Update 2/15/19 – SmartCentres has added two more self-storage developments to its JV with SmartStop, bringing the total to six. The sites are in Brampton and Scarborough, Ontario, Canada, according to a press release.
The 1.5-acre Brampton site on Main Street will include four stories comprising 93,500 rentable square feet in 950 units. The project will break ground in early 2021.
The 1.2-acre parcel in Scarborough is at the intersection of Highway 401 and Morningside Avenue. The five-story facility will comprise 88,000 rentable square feet in 900 units. It’s expected to break ground next year.
A previously announced development in the neighborhood of Leaside is under construction and slated to open later this year. Additional projects in Brampton, Oshawa and Vaughan, Ontario, are expected to begin soon, the release stated.
“These multi-story self-storage facilities will generate additional funds from operations, while requiring minimal land and parking,” Forde said. “Our development team has been working closely with the SmartStop team to identify additional existing sites on which to develop self-storage, as well as construct and open the six approved joint-venture projects.”
7/19/18 – SmartCentres and SmartStop are ready to break ground at the Wicksteed site, the first of several self-storage projects to be developed by the joint venture (JV). Under the JV agreement, SmartCentres will construct the facilities, and SmartStop will manage them under its brand name. Ownership of each property will be split 50/50, according to a press release.
“Self-storage is one of the strategic initiatives we have initiated to intensify our properties and unlock value of the land within our portfolio,” said Peter Forde, president and CEO of SmartCentres. “SmartCentres’ well-located real estate and development expertise effectively complement SmartStop’s strength in self storage management and revenue generation. This multi-story self-storage facility will generate additional funds from operations, while requiring minimal land and parking.”
In addition to the Wicksteed project, the JV has identified multiple properties already under SmartCentres ownership for potential self-storage development and will work together to identify new sites, the release stated.
“This [Wicksteed] location is adjacent to a high-traffic, regional SmartCentres shopping center, creating an excellent setting for a new self storage facility,” said H. Michael Schwartz, CEO of SmartStop. “We are pleased to announce this project with SmartCentres, as we actively work on several other sites for the joint venture, including multiple sites in Brampton, Markham, Oshawa, Richmond Hill and Toronto, Ontario.”
SmartCentres is diversifying from its retail focus to expand its “development horsepower” to office, residential, senior-living and self-storage initiatives, according to Mitchell Goldhar, executive chairman of SmartCentres.
7/9/18 – Strategic Storage Trust II Inc. (SST II), a public, non-traded, self-storage real estate investment trust (REIT) sponsored by SmartStop Asset Management LLC, has acquired 2.23 acres of land in East York, a borough in Toronto, on which it plans to build a self-storage facility. The site was purchased in a joint venture with SmartCentres Real Estate Investment Trust, a Canadian REIT, according to a press release.
The plans for the property at 145 Wicksteed Ave. include 100,000 square feet of storage space in 990 units. The project will break ground in the third quarter, with completion slated for late 2019.
“This land is located adjacent to an existing SmartCentres retail power center frequently visited by shoppers, creating an excellent, high-traffic setting for a new self-storage facility,” said Wayne Johnson, chief investment officer for SST II. “We are pleased to announce this joint venture project with SmartCentres, and look forward to breaking ground later this year. The development will expand the portfolio of Strategic Storage Trust II in the Greater Toronto area.”
The SST II portfolio includes 83 self-storage facilities in Canada and the United States. It comprises approximately 51,300 self-storage units and about 6 million rentable square feet of storage space.
SmartStop is a diversified real estate company focused on self storage, student housing and senior-housing assets. It has a managed portfolio of 116 self-storage facilities in Canada and the United States. Its managed properties comprise approximately 8.5 million rentable square feet.
SmartCentres develops urban, mixed-use residential and industrial developments, including the master-planned community SmartCentres Place at the Vaughan Metropolitan Centre in Ontario.
Markets Insider, SmartCentres Announces Its First Self Storage Partnership Location