Public Storage to Acquire $1.8B Mid-Atlantic Portfolio

The 48 properties are located in submarkets with strong demand across Washington, D.C., Virginia and Maryland.
Image by Joshua Coleman via Unsplash

Public Storage is set to acquire ezStorage—a 48-property self storage portfolio located across Washington, D.C.; Virginia and Maryland—in a $1.8 billion transaction that will close in May of this year.

The deal includes 4.2 million net rentable square feet of assets, including one facility that is currently under construction. Public Storage will also expand on eight additional properties, which will increase the company’s portfolio square footage by 10 percent through 2023.

With this purchase, Public Storage’s Mid-Atlantic portfolio will include 163 properties and 11.3 million net rentable square feet. The company plans to fund the acquisition with unsecured debt. 

Since the start of 2019, Public Storage has expanded its footprint by approximately 21 million net rentable square feet through $4.1 billion of acquisitions and developments. In December 2020, the company purchased a two-property Phoenix portfolio. NorthPoint Development sold the assets for a total of $30.5 million.

The self storage market continues to remain strong during the pandemic, and growing demand for space will likely push the rental rates higher. In February, for the fifth month in a row, the national street rate performance was positive for both 10×10 non-climate-controlled and climate-controlled units, according to recent Yardi Matrix data.