Christopher Marr, president and CEO of self-storage real estate investment trust (REIT) CubeSmart, was recently featured in a video interview for the REITWorld 2014 convention in Atlanta, produced by the National Association of Real Estate Investment Trusts (NAREIT). During the discussion, Marr talked about the direction of the company and the self-storage sector. The video can be viewed at REIT.com.
In the interview, Marr discusses how CubeSmart used its at-the-market equity program and a follow-on offering to raise more than $400 million in equity to fund its acquisitions this year. The company also pre-funded all of its 2015 delivery commitments under its build-to-suit program and its joint-venture development program, Marr said.
CubeSmart is in the process of acquiring 26 storage facilities from investment management firm Harrison Street Real Estate Capital LLC for $223 million. The REIT has closed on 22 of the properties, including five in the Chicago area. Closings on the remaining four properties are expected to be completed in March 2015, according to New York-based Newmark Grubb Knight Frank Capital Markets, the commercial real estate advisory firm that’s brokering the deal.
Marr told REIT.com the fundamentals for self-storage “look fabulous” and the lack of new supply over the last few years has created a “wonderful tailwind for the business.” At the same time, “our consumer continues to find innovative ways to use our product that we never would have thought of before, so we’re excited about 2015,” he said.
Marr also discussed how CubeSmart is responding to the changing needs of its customers, including more mobile-friendly services. He said customers want to make decisions quickly and easily. “That’s been an increasingly large component of attracting new customers,” he said.
CubeSmart owns or manages 562 self-storage facilities across the United States and operates the CubeSmart Network, which consists of more than 800 additional self-storage facilities.
