Harrison Street Asset Management and long-time joint venture partner Morningstar Properties have expanded their partnership to acquire a self stortage portfolio that's located throughout several Sunbelt markets.
The portfolio includes 21 properties across more than 10,800 units, accounting for a total of 1.3 million rentable square feet. The assets are located in South Carolina, Florida, Georgia, Virginia, Texas, Arkansas and North Carolina. Additionally, 71 percent of the acquired properties are situated in the top 30 national markets, which include major cities like Atlanta, Charlotte, Austin and Houston, according to the two firms. Eastdil Secured arranged the financing for the deal, with the exact amount not revealed.
Before the JV purchase, Morningstar had operated and managed the portfolio that's 90 percent occupied since 2014. Morningstar will continue that role after the transaction. The two companies noted activity has been surging across the properties, with move-ins rising by 21 percent year-to-date compared with the same period a year ago.
“These assets are located in some of the nation’s most dynamic, high-growth markets with strong demographics," Mike Gordon, global chief investment officer at Harrison, said in a statement.
"We believe the sector is at a compelling inflection point as demand fundamentals continue to improve against the backdrop of a limited supply pipeline. We are excited to have closed on this transformative investment alongside Morningstar, marking the next chapter in our nearly 20-year relationship.”
The JV dates back to 2007, when the two set a goal of a $200 million initial investment in self-storage, exclusively in the Carolinas. Since then, the two have expanded beyond those markets.
Harrison, which manages more than $100 billion in total assets, has poured more than $3.6 billion into 323 self-storage properties, located in 27 states.
Even as economic headwinds have persisted, investors are continuing to show interest in self storage, according to Marcus & Millichap, in its Midyear 2025 Self-Storage National Investment Outlook. Sales in the sector rose year-over-year in the six months through March 2025, as the "potential costs of waiting" forced investors to buy, Marcus & Millichap said.
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