Harrison Street Asset Management has invested in a US self-storage portfolio of 21 assets from its long-standing operating partner Morningstar Properties, with whom the firm first began investing in 2007.
Harrison Street has invested an unspecified amount to acquire the portfolio of 1.3m sqft and over 10,800 units through the joint venture with Morningstar Properties.
The portfolio is 90% occupied and spans seven states. It is heavily concentrated in major hubs, with 71% of the assets situated in the top 30 US metropolitan areas, including Houston, Austin, Charlotte and Atlanta.
Morningstar, the current operator, will continue to provide operational and management expertise across the portfolio.
The latest partnership builds on previous partnerships by the two firms that include 41 earlier self-storage investments in five Sun Belt states.
Mike Gordon, global CIO at Harrison Street, said: “The acquisition of this 21-property portfolio underscores Harrison Street’s ongoing commitment to investing in attractive opportunities across the self-storage sector.
“These assets are located in some of the nation’s most dynamic, high-growth markets with strong demographics. 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.”
David Benson, CEO of Morningstar Properties, said: “This recapitalisation highlights the strength of a portfolio we have successfully owned and operated since 2014. It demonstrates Morningstar’s ability to assemble enduring real estate portfolios, operate them with discipline, and deliver continued investment performance for our partners through multiple cycles.
“We are pleased to extend our long-standing relationship with Harrison Street as we position this portfolio for its next phase of growth and value creation.”
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