Buffalo, New York-based self-storage real estate investment trust Sovran Self Storage and an affiliate of Chicago-based real estate investment firm Heitman are partnering on a joint venture, Sovran HHF Storage Holdings LLC, to acquire up to $350 million (€223 million) of self-storage properties throughout the US.
Following the terms of the agreement, Sovran will contribute 20 percent equity to the JV while Heitman will contribute the remaining 80 percent, with leverage expected of up to 65 percent.
The properties acquired by the joint venture will be managed by Sovran – facilities will be branded under Sovran’s “Uncle Bob’s Self Storage” name. Sovran currently operates 359 self-storage facilities in 22 US states.
Earlier this year, Heitman picked up a 1.9-million-square-foot industrial portfolio in southwestern suburban Chicago from a partnership of Panattoni Development Co. The properties, acquired for an undisclosed sum, comprised four warehouse facilities in the Windham Lakes Southwest Business Park in Romeoville.