Strategic Storage Trust Buys 2 Self-Storage Facilities in Mississippi for $10.7M

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Strategic Storage Trust Inc., a publicly registered, non-traded real estate investment trust (REIT) that operates self-storage properties, has purchased two facilities in Mississippi for $10.7 million. The properties were bought from several investors using a combination of cash, existing debt and operating partnership units through Internal Revenue Service Section 721 exchanges, company officials said.

A 721 exchange allows a taxpayer to exchange rental or investment real estate for shares in a REIT, according to the Paladin Registry of Financial Professionals, a website that helps match investors with financial planners, advisers and money managers. The exchange is also known as an umbrella partnership real estate investment trust or upREIT.

The facilities are in the Madison County communities of Canton and Ridgeland and comprise 149,000 square feet in 900 storage units. They will be rebranded under the SmartStop Self Storage trade name.

“We targeted these self-storage facilities due to their high occupancy levels and solid locations,” said H. Michael Schwartz, chairman and CEO. “Both the Ridgeland and Canton sites will be top income-producing assets for [the company].”

The Canton facility was built in 1996 and underwent an expansion in 2004. It has an occupancy rate of about 85 percent and offers 510 climate-controlled units. The 12-building site is on 5.3 acres.

The Ridgeland facility is approximately 88 percent occupied and is comprised of approximately 55,690 rentable square feet and 380 units on 1.1 acres. It was built in 1989 and also underwent a renovation in 2004.

Strategic Storage Trust also owns a third Mississippi facility in Biloxi. The company’s portfolio includes 110 facilities in 17 states and Canada that are branded as SmartStop Self Storage. The portfolio includes approximately 70,000 self-storage units and 8.8 million square feet of rentable storage space.

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