CubeSmart has agreed to acquire 100% of the outstanding partnership units of LAACO, the owner of the Storage West platform for approximately $1.69 billion.
The purchase price includes approximately $40.9 million of LAACO debt that will be repaid at, or shortly after, the closing, said CubeSmart.
Storage West is the owner and operator of 59 self-storage assets in the highly desired western markets of Southern California (22), Phoenix (17), Las Vegas (13), and Houston (7). Two of these properties are owned by two separate joint ventures, each owned fifty percent by LAACO.
“The Storage West portfolio represents a very strategic transaction that will enhance our portfolio and further diversify our geographic exposure,” commented Christopher P. Marr, President and chief executive officer of the company. “This immediately accretive transaction is a unique opportunity to acquire a sizable portfolio of high-quality assets across the Southwest. The properties are all in top-40 MSAs that represent key growth markets with strong demographics that perfectly fit our external growth strategy and complement our existing portfolio.”
Karen Hathaway, President and Managing Partner of LAACO, Ltd., said, “We are pleased that this transaction will benefit both the unitholders who have supported our company over the years and the shareholders of CubeSmart. We are also gratified that our operations will continue in the good hands of a skilled management team whose values so closely align with ours, and whose success includes solid growth, commitment to their employees, and dedication to customer satisfaction, sustainability, and diversity.”
The transaction is expected to close in the fourth quarter of 2021, and is subject to customary closing conditions.
LAACO, Ltd., is a California limited partnership that owns and manages Storage West self-storage facilities in the western United States.