Saratoga Springs, the company 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 250 facilities comprises more than 17.7 million rentable square feet.

Sources:
Business Wire, Prime Group Raises $2.5 Billion for Oversubscribed Third Self Storage Fund
Albany Business Review, Self-Storage Giant Prime Group Raising $1.5 Billion to Expand Real Estate Portfolio
Securities and Exchange Commission, Form D Prime Storage Fund III, LP