Category: Finance News

Valley National Acquiring Bank Leumi USA for $1.1 Billion

Valley National Bank is making its second major acquisition in the last three months, this time agreeing to acquire Bank Leumi USA for $1.15 billion. Leumi’s shareholders will receive 3.8 shares of Valley National stock and $5.08 for every share they have, according to Bloomberg. Bank Leumi Le-Israel BM, the parent company of the U.S. banking side of the business, will own more than 14 percent of Valley National commons stock. Valley National will be able to take advantage of Bank Leumi USA’s offerings for wealthy and middle-market commercial clients.…

All Storage Courts $1 Billion+ Sale with CBRE

How many self storage units could $1 billion buy? The operators of All Storage appear poised to find out. The self storage company runs 50 facilities in Texas and three in Oklahoma, but the operator appears ready to box up ownership. The company is exploring a sale that could net more than $1 billion, according to Bloomberg. The company has started to solicit interest from potential buyers with assistance from CBRE in the sale exploration, Bloomberg reported, citing people with knowledge of the matter. The outlet didn’t identify any potential…

JLL Capital Markets Arranges $250 Million Acquisition Facility for SROA

JLL Capital Markets announced today that it has arranged a $250 million acquisition facility to finance the purchase of a 30-property, operating self storage portfolio from five separate sellers totaling 23,389 units across 11 states, including Florida, Georgia, Iowa, Indiana, Maryland, Michigan, Mississippi, Ohio, South Carolina, West Virginia and Wisconsin. The acquisition includes, but is not limited to, a 100-percent ownership stake of StayLock Storage, and will be the 40th storage company rebranded to Storage Rentals of America. JLL worked on behalf of the borrower, SROA Capital Fund VIII, to…

The Current Self Storage Landscape

Over the last twelve months, the self storage industry has gone from a desirable asset class to one of the most sought-after investments in the commercial real estate landscape. The uncertainty of the COVID-19 pandemic created a pause but 2020 would demonstrate very strong year-over-year rental growth and occupancy across most major markets. With strong performance during and emerging from the pandemic, we have seen a wave of new inventory hit the market for sale and record pricing in many markets. What is driving this wave of inventory? What is…

Construction of a New Self Storage Facility: SBA Loan Options

The SBA 504 loan product continues to be in very high demand.  With historically low 25-year fixed interest rates (2.81% in July) and low down payment options (10-15%), it has very quickly become our most popular loan product. As great as the 504 loan product is, it is limited to only financing fixed assets like real estate and equipment.  For a new construction project, eligible costs typically include items like land acquisition, construction improvements, contingency, soft costs, FF&E, interest carry and finance fees — essentially everything associated with designing and…

Self Storage Industry Reaches Point of Over Capitalization

As unprecedented amounts of capital flow into the self storage industry, many investors are expressing concerns that the industry has reached a point of over capitalization. In other words, an overabundance of capital relative to the number of investment opportunities has turned capital deployment into a daunting task. As market competition intensifies, some investors are exploring smaller market strategies, which begs the question: is this a last-ditch effort or a logical capital deployment strategy? Self storage is fueled by necessity driven demand that transcends market size, geography, income, etc. The…

Decoding the Mystery of the Self Storage Cap Rate: How and Why It’s Used to Assess Facility Value

If you’re planning to sell or purchase a self storage facility, your real estate broker will talk to you about value in terms of capitalization (cap) rates. If you’re an owner looking to refinance, your appraiser will also use a cap rate to determine value. As an owner, it’s important that you understand this metric! To help you get a firm grasp, let’s explore the ins and outs of the cap rate, including what it is, how it’s calculated and how it’s used in self storage. What Is a Cap…

Janus International Completes Merger to Become Public Company

Janus International Group, a manufacturer of doors and other products for self-storage and industrial facilities, has joined the small cadre of publicly traded companies in the self storage industry. Janus’ stock started trading June 8 on the New York Stock Exchange. The stock opened the day at $14 per share and closed at $13.89 per share. In December, Janus executives estimated the stock listing would lead to a market capitalization of $1.4 billion and an equity valuation of $1.9 billion. A ‘blank check’ merger Temple, GA-based Janus went public through…

The LeClaire-Schlosser Group of Marcus & Millichap Brokers the Sale of Dona Ana Storage in Las Cruces, New Mexico

The LeClaire-Schlosser Group of Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Dona Ana Storage, a 35,525 square foot storage facility located in Las Cruces, New Mexico, just north of El Paso, Texas. One challenge to this deal were the 40+ storage units used by the seller on a complimentarily basis. During escrow, the seller vacated most units which were soon re-rented to new customers which speaks to the strong spring leasing…