Public Storage to Buy Simply Self Storage From Blackstone for $2.2B

The REIT will expand its portfolio by 9 million square feet.

A Simply Self Storage facility in Houston

A Simply Self Storage facility in Houston. Image courtesy of Yardi Matrix

Public Storage, the nation’s largest owner and operator of self-storage facilities, said on Monday that it had struck a $2.2 billion deal to buy Simply Self Storage from Blackstone Real Income Trust Inc.

The REIT will assume ownership of Simply Self Storage’s portfolio, which spans 127 properties across 18 states, totaling 9 million square feet. For 25 of the properties, Public Storage will provide its third-party management platform. Closing is expected in the third quarter.

Nearly two thirds of the properties in the portfolio are in the Sun Belt, the location of many of the fastest-growing multifamily markets.

Public Storage has recently been seeking a large-scale, corporate-level acquisition. In February, the REIT made an unsolicited bid to purchase Life Storage in an $11 billion, all-stock transaction. Two months later, Life Storage was acquired by Extra Space Storage in a deal valued at $47 billion. That deal resulted in a portfolio that spans 3,500 locations across 37 states.

Since 2019, Public Storage has invested $10.6 billion in acquisitions, new development and renovations.

Eastdil Secured served as Public Storage’s financial advisor in the transaction, while Wachtell, Lipton Rosen & Katz provided legal counsel. Wells Fargo, Newmark, BMO Capital Markets and Sumitomo Mitsui Baking Corporation provided financial advisory services to BREIT, while Simpson Thatcher & Bartlett LLP acted as legal advisors.

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