Clarion JV Sells Storage Portfolio in Texas, North Carolina for $258M

A partnership composed of Clarion Partners and Private Mini Storage has sold for $258 million a 30-property, 2.4 million-square-foot portfolio of self-storage facilities.

large-private-storage-storefront-in-georgetown A partnership composed of Clarion Partners LLC, New York, and Private Mini Storage, a Texas-based company, has sold for $257.9 million a 30-property, 2.4 million-square-foot portfolio of self-storage facilities, Clarion announced Wednesday.

The buyer was CubeSmart, of Wayne, Pa., a REIT that reportedly is the nation’s fourth-largest owner-operator of self-storage facilities.

All but one of the properties are in metro Houston and Austin; the other one is in metro Charlotte, N.C. The acquisition, according to Clarion, gives the purchaser “an excellent opportunity to acquire a geographic concentration and critical operating mass” in both Houston and Austin.

The portfolio reportedly has an overall occupancy rate of 88 percent and a stable cash flow.

“Our initial objective in assembling this portfolio was to acquire high-quality assets in desirable growth areas along highly visible traffic corridors and to add value by expanding the assets, modifying unit mixes, improving management and executing some ground-up development,” Jason Glasser, senior associate at Clarion Partners said in a release. “We have achieved our objectives, stabilized the assets, and are now taking advantage of solid market fundamentals to sell the portfolio to operators in the sector.”

The transaction closed on Dec. 10, Glasser told Commercial Property Executive, adding that Clarion and Private Mini had been partners in this ownership since 2005.

Aaron Swerdlin of Newmark Grubb Knight Frank advised the partnership in the transaction.

As of the end of 2012, CubeSmart owned 381 self-storage facilities in 22 states and the District of Columbia totaling about 25.5 million rentable square feet. In addition, the REIT managed a further 133 properties for third parties, according to the CubeSmart 2012 annual report.