Sovran HHF Storage Holdings, the joint venture between an affiliate of Chicago-based real estate investment firm Heitman and Buffalo, New York-based self-storage REIT Sovran Self Storage, has acquired a portfolio of US self-storage properties for $144 million (€92 million). The seller was San Antonio, Texas-based Hendry Investments, which operated the facilities under the Lock-N-Key brand.
The deal involved a combination of cash, the assumption of existing debt and the origination of new debt provided by Prudential Mortgage Capital Company, according to a statement.
The portfolio of 21 properties, totaling 1.6 million square feet, will be branded under Sovran’s Uncle Bob’s Self Storage brand. The properties include facilities in Tampa, Florida; San Antonio, Houston and Dallas, Texas; Denver, Colorado; Louisville, Kentucky; and Columbus, Ohio. The properties were 84 percent occupied.
The JV between Heitman and Sovran was formed in June to invest in the US self-storage market, at the time looking to acquire up to $350 million of self-storage facilities throughout the US.
Following the agreement, Sovran contributed 20 percent equity to the joint venture while Heitman contributed the remaining 80 percent, with leverage expected of up to 65 percent. Properties acquired by the JV will be managed by Sovran with facilities branded under Sovran’s “Uncle Bob’s Self Storage” brand.
Sovran currently has more than 350 self-storage facilities, totaling more than 20 million square feet of space, located in the US.