Merit Hill, Centerbridge JV Lands $425M for Storage Portfolio
The collection totals 32,000 units.
A joint venture between Centerbridge and Merit Hill Capital has obtained $425 million for the refinancing of a 78-property self-storage portfolio. Newmark Group arranged the loan on behalf of the borrowers. Citigroup and Goldman Sachs provided the note.
The collection consists of 32,000 units totaling almost 4.7 million square feet across multiple states. The portfolio has recorded a net operating income increase of more than 18 percent since 2023. Extra Space, CubeSmart and Argus manage the properties.
Newmark Co-President of Global Debt & Structured Finance Jordan Roeschlaub, Vice Chairman Nick Scribani and Director John Caraviello secured the financing.
As of July, asking rates and demand trends showed continued signs of stabilization. National advertised rates remained flat compared to the same period last year, based on the latest Yardi Matrix self storage report. The annualized average rent per square foot for the month was $16.9.
Merit Hill’s U.S. self storage expansion
Merit Hill Capital launched in 2016 and manages REITs focusing on self storage assets. Since its inceptions, the company acquired 535 facilities in 339 separate transactions. These properties total more than 34.4 million rentable square feet across 38 states.
Since the beginning of the year, the company has acquired 23 properties spanning north of 1.4 million square feet across 19 markets, according to Yardi Matrix information. One of the largest facilities the firm purchased this year is a 154,084-square-foot property in Myrtle Beach, S.C.
Other notable deals include Merit Hill’s acquisition of a 72,103-square-foot self storage property in Pembroke, N.H., a Boston submarket. A private investor sold the asset for $12.8 million last month, the same source shows.
