The portfolio covers 7.5 million square feet with 52 of the 56 locations in high-growth submarkets of Dallas-Fort Worth and several locations in Oklahoma City and Killeen, Texas. The new assets represent 60,000 new customers in the Public Storage fold.
The transaction will be funded with unsecured debt. CBRE represented All Storage in the transaction.
“The acquisition is a direct reflection of how the team at Public Storage is committed to driving growth through our four-factor platform, which includes acquisitions, development, redevelopment and third-party management,” said Public Storage Chief Executive Joseph Russell in a statement.
The transaction brings the publicly traded storage operator’s total footprint in the Dallas-Fort Worth area to 172 locations with 15.5 million square feet of rentable storage space.
In the company’s Nov. 2 third-quarter earnings call, Russell called the latest acquisition “a huge opportunity to grow, and actually put additional presence in parts of the Dallas-Fort Worth market, particularly Fort Worth that we were lighter in.”
In addition to the All Storage deal, the REIT paid $1.8 billion to purchase 48 facilities in the ezStorage portfolio in April. That portfolio had locations in Washington, D.C. submarkets, including in Virginia and Maryland.
Russell said of the All Storage acquisition: “The opportunity for us to integrate these assets and put them under the Public Storage brand will be very efficient. Clearly, we're very skilled at that, coming right off the experience we just had in Washington metro with ezStorage.”
Shares of Public Storage (PSA) closed Thursday down 32 cents, or a fraction of a percent, to $322.51 on the New York Stock Exchange, on a day when the Dow Jones industrial average closed down a fraction of a percent.