Strategic Storage Trust IV Inc. (SST IV), which intends to invest in self-storage and qualify as a real estate investment trust (REIT), has launched an initial public offering (IPO) of approximately $1.095 billion in common stock, according to a press release. Its registration statement regarding the IPO was declared effective on March 17 by the U.S. Securities and Exchange Commission.
SST IV will focus on the acquisition of stabilized and growth self-storage properties in Canada and the United States, the release stated. Its primary offer of $1 billion in shares comprises three classes. Class-A shares are available for $25 per share, up to $450 million, while Class T is priced at $24.21 per share up to $450 million. Class-W shares are priced at $22.75 per share, up to $100 million. Any investor may purchase Class-A or -T shares, but Class-W shares are available only to “investors purchasing through certain fee-based programs or registered investment advisors,” the release stated.
SST IV is also offering up to $95 million in common stock pursuant to its distribution reinvestment plan at $23.75 per share for Class A, $23 per share for Class T and $22.75 per share for Class W. The company earlier commenced operation through a private offering of $7.5 million in Class-A shares.
Though there is no minimum number of shares the REIT must sell before accepting subscriptions in its offering, residents of Pennsylvania and Washington won’t be admitted until aggregate subscriptions exceed $50 million and $10 million, respectively, in gross offering proceeds, according to the release. The company may use proceeds from initial subscriptions to acquire real estate assets and other purposes, officials said.
SST IV appointed Michael S. McClure as its new president last month. McClure was also appointed president of Strategic Storage Trust II Inc. (SST II), a public, non-traded, self-storage REIT sponsored by SmartStop Asset Management LLC. In addition, McClure was named president of SmartStop and its various affiliates, including Strategic Storage Growth Trust Inc. and Strategic Student Senior and Storage Trust Inc.
SST IV is based in Maryland. The SST II portfolio includes approximately 51,500 self-storage units and about 5.9 million rentable square feet of storage space. SmartStop is the asset manager for 103 facilities in Toronto and the United States. Its portfolio comprises approximately 7.5 million rentable square feet.
