Strategic Storage Growth Trust Breaks Escrow in PA
July 29, 2016 | by Beth Glavosek | Blue Vault
Strategic Storage Growth Trust Inc. (SSGT), a public, non-traded real estate investment trust has announced that it has raised more than $50 million from investors, thereby breaking escrow for the state of Pennsylvania. The REIT will now be able to accept investments from Pennsylvania residents.
While some states have smaller escrow requirements, Pennsylvania uses a formula that takes into account a company’s “maximum offering amount.”
Based in Southern California, SSGT focuses on the acquisition, development, redevelopment and lease-up of self-storage properties. Its portfolio currently consists of 14 storage facilities in seven states comprising approximately 1.1 million net rentable square feet in 9,300 storage units.
According to a recent National Real Estate Investor article, self storage is a steadily growing sector with declining vacancy rates and increasing rents right now. As more consumers require storage for their possessions and apartment occupancy continues to grow, demand for self storage is expected to remain steady.
Blue Vault’s First Quarter 2016 Nontraded REIT Industry Review contains a complete profile and specific metrics for Strategic Storage Growth Trust, including its return on assets and MFFO coverage ratios.
I have been using Blue Vault Partners for the past five years. I have found them to be a valuable, unbiased resource when it comes to evaluating and comparing non-traded REITs. The reports help me analyze which sponsors are doing a responsible job of managing their offerings. This allows me to limit my REIT recommendations to only the most competitive products, and then track those REITs throughout their life cycle.