Extra Space, Blue Vista, & UGA RE Create $600M Portfolio

Blue Vista Capital Management, LLC, UBS’s Unified Global Alternatives – Real Estate (UGA RE) business, and Extra Space Storage, have formed a strategic collaboration to invest in self-storage assets in the U.S. that will have approximately $600 million in buying power to build a diversified self-storage portfolio.

The strategy is to identify core/core-plus, value-add, and development opportunities across the U.S., with the goal of creating a portfolio of self-storage assets designed for a perpetual life investment vehicle. Extra Space Storage will manage all investments made by the collaboration, bringing to the collaboration its property management services, technology, and resources.

Blue Vista has a 15-year track record of investing in self-storage acquisitions and developments in the U.S., with deep market knowledge, and execution and sourcing capabilities. Blue Vista has invested in 65 self-storage investments to date alongside sector-focused operators, including Extra Space Storage.

“This collaboration represents the convergence of Blue Vista’s strong relationships alongside long-term operating partners and an existing investor, with our focus and conviction to the self-storage sector,” said Peter Stelian, CEO of Blue Vista Capital Management. “We are excited to be combining our expertise and resources with these trusted partners to pursue the venture’s goal of becoming the largest private owner of self-storage assets in the U.S. Self-storage has been one of our best asset classes in terms of performance and, with the combination of UGA RE’s global real estate expertise and Extra Space Storage’s demonstrated “best in class” management capabilities, we believe we are positioned for excellence in performance for our clients and partners.”

“We look forward to joining forces with Blue Vista and UBS’s UGA Real Estate business in this strategic venture. By combining our self-storage expertise with this innovative investment approach, we’re positioned to unlock new opportunities and deliver value to our stakeholders,” said Joe Margolis, CEO of Extra Space. “At Extra Space, we pride ourselves on our operational excellence and we are excited to bring that excellence to this collaboration. Together, we are uniquely positioned to capitalize on the opportunities in the self-storage market, as self-storage has consistently proven to be one of the most resilient and high-performing asset classes in real estate.”

“This initiative reflects our commitment to innovative real estate strategies and long-term value creation,” said Colin Armstrong, Portfolio Manager, UBS’s UGA Real Estate business. “By aligning and combining our real estate experience with Blue Vista and Extra Space Storage, we’re leveraging complementary strengths to build a resilient, high-performing self-storage platform that meets the evolving needs of institutional investors.”