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 Storage Direct Self Storage in Las Vegas for $6.1 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 third acquisition completed by SSGT, and the asset will be rebranded as a SmartStop location, company officials said in a press release.
The facility at 4349 S. Jones Blvd. comprises approximately 92,000 net rentable square feet in about 1,040 units. Built in 1996, the property includes one two-story building, three single-story structures, and a two-story office and manager's apartment. The site had an occupancy rate of 55 percent when purchased, according to the release.
"The Las Vegas facility is located in a strong traffic corridor between Flamingo Road and Tropicana Avenue, in a market where SmartStop has a strong footprint," said Wayne Johnson, senior vice president of acquisitions for SSGT. "This acquisition adds another high-quality, infill location to our growing Las Vegas portfolio. We look forward to significantly expanding occupancy through our SmartStop brand of management."
The acquisition is about nine miles from the East Russell Road facility SSGT purchased in August for $9.45 million. There are eight additional SmartStop locations in the Las Vegas market within a 15-mile radius of the Jones Boulevard facility, according to the release.
"This asset is a premier self-storage facility located near high-traffic-generating retailers," said Nicholas Walker, associate director with the National Self Storage Group at Marcus & Millichap Real Estate Investment Services, the commercial property investment firm that brokered the deal.
Marcus & Millichap has more than 1,300 investment professionals in offices throughout the United States and Canada. The company closed more than 6,600 transactions last year with a value of approximately $24 billion.
The SSGT portfolio comprises approximately 352,000 rentable square feet in 3,000 units. All properties acquired by SSGT are branded under the SmartStop operating name.
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.
