Prime Storage Acquires Self Storage Assets in 10 States

The properties total some 1.7 million square feet of storage space.

The four storage facilities encompass a total of 3,540 units. Image courtesy of Prime Group

One of the storage facilities acquired by Prime Group in late 2023. Image courtesy of Prime Group

Prime Group Holdings has expanded its national self storage portfolio with the acquisition of 30 properties totaling approximately 1.7 million square feet across 10 states. The assets were acquired in three separate transactions.

All three deals closed in less than 90 days and were purchased by the private equity real estate firm’s flagship investment vehicle, Prime Storage Fund III.

The Saratoga Springs, N.Y.,-based firm closed Prime Storage Fund III in December 2022. The investment vehicle was its largest fund to date, with $2.5 billion in equity raised, and the largest fund ever raised that focused exclusively on self storage investing. The fund, which far exceeded its $1.5 billion target, seeks to acquire self storage assets in undersupplied markets across the United States.

The facilities acquired in the most recent transactions will be managed by Prime Group and operated under the Prime Storage brand.

The acquisitions include:

  • A 14-property portfolio consisting of about 800,000 square feet of self storage space in the Hudson Valley region of New York state;
  • A five-property portfolio in northern New Jersey with approximately 245,000 square feet of self storage space; and
  • An 11-property portfolio consisting of about 680,000 square feet of self storage space in eight states across the Northeastern, Southeastern and Midwestern U.S.

Growing presence

Prime Group has been expanding its footprint across North America with facilities located in 28 states, St. Thomas and St. Croix in the U.S. Virgin Islands and two Canadian provinces: British Columbia and Alberta. Since 2013, Prime Group has acquired more than $5.7 billion in self storage assets consisting of more than 400 properties across 28 million square feet of space. In addition to its New York headquarters, Prime Group has a regional office in Jupiter, Fla., and investment origination offices in Denver and Hackensack, N.J. Prime Group also invests in other alternative real estate asset classes, managing assets worth more than $4 billion on behalf of a global institutional investor base.

In May, Prime Group purchased a 65,642-square-foot self storage facility in Providence, R.I., from Brady Sullivan Properties for $13.8 million, according to Yardi Matrix data. The property, which has since been rebranded as Prime Storage, came online in 2023 under the CubeSmart Self Storage brand. The purchase expanded Prime Group’s holdings to more than 700,00 square feet across eight properties in the Providence market.

Several months earlier in March, Prime Group acquired a 98,000-square-foot self storage facility in Rocklin, Calif., for $20 million, Yardi Matrix data reported. The three-story facility, which has 993 units on a 1.72-acre site, was sold by Banner Real Estate Group.

Last fall, Prime Group acquired four self storage properties with 3,540 climate-controlled units totaling approximately 362,000 square feet in separate off-market transactions in Florida, New York and North Carolina. The largest property was a two-building facility in Nanuet, N.Y., with 113,701 square feet of rentable space. The company also acquired a multi-story property in Shirley, N.Y., with 50,800 square feet; a three-building facility in Gastonia, N.C., with 108,900 square feet and a two-building facility with 88,700 square feet in Temple Terrace, Fla.

Other properties acquired in 2023 included a 66,856-square-foot CubeSmart managed facility in Centennial, Colo., a 69,140-square-foot asset in Bremerton, Wash., and an 84,608-square-foot property in Port St. Lucie, Fla.

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