Morningstar Properties LLC has purchased two self-storage properties in Tallahassee, Fla., and another in Bentonville, Ark., adding 240,000 square feet of space and more than 1,900 storage units to its portfolio. The company now owns and operates 26 self-storage facilities in nine states, with a high concentration in the South.
With the acquisitions, Morningstar added to the three properties it already operates in the Orlando, Fla., area. The Arkansas site is its first purchase in that state. With an extensive rebranding and repositioning program underway, the company will operate the new stores under its Morningstar Mini-Storage brand.
This gives us great presence in two more strong university markets, which is key to our marketing and business strategy, said Dave Benson, president and CEO.
The new facilities are:
- 5086 Tennessee Capital Blvd., Tallahassee, Fla.The facility encompasses 92,985 square feet with 895 storage units on a 6-acre parcel. Built in 1988, the facility was renovated in 2006.
- 5600 Roanoke Trail, Tallahassee, Fla.Encompassing 66,630 square feet on a 2.2-acre parcel, the facility has 571 storage units. It was built in 2005.
- 2110 S.E. J St., Benton, Ark.Built in 2004 on a 6.4-acre parcel, the facility includes 81,680 square feet and 447 storage units.
Morningstar acquired the new properties through its self-managed institutional investment vehicle, Blue Doors Storage Fund I, under Blue Doors Capital Management, an affiliated private equity fund designated for the acquisition and development of self-storage centers. The company executed six acquisitions in 2013 with the fund and has seven more properties under contract, Benson said.
In September, Morningstar purchased its second storage property in Atlanta for $6.1 million. The company also sold 43 storage centers for $315 million in October to Public Storage Inc., a self-storage real estate investment trust.
Founded in North Carolina in 1981, Morningstar Properties is a vertically integrated real estate developer, owner and operator of real estate products focused primarily on self-storage and marinas in the Southeast. The company has developed, acquired and operated more than 125 self-storage projects across the country, totaling more than 8.5 million square feet. In addition to storage centers, Morningstar owns and operates 12 marinas across the Southeast and the Great Lakes region.