Ardent Recapitalizes Storage Portfolio With StepStone

The Ardent Companies has completed a recapitalization of eight Class A self-storage properties totaling 742,855 square feet across seven states, partnering with institutional investor StepStone Group through a newly formed continuation vehicle.

The Atlanta-based privately held real estate firm retained Greenberg Traurig, LLP as legal counsel for the transaction, which included the buyout of existing equity partners and provided a return of significant capital to Ardent’s investors.

The recapitalization was partially financed through a mortgage loan from ACORE Capital. As part of the transaction, Ardent will remain the portfolio’s day-to-day asset manager and serve as general partner of the continuation vehicle.

"Our team has worked alongside Ardent from day one, advising on the acquisition, financing, development, and operation of these assets as they evolved into a high-quality institutional portfolio," said Jordan S. Lewis, a Real Estate Practice shareholder in Greenberg Traurig's Atlanta office and lead counsel for Ardent on the transaction. "It was especially meaningful to help Ardent reach this milestone through a continuation vehicle transaction that provides liquidity to existing investors while creating a strong platform for future growth."

Thomas Olson, partner and head of self-storage strategy at Ardent, said the firm’s relationship with Greenberg Traurig played an important role in completing the transaction.

"We are grateful for our longstanding relationship with Greenberg Traurig. Their thoughtful and practical counsel was instrumental in bringing together our latest venture. The Ardent/Greenberg Traurig relationship continues to add meaningful value across our investments," Olson said.

The transaction comes as continuation vehicles have become an increasingly utilized strategy in commercial real estate, allowing sponsors to provide liquidity to existing investors while retaining ownership and operational control of assets with additional growth potential.

Greenberg Traurig’s deal team included Co-President and Global Real Estate Practice Co-Chair Michael J. Baum in Chicago; Private Funds Group Co-Chair Stephen R. Goler in Denver; Philadelphia Real Estate Shareholder John P. Schwartz; Chicago Tax Shareholder Lawrence H. Brenman; and Atlanta-based Real Estate Associates Brandon M. Salky and Aaron Slann.

"This deal showcases Greenberg Traurig's ability to assemble a cross-office team with the real estate, private funds, financing, and tax experience needed to execute sophisticated transactions for our clients," Baum said. "We are proud to have supported Ardent through a milestone transaction that delivered liquidity to investors, strengthened an institutional-quality portfolio, and positioned the company to capitalize on future growth opportunities."