SoCal-focused MiniStorage explores sale

Company pegs value around $400M for dozens of locations in LA, OC

Los Angeles /
Dec.December 01, 2021 11:30 AM
MiniStorage properties located in the Southern California area (ministorage.net, iStock)

Southern California-focused self-storage firm MiniStorage is exploring a sale that could value the company at $400 million.

The firm has hired Jones Lang LaSalle to work on a sale, according to Bloomberg.

MiniStorage, also known as Self Storage Management Co., has a dozen locations. All are in either Los Angeles or Orange counties, with the exception of one in San Diego County through an affiliation with another company there.

The average monthly rate for a 10×10 non-climate controlled storage unit in L.A. is $193. That’s the third highest rate in the country behind Honolulu, Hawaii, and San Francisco.

Economic upheaval tends to spur demand for self-storage space, which helped make it one of the few sectors to perform well throughout the pandemic, which also spurred a flurry of home buying and moving.

Occupancy rates for storage space have been high throughout the pandemic and net operating income for the sector is forecast to grow 12.8 percent this year and 8 percent next year, according to Green Street.

Strong demand has developers eager to build — RentCafé estimates that 765 new facilities will be delivered by the end of 2021.

The sector has seen a handful of large acquisitions over the last year or so. Last October, Blackstone bought Simply Self Storage from Brookfield Asset Management for $1.2 billion. The brand has 120 locations across 23 states.

The New York City area saw two large deals in the last year. In December, CubeSmart expanded its footprint into Brooklyn and Queens with three acquisitions totaling $540 million.

A few weeks ago, New Jersey-based Edison Properties finalized a $3 billion sale of Manhattan Mini Storage to StorageMart. Manhattan Mini Storage has 18 locations throughout the dense borough of Manhattan.

Public Storage this spring scooped up competitor ezStorage for $1.8 billion, adding 48 locations to its footprint and giving it locations in the mid-Atlantic region.

[Bloomberg] — Dennis Lynch




     

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