December 14, 2021

2 Min Read
Heitman/Life Storage Joint Venture Acquires 13 Self-Storage Facilities in 7 States

Global real estate investment-management firm Heitman LLC and self-storage real estate investment trust (REIT) and management company Life Storage Inc. have formed a joint venture to acquire 13 recently constructed self-storage facilities across seven metropolitan markets. At about three years old on average, the properties are in Boston; Charlotte, North Carolina; Dallas; Naples, Florida; Nashville, Tennessee; Newark, New Jersey; and St. Louis, according to a press release.

“The class-A self-storage portfolio features a mix of highly desirable attributes, including location diversity and facility quality,” said Brian Pieracci, managing director and head of North American acquisitions for Heitman. “We believe the portfolio will benefit from our venture’s scale and the sector’s diverse set of demand drivers, which we anticipate to contribute positively to the portfolio’s return profile as we complete the lease-up.”

This is the seventh time the two companies have partnered on a joint venture. Heitman views self-storage as an integral part of its global investment strategy, according to Gordon Black, senior managing director and portfolio manager for Heitman.

“With its resilient income return profile, the U.S. self-storage sector provides our global strategy an element of defensiveness to our portfolio,” Black said. “As we continue to execute our global strategy, we’ll look to invest in accordance with three themes: divergence or smart diversification among traditional property types, convergence or capitalization of maturing or mispriced property types, and delinked or investing in assets with defensive traits less tied to economic cycles.”

Heitman made its first self-storage investment in 1996 and currently manages more than $5 billion of industry assets worldwide, the release stated. Founded in 1966, the company has 10 offices worldwide and $47 billion in properties under management.

Based in Buffalo, New York, Life Storage operates more than 1,000 self-storage facilities in 34 states. Its portfolio of owned and managed facilities comprises more than 74 million square feet.

Sources:
GlobeSt.com, Heitman and Life Storage Acquire Self-Storage Portfolio
Heitman, Heitman Acquires Diversified US Self-Storage Portfolio

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