Inside Self-Storage

OCT 2018

Inside Self-Storage (ISS) is an information source for industry owners, managers, developers and investors covering news, trends, facility operation, finance, real estate, construction, development, marketing, technology, insurance and legality.

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S ince its founding just five years ago, National Storage Affiliates (NSA) has grown aggressively, quickly amassing a portfolio of more than 550 self-storage facilities. The company is now among the industry's largest U.S. owner/operators. Although it became a publicly traded real estate investment trust (REIT) in 2015, it has remained true to its goal: providing a quality investment vehicle for investors and operating partners. In a recent interview with Inside Self-Storage, NSA Founder and CEO Arlen D. Nordhagen discussed the company's recent portfolio acquisition and what it looks for when buying properties. He also provided insight to NSA's unique structure, how that structure has been integral to its growth strategy, and the company's long-term plans. Tell us a bit about NSA and your role in the company. I'm chairman and CEO of NSA, which I co-founded in 2013. I've been in the self-storage business for 30 years, and about five years ago, I realized I wasn't getting any younger. I wanted to figure out a good way to come together with other private operators and make an opportunity for continued growth, keep our management teams involved and challenged, use the scale of more assets, help us implement platform tools that could make us better operators, and really be able to compete with the public REITs. Ultimately, our goal was to grow large enough to do our own public offering and become a public REIT. When we started, we originally committed 100 properties to the company, which we grew to about 250 by 2015. At that point, we were large enough to do an initial public offering on the New York Stock Exchange. Today, we're at over 550 properties. We'll be over 660 once we close the Brookfield Asset Management Inc. transaction on the Simply Self Storage portfolio. We have eight private operators that are part of the NSA team. We call them our PROs, participating regional operators. They manage and contribute properties into NSA, plus we have our internal PRO, the iStorage brand and platform that's our internally owned management company. Right now, it manages about 100 properties. Company founder and CEO Arlen Nordhagen discusses acquisitions, corporate structure and future plans WITH INTERVIEW AN ON THE NSA AT A GLANCE Founded: 2013 Headquarters: Greenwood Village, Colo. Number of facilities: 551 in 29 states Rentable square feet: 34 million Participating regional operators: Guardian Storage Centers, Hide-Away Storage, Move It Self Storage, Northwest Self Storage, Optivest Properties, Personal Mini Storage, SecurCare Self Storage, Storage Solutions NSA is acquiring 112 Simply Self Storage facilities. How did this deal come about? What were the factors that made it attractive? We knew several months ago that Brookfield was looking at the opportunity to recapitalize that deal. They were happy with their Simply portfolio, but they were looking at a recapitalization. We talked to them about it, and it didn't make a lot of sense for us to participate in a recap. But we mentioned at the time that if they were interested in selling some or all of its properties, we would be very interested. After they thought about it and considered the options, they came back to us and said they were willing to look at a sale if it made economic sense. I know they offered the deal to some other bidders as well, so we were very happy we were able to win that transaction. 46 ISS I October 2018 www.insideselfstorage.com :

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