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CubeSmart today announced that it has completed the acquisition of the previously announced $326.2 million self-storage portfolio in Houston and Austin, TX and Charlotte, NC.

The acquired portfolio of 36 facilities contains an aggregate of 2.1 million rentable square feet and was previously operated by Private Mini Storage. Of the 36 facilities, 28 are located in Houston, Texas; seven are located in Austin, Texas; and one is located in Charlotte, North Carolina.

The Company completed the acquisition of 35 of the facilities through a newly formed joint venture with an affiliate of Heitman LLC for an aggregate purchase price of $315.7 million. The Company and Heitman each contributed capital equal to their 50% ownership in the venture. The venture intends to pursue debt financing subsequent to closing and targeting overall leverage levels at 30%-45% of cost. The venture is considering both secured and unsecured debt. The remaining facility, located in Houston, Texas, was purchased by the Company for a purchase price of $10.5 million.

On December 10, 2013, the Company issued $250 million of 4.375% Senior Notes due December 15, 2023. The offering is expected to close on December 17, 2013. The proceeds from the offering will be used to repay the $100 million unsecured term loan maturing in 2014. The balance of the net proceeds will be used to repay outstanding indebtedness incurred under the Company's revolving credit facility in connection with the previously described portfolio acquisition.

"We are continually focused on developing and enhancing our many relationships across the self storage industry and we are proud of our reputation of being both a high-quality buyer and partner. There is no better validation of that reputation than this portfolio acquisition and joint venture," said Christopher Marr, President, Chief Operating Officer, and Chief Investment Officer. "We have acquired assets in the past from Private Mini and have previously been partners with Heitman. Our successful history with each of these companies allowed us to move quickly and confidently to closing. We are pleased to be adding these very high-quality assets to our portfolio."