The transaction is expected to close by year-end
November 18, 2021: CubeSmart, a self-storage real estate investment trust (REIT) and third-party management company, has agreed to acquire the Storage West portfolio for $1.69 billion.
CubeSmart will purchase 100% of the outstanding partnership units of LAACO Ltd., the California-based limited partnership that owns and manages the Storage West brand. The 59-property portfolio comprises more than 4.7 million rentable square feet.
Storage West operates 22 facilities in Southern California, 17 in Phoenix, 13 in Las Vegas and seven in Houston. Two are owned by separate joint ventures in which LAACO owns 50%, the release stated.
CubeSmart will assume $40.9 million of LAACO debt as part of the deal, which it intends to pay off at closing or shortly thereafter. The REIT expects to finance the transaction through a combination of proceeds from the sale of equity securities and new, long-term debt financing, company officials said.
Headquartered in Malvern, Pennsylvania, CubeSmart owns or manages 1,251 self-storage facilities across the United States. Its operating portfolio comprises 86.8 million square feet.