Strategic Storage Trust II Inc.(SSTI II), a publicly registered, non-traded real estate investment trust (REIT), recently acquired its first self-storage portfolio consisting of five properties in North and South Carolina for $22.1 million. The facilities encompass 354,200 net rentable square feet of storage space in 2,490 units and were 88.8 percent occupied at the end of the third quarter. They’ll be rebranded as SmartStop Self Storage.
“These assets are an ideal fit for our first five acquisitions with SSTI II,” said H. Michael Schwartz, chairman and CEO. “The self-storage sector’s strong performance in these markets continues to drive our decision to keep acquiring facilities in the Carolinas.”
The acquisitions are:
- 150 Airport Blvd., Mooresville, N.C.—Built in 2004, the property has 36,900 square feet, 320 units.
- 120 Centrewest Court, Cary, N.C.—Built in 1998 and renovated in 2006, the facility encompasses 62,100 square feet, 310 units.
- 5012 New Bern Ave., Raleigh, N.C.—Built in 1999, the property has 60,600 square feet, 440 units.
- 338 Jesse St., Myrtle Beach, S.C.—Built in 1998 and renovated in 2007, the facility offers 100,100 square feet, 760 units.
- 4630 Dick Pond Road, Myrtle Beach, S.C.—Built in 1999, the property has 94,500 square feet, 660 units.
All of the facilities feature ground-level, drive-up and climate-controlled units. The recently acquired South Carolina properties are within eight miles of another SmartStop facility in Myrtle Beach.
“These acquisitions allow us to expand into the Raleigh and Myrtle Beach markets with well-located, performing facilities and provides a solid management base to acquire additional locations,” said Wayne Johnson, senior vice president of acquisitions. “In addition, several properties have expansion opportunities, which would capitalize on the portfolio’s strong physical occupancy.”
Joey Godbold of Charlotte, N.C.-based Percival Partners LLC, and Ben Vestal, president of the Argus Self Storage Sales Network, represented the seller in the transaction. At the seller’s request, the portfolio was marketed to a select group of qualified buyers and sold off-market, according to an Argus press release. The acquisition included a commercial mortgage-backed securities loan assumption that took more than six months for approval, the release stated. The portfolio had been managed by self-storage REIT Extra Space Storage Inc.
Argus is a Denver-based network of real estate brokers who specialize in storage properties. Formed in 1994, the company has 36 broker affiliates covering nearly 40 markets. Godbold represents the company in North and South Carolina.
SmartStop Self Storage Inc. (formerly Strategic Storage Trust Inc.) is a fully integrated, self-administered and self-managed company that operates 136 properties in 17 states and Canada. SmartStop is the sponsor of SSTI II and Strategic Storage Growth Trust Inc., a private REIT that focuses on growth-oriented self-storage properties.
