Morningstar Launches $90M Storage Fund

By Adriana Pop

Charlotte, N.C.—Morningstar Properties has secured a $90 million fund through its private equity real estate affiliate Blue Doors Capital Partners.

Morningstar Storage flagship property in Charlotte, N.C.

Called Blue Doors Storage Fund III, the new investment vehicle will be used for the acquisition, development and redevelopment of self-storage properties in major and secondary markets across the U.S.

Blue Doors Storage Fund III is the latest in a series of vehicles focused specifically on the self-storage industry, which were first launched in February 2013. All Blue Doors Funds are independently sponsored by Morningstar Properties. The current fund will allow the company to take advantage of value-add development and acquisition opportunities as the self-storage market cycle wanes.

“After six years of clear growth, the landscape in the storage industry is changing, and changing quickly. Operating fundamentals are softening, and we are facing a glut of new supply in numbers we have never seen before. Not all of these new stores are going to make it. Few major markets will come through unscathed,” Dave Benson, president of Morningstar Properties, said in prepared remarks. “With our latest Blue Doors Fund, we feel we are well positioned to continue our selective acquisition and development program, and will be well poised to take advantage of the displacement we expect in this next phase of the changing storage market.”

Morningstar was founded in 1981 and currently owns and operates an expanding network of 50 storage properties under the brand name of Morningstar Storage.

Image courtesy of Morningstar Properties