Centerbridge Partners Teams Up with Reframe Holdings for New Self-Storage Venture

In an exciting development for the self-storage market, Centerbridge Partners, L.P. and Reframe Holdings LLC have announced the formation of a strategic joint venture targeting the self-storage sector. This ambitious partnership aims to aggregate and manage self-storage facilities valued at more than $500 million across the United States.

Strategic Focus

The joint venture will concentrate on acquiring existing Class A and high-quality Class B self-storage facilities situated in key metropolitan statistical areas (MSAs). The collaboration will utilize established third-party property managers to oversee daily operations, ensuring that each facility meets the high standards expected by investors and rental clients alike.

Combining the strengths of both firms, the platform will leverage Centerbridge's extensive history in the self-storage realm with Reframe's well-honed expertise in acquisitions, development, and property management. Centerbridge has built a robust reputation in the self-storage sector over the years. Since 2017 alone, it has invested approximately $3 billion into self-storage real estate across more than 375 assets, encompassing an impressive over 22 million square feet. Additionally, the firm has been actively involved in the European self-storage market, enhancing its portfolio with various platforms across Nordic countries and Spain.

Insights from Leadership

"Centerbridge has long recognized the resilience of the self-storage industry through economic cycles. With fundamentals stabilizing and new supply moderating, we believe the sector is well positioned for renewed growth," said Matt Dabrowski, Co-Head of Real Estate and Senior Managing Director at Centerbridge. This confident stance reflects not only the potential for growth in the self-storage market but also the strategic foresight of the partnership.

Adding to the excitement, Ally Heyburn, Managing Director at Centerbridge, remarked, "Through our partnership with Reframe, we are excited about the opportunity to aggregate an institutional-quality portfolio with clear value-add drivers through unique sourcing channels." Such synergy hints at significant future advancements in the self-storage sector, particularly as it begins to regain footing in the aftermath of recent challenges affecting the economy.

Reframe's Perspective

Matt Dicker, Co-Founder of Reframe, expressed the enthusiasm shared by their team, stating, "We founded Reframe with the confidence that our entrepreneurial mindset, data analytics, and proven execution would make us an ideal partner for a firm like Centerbridge." This collaborative spirit is rooted in a commitment to effectively manage and expand self-storage assets in an increasingly vital sector.

Zack Widmann, also a Co-Founder of Reframe, added, "The storage sector remains highly fragmented. Our industry relationships and sourcing channels position us to capitalize on this inflection point as the industry recovers." Such insights underscore the unique advantages that Reframe brings to the partnership, enhancing its potential for rapid growth.

Support and Advisory Partners

Supporting this strategic initiative, Walker & Dunlop's Equity and Structured Finance team provided advisory services during the formation of the joint venture. Legal counsel was provided by Burr Forman LLP for Reframe, while Simpson Thacher Bartlett LLP fulfilled the legal advisory role for Centerbridge.

Conclusion

The joint venture between Centerbridge and Reframe marks a significant step in the evolution of the self-storage industry, tapping into a market that is primed for revival. As both firms bring their respective expertise and resources together, investors and market observers alike will be keenly watching how this collaboration unfolds in the quest for excellence in self-storage management and growth. This partnership not only sets a precedent but also paves the way for future innovations in the sector.