Update 1/5/21 – Though NorthPoint Development agreed to sell the bulk of its Beyond Self Storage portfolio to Public Storage, a new source revealed the company will in fact retain three properties, including a facility in Lenexa, Kan., that was its first ever self-storage investment. It’ll also hold on to locations in Minneapolis and Philadelphia. As many as 25 former Beyond employees will be moved into other roles.
NorthPoint entered the self-storage market in 2014. It’s now expected to focus more resources on its industrial interests. “You can’t feed that machine enough,” chief operating officer Ben Hagedorn told the source. “The growth we’ve seen on the industrial side has been so dramatic that there’s certainly a lot of opportunity for people to transition and focus on those efforts.”
The 36 self-storage assets that are part of the Public Storage deal are spread across 12 states and Washington, D.C. The properties under development that’ll be part of the second phase of the transaction are expected to be three-story, climate-controlled facilities, the new source reported.
NorthPoint is a development, management and leasing firm that’s principally focused on the industrial, multi-family, senior-living and self-storage markets in the Central United States.
12/11/20 – Public Storage Inc., a self-storage real estate investment trust (REIT) and third-party management firm, has agreed to acquire the Beyond Self Storage portfolio for $528 million. The company recently closed the first phase of the deal, which includes 24 facilities comprising 2.3 million net rentable square feet. All these sites have been built since 2016 and have an average occupancy of 35 percent, according to a press release. The second phase of the transaction will include another 12 properties in various stages of development comprising 1.3 million net rentable square feet. That portion of the deal is expected to close next year, once the projects are finished.
Public Storage has been actively expanding its portfolio. Since 2019, the REIT has added about 13.9 million net rentable square feet to its portfolio through $1.9 billion in acquisitions, development and expansions.
“The addition of these high-quality assets enhances our strong and diversified portfolio, and we are committed to further building on our industry leadership through organic and external growth,” said Joe Russell, CEO. “Public Storage is uniquely positioned for further growth through acquisitions, development, redevelopment and third-party management, and we will continue to execute our strategy to deliver long-term value for our shareholders, customers and employees.”
“Looking ahead, we continue to see a wide range of opportunities to acquire and develop properties in desirable markets, enabling us to accelerate Public Storage’s broader growth initiatives,” added Mike McGowan, senior vice president of acquisitions.
Based in Glendale, Calif., Public Storage has interests in 2,504 self-storage facilities in 38 states, with approximately 171 million net rentable square feet. It holds a 35 percent interest in Shurgard Self Storage SA, which has 239 facilities in seven European countries, with approximately 13 million net rentable square feet.
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