BUFFALO, N.Y. — Sovran Self Storage Inc. (NYSE: SSS), a self storage real estate investment trust (REIT), has acquired seven self storage facilities in five separate transactions for a combined purchase price of $98.7 million. The properties total more than 575,000 square feet of rental space.
Sovran Self Storage funded the acquisitions through advances on the company’s line of credit, proceeds from the sale of several properties and through the company’s at-the-market (ATM) stock offering program, a form of equity raise.
Five properties were acquired during the fourth quarter of 2013 for a combined purchase price of $44.7 million and are all located in markets where the company already has a presence — one each in Connecticut, Texas and southeast Florida, and two in New Jersey.
Early this year, the company purchased two additional facilities located in southeast Florida for a combined purchase price of $54 million.
The newly acquired properties provide an upscale mix of amenities that include climate-controlled storage spaces, wireless Internet, as well as record and wine storage. All of the storage facilities will be rebranded under the Uncle Bob’s Self Storagename and fully integrated into the company’s operating platforms.
“We are pleased to add these modern, top-tier properties to our portfolio,” says David Rogers, CEO of Buffalo, N.Y.-based Sovran Self Storage. “They fit well into our strategy of acquiring high-quality assets in core markets, and we look forward to strong growth from each of them.”
In addition to the previously announced sale of one property in Dayton, Ohio, Sovran Self Storage also disposed of three additional facilities during the fourth quarter of 2013. The stores included two in Tallahassee, Fla., and one in Christiansburg, Va. The combined sale price of those three properties was $8.9 million. The company recognized a gain of approximately $2 million on the transactions.
Sovran Self Storage, which acquires and manages self storage facilities, operates 480 self storage facilities in 25 states under the name Uncle Bob’s Self Storage. Sovran’s stock price closed at $65.20 per share on Thursday, up from $64.30 per share a year ago.
— Matt Valley