Strategic Storage Growth Trust Inc., a publicly registered non-traded real estate investment trust, closed on three self-storage facilities in San Antonio; Kingwood, Texas; and Aurora, Colorado for approximately $26.7 million, plus closing costs and acquisition fees.
The three properties were built between 1998 and 2015 and consist of approximately 1,400 units and approximately 196,300 net rentable square feet of storage space.
The DI Wire reported on the transaction in November when the REIT originally signed an agreement to purchase four self-storage facilities for $39 million from Alamo Heights/Star Storage LP, Borden Park LP, Kingwood Self-Storage LP, and Arrington’s Self Storage of Aurora LP. The final property, which is located in San Antonio, is expected to close in January 2016.
The purchase was funded with a combination of a draw of approximately $20.5 million under the company’s credit facility with KeyBank National Association, as well as proceeds from the public offering. The company incurred acquisition fees of approximately $467,000 in connection with the acquisition.
SS Growth Property Management, a subsidiary of SmartStop Asset Management, the REIT’s sponsor, will serve as the property manager of the three properties and has entered into sub-property management agreements with a subsidiary of Extra Space Storage, Inc. who will manage the three properties.
SS Growth Property Management will be paid management fees in an amount equal to the greater of $2,500 per month or 6 percent of the gross monthly revenues collected from the properties and will, in turn, pay the sub-property manager an amount equal to the greater of $2,500 per month or 6 percent of the gross monthly revenues, except for the months of January and July each year.
Strategic Storage Growth Trust focuses on the acquisition, development, redevelopment and lease-up of self-storage properties.