Self-Storage Firm SmartStop Asset Management Expands Into Student, Senior Housing

Update 1/25/18 – SmartStop has expanded its student-housing footprint, acquiring three properties between June 2017 and January 2018. It also has an agreement to purchase three senior-housing facilities in Utah for $78.5 million. The assisted-living properties and two of the student-housing transactions are tied to the Strategic Student & Senior Housing Trust Inc. (SSSHT), a non-traded REIT sponsored by SmartStop.

SSSHT filed a $1.1 billion offering of common stock in September, following a $75.6 million private fundraising effort, according to the source. Last June, the REIT acquired The District, a 198-unit, 592-bed student-housing property adjacent to the University of Arkansas in Fayetteville for $57 million. It purchased The Domain At Tallahassee, a 125-unit, 434-bed student-housing center near Florida State University in September for about $47.5 million.

Earlier this month, SmartStop affiliates acquired 411 Lofts, a 90-unit, 345-bed student-housing community near the University of Michigan in Ann Arbor for $43.8 million.

In November, SSSHT entered an agreement to purchase The Charleston, Cottonwood Creek and The Wellington senior-living centers in the Salt Lake City market. Together, the properties comprise 294 units. The transaction is expected to close this month, the source reported.

SSSHT was launched as a Maryland corporation that intends to qualify as a REIT for federal income tax purposes. It focuses on the acquisition of class-A, student- and senior-housing communities.


12/21/16 – SmartStop Asset Management LLC, a diversified real estate company that manages 89 self-storage facilities in Canada and the United States, is expanding its commercial portfolio by moving into the student-housing sector. SmartStop recently facilitated the $70 million acquisition of The Summit, a student-housing community adjacent to the University of Nevada campus in Reno, Nev., on behalf of an affiliate company, according to a press release.

"We are pleased to have acquired our first student-housing property, with the goal of expanding our commercial real estate portfolio to include not only high-quality self-storage assets, but also student- and senior-housing investment opportunities," said H. Michael Schwartz, chairman and CEO of SmartStop.

The Reno property at 2780 Enterprise Road is one block from the university. Built on 8.95 acres, it comprises 237,547 rentable square feet in 186 housing units. The units are fully furnished. The complex offers amenities such as a two-story clubhouse, fitness center, game lounge and private study rooms. It is Silver-Certified through the Leadership in Energy and Environmental Design program of the U.S. Green Building Council, the release stated.

"The state-of-the-art architectural design offer students a sense of community and connectedness that will make this property attractive to student/residents for many years to come," said John Strockis, senior vice president of acquisitions for SmartStop. "In addition, this newly constructed property is currently benefiting from the strong economic expansion in greater Reno."

SmartStop is also the sponsor of Strategic Storage Growth Trust Inc., a public, non-traded REIT focused on self-storage acquisition and development, and Strategic Storage Trust II Inc., a public non-traded REIT that focuses on stabilized self-storage properties.

Sources:
Blue Vault, SmartStop Files $1 Billion Student and Senior Housing Nontraded REIT Offering
CoStar, Self-Storage Operator SmartStop Getting into Multifamily
Digital Journal, SmartStop Asset Management, LLC Acquires First Student Housing Property Totaling $70 Million in Nevada
Law Insider, Purchase Agreement and Escrow Instructions
SmartStop Asset Management, Website
U.S. Securities and Exchange Commission, Form S-11 Registration Statement

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