Centerbridge and Reframe Establish $500M Self Storage Joint Venture
Reframe Holdings and Centerbridge Partners have teamed up to form a joint venture, with plans to operate and acquire more than $500 million of self-storage assets.
The two investment firms plan to target both Class B and Class A facilities through purchases. While they did not disclose the particular regions, the focus will be on "top metropolitan statistical areas (MSAs) nationwide," according to the JV. Additionally, third-party property firms will manage the operations of acquired self-storage assets.
To the collaboration, both firms bring self-storage experience to the table. For example, Centerbridge has added roughly $3 billion of sector-related assets to its portfolio since 2017. That comes out to 375 properties in total across more than 22 million square feet. And since Reframe's 2024 founding, the Charleston, South Carolina and Boca Raton, Florida-based firm has already struck more than $1.8 billion in total transactions through the self-storage and industrial sectors. This translates to 40 facilities and 5.1 million square feet in total.
Zack Widmann, co-founder of Reframe, refers to self-storage currently as "highly fragmented" but sees that as an opportunity to play offense, betting that the sector will hit an "inflection point."
"We founded Reframe with the confidence that our entrepreneurial mindset, data analytics, and proven execution would make us an ideal partner for a firm like Centerbridge," Matt Dicker, co-founder of Reframe, said in a statement.
"By combining Reframe's acquisition and operating experience with Centerbridge's capital and strategic perspective, we are confident in our ability to scale quickly."
Following recent years of weak fundamentals and the current economic uncertainty, the self-storage development pipeline is slowing, according to a recent report from Yardi Matrix. New supply is expected to drop to 46.1 million net rentable square feet (NRSF) in 2026 and 42 million NRSF in 2027, the CRE data firm estimates. That comes as supply was slow to absorb in both 2023 and 2024, with rent trends negative for most of 2024 and flat this year, Yardi added.
The JV creation was advised by Walker & Dunlop's Equity and Structured Finance team. Simpson Thacher & Bartlett LLP served as the legal advisor for Centerbridge and Burr & Forman LLP acted on behalf of Reframe.
Source: GlobeSt/ALM