Public Storage Inc., a self-storage real estate investment trust (REIT) and management company, has acquired 56 All Storage facilities for $1.5 billion. The portfolio comprises 7.5 million net rentable square feet, according to sources.

The purchase includes 52 facilities in the Dallas-Fort Worth market, three in Oklahoma City, and one in Killeen, Texas. The portfolio averaged 75% occupancy during the third quarter. All Storage was represented in the transaction by CBRE Group, a commercial real estate services and investment firm.

Public Storage will fund the acquisition with unsecured debt. It’ll be immediately accretive to funds from operations per share with accretion accelerating through stabilization by 2025. The REIT now operates 172 locations and 15.5 million net rentable square feet in the Dallas-Fort Worth area, sources reported.

“We are pleased to welcome the majority of the All Storage operations team and their customers to Public Storage’s industry-leading brand and platform,” said Public Storage CEO Joe Russell. “The acquisition is a direct reflection of how the team at Public Storage is committed to driving growth through our four-factor platform, which includes acquisitions, development, redevelopment and third-party management. We continue to see a wide range of opportunities to acquire and develop properties in desirable markets as part of Public Storage’s broader growth initiatives.”

Based in Glendale, Calif., Public Storage has interests in 2,678 self-storage facilities in 39 states, with approximately 186 million net rentable square feet. It holds a 35 percent interest in Shurgard Self Storage SA, which has 247 facilities in seven European countries, with approximately 13 million net rentable square feet.

Sources:
Yahoo Finance, Public Storage Enhances Portfolio Coverage, Quality, and Growth with All Storage Acquisition
Leader Post, Public Storage Buys 56 Self-Storage Properties for $1.5 bln