Prime Group Closes 3rd Self-Storage Fund at $2.5B

This is the firm’s largest investment vehicle to date.

Image courtesy of Prime Group

Prime Group Holdings has closed on its largest fund to date, $2.5 billion in equity raised for its Prime Storage Fund III, LP. In December of 2022, the firm completed the new fund after hitting its hard cap and far exceeding its $1.5 billion target. Prime Storage Fund III will focus on acquiring self storage assets in undersupplied markets across the U.S.  The investor will be looking for these properties through off-market transactions. Once acquired, the firm will also provide full-service property management services to the facilities.

The fund first opened in June 2021 and has since attracted a diverse investor base including sovereign wealth funds, public pension plans, university endowments, banks, insurance companies, as well as family offices and foundations. The investor base includes new and existing investors, representing more than 30 countries, according to Prime Group.

So far, Prime Group said it has deployed 18 percent of the total equity of Fund III. Douglas Kotelly, CIO of Prime Group, said in prepared remarks that the firm will continue to identify opportunities across the North American self storage market. Prime Group’s current portfolio includes facilities spanning the I-95 corridor from southern Maine to Florida, while its West Coast portfolio has properties in San Diego, Seattle, Salt Lake City and Denver.

Record-breaking self-storage fund

While Fund III is the Prime Group’s largest fund to date, it is also the firm’s largest fund focused exclusively on self storage. Furthermore, Robert Moser, founder, principal & CEO of Prime Group, added in prepared remarks that its third flagship fund was the largest in the history of the self storage sector. The firm previously closed its second fund in the series at $706 million in February 2018.

Overall, Prime Group has owned and operated more than 320 self storage facilities since its inception, totalling approximately 180,000 storage units and more than 22 million rentable square feet. The firm also sold its 390,380-square-foot self  storage and flex storage property in Virginia Beach, Va. for $58.8 million in December 2021.

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