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Southern Self Storage Closes Fourth DST Offering

Southern Star Self Storage Company, a privately held real estate company specializing in DST investments, announced the closing of its fourth self-storage Delaware statutory trust investment offering since March 2023.

The Southern Star Storage IV – Rockport DST offering, which made its first sale in May 2023 and raised approximately $3.4 million of investor equity, is comprised of a single, 480-unit climate controlled self-storage property located in Rockport, Texas.

Michaeljohn Kudlik, chief investment officer for Southern Star, said, “With the close of this offering, Southern Star has raised $23 million of 1031 investor equity and acquired $37 million of self-storage properties since March 2022. We are excited about the prospect of continuing and accelerating our ability to offer quality self-storage DST offerings. Through May 2023, 1031 investors have invested over $2.1 billion industry-wide in DST offerings among all real estate classes. We are very optimistic about the future of tax-deferred exchanges in real estate.”

Southern Star specializes in the sponsorship and management of DST investments in self-storage properties. The company currently manages 9 properties, which together comprise 321,291 net rentable square feet spread across 2,526 units. Additionally, Southern Star says they have two facilities, totaling 208,220 NRSF and 703 units, under contract that are expected to close September 1, 2023.

Most of the facilities also have parking for boats, RVs and autos. Southern Star says the facilities generally contain both climate and non-climate-controlled units and are located predominantly in secondary and tertiary markets in Texas, Florida, North Carolina and Colorado.

Southern Star was acquired by Silver Star Properties REIT Inc. on May 5, 2023, and is currently executing a plan to reposition assets into the self-storage asset class.

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