Sovran Self Storage has acquired a portfolio of four self-storage facilities in a joint venture with an affiliate of Heitman LLC for $26.3 million. The price includes the assumption of a $12.3 million first mortgage. Sovran, an Amherst, N.Y.-based real estate investment trust, owns and operates more than 350 self-storage facilities totaling more than 20 million sq. ft. Heitman is a real estate investment management firm that invests in commercial real estate.
The facilities, encompassing 276,000 sq. ft., are located in Miami, Fla.; Atlanta, Ga.; and Columbus, Ohio. Sovran will operate the properties under its Uncle Bob’s Self Storage brand name.
The Locke Group advised Sovran and Heitman on the transaction. Angelo Tomasello and Peter Weimer handled the assignment on behalf of The Locke Group. “The capital structure required to close this transaction was a challenge and was overcome by the joint venture’s ability to be flexible in its approach to capitalization,” according to Tomasello.
Sovran expects to acquire as much as $300 million in self-storage facilities through this joint venture, and is actively looking for Class-A facilities. As of mid-December, the joint venture had acquired $170 million worth of self-storage properties. All of the acquisitions were made in the second half of 2008.