Morningstar Properties, LLC and Harrison Street Real Estate Capital Form $200 Million Joint Venture

JV acquires initial three properties totaling 1,589 units in North Carolina

Mar 09, 2007, 00:00 ET from Morningstar Properties, LLC

    CHARLOTTE, N.C., March 9 /PRNewswire/ -- Morningstar Properties, LLC, a
 leading national self-storage operator and developer is pleased to announce
 a strategic joint venture with Harrison Street Real Estate Capital (HSRE),
 a Chicago-based real estate private equity firm. The venture will focus on
 the acquisition, development, and redevelopment of self-storage facilities
 with a primary geographic focus on the Carolinas.
     The joint venture was launched with the acquisition of three assets
 totaling 1,589 units, in the Charlotte, Fayetteville, and Carrboro/Chapel
 Hill, NC markets. The value of these acquisitions was approximately $13
 million. The Charlotte facility is located amidst the burgeoning "Uptown"
 market in the Charlotte CBD where recent condominium development has or
 will add approximately 5,000 living units to the current downtown supply.
 The Fayetteville asset is located in the same MSA as the Fort Bragg
 Military Base and the Carrboro asset serves the Chapel Hill market, where
 50,000 students and faculty make their home during the school year.
     David Benson, President of Morningstar Properties said, "We are
 delighted about our new partnership with Harrison Street. Together, we plan
 to once again make Morningstar the premier household name in storage across
 the Southeast. Our home is the Carolinas, so it is appropriate that these
 new North Carolina stores will be the beachhead to reestablish our
 presence, our community support programs and of course, our weekly
     Headquartered in Matthews (Charlotte), NC, Morningstar has been a
 leader in the self-storage business for over 25 years. Prior to an asset
 sale in 2006, Morningstar was the largest storage operator in the Carolinas
 with 63 properties in the market and ranked 10th nationally. Recognized for
 its good corporate citizenship, the company donates up to five percent of
 its storage units to deserving local charities.
     The joint venture plans to develop and acquire a portfolio of assets
 valued at more than $200 million during the next three years. Morningstar's
 goal is to become one of the largest providers of self-storage facilities
 in the markets in which it operates. The properties will be operated under
 the Morningstar Mini-Storage brand.
     HSRE Principal Robert Mathias said, "We are excited about this alliance
 with Morningstar Properties based on their superb track record, excellent
 management team, and active transaction pipeline. The self-storage asset
 class remains highly fragmented. With over 45,000 self-storage facilities
 in the US still largely held by local operators, we have targeted the
 self-storage market given the excellent risk-adjusted returns one can
 achieve as the sector consolidates. The initial three acquisitions each
 have their own unique and compelling demand drivers and we look forward to
 expanding our portfolio with David and his team."
     About Morningstar Properties, LLC
     Morningstar Properties is a vertically integrated developer, builder,
 and operator of specialty real estate types across the Southeast. Since
 1981 Morningstar has developed and operated almost 70 Self-Storage projects
 totaling over 5.5 million square feet in area and is the premier developer
 of modern, high-quality storage properties in the Carolinas. The company
 has a diversified portfolio, also owning and managing a number of marinas
 in the Southeast, has won numerous awards, and is consistently recognized
 as an industry innovator. For more information, visit
     About Harrison Street Real Estate Capital
     HSRE's model is to provide equity capital at the property level to
 developers and operators in the specialty sectors of the real estate
 market. These sectors principally include self-storage, student housing,
 senior housing/assisted living, medical office/healthcare and related
 parking. Harrison Street's inaugural fund has already entered into six
 strategic joint ventures and has acquired or is in the process of
 developing over 50 properties worth greater than $300 million. For more
 information, visit
     Press Contact:
     Phyllis McArthur
     Morningstar Properties, LLC
     Robert Mathias
     Harrison Street Real Estate Capital

SOURCE Morningstar Properties, LLC