U-Store-It Trust Sells 1 MSF Midwestern Storage Portfolio for $43.5M
- Aug 15, 2011
August 15, 2011
By Barbra Murray, Contributing Editor
Moving forward with its goal of restructuring its portfolio to focus on high barrier-to-entry markets, U-Store-It Trust has sold a 976,000 square-foot portfolio in Indiana and Ohio for $43.5 million.
The portfolio, 78 percent occupied as of the close of the second quarter, consists of 18 properties with locations in Canton and Cleveland, Ohio, and Indianapolis, Ind. With the transaction, the storage REIT has completed its exodus from the Canton market.
The transaction dovetails with U-Store-It’s capital recycling program, which appears to be right on track. “We expect our 2011 dispositions will provide proceeds at the high end of our $35 to $50 million guidance based on assets currently under contract or in contract negotiations,” Christopher Marr, U-Store-It president & Chief Investment Officer, noted in the company’s second-quarter earnings statement, released August 4.
U-Store-It has also been quite active in acquiring facilities in its core markets. Year-to-date, the company has shelled out an aggregate $70.7 million on transactions involving nine properties featuring an aggregate 575,000 square feet. The assets are located in such high-demand markets as Atlanta, Houston, Miami and Phoenix.
The self-storage sub-sector of the industrial property market is in growth mode. According to the Self Storage Association, gross revenues nationally total approximately $20 billion.