05 Apr Prime Group Holdings Acquires Four Self Storage Facilities for $23.5 Million
By Alex Hassel, Storage.com
One of the largest private self storage owners just got a little bigger. Prime Group Holdings, based in Saratoga Springs, N.Y., recently acquired the Safe Storage Inc. portfolio for $23.5 million. The deal adds 250,000 square feet and 2,000 units to the Prime Group Storage portfolio.
The facilities can be found at:
- 901 Crane Ave., Pittsfield, Mass.
- 1025 Central Ave., Albany, N.Y.
- 50 Oliver St., Cohoes, N.Y.
- 1110 Altamont Ave., Schenectady, N.Y.
Robert Moser, a principal at Prime Group, knew the locations would be a great investment for the company. “These properties are all in submarkets that have less square feet of storage per person than the national average. I am very familiar with these markets. Prime Group is based in this region and already has a significant amount of square feet owned and under management in the capital region.”
Not only that, but the facilities came with a promising customer base. “We like storage properties that feature retail real estate characteristics like high traffic counts, population density, and visibility while being institutional-grade real estate. All four of the Safe Storage properties fit our criteria,” says Moser.
Prime Group bought the properties from brothers Barry, Elliott, and Jeff Feinman. What’s interesting about this deal is that the Feinman brothers initially weren’t even selling the Safe Storage portfolio. Prime Group approached them with the deal and made a persuasive offer.
“We are persistent and patient,” Moser says. “We target properties that are privately owned and that fit the profile of the type of asset that we’d like to own and then discretely pursue those owners. Those who sell to Prime Group have become some of our biggest advocates, which is a great testament to the benefit of treating people fairly.”
Prime Group has made its recent acquisitions with its closed-end real estate fund, Prime Storage Fund I, with more than $100 million in equity. Prime Group typically pursues acquisitions but is planning new development in the future as well. “Even with a number of large recent acquisitions, our deal pipeline remains robust with over $75 million of storage under contract,” Moser says.
Through various entities, Prime Group now owns 99 facilities containing more than six million rentable square feet of storage. It’s one of the largest private self storage owners in the U.S. and hopes someday to be the biggest.
Prime Group has purchased over 80 self storage properties since 2014. It owns properties in Connecticut, Kentucky, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, South Carolina, Vermont, and Virginia.