Strategic Storage Growth Trust Inc., a publicly registered non-traded real estate investment trust, recently entered into its first contract to acquire a certificate of occupancy facility consisting of a ground-up self-storage development in Phoenix, Ariz. The total purchase price is approximately $7 million.
A certificate of occupancy deal allows a real estate investment trust to purchase properties directly from the developer rather than shouldering the costs associated with property development, including acquiring the land, securing entitlements and the actual construction of the property.
The developer, Phoenix-based Glacier Development, plans to build a two-story facility with approximately 800 units and 30 RV units, which will break ground in the third quarter of 2015. This project is scheduled to be completed in the second quarter of 2016.
“We are excited to enter into our first contract for a certificate of occupancy transaction for a top-of-the-line, brand-new facility in a prime market like Phoenix,” said H. Michael Schwartz, chairman and chief executive officer of Strategic Storage Growth Trust. “Our investment strategy is to continue to work with regional developers on certificate of occupancy opportunities located throughout the United States.”
The approximately 81,000-square-foot self-storage facility will be located at 1500 East Baseline Rd and will offer 80 percent climate controlled units, drive-up units and covered RV spaces.
“We are embracing certificate of occupancy transactions because they eliminate many development risks and allow us to focus on the operations and the lease-up of the facilities,” said Wayne Johnson senior vice president of acquisitions at Strategic Storage Growth Trust.
Strategic Storage Growth Trust Inc. is a publicly registered non-traded REIT that focuses on the acquisition, development, redevelopment and lease-up of self-storage properties. Their portfolio consists of nine self-storage facilities located in five states comprising approximately 6,620 self-storage units and approximately 700,200 net rentable square feet of storage space.