(Bloomberg) -- All Storage, a closely held owner of self-storage facilities, is exploring a sale of the company in which it could fetch more than $1 billion, according to people with knowledge of the matter.
The company, which operates 50 facilities in Texas and three in Oklahoma, is working with CBRE Group Inc., said the people, who asked not to be identified discussing information that isn't public. The brokerage has begun soliciting interest from potential buyers, they said.
All Storage, led by Chief Executive Officer Jay Schuminsky, didn't immediately respond to a request for comment. A CBRE spokesman didn't immediately have a comment.
Fundamentals for self-storage real estate investment trusts are favorable, KeyBanc Capital Markets analysts wrote in a note to clients this month, with occupancies, rental rates and growth in rents at or near record levels.
Decluttering, death, divorce, dislocation and disaster continue to drive demand, Public Storage CEO Joe Russell said at a recent conference. The self-storage giant's shares have risen 42% in the past year, outperforming the 33% gain in the iShares Cohen & Steers REIT ETF.
Read more: Manhattan Mini Storage Explores Sale for More Than $3 Billion
All Storage has long ties to Texas. In 2019, it said it'd provide free storage to newly signed Dallas Mavericks players, who that season included including Kristaps Porzingis and Tim Hardaway Jr.
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