Private equity real estate firm Prime Group Holdings closed its latest fund at $2.5 billion at the end of 2022, making Prime Storage Fund III the largest in the firm’s history with a focus on self-storage.
Fund III’s strategy is one of acquiring self-storage assets in undersupplied markets across the U.S. and streamlining operations through institutional management. Prime Group will continue to use its proprietary resources to directly source off-market transactions and provide full-service property management.
So far, the new fund has deployed 18% of its equity, officials the Saratoga Springs, NY-based said. Prime Group today owns and operates over 320 self-storage facilities representing over 22 million rentable square feet, making it one of the largest private owners of self-storage assets.
“We continue to identify opportunities to aggregate and institutionalize ownership and management across the North American self-storage market,” said Douglas Kotelly, chief investment officer at $4 billion Prime Group. “We have deployed capital from Fund III into assets for which we believe we can execute value-add business plans and best utilize our management capabilities. We look forward to leveraging our team’s real estate investment experience as we pursue superior returns for our investors.”
Robert Moser, Prime Group’s founder, principal and CEO, said that the historic fund raise was a testament to the strength of the firm’s platform, which employs a data-driven investment approach and experienced team.
“We are grateful for the support from our new and existing investors as we seek to continue to capitalize on a resilient asset class to deliver market-leading investment performance,” added Moser.