Public Storage, which owns, develops and operates self-storage properties, agreed to buy competitor ezStorage for $1.8 billion.
Under the deal, Glendale, California-based Public Storage will acquire 48 properties spanning 4.2 million square feet across Washington, D.C., Virginia and Maryland. The markets have strong demand and high barriers for new supply, according to a statement.
Public Storage plans to take over one property currently under construction and expand eight others, which would lead to a 10% growth in square footage through 2023. Completion of the deal, which the company aims to finance with unsecured debt, is expected next month.
Self-storage properties have been gaining popularity among investors throughout the pandemic, as the assets tend to stay fairly resilient through various parts of the economic cycle. Blackstone Group Inc. bought a self-storage firm from a Brookfield Asset Management Inc. fund for about $1.2 billion at the end of last year.
Since the start of 2019, Public Storage has expanded its holdings by 13% through $4.1 billion of acquisitions, development and redevelopment.
