The properties involved comprise more than 2.9 million square feet in Morningstar Mini-Storage branded sites located in North Carolina, South Carolina, Texas, Virginia and Georgia.
"This is an extremely gratifying result, especially considering the vintage of when we put this portfolio together and the tough economic conditions in which we were operating for most of the period," said Dave Benson, president and CEO of Morningstar Properties. "Our team worked hard to build this portfolio and increase the value of the assets. Today's outcome validates our effort, as well as how well storage performs relative to the broader economy and as an institutional investment. We could not be more pleased."
The transaction is the largest portfolio sale in recent industry history and the highest valuation seen for storage outside of the boroughs of New York, Benson added.
Founded in 1981, Morningstar was the 17th largest self-storage operator in the U.S. prior to the sale to Public Storage, according to Inside Self Storage. The company had owned and operated 66 facilities in eight states, most in the South, totaling more than 4.1 million square feet of space and 33,434 storage units.
Morningstar now owns and operates 23 storage properties, including one in Atlanta that the company acquired for $6.1 million in late September. Benson said Morningstar is "already back at it, building another portfolio," with five new properties in development. The terrain should feel familiar; in 2006, the company went through a similarly dramatic shift when it sold 60 of 63 properties to the self-storage REIT, Public Storage Inc.
About Morningstar Properties: Morningstar Properties is a vertically integrated real estate developer, owner and operator of specialty real estate products focused primarily on self‐storage in the Southeast United States. Since 1981, Morningstar has developed, acquired and operated over 125 self‐storage projects across the country totaling in excess of 8.5 million square feet. Currently the company manages a network of 23 storage properties under the brand name of Morningstar Mini‐Storage in eight states, mostly concentrated in the South. In addition to storage centers, Morningstar owns and operates 12 marinas across the Southeast and Great Lakes. The corporate headquarters are located in Charlotte, NC. Morningstar's future growth is funded through Blue Doors Capital Management, an affiliated private equity fund designated for acquisition and development of self-storage centers.
Image with caption: "The Morningstar Mini-Storage facility in Monroe, NC, one of 43 properties sold to Public Storage for $315 million." Image available at: http://photos.prnewswire.com/prnh/20131008/CL92440-a
Image with caption: "Dave Benson, Morningstar Properties president and CEO." Image available at: http://photos.prnewswire.com/prnh/20131008/CL92440-b
PDF with caption: "Portfolio details, including property map." PDF available at: http://origin-qps.onstreammedia.com/origin/multivu_archive/PRNA/ENR/FX-20131008-MM92440-1.pdf
SOURCE Morningstar Properties