Key Takeaways
- • Harrison Street Asset Management and Morningstar Properties completed acquisition of a 21-property self-storage portfolio totaling 1.3 million net rentable square feet and over 10,800 units across seven high-growth U.S. markets through a joint venture announced October 6, 2025.
- • Portfolio spans Texas, North Carolina, South Carolina, Florida, Georgia, Virginia, and Arkansas, with 71% of assets located in top 30 U.S. metropolitan areas including Houston, Austin, Charlotte, and Atlanta, demonstrating strategic focus on supply-constrained, high-growth markets.
- • Properties achieved 90% occupancy with strong operational momentum—move-ins increased 21% year-over-year in 2025—and feature majority climate-controlled units in markets with limited new supply pipeline and strong population growth fundamentals.
- • Harrison Street and Morningstar leveraged established partnership history, having previously completed 41 self-storage investments across five Sun Belt states since beginning collaboration in 2007, with Morningstar continuing as operator and manager.
- • Harrison Street CIO Mike Gordon characterized self-storage sector as "at a compelling inflection point" driven by improving demand fundamentals against limited supply, aligning with firm's broader commitment to alternative real estate investing across high-growth demographics.
Summary
Harrison Street Asset Management, a global investment firm managing over $100 billion in assets, partnered with long-standing operator Morningstar Properties to acquire a 21-property self-storage portfolio in October 2025. The transaction represents one of Morningstar's largest fund closings and underscores institutional capital's continued appetite for self-storage assets in supply-constrained, demographically favorable markets.
The portfolio spans 1.3 million net rentable square feet with over 10,800 units distributed across Texas, North Carolina, South Carolina, Florida, Georgia, Virginia, and Arkansas. Significantly, 71% of the properties are located in top 30 U.S. metropolitan areas, including Houston, Austin, Charlotte, and Atlanta—markets characterized by strong population inflows and limited new competitive supply. This geographic concentration reflects a deliberate strategy to capture fundamentals-driven pricing power in high-growth regions.
Operational performance metrics demonstrate strong execution and market demand. The portfolio achieved 90% occupancy at acquisition, with move-ins increasing 21% year-over-year through mid-2025. The majority of units feature climate-controlled storage, a value-added amenity that commands premium rents in competitive markets. Morningstar Properties, which has developed, acquired, and operated approximately 250 self-storage projects totaling over 15 million square feet since 1981, will retain operational and management responsibility across the acquired assets.
The partnership builds on an established collaborative relationship spanning 18 years. Harrison Street and Morningstar have previously completed 41 self-storage investments across five Sun Belt states, establishing operational and capital deployment infrastructure. Mike Gordon, Harrison Street's Global Chief Investment Officer, characterized the timing as optimal, noting that "the sector is at a compelling inflection point as demand fundamentals continue to improve against the backdrop of a limited supply pipeline." This assessment reflects broad institutional conviction regarding self-storage as a defensive, inflation-hedged real asset class with secular tailwinds from e-commerce adoption, urbanization constraints, and lifestyle flexibility.
The transaction illustrates how established self-storage operators with deep operational capabilities attract institutional capital at scale, particularly when assets are positioned in supply-constrained markets with favorable demographic trends.
The portfolio spans 1.3 million net rentable square feet with over 10,800 units distributed across Texas, North Carolina, South Carolina, Florida, Georgia, Virginia, and Arkansas. Significantly, 71% of the properties are located in top 30 U.S. metropolitan areas, including Houston, Austin, Charlotte, and Atlanta—markets characterized by strong population inflows and limited new competitive supply. This geographic concentration reflects a deliberate strategy to capture fundamentals-driven pricing power in high-growth regions.
Operational performance metrics demonstrate strong execution and market demand. The portfolio achieved 90% occupancy at acquisition, with move-ins increasing 21% year-over-year through mid-2025. The majority of units feature climate-controlled storage, a value-added amenity that commands premium rents in competitive markets. Morningstar Properties, which has developed, acquired, and operated approximately 250 self-storage projects totaling over 15 million square feet since 1981, will retain operational and management responsibility across the acquired assets.
The partnership builds on an established collaborative relationship spanning 18 years. Harrison Street and Morningstar have previously completed 41 self-storage investments across five Sun Belt states, establishing operational and capital deployment infrastructure. Mike Gordon, Harrison Street's Global Chief Investment Officer, characterized the timing as optimal, noting that "the sector is at a compelling inflection point as demand fundamentals continue to improve against the backdrop of a limited supply pipeline." This assessment reflects broad institutional conviction regarding self-storage as a defensive, inflation-hedged real asset class with secular tailwinds from e-commerce adoption, urbanization constraints, and lifestyle flexibility.
The transaction illustrates how established self-storage operators with deep operational capabilities attract institutional capital at scale, particularly when assets are positioned in supply-constrained markets with favorable demographic trends.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.