StorageMart to Acquire Manhattan Mini Storage for More Than $3B

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National self-storage chain StorageMart has agreed to acquire competitor Manhattan Mini Storage for more than $3 billion, another billion-dollar purchase in the booming self-storage industry, a source with knowledge of the deal said.

The deal, announced Friday by StorageMart, calls for Manhattan Mini Storage owner Edison Properties to off-load the company’s 18 storage locations in the borough, boosting StorageMart’s portfolio to more than 200,000 storage units worldwide.

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The announcement did not include a sale price, but the source said it was just over the reported $3 billion Edison was seeking when it hired Eastdil Secured to unload Manhattan Mini Storage in August. The deal is set to close on Dec. 20.

The hefty price tag for Manhattan Mini Storage (which one competitor previously told Commercial Observer it was unlikely to get) underscores the appeal of self-storage, once a niche asset class, to large investors.

Blackstone Group bought Simply Self Storage from Brookfield Asset Management for $1.2 billion last year and Public Storage picked up ezStorage for $1.8 billion in April.

The market has been especially hot in the New York area, which is expected to lead the nation in the development of new storage facilities in 2021 with 4.4 million square feet set to be completed, according to a Yardi Matrix report from earlier this year. 

Citigroup served as the financial adviser to StorageMart in the Manhattan Mini Storage deal while Eastdil handled it for Edison.

A spokesperson for Eastdil declined to comment. Representatives for Citi and Edison did not immediately respond to a request for comment.

Nicholas Rizzi can be reached at nrizzi@commercialobserver.com.