CubeSmart (NYSE: CUBE) and CBRE Investment Management have announced a $250 million joint venture that will acquire and manage self‑storage assets in high‑growth U.S. markets. The partnership will launch with the purchase of a Phoenix, Arizona property, marking the first asset in the new vehicle.
The deal reflects CubeSmart’s strategy of accelerating growth through external capital. By partnering with CBRE, CubeSmart can deploy significant funds while retaining operational control through its industry‑leading revenue‑management platform. CBRE’s investment expertise and track record in the self‑storage sector provide confidence that the joint venture will target core, core‑plus, and value‑add opportunities that align with market demand and CubeSmart’s operational strengths.
CubeSmart’s recent financial performance underscores the timing of the partnership. In Q1 2025, same‑store revenue growth narrowed to a 0.4% year‑over‑year decline from a 1.6% drop in Q4 2024, and funds from operations per share rose to $0.64, beating analyst guidance. The company’s ability to stabilize revenue and improve FFO suggests it is well positioned to pursue new growth initiatives such as this joint venture.
The Phoenix acquisition will serve as a test case for the joint venture’s model. While specific property metrics (size, occupancy, purchase price) were not disclosed, the choice of Phoenix—a high‑growth market with strong demand for self‑storage—signals the partnership’s focus on markets that offer both scale and attractive returns.
CubeSmart’s shares rose 1.7% in morning trading on the announcement day, reflecting investor confidence in the partnership’s potential to expand the company’s footprint and generate long‑term value. The market reaction was driven by the strategic nature of the deal, CBRE’s high conviction in the self‑storage sector, and CubeSmart’s operational platform that can unlock value in newly acquired assets.
"We are excited to work with CBRE IM, a leading institutional investor, and begin a relationship centered on long‑term value creation," said Christopher P. Marr, President and CEO of CubeSmart. "This new venture builds on a long history of collaborative partnerships and highlights CubeSmart’s creative and disciplined approach to capital deployment. It underscores the strength of our operating platform while allowing us to enhance our growth profile and expand our footprint in attractive markets," he added. Julie Ingersoll, Chief Investment Officer of Americas Direct Real Estate Strategies at CBRE Investment Management, noted that the partnership demonstrates CBRE’s high conviction in the self‑storage sector and its commitment to long‑term value creation.
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