Self-storage real estate acquisitions have been our bread and butter!

Locke has a reputation for generating creative solutions, resulting in proprietary relationships with owners, sell-side brokers, developers and mortgage brokers. Nowhere has this been more true than with our self-storage industry experience.

Locke’s flagship self storage client had been Life Storage, New York Stock Exchange “LSI” (formerly Sovran Self Storage NYSE “SSS” with facilities operating as Uncle bob’s Self Storage). From 1999 through early in 2018, The Locke Group served as a strategic advisor and buy side representative to Life Storage for substantially all of Life Storage’s acquisitions, dispositions and joint venture discussions.

Notable accomplishments:

Locke sourced, conceptualized and designed Life Storage’s first two joint ventures, LockeSovran I and II. These joint ventures included a unique tax deferred structured exit for owners and collectively acquired storage facilities valued at $130 million. The initial joint venture was crafted to address specific income tax complexities of the owner and was designed as an alternative to Operating Partnership Units. Promoting alternative joint venture structures to large portfolio owners (tailored to address the situation and the owner’s specific needs and desires), has been a cornerstone of Locke’s historical success and often lead to off-market cash transactions.

Locke conceptualized and formed Locke Leasing, LLC which devised and implemented the initial Uncle Bob’s moving truck rental program which was later sold to Sovran and currently operates Life Storage’s truck rental program. After the sale of Locke’s interest in the two Locke-Sovran joint ventures and Locke Leasing in 2006, Locke’s co-founder retired and The Locke Group, LLC formerly changed its name to Locke Acquisition Group, LLC. At that time, Locke made the strategic decision to forgo traditional broker activities and instead operate as a consultant to buyers.

Responding to limitations Life Storage had in assuming secured debt (due to its unsecured debt agreements), Locke initiated discussion and advised Life’s senior executives on the merits of establishing an off-balance sheet joint venture with an Institutional equity partner to address this obstacle and add flexibility and scale to Life’s acquisition program. Relying on its broker and owner relationships, Locke successfully negotiated the execution of a purchase agreement (subject to Life subsequently identifying and forming a JV with an institutional partner), for an approximate $143 million portfolio that served as the formation transaction for a new joint venture program.

A detailed listing of acquisitions Locke facilitated on behalf of Life Storage from 2011 – 2018 can be provided (total transaction volume exceeded $2.5 billion exclusive of the Life merger). Contact us to learn more.