X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SALT LAKE CITY-Extra Space Storage Inc. is selling 6.2 million shares of its common stock this week for $13.47 per share in a private placement with institutional investors. The $81.4 million in net proceeds will be used to partially fund its $2.3-billion joint venture acquisition of Storage USA from GE Commercial Finance. Its joint venture partners are four open-end commingled funds and two single client accounts of Prudential Real Estate Investors. Locally headquartered Extra Space Storage is a REIT that owns and operates 148 self-storage properties in 20 states. Memphis, TN-based Storage USA is a self-storage company with more than 450 properties in 30 states and the District of Columbia. The acquisition, expected to close in the third quarter, will make Extra Space Storage the second largest self-storage operator in the U.S. with over 600 properties owned or under management.Prudential funds and clients have committed about $1.5 billion in equity to the transaction. Upon completion of the transaction, Extra Space Storage will 100% of 61 Storage USA facilities, and through the PREI joint venture, will have an ownership interest in an additional 259 Storage USA properties. Extra Space also will acquire Storage USA’s equity interest in 54 joint venture properties and assume the management of an additional 84 franchise and managed properties.GE acquired Storage USA in 2002 when it bought Security Capital Group Inc. for around $4 billion in cash and stock and assumed $1.4 billion in debt in the deal.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.