Public Storage is making a major move into new markets with a deal to acquire All Storage’s portfolio for $1.5 billion.
The Glendale-based REIT is acquiring 56 facilities, according to the San Fernando Valley Business Journal. A majority of the facilities are located around the Dallas-Fort Worth and Oklahoma City markets, as well as Kileen, Texas, near the U.S. Army’s Fort Hood.
According to the Business Journal, Public Storage’s new portfolio totals 7.5 million square feet and will bring 60,000 customers into the company’s fold.
All Storage was represented by CBRE in the transaction, according to the Business Journal. The deal is reportedly being funded with unsecured debt.
It was reported that CBRE was soliciting interest from buyers for All Storage in September, seeking at least $1 billion for a deal.
Public Storage’s footprint in the Dallas-Fort Worth area grows exponentially with the deal. The company will have 172 facilities representing 15.5 million square feet of rentable space in the market.
Texas is a strong market for self storage. Dallas saw the biggest growth of self storage construction from 2011 to 2020, when 16.2 million square feet were added to help accommodate an influx of 1.2 million residents.
Two other Texas cities also ranked in the top 10 of self storage construction during the prior decade. Houston ranked third, adding 14 million square feet, while Austin ranked ninth, adding slightly less than 6.5 million square feet.
More than 295 million square feet of self storage was constructed between 2011 and 2020, according to RentCafé.
This is Public Storage’s second major acquisition this year. The REIT paid $1.8 billion for 48 ezStorage facilities, which included facilities in the Washington, D.C. market, in April.
[SFVBJ] — Holden Walter-Warner