Extra Space Storage Inc., a self-storage real estate investment trust (REIT) and management company, acquired Storage Express, including 107 remote-managed properties in Illinois, Indiana, Kentucky and Ohio. In addition, Storage Express Founder and Owner Jefferson Shreve has been appointed to the REIT’s board of directors, according to a press release.
The acquisition includes all of the company’s assets such as contracts, intellectual property, licenses, trademarks and 14 future development sites. Extra Space also purchased E-Tracker, a storage software operating platform, which supports Storage Express locations. In June, the REIT acquired the Storage Express-owned Bargold Storage Systems LLC. Total consideration for the purchase was approximately $590 million, the release stated.
“We are excited about the merger of these two great companies and the expansion of our national portfolio and operating platform,” said Extra Space CEO Joe Margolis. “In addition to increased scale, this acquisition provides a new growth channel for Extra Space Storage to add smaller, remote-managed stores in both new and existing markets through acquisition and third-party management. I want to thank the employees of both companies for their hard work and strong execution on this transaction.”
Shreve serves as the chairman of the national Self-Storage Association’s Board of Directors. He earned a bachelor’s degree from Indiana University, and master’s degrees from The Krannert School of Management at Purdue University and the University of London.
“I want to welcome Jefferson Shreve to the Extra Space Storage board. Jefferson has been a pioneer in remote-managed storage strategies, and we are excited to add his deep industry expertise as a director," said Ken Woolley, chairman of the board.
The transaction was funded in part by the issuance of $125 million in operating partnership units, with the balance in cash drawn from its credit facilities. Latham & Watkins LLP acted as Extra Space’s outside legal counsel with this transaction, the release stated.
Headquartered in Salt Lake City, Extra Space owns or operates 2,177 self-storage properties in 41 states and Washington, D.C. The company’s properties comprise approximately 1.6 million units and 168 million square feet of rentable space.
Source: Extra Space Storage, Extra Space Storage Inc. Acquires Storage Express and Appoints Jefferson Shreve to its Board of Directors