Harrison Street JV Buys 26 Self-Storage Properties
The deal marks the largest portfolio transaction in the firm's history.
A joint venture of Harrison Street and Reliant Real Estate Management LLC has purchased a nearly fully occupied portfolio of self-storage properties across the U.S. The firm acquired the 26-property self-storage portfolio for an undisclosed price.
Michael Gordon, CIO of Harrison Street, said in prepared remarks that this acquisition was the largest portfolio transaction in the firm’s history. The self-storage portfolio spans six states, totaling 2.7 million rentable square feet throughout 18,765 units. The portfolio includes nine properties in Florida, eight in South Carolina, five in Tennessee, two in Georgia, one in North Carolina and one in Arkansas. According to Harrison Street, the portfolio is 95 percent occupied.
The new ownership will continue to operate the newly-acquired self-storage properties under the Midgard Self Storage brand, but Reliant will manage the properties under a long-term agreement. Harrison Street and Reliant also currently have no plans for renovations or upgrades to any of the self-storage properties.
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Gordon also said in prepared remarks that the self-storage sector has been a core area of focus for Harrison Street’s demographically-driven investment strategy. Besides self-storage, the firm has also invested in senior housing, student housing, and healthcare properties. In October, Harrison Street also raised more than $2.5 billion for its latest U.S. opportunistic real estate fund which would be used for a wide range of projects including storage real estate.
Now, the firm has invested in more than $2.3 billion in gross cost across storage properties, totaling more than 154,000 units throughout 23 states in the U.S. and three Canadian provinces. Harrison Street has also realized on more than 155 self-storage properties, reaching a gross transaction value of $1.2 billion.