SmartStop's Affiliated REITs to Acquire 32 Self-Storage Properties for $145M

Strategic Storage Trust II Inc. and Strategic Growth Trust Inc., the real estate investment trusts (REITs) affiliated with SmartStop Self Storage, recently acquired 32 facilities totaling approximately 18,000 units and 1.9 million net rentable square feet of storage space from commercial real estate investor DSI Properties Inc. for $145 million.

Strategic Storage Trust II Inc. and Strategic Growth Trust Inc., the real estate investment trusts (REITs) affiliated with SmartStop Self Storage, recently acquired 32 facilities totaling approximately 18,000 units and 1.9 million net rentable square feet of storage space from commercial real estate investor DSI Properties Inc. for $145 million. The company has closed on 27 of the 32 properties, with the remaining five expected to close by month's end. The purchase is the company’s largest portfolio acquisition to date, according to H. Michael Schwartz, SmartStop Chairman and CEO.

The properties in California, Colorado, Illinois, Maryland, Michigan, New Jersey and Washington will be rebranded under the SmartStop name. "The 32 facilities are in prime retail locations within growth markets offering excellent demographics," said Wayne Johnson, SmartStop's chief investment officer. "These are traits we continue to pursue as we grow and expand our self-storage portfolio."

The properties are:  

California:

  • 1111 W. Gladstone St., Azusa—660 units, 64,400 square feet
  • 3860 Benetar Way, Chico—360 units, 38,800 square feet
  • 2998 Rockville Road, Fairfield—440 units, 41,000 square feet
  • 7611 Talbert Ave., Huntington Beach—610 units, 61,000 square feet
  • 580 E. Lambert Road, La Habra—420 units, 51,400 square feet
  • 2234 Arrow Highway, La Verne—520 units, 49,800 square feet
  • 43745 Sierra Highway, Lancaster—700 units, 64,700 square feet
  • 517 N. 8th St., Lompoc—430 units, 46,500 square feet
  • 404 Potrero Grande, Monterey Park—390 units, 31,200 square feet
  • 7211 Arlington Ave., Riverside—610 units, 60,100 square feet
  • 6667 Van Buren Blvd., Riverside—570 units, 61,000 square feet
  • 4200 Westminster Ave., Santa Ana—840 units, 84,500 square feet
  • 3937 Santa Rosa Ave., Santa Rosa—1,150 units, 116,400 square feet
  • 7760 Lorraine Ave., Stockton—560 units, 49,100 square feet
  • 1571 W. Foothill Blvd., Upland—610 units, 56,500 square feet
  • 1401 Enterprise St., Vallejo—510 units, 54,400 square feet
  • 10231 S. Colima Road, Whittier—510 units, 58,600 square feet 

Colorado:

  • 435 Airport Blvd., Aurora—890 units, 87,400 square feet
  • 3850 Airport Road, Colorado Springs—680 units, 61,800 square feet
  • 8920 Federal Blvd., Federal Heights—450 units, 40,600 square feet
  • 3757 Norwood Drive, Littleton—400 units, 45,800 square feet 

Illinois:

  • 240 W. Army Trail Road, Bloomingdale—570 units, 58,200 square feet
  • 4747 W. Calumet-Sag Road, Crestwood—460 units, 49,300 square feet
  • 1001 Toll Gate Road, Elgin—410 units, 49,600 square feet
  • 1302 Marquette Drive, Romeoville—680 units, 66,700 square feet  

Maryland:

  • 4100 Forestville Road, Forestville—530 units, 55,200 square feet 

Michigan:

  • 42557 Van Dyke Ave., Sterling Heights—460 units, 57,900 square feet
  • 262 East Maple Road, Troy—730 units, 82,200 square feet
  • 27203 Groesbeck Highway, Warren—500 units, 63,100 square feet
  • 24623 Ryan Road, Warren—490 units, 52,100 square feet 

New Jersey:

  • 4233 Route 130 S., Beverly—460 units, 51,000 square feet 

Washington:

  • 10919 Evergreen Way, Everett—490 units, 48,100 square feet 

"This was an extremely complex transaction with a lot of moving pieces requiring a great deal of cooperation and diligence by all parties," said Dean Keller, president of Bancap Self Storage Group Inc., the real estate brokerage that represented both buyer and seller in the transaction. Based in California, Bancap has completed more than $1 billion in self-storage sales, including independently owned properties, mid-sized chains and portfolios.

Headquartered in Long Beach, Calif., DSI Properties was founded in 1973. The company’s investment objectives include capital appreciation, capital preservation and the generation of tax-advantaged current income.

Formerly Strategic Storage Trust Inc., SmartStop Self Storage operates 168 facilities in 21 states and Toronto. It’s a diversified real estate company that focuses on acquisition, advisory, asset management and property-management services for self-storage properties. The company is also the sponsor, adviser and property manager for Strategic Storage Trust II Inc., a public, non-traded REIT specializing in stabilized properties, and Strategic Storage Growth Trust Inc., a private REIT focusing on self-storage acquisition and development.

Sources:

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