Public Storage buying 30 facilities for $189 million
Public Storage, the nation’s largest self-storage company, is expanding, taking advantage of tough times in the industry.
In a deal worth about $189 million, the Glendale company is buying 30 facilities from an owner that has run into difficulties.
“The storage industry has been in turmoil, and our competitors have come to us to see if we’d be willing to buy their properties,” company spokesman Clem Teng said Monday. “This deal comes in at just under $100 per square foot, which in today’s market is pretty hard to duplicate, especially in L.A. and Chicago.”
He declined to name the seller of the facilities.
The industry has been hampered by a falloff in customers and other problems, Teng said. Public Storage has not been immune. In 2009, the company’s profit was $790.5 million, which was down 19% from the year before. Revenue for the company’s facilities -- those that it has been operating for the last three years at a stabilized occupancy level -- fell 3.2%.
Public Storage, which has more than 2,000 locations, did not acquire any new properties in 2009, but in its annual report it said that “there should be abundant opportunity for prudent acquisitions.”
Of the facilities being purchased in the deal announced Monday, 28 are in the L.A. area, and two are in suburban Chicago.
The 30 properties have multiple debtors, which will push the completion of the sale to July or August, Teng said.
The purchased buildings will be rebranded with the Public Storage name, as well as the company’s trademark orange doors.
Public Storage has locations in 38 states and about 127 million square feet of storage space.
The company’s shares rose $1.38, or 1.49%, to $93.78.