The Ardent Companies has completed a GP-led continuation vehicle and strategic recapitalization transaction with StepStone Group, transferring eight self-storage assets into a newly formed investment vehicle designed to support the next phase of growth and value creation across the portfolio.
The Atlanta-based real estate investment and development firm said the continuation vehicle is seeded with seven assets from its Self-Storage Development Fund II and one asset from Self-Storage Development Fund I.
“The transaction represents a key milestone in our funds’ respective lifecycles,” said Thomas Olson, Partner and Head of Self-Storage Strategy for Ardent. “It delivers the final resolution of Fund I’s remaining self-storage investment and marks a significant first exit for Fund II investors, positioning the fund for strong overall success. We are also thrilled to partner with StepStone, a leading institutional investor, to build on the momentum of this transaction and continue scaling the strategy.”
Under the transaction, the continuation vehicle will focus on completing lease-up efforts and optimizing operations at the seed assets. Ardent will continue serving as both the general partner and day-to-day asset manager of the portfolio, maintaining operational oversight as the assets progress through their next stage of development.
The vehicle also includes additional capital commitments to pursue future acquisitions that fit its strategy of targeting high-quality self-storage assets in low-supply markets.
StepStone said the transaction aligns with its strategy of providing flexible capital solutions to established real estate operators while investing in assets with further upside potential.
“We are pleased to partner with Ardent on this GP-led continuation vehicle, which reflects our strategy of providing flexible capital solutions to high-quality real estate platforms,” said John Waters, Partner and Co-Head of Investments at StepStone Group. “The portfolio consists of newly developed, institutional-quality self-storage assets in supply-constrained, high-barrier markets and offers a compelling opportunity to invest at a transitional point in the assets’ lifecycle, where lease-up and operational optimization can drive meaningful value creation. We look forward to supporting Ardent as they execute on the next phase of growth.”
The recapitalization comes as Ardent continues to expand its self-storage development platform through Self-Storage Development Fund III. The firm currently has two recently delivered projects, four developments under construction and two additional projects in pre-development, all focused on Class-A self-storage facilities in high-demand, supply-constrained U.S. markets.
JLL advised on the transaction. Legal counsel was provided by Latham & Watkins LLP and Greenberg Traurig LLP, while financing was arranged by Acore Capital.