A portfolio of local storage units is being targeted in a big-money deal by a Utah-based REIT.
Extra Space Storage, headquartered in Salt Lake City, entered into a purchase agreement Oct. 30 to acquire 17 self-storage properties for about $200 million. Although the company did not reveal the exact locations of the properties, spokesman Clint Halverson said that they are in the Richmond area and that the company is buying the space from Virginia-based Mini Price Storage.
“In this case, we actually bought an operating company,” Halverson said. “It was an asset purchase, but we basically bought the name and the company itself.”
It is unclear whether the units will continue to operate under the Mini Price name or as Extra Space Storage locations. Mini Price Storage did not return a call by press time.
Mini Price operates at least 20 storage unit locations around the region, according to its website.
Extra Space is acquiring a total of about 1.5 million square feet of rentable space among about 14,000 storage units, according to the company. At the end of September, the portfolio was about 90 percent occupied. The deal is expected to close in January.
Extra Space already has a presence in the market, with three storage properties in Richmond and a fourth location in Glen Allen. Halverson said Extra Space is keeping an eye on the Richmond market but does not have any other local acquisitions in its immediate plans.
“We’ll continue to look and see what’s there,” he said. “Now that we have the size and the presence, it would be pretty easy for us to continue to grow.”
The purchase will be funded in cash. Extra Space, a publicly traded firm, announced an offering of 4.5 million shares of common stock on the same day it announced its pending acquisition.