Strategic Storage Growth Trust II, Inc. Acquires 587-Unit Self Storage Facility in Phoenix

May 16, 2019

Strategic Storage Growth Trust II, Inc. Acquires 587-Unit Self Storage Facility in Phoenix

May 16, 2019 | James Sprow | Blue Vault

Strategic Storage Growth Trust II, Inc. (“SSGT II”), a private real estate investment trust sponsored by SmartStop Asset Management, LLC, announced on May 16 its acquisition of a 587-unit self storage facility in Phoenix, Arizona. This is the second acquisition completed by SSGT II.

“This recently constructed Class A self storage facility is ideally located on heavily travelled Happy Valley Road in Phoenix’s high-growth Norterra community,” said Wayne Johnson, chief investment officer. “The property benefits from advantageous access and visibility as well as its proximity to numerous national retailers.”

About SmartStop Asset Management, LLC (“SmartStop”):

SmartStop is a diversified real estate company focused on self-storage, student housing and senior housing assets. The company has approximately $1.9 billion of real estate assets under management, including 130 self storage facilities located throughout the United States and Toronto, Canada, comprised of approximately 85,000 units and 9.7 million rentable square feet. SmartStop’s real estate portfolio also includes five student housing communities with approximately 2,800 beds and 1.1 million square feet of space, as well as four senior housing communities with approximately 650 beds and 500,000 rentable square feet of space. SmartStop is the sponsor of three public non-traded REITs: Strategic Storage Trust IV, Inc., and Strategic Storage Trust II, Inc., both focused on self storage assets, and Strategic Student & Senior Housing Trust, Inc. focused on student and senior housing assets. SmartStop is also a national sponsor of Section 1031 exchange offerings using a Delaware statutory trust structure and private placement offerings using a REIT structure. Additional information regarding SmartStop is available at www.SAM.com and more information regarding SmartStop® Self Storage in the United States and Canada is available at www.smartstopselfstorage.com.

SmartStop has a track record of full cycle REIT liquidity events, including the all cash merger of Strategic Storage Trust, Inc. with Extra Space Storage in October 2015 for $13.75 per share and the all cash merger of Strategic Storage Growth Trust, Inc. with Strategic Storage Trust II, Inc. in January 2019 for $12.00 per share.

Related: A Deeper Dive into Strategic Storage Growth Trust’s Full-Cycle Performance

As of March 31, 2019, Strategic Storage Trust II owned 112 properties with a total of 71,170 units and a cumulative total of 8,224,300 square feet, located in 17 states and Ontario, Canada, that were 86% occupied. Excluding the nine properties that were not economically stabilized as of March 31, 2019, the physical occupancy was approximately 88%.  On April 19, 2018, the REIT’s board of directors approved an estimated net asset value per share of $10.65. The REIT raised approximately $566 million in its public offering, including DRIP proceeds.

As of March 31, 2019, Strategic Storage Trust IV owned a portfolio of 16 self storage properties comprising 1,305,800 square feet, with 11,150 units, located in six states, with a physical occupancy of 87%.  Since inception, the REIT has raised $155.4 million in its public offering, including DRIP proceeds, thru March 31, 2019.  The offering includes Class A, Class T and Class W shares, priced at $25.00, $24.21 and $22.75 per share, respectively.

Strategic Storage & Senior Housing Trust, Inc. owned two student housing properties and four senior housing properties as of March 31, 2019, as well as two beneficial interests in other entities.  Its public offering was declared effective on May 1, 2018, to sell Class A, class T and Class W shares for $10.33, $10.00 and $9.40 per share, respectively. The REIT began operations with the acquisition of its first property on June 28, 2017. The REIT also raised approximately $93 million via a private offering that terminated on March 15, 2018. 

Sources:  SmartStop Asset Management, LLC; Blue Vault, SEC

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Gil Armour, CFP
February 3, 2016

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.