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SmartStop Reports 143% Total Return to DST Investors with Student Housing Property Sale

SmartStop Asset Management affiliate Strategic 1031 Properties has sold YOUnion@Reno, a 186-unit, 709-bed Class A student housing property located in Reno, Nevada.

Strategic 1031 Properties, an affiliate of SmartStop Asset Management, has sold YOUnion@Reno, a 186-unit, 709-bed Class A student housing property located in Reno, Nevada. Financial terms were not disclosed.

SmartStop, through its subsidiary that serves as asset manager, facilitated the sale on behalf of Reno Student Housing DST, a Delaware statutory trust that is one of SmartStop’s investment programs. According to public filings, Reno Student Housing DST launched in January 2017 and sought to raise close to $42.5 million in investor equity.

SmartStop reported that the property sale resulted in a total return of 143 percent to its DST investors, which was calculated based on the total amount of original capital invested in the property.

“The sale of the YOUnion@Reno property proved our student housing investment strategy,” said H. Michael Schwartz, founder and chief executive officer. “We intentionally acquire Class A, purpose-built and pedestrian-to-campus student housing communities that benefit from our YOUnion Student Living brand, hands-on asset management and relentless resident focus. We purchased the property for the DST in 2016, and by implementing value-add upgrades and offering competitive rent structures, the property averaged 98 percent leased occupancy over the hold period.”

The YOUnion@Reno property is located at 2780 Enterprise Road, roughly three blocks from the University of Nevada, Reno campus. The community consists of a mix of student apartments, study rooms, a fitness center, a pool and a clubhouse. During the past five years, SmartStop added 5G, high-speed internet, Amazon Hub lockers, and study areas with powered furniture.

The property was marketed for sale by Raymond James Investment Banking Group, and was sold to an institutional investor.

SmartStop Asset Management is a diversified real estate company focused on student housing and senior housing. SmartStop and its affiliates have a managed portfolio that includes approximately $2 billion of assets.

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