Strategic Storage Growth Trust Inc. (SSGT), a private real estate investment trust (REIT) specializing in the development, redevelopment and lease-up of self-storage properties, has acquired a storage facility in Las Vegas and another in Fort Pierce, Fla., for $13.3 million. SSGT is a related entity to Strategic Storage Trust Inc., a publicly registered, non-traded REIT that operates under the SmartStop Self Storage brand. This is the first acquisition completed by SSGT, and both assets will be rebranded as SmartStop locations, company officials said in a press release.
“Our goal for Strategic Storage Growth Trust is to capitalize on the next wave of development and lease-up properties that will become available over the next five years,” said SSGT Chairman and CEO H. Michael Schwartz, who holds the same positions with Strategic Storage Trust. “We acquired the Las Vegas and Fort Pierce facilities due to the properties’ low occupancies as compared to properties we currently own and manage in the same trade areas, which have higher occupancy levels.”
The two self-storage facilities comprise 260,000 net rentable square feet in approximately 2,000 units. Built in 1999, the Las Vegas property has 1,210 units in 14 buildings as well as a retail office and manager’s apartment. Purchased for $9.45 million, the facility is at the corner of East Russell Road and South Nellis Boulevard, adjacent to Interstate 515. It’s about two miles southeast of another SmartStop location and has 68 percent occupancy, according to the release.
The Fort Pierce property was built in 2008 and comprises 88,400 net rentable square feet in about 770 units. The three-story building features a retail office, climate control and ground-level, drive-up units. Purchased for approximately $3.85 million, the facility at 3252 N. U.S. Highway 1 is near St. Lucie Boulevard. It’s about 18 miles north of another SmartStop location and has 42 percent occupancy, officials said.
“These sites are perfect examples of the latest generation of self-storage buildings, especially the Fort Pierce site,” said Wayne Johnson, senior vice president of acquisitions for SSGT. “This site represents a great opportunity to purchase bank-owned real estate that has been through a management transition over the past two years. By incorporating these sites into the SmartStop management and advertising platform, we expect to grow occupancy to stabilized levels.”
All properties acquired by SSGT will be branded under the SmartStop operating name, officials said.
Launched in 2008, Strategic Storage Trust operates a portfolio of 126 self-storage facilities in 17 states and Canada. Branded as SmartStop, the properties comprise approximately 80,000 units and 10.5 million rentable square feet of storage space.