Strategic Storage Trust II Inc., a real estate investment trust (REIT) affiliated with SmartStop Self Storage, recently closed on three Michigan properties for $11.9 million. The facilities comprise 197,400 net rentable square feet in about 1,720 storage units and will be rebranded under the SmartStop name, according to a press release.
The three assets were part of a $145 million, 32-property acquisition the company announced in March. They were purchased in concert with affiliated REIT Strategic Growth Trust Inc. from commercial real estate investor DSI Properties Inc. The deal included four Michigan facilities, which will be SmartStop’s first locations in the state, according to the release.
"These assets are ideally located within the Detroit metropolitan region, which holds roughly one-half of Michigan's population," said H. Michael Schwartz, chairman and CEO of SmartStop. "The three facilities will complement our growing self-storage portfolio."
One facility is in Troy, Mich., and the other two are in Warren, Mich. The property at 262 E. Maple Road in Troy is about 28 miles outside of Detroit. Built in 1988, the facility sits on 4.62 acres and comprises 82,200 rentable square feet in 730 units. The eight-building facility was purchased for $4.8 million and was 90 percent occupied at the time of acquisition, company officials said.
The property at 27203 Groesbeck Highway in Warren is about 25 miles outside of Detroit. Built in 1996, the facility is on 4.82 acres and comprises 63,100 rentable square feet in 500 units. The eight-building facility was purchased for $3.4 million and was 80 percent occupied at the time of acquisition.
The second Warren facility is at 24623 Ryan Road on 3.77 acres. Built in 1987, the 10-building asset comprises 52,100 rentable square feet in 490 storage units. Purchased for $3.6 million, it was 86 percent occupied at the time of acquisition.
The fourth Michigan facility that was part of the March deal is at 42557 Van Dyke Ave. in Sterling Heights. It comprises 57,900 square feet in 460 units.
Formerly Strategic Storage Trust Inc., SmartStop is 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, a public, non-traded REIT specializing in stabilized properties, and Strategic Storage Growth Trust, a public, non-traded REIT focusing on self-storage acquisition and development. The Strategic Storage Trust II portfolio comprises 1.8 million rentable square feet in 16,060 units.
