BREIT currently owns a $300 million portfolio of self-storage properties
January 6, 2021: Blackstone Real Estate Income Trust Inc. (BREIT), a non-traded real estate investment platform affiliated with Blackstone Group Inc., has completed its acquisition of Simply Self Storage (SSS) from Brookfield Asset Management Inc. (BAM), a global asset manager with large investments in commercial real estate on Dec. 18. With the deal complete, the company believes it is now the third largest non-listed self-storage operator in the United States, according a press release.
Simpson Thacher & Bartlett LLP served as BREIT’s legal adviser, while BofA Securities Inc. and Deutsche Bank Securities Inc. served as its financial advisers. Fried, Frank, Harris, Shriver & Jacobson LLP, Newmark Group Inc. and RBC Capital Markets LLC advised BAM.
“This transaction is a complementary addition to BREIT’s high-quality portfolio of income-generating real estate, which is heavily weighted towards logistics and multi-family primarily in growth markets. Simply Self Storage is a best-in-class company with significant potential for growth through future acquisitions in a highly fragmented sector. Similar to logistics, self-storage is a resilient sector through economic cycles because of low tenant turnover, minimal maintenance costs and stable cash flows. We look forward to continuing to acquire high quality assets on behalf of our BREIT investors.” Said by Frank Cohen, CEO and chair of BREIT.
BAM acquired SSS in 2016 and sold 112 facilities in 2018 to a joint venture between real estate investment trust (REIT) National Storage Affiliates Trust and an affiliate of Heitman Capital Management LLC for $1.325 billion.
BREIT is managed externally by a subsidiary of private-equity firm Blackstone, whose real estate business was founded in 1991. Blackstone has approximately $167 billion in investor capital under management. Blackstone Real Estate Income Trust Inc. (BREIT), has approximately $3.6 billion of immediate liquidity it can use for acquisitions.