Mini Mall Storage Lands $72M Loan
The financing will be used for the acquisition of a 5,000-unit self storage portfolio.
Image by Michelle Raponi via Pixabay
Mini Mall Storage Properties is continuing its momentum with acquiring self storage facilities this year. The company landed a $72 million loan to help with its acquisition of a 5,000-unit self storage portfolio. H.I.G. Capital’s affiliate, H.I.G. Realty Credit Partners, provided the financing.
The portfolio has facilities located in three states across Southeast. According to H.I.G. Realty Credit Partners, the portfolio has near-stabilized occupancies due to Mini Mall Storage Properties’ quality of its facilities and the locations in high barrier-to-entry areas.
Michael Mestel, managing director at H.I.G. Realty Credit Partners, said in prepared remarks that the firm saw this loan as an opportunity to finance an asset class with strong fundamentals. H.I.G. previously originated a $69 million loan for MSC Investment and Management’s acquisition of a nine-building apartment complex in Atlanta.
Mini Mall Storage Properties is also looking to expand its self storage portfolio by building 600 new units, most of which are climate-controlled. The company will lease up these new units following the acquisition of the Southeast portfolio.
Consolidating self storage opportunities
Adam Villard, CEO at Mini Mall Storage Properties, said in prepared remarks that the company sees many opportunities across the U.S. to consolidate the fragmented self storage industry. Mini Mall Storage Properties was established in 2020 but has since built a portfolio that exceeded $500 million in assets under management, with more than three million square feet of storage space in April.
The company focuses on acquiring Class B and Class C self storage spaces and incorporating a tech package that includes coded access gate systems, security cameras and an online customer portal. Mini Mall Storage Properties’ portfolio includes 76 properties across 13 U.S. states and 56 facilities throughout Canada. The company started the year strong after acquiring more than 1 million square feet of self storage space in the first quarter.
