Extra Space Storage Locks Up $300M Acquisition of 36 Properties
Salt Lake City-based Extra Space Storage Inc. announced that it has completed its acquisition of the remaining interest in a joint venture formed with Prudential Real Estate Investors (PREI) that owns 36 self-storage properties in 18 states.
Under the agreement previously announced on April 13, Extra Space Storage acquired the remaining 94.9% interest in ESS PRISA III LLC, a joint venture formed with PREI in 2005 with 36 assets operated under the Extra Space Storage brand. EXR acquired PREI’s interest for about $300 million, excluding closing costs, consisting of about $162 million of cash and the assumption of an existing $145 million loan, of which $138 million relates to the interest acquired from PREI.
The loan, which matures in August 2012, will be paid using existing cash and proceeds from new loans that are expected to close in the next 30 days. The JV properties comprise about 2.5 million square feet of net rentable space in about 23,400 units and currently serve a customer base of 20,000 tenants. As of March 31, about 87.8% of the total square feet available for lease at the properties was occupied.