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Deals & Dealmakers

CubeSmart closes $1.69B self-storage acquisition

CubeSmart has closed on its $1.69 billion purchase of the Storage West self-storage platform, adding 59 assets to its portfolio in the western markets of Southern California (22), Phoenix (17), Las Vegas (13), and Houston (7).

Two of the properties in Southern California are owned by separate joint ventures, of which CUBE now owns a 50 percent interest.

“We are excited to officially welcome the Storage West stores and the LAACO teammates to CubeSmart’s national platform. This accretive transaction represented a unique opportunity to expand our footprint across these rapidly growing top-40 MSAs,” commented Christopher P. Marr, President and Chief Executive Officer. “I’m proud of our team’s ability to execute on our strategic external growth objectives and look forward to successfully integrating these stores onto our platform.”

The acquisition was funded using the net proceeds from a combination of capital raising transactions, including the Company’s recent offerings of 15,525,000 common shares, $550 million of unsecured senior notes due in 2028, and $500 million of unsecured senior notes due in 2032.

Eastdil Secured served as exclusive financial advisor to LAACO, Ltd. (LAACO), the owner of Storage West, on its sale to CubeSmart.

“This was a highly strategic transaction, and it underscores the favorable fundamentals and strength of this industry,” said Kieran O’Shea, Managing Director at Eastdil Secured. “With assets that continue to outperform and relatively little capital expense requirements, we are seeing more diverse buyers and increasing levels of capital moving into the space. At Eastdil Secured, we have an experienced, global team that is involved in every detail of every deal from beginning to end. Across the world, we are proud of our decades of delivering results for clients and look forward to continuing to provide the strategic advice and counsel our clients rely on us for to achieve their objectives.”

The deal is the latest in a series of successful major multibillion transactions Eastdil has advised on in the self-storage space, including the three largest transactions in the sector in over a decade. This includes the sale of ezStorage, which closed earlier this year, and Manhattan Mini Storage, which is scheduled to close later this month.  The Manhattan Mini Storage also represents New York City’s largest property sale since 2015.

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