StorageMart Refi Worth $1.3B | Mini-Storage Messenger

Posted by Admin on Jun 1, 2023 12:00:00 AM

StorageMart, the Missouri-based self storage firm founded in 1976 and operating more than 250 locations across three countries, just refinanced its US-based portfolio with $1.3 billion from Citigroup. This marks the second time within five years that the family-owned firm has taken advantage of refinancing opportunities with the same lender. 

In December 2018, StorageMart was able to secure $814 million from Citi Real Estate Funding, mostly in commercial mortgage-backed securities (CMBS). According to Kroll Bond Rating Agency (KBRA), which analyzed the transaction, $644 million was split into tranches (including $8.5 million for development and just over $107 million as a cash-out). The remaining $170 million was provided as a mezzanine loan, which is due to mature in 2024.

At the time, Alex Burnam, senior acquisitions analyst at StorageMart, said the refinance put StorageMart on “more solid footing,” and that it was done because property values of some of the company’s older U.S. facilities had appreciated significantly since their original financing.

The StorageMart U.S. Portfolio

Now, this latest refi puts the value of StorageMart’s US portfolio of self-storage locations at nearly $2 billion. The portfolio comprises approximately 130 self-storage facilities, spanning 21 states, making it one of the largest privately-owned storage operators in the world and eighth largest overall. 

The highest concentration of properties is located in the Midwest, with 32 in Missouri, 22 in Iowa, and 15 in both Kansas and Nebraska. While StorageMart has 21 New York-based facilities, the 18 Manhattan Mini Storage properties the firm acquired from Edison Properties in late 2021 are not included (these properties remain listed separately as Manhattan Mini Storage on the StorageMart website as well). During the acquisition, Crain’s reported that StorageMart paid just over $3 billion for the properties with Citigroup once again serving as the exclusive financial adviser in the deal.

Finally, it’s worth noting that the 11 properties in Florida, located in Fort Lauderdale, Fort Myers, Key West, Melbourne, Miami, Miramar, Pompano Beach, and Stuart, are among StorageMart’s most valuable assets. In total, these Sunshine State properties are worth more than $184 million. Florida itself continues to lead the country in self storage transactions with Lynd Development Group, LLC, announcing a $30 million mixed-use project late last year and Safeguard Self Storage recently announcing its latest acquisition in Tampa.