Blackstone Real Estate Income Trust’s $1.2 Billion Acquisition of Simply Self Storage

Fried Frank acted as counsel to a Brookfield Asset Management real estate fund, while Simpson Thacher & Bartlett LLP served as legal advisor to BREIT in the transaction.

Brookfield Asset Management entered into a definitive agreement to sell Simply Self Storage to Blackstone Real Estate Income Trust, Inc. (BREIT) for approximately US$1.2 billion. The transaction is expected to close prior to the end of 2020.

Simply Self Storage is one of the top five private owners of self-storage and operates a high-quality portfolio totaling 8 million square feet across the U.S. Brookfield acquired Simply Self Storage in 2016 in one of its opportunistic real estate funds. Since that time, Brookfield more than doubled the size of the company and helped transform the business into a fully-integrated institutional platform.

Blackstone Real Estate Income Trust, Inc. (BREIT) is a perpetual-life, institutional quality real estate investment platform that brings private real estate to income focused investors. BREIT invests in stabilized, income-generating U.S. commercial real estate across key property types and to a lesser extent in real estate-related securities. BREIT currently owns a $300 million portfolio of self-storage facilities, and following this acquisition, BREIT will be the third largest non-listed owner of storage in the U.S.

BofA Securities and Deutsche Bank Securities Inc. servedd as financial advisors to BREIT. RBC Capital Markets LLC, and Newmark Group Inc., advised Brookfield.

The Fried Frank team advising Brookfield included real estate partner Joshua Mermelstein (Picture); corporate real estate partner Steven Rudgayzer; tax partner Christopher Roman; executive compensation & ERISA partner Donald P. Carleen; corporate real estate special counsel Patrick Greeley; executive compensation & ERISA special counsel Joshua S. Gelfand; corporate real estate associates Tam T. Ho and Adam L. Streicher; and real estate associates Nicholas Mayer and Katherine M. Skipper.

The Simpson Thacher team advising BREIT included Greg Ressa, Davis Coen, Rachel Stein, Amy Oster and Nick Draeger (Real Estate); Matt Rogers and Jun Won Kim (M&A); Nancy Mehlman and Stefan Golubovic (Tax); Andrew Blau, Jeanne Annarumma and Caitlin Fitzgerald (ECEB); Lori Lesser and Kate Mirino (IP); Adeeb Fadil (Environmental); and Benjamin Wells and Eva Kang (Funds).

Involved fees earner: Donald Carleen – Fried Frank Harris Shriver & Jacobson; Joshua Gelfand – Fried Frank Harris Shriver & Jacobson; Patrick Greeley – Fried Frank Harris Shriver & Jacobson; Tam T. Ho – Fried Frank Harris Shriver & Jacobson; Nicholas Mayer – Fried Frank Harris Shriver & Jacobson; Joshua Mermelstein – Fried Frank Harris Shriver & Jacobson; Christopher Roman – Fried Frank Harris Shriver & Jacobson; Steven Rudgayzer – Fried Frank Harris Shriver & Jacobson; Adam Streicher – Fried Frank Harris Shriver & Jacobson; Jeanne Annarumma – Simpson Thacher & Bartlett; Andrew Blau – Simpson Thacher & Bartlett; Davis Coen – Simpson Thacher & Bartlett; Nicholas Draeger – Simpson Thacher & Bartlett; Adeeb Fadil – Simpson Thacher & Bartlett; Caitlin Fitzgerald – Simpson Thacher & Bartlett; Stefan Golubovic – Simpson Thacher & Bartlett; Eva Kang – Simpson Thacher & Bartlett; Jun Won Kim – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; Nancy Mehlman – Simpson Thacher & Bartlett; Kate Mirino – Simpson Thacher & Bartlett; Amy Oster – Simpson Thacher & Bartlett; Gregory Ressa – Simpson Thacher & Bartlett; Matthew Rogers – Simpson Thacher & Bartlett; Rachel Stein – Simpson Thacher & Bartlett; Benjamin Wells – Simpson Thacher & Bartlett;

Law Firms: Fried Frank Harris Shriver & Jacobson; Simpson Thacher & Bartlett;

Clients: Blackstone Real Estate Income Trust, Inc.; Brookfield Asset Management Inc;

Author: Ambrogio Visconti