Global Self Storage Inc., a self storage real estate investment trust, has agreed to purchase the two storage facilities operated by Tuxis Corp., a real estate development company and affiliate of Global, for $7.8 million. The properties in Clinton, Conn., and Millbrook, N.Y., comprise a combined 40,705 square feet in 327 units. The deal includes an adjoining 1,875-square-foot commercial property that will be used to expand the Millbrook facility, according to a press release. Global President and CEO Mark C. Winmill will discuss the company’s self storage business with investors next month during the LD Micro Main Event in Los Angeles.
The Tuxis Self Storage property in Clinton is at Heritage Park. It comprises 25,705 square feet in 185 units. The Millbrook Commons location in Millbrook is a mixed-use facility comprising 15,000 square feet in 142 climate-controlled units, including wine storage and rental office space. Global will pay Tuxis $5.925 million in cash, along with $975,000 in Global common stock. An additional $900,000 in cash is contingent on certain conditions, including the expansion of the Millbrook asset, the release stated. The deal is also contingent on approval by Tuxis shareholders.
"Both of these facilities fit our current acquisition criteria, as they are performing well and located in secondary and/or tertiary cities where new development is muted," Winmill said. "After a thorough review and evaluation by a special committee of independent directors, we believe these two stores will be very complementary to our existing portfolio of self storage facilities."
Winmill also serves as president, CEO and director of Tuxis. Though the development company’s primary source of revenue has been through the two self storage facilities, this transaction will allow Tuxis to pursue other real estate development and management opportunities, Winmill said.
Winmill will represent Global during the 9th annual LD Micro Main Event investor conference, Dec. 6-8, at the Luxe Sunset Boulevard Hotel in Los Angeles. He’ll present to investors on Dec. 6 at 2:30 p.m. PT and then hold one-on-one meetings throughout the day, according to a press release. The LD Micro Main Event is designed for small and microcap firms and will feature 240 presenting companies.
Founded in 1983, Global focuses on the acquisition, development, operation, ownership and redevelopment of storage facilities in the United States. Through its wholly owned subsidiaries, it currently owns and operates nine properties in Illinois, Indiana, New York, Ohio, Pennsylvania and South Carolina. The company changed its name from Self Storage Group Inc. in January.