--- title: CubeSmart to Acquire Self-Storage Portfolio for $1.69B | DXD In the News description: "Another sign that more institutions are beginning to chase yield in self storage: CubeSmart to Acquire Self-Storage Portfolio for $1.69B." --- 1 min read # CubeSmart to Acquire Self-Storage Portfolio for $1.69B [![Picture of DXD Capital](https://dxd.capital/hubfs/Website%20Build%202023/Our%20Talent%20-%20Headshots/DXD_dark_hex_2021.png) DXD Capital ](https://dxd.capital/library-in-the-news/author/dxd) Nov 24, 2021 3:57:00 PM ###### This article appeared in [GlobeST](https://www.globest.com/2021/11/17/cubesmart-to-acquire-self-storage-portfolio-for-1-69b/) on November 17th. *It’s another sign that more institutions are beginning to chase yield in self storage.* [CubeSmart](https://www.cubesmart.com/) announced that it has entered into an agreement to acquire 100% of the outstanding partnership units of LAACO, the owner of the [Storage West](https://storagewest.com/) platform, for approximately $1.69 billion. The deal includes approximately $40.9 million of LAACO debt that will be repaid at, or shortly after, the closing. Storage West is the owner and operator of 59 self-storage assets in Southern California, Phoenix, Las Vegas and Houston. Two of these properties are owned by two separate joint ventures, each owned 50% by LAACO. CubeSmart CEO Christopher Marr notes that the portfolio it is acquiring complements the REIT’s existing holdings.  The properties are all in top-40 MSAs that represent key growth markets, he said in prepared remarks. The transaction is expected to close in the fourth quarter of 2021, and is subject to customary closing conditions. It’s the second major self storage transaction this month following [**Public Storage’s acquisition**](https://www.globest.com/2021/11/03/public-storage-acquires-1-5b-portfolio/)  of All Storage’s portfolio for $1.5 billion. CubeSmart’s transaction illustrates the strong yield available in this asset class. > The self storage sector continues to outperform other asset classes due to diverse demand drivers and a business model that achieves impressive cash-on-cash returns, making it an attractive core asset,” Drew Dolan, principal and fund manager of [DXD Capital](https://www.dxd.capital/), tells GlobeSt. “As cap rates continue to compress in more traditional commercial real estate investments such as multifamily, we see more institutions beginning to chase yield in self storage.” The four storage REITs, including CubeSmart, own about 25% of the facilities in the United States. “With so much fragmentation in the industry, the sector is popping up on the radar with many investors as ripe with opportunity,” Dolan says. “Regional operators such as Storage West are attractive to large buyers looking for scale. He also notes that data analytics will increasingly play an important role for self storage investors as the sector continues to gain sophistication Dolan points to DXD Capital’s $50 million self storage fund, which will develop approximately 12 climate-controlled self storage facilities, using data “to select and develop assets in areas that have supply and demand imbalances today with strong growth fundamentals for the future.” --- Article by Paul Bergeron of [Globest.com](https://www.globest.com/2021/11/17/cubesmart-to-acquire-self-storage-portfolio-for-1-69b/) - [Tweet](https://twitter.com/share) #### [DXD Capital Launches Fund to Target Self-Storage Development](https://dxd.capital/library-in-the-news/dxd-capital-launches-fund-to-target-self-storage-development) ![Picture of DXD Capital](https://dxd.capital/hs-fs/hubfs/Website%20Build%202023/Our%20Talent%20-%20Headshots/DXD_dark_hex_2021.png?width=30&name=DXD_dark_hex_2021.png) [DXD Capital](https://dxd.capital/library-in-the-news/author/dxd) : Sep 24, 2021 3:55:00 PM Update 9/24/21 – DXD Capital has broken ground on its development in Las Vegas. The project at the corner of South Monte Cristo Way and West... [Read More](https://dxd.capital/library-in-the-news/dxd-capital-launches-fund-to-target-self-storage-development) #### [Self-Storage Space is Down and Rents are Way Up](https://dxd.capital/library-in-the-news/self-storage-space-is-down-and-rents-are-way-up) ![Picture of DXD Capital](https://dxd.capital/hs-fs/hubfs/Website%20Build%202023/Our%20Talent%20-%20Headshots/DXD_dark_hex_2021.png?width=30&name=DXD_dark_hex_2021.png) [DXD Capital](https://dxd.capital/library-in-the-news/author/dxd) : Aug 5, 2022 3:53:00 PM Article Written by Caroline Champlin, Analyst for Marketplace. [Read More](https://dxd.capital/library-in-the-news/self-storage-space-is-down-and-rents-are-way-up) 2 min read #### [Self-Storage Bounces Back Ahead of Others as Covid-19 Eases](https://dxd.capital/library-in-the-news/self-storage-bounces-back-ahead-of-others-as-covid-19-eases) ![Picture of DXD Capital](https://dxd.capital/hs-fs/hubfs/Website%20Build%202023/Our%20Talent%20-%20Headshots/DXD_dark_hex_2021.png?width=30&name=DXD_dark_hex_2021.png) [DXD Capital](https://dxd.capital/library-in-the-news/author/dxd) : May 19, 2022 4:03:00 PM Article Written by Esther Fung, of the Wall Street Journal Appeared in the July 7, 2021, print edition as 'Self-Storage Stages A Strong Rebound... [Read More](https://dxd.capital/library-in-the-news/self-storage-bounces-back-ahead-of-others-as-covid-19-eases) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "DXD Capital", "url" : "https://dxd.capital/library-in-the-news/author/dxd" }, "dateModified" : "2023-07-06T21:57:36.217Z", "datePublished" : "2021-11-24T22:57:00.000Z", "headline" : "CubeSmart to Acquire Self-Storage Portfolio for $1.69B | DXD In the News", "mainEntityOfPage" : { "@id" : "https://dxd.capital/library-in-the-news/cubesmart-to-acquire-self-storage-portfolio-for-1-69b", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://dxd.capital/hubfs/DXD_white-logo.png" }, "name" : "DXD Capital" } } ```