MERIT HILL CAPITAL
is a real estate investment firm focused on acquiring, owning and managing self-storage facilities across the U.S.
Merit Hill Capital has impressively grown their platform over recent years and is one of our largest third-party management clients. Having worked closely with Liz and her team since we introduced our CubeSmart Management program ten years ago, we have both truly grown our businesses together. Over that time, we’ve bought stores from one another, worked collaboratively to enhance stores through additional capital investment, and of course, have been able to create a lot of value through buying right and then putting our powerful operating platform to work. CubeSmart truly appreciates and values the Merit Hill Capital team and relationship.
– Guy Middlebrooks, Vice President, Third Party Management, CubeSmart
Liz and the Merit Hill team is the hardest working team in self-storage. Their hustle, drive and knowledge combined with their values and true sense of partnership has allowed for their successes in identifying sites, completing transactions, and unlocking value often time missed by others. As one of our most tenured, largest and most valued partnerships, Extra Space Storage continually looks for more ways grow this decade-plus relationship.
– Noah Springer, EVP, Third-Party Asset Management, Extra Space Storage
I have personally known Liz for over 15 years and in Argus’s 26 year history we have worked with thousands of buyers and sellers. We have found that Liz and her team at Merit Hill Capital have been the most efficient, productive, honest and enjoyable team to interact with. They are extremely timely, hardworking and fair when reviewing investment opportunities. The amount of work that the Merit Hill Capital team puts into each property during underwriting is unparalleled in the industry. Liz’s leadership principles of integrity, fairness and efficiency permeate through all layers of the company culture. It is truly a pleasure doing business with Merit Hill Capital and they have my highest recommendation.
– Ben Vestal, CEO, Argus Self Storage Advisors
The self-storage industry is a largely fragmented and inefficient industry. Currently, over 71.6% of owners only own one or two properties,1 making it difficult for smaller operators to compete with the scale, advertising and revenue management of public self-storage REITs. Merit Hill believes there are opportunities for value creation thru asset aggregation and industry consolidation.
Characterized by high margins and low operating costs
Short-term leases may provide a hedge against inflation
Growing U.S. population has exceeded supply growth
New development expected to slow in a post COVID-19 world
1) 2020 Self Storage Almanac
2) Green Street Advisors
We evaluate every opportunity that we come across in any area of the country, and have the ability to be flexible in our approach.
Our basic target criteria for potential acquisitions is as follows:
Merit Hill operates a diverse portfolio of self-storage units throughout the U.S. Each property has gone through extensive due diligence and underwriting to determine the financial viability of each location.
Featured Investments presented herein are for illustrative purposes only, have been selected in order to provide examples of the types of investments made by Merit Hill Capital and do not purport to be a complete list thereof. It should not be assumed that investments made in the future will be comparable in quality or performance to the investments described herein.
Founded in 2016 by Liz Raun Schlesinger, Merit Hill Capital, LP (“Merit Hill”) manages real estate investment funds focused on the self-storage industry. Merit Hill received an initial equity commitment of $300 million for its first managed fund from a private investment firm with approximately $27 billion in capital under management. Building on the success of this first fund, Merit Hill has expanded to create multiple vehicles using a variety of structures and strategies.
Since inception, Merit Hill has acquired more than 270 self-storage facilities, in over 140 separate transactions, consisting of 120,000+ individual storage units and over 15,000,000 net rentable square feet across 35 states. Importantly, these investments were carefully chosen after reviewing 4,300 properties through Merit Hill’s extensive and proprietary deal flow. As the largest buyer of individual storage properties in 2020, the executive team is well known in the self-storage industry. The core investment team at Merit Hill has built two of the 10 largest self-storage portfolios in the country, with the current portfolio ranking us as the 9th largest owner in 2021.
© 2021 · Merit Hill Capital