{"id":1004144466,"date":"2016-05-20T00:59:47","date_gmt":"2016-05-20T08:59:47","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004144466"},"modified":"2020-04-07T03:05:53","modified_gmt":"2020-04-07T11:05:53","slug":"sovran-lifestorage-to-merge-in-1-3b-deal","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/","title":{"rendered":"Sovran, LifeStorage to Merge in $1.3B Deal"},"content":{"rendered":"

By Barbra Murray, Contributing Editor<\/p>\n

\"LifeStorage,<\/a>

LifeStorage, Bridgeview, Ill.<\/p><\/div>\n

New York<\/strong>\u2014Well, the self-storage<\/a> REIT sector is about to shrink again. Sovran Self Storage Inc., which operates its facilities under the name Uncle Bob’s Self Storage<\/a>,\u00a0has inked a deal to acquire LifeStorage LP<\/a> for a whopping $1.3 billion\u2014in cash.<\/p>\n

The merger will allow Sovran, the fifth largest self-storage operator in the world with 550 facilities in 26 states, to expand its 30 million-square-foot portfolio by an additional 6.5 million square feet in one fell swoop. LifeStorage, which ranks as the sixth largest private owner of self-storage facilities in the U.S., brings to the table 84 facilities spanning 9 states, with an average occupancy level of 87.1 percent and an average age of 12 years. \u201cLifeStorage has built a high-quality national portfolio, and these stores will enhance and complement our physical footprint and digital presence,” David Rogers, CEO of Sovran, said in a prepared statement.<\/p>\n

Size isn\u2019t the only thing that matters; geography is important, too. The LifeStorage portfolio will bolster Sovran\u2019s presence in Chicago, Austin, Dallas, Orlando and Los Angeles. Additionally, Sovran will be able to establish an immediate footprint in the highly coveted Northern California and Las Vegas markets. Analysts are looking favorably upon the deal.<\/p>\n

\u201cWhile the company is paying up for size and new markets, we believe adding Northern California and Las Vegas (as well as adding density in existing markets) should help improve portfolio metrics and warrant an implied cap rate closer to the other self-storage peers,\u201d according to a note by financial services firm Robert W. Baird & Co. Inc.<\/a> \u201cThough pricing is aggressive, this portfolio makes sense for SSS given the improvement in demos, and given SSS’s attractive cost of equity, we believe it’s the right time to be buying.\u201d<\/p>\n

Sovran is readying itself to make the billion-dollar payment. The REIT has already obtained $1.3 billion in bridge financing, but will ultimately finance the transaction with proceeds from equity and debt offerings. And soon after announcing the LifeStorage agreement, Sovran revealed the launch of a public offering of 6 million shares of common stock, with expectations of gaining net proceeds totaling approximately $578.4 million to be utilized for debt repayment, general corporate purposes and, of course, the partial funding of the LifeStorage purchase.<\/p>\n

The announcement of the pending Sovran-LifeStorage merger comes less than one year after the closing of Extra Space Storage Inc.\u2019s approximately $1.4 billion acquisition<\/a> of SmartStop Self Storage Inc. The deal helped boost investment volume in the self-storage arena to $2.8 billion in 2015. These are good times for self-storage REITs, which, according research by real estate investment services firm Marcus & Millichap, \u201chave outperformed most other investment funds, pulling in consistent returns and steady stock appreciation.\u201d The market continues to thrive, backed by a series of strong demand drivers, including job growth, transient residents and tighter living spaces in rental housing. And then there\u2019s the fact that, as noted in a self-storage report by MJ Partners Real Estate Services, there are roughly 2.2 million marriages in the U.S. annually\u2014and 825,000 divorces.<\/p>\n

Sovran\u2019s acquisition of LifeStorage is on track to close in the third quarter of 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"

The transaction will allow Sovran Self Storage to expand its nationwide portfolio by an additional 6.5 million square feet.<\/p>\n","protected":false},"author":969,"featured_media":1004144467,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,21825,21783,23891,1600,21742,10],"tags":[],"class_list":["post-1004144466","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-finance","category-investment","category-national","category-new-york","category-latest","category-northeast"],"acf":[],"yoast_head":"\nSovran, LifeStorage to Merge in $1.3B Deal - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sovran, LifeStorage to Merge in $1.3B Deal\" \/>\n<meta property=\"og:description\" content=\"The transaction will allow Sovran Self Storage to expand its nationwide portfolio by an additional 6.5 million square feet.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2016-05-20T08:59:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-07T11:05:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/05\/LifeStorage-Bridgeview-Ill..jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1494\" \/>\n\t<meta property=\"og:image:height\" content=\"795\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Barbra Murray\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/\",\"name\":\"Sovran, LifeStorage to Merge in $1.3B Deal - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/05\/LifeStorage-Bridgeview-Ill..jpg\",\"datePublished\":\"2016-05-20T08:59:47+00:00\",\"dateModified\":\"2020-04-07T11:05:53+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/d1edda962dd3af55af8a203870f9fc32\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/05\/LifeStorage-Bridgeview-Ill..jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/05\/LifeStorage-Bridgeview-Ill..jpg\",\"width\":1494,\"height\":795},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Sovran, LifeStorage to Merge in $1.3B Deal\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/d1edda962dd3af55af8a203870f9fc32\",\"name\":\"Barbra Murray\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/9a36d5070adb56de135886aa49db0452b319180ff050dbd70770fd33a3e63774?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/9a36d5070adb56de135886aa49db0452b319180ff050dbd70770fd33a3e63774?s=96&d=mm&r=g\",\"caption\":\"Barbra Murray\"},\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/barbra-murray\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Sovran, LifeStorage to Merge in $1.3B Deal - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/","og_locale":"en_US","og_type":"article","og_title":"Sovran, LifeStorage to Merge in $1.3B Deal","og_description":"The transaction will allow Sovran Self Storage to expand its nationwide portfolio by an additional 6.5 million square feet.","og_url":"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2016-05-20T08:59:47+00:00","article_modified_time":"2020-04-07T11:05:53+00:00","og_image":[{"width":1494,"height":795,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/05\/LifeStorage-Bridgeview-Ill..jpg","type":"image\/jpeg"}],"author":"Barbra Murray","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/","url":"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/","name":"Sovran, LifeStorage to Merge in $1.3B Deal - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/05\/LifeStorage-Bridgeview-Ill..jpg","datePublished":"2016-05-20T08:59:47+00:00","dateModified":"2020-04-07T11:05:53+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/d1edda962dd3af55af8a203870f9fc32"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/05\/LifeStorage-Bridgeview-Ill..jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/05\/LifeStorage-Bridgeview-Ill..jpg","width":1494,"height":795},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/sovran-lifestorage-to-merge-in-1-3b-deal\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Sovran, LifeStorage to Merge in $1.3B Deal"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/d1edda962dd3af55af8a203870f9fc32","name":"Barbra Murray","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/9a36d5070adb56de135886aa49db0452b319180ff050dbd70770fd33a3e63774?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/9a36d5070adb56de135886aa49db0452b319180ff050dbd70770fd33a3e63774?s=96&d=mm&r=g","caption":"Barbra Murray"},"url":"https:\/\/www.commercialsearch.com\/news\/author\/barbra-murray\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/05\/LifeStorage-Bridgeview-Ill..jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004144466","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/969"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004144466"}],"version-history":[{"count":1,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004144466\/revisions"}],"predecessor-version":[{"id":1004410870,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004144466\/revisions\/1004410870"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004144467"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004144466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004144466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004144466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}