Strategic Storage Trust II Inc., a publicly registered non-traded real estate investment trust, has acquired the self-storage platform of SmartStop Asset Management LLC, its former sponsor, and is now a self-managed REIT. The REIT also changed its name to SmartStop Self Storage REIT Inc.
The self-storage platform that was acquired includes self-storage advisory, asset management, property management and tenant insurance joint venture interests of SmartStop Asset Management. The REIT completed a merger with its affiliate, Strategic Storage Growth Trust Inc. earlier this year.
SmartStop Self Storage REIT now has the internal capability to originate, structure and manage additional investment products which would be sponsored by SmartStop REIT Advisors, LLC, a subsidiary of the REIT.
The company and its subsidiaries will now serve as the sponsor, advisor, and property manager of affiliates Strategic Storage Trust IV, Inc., a public non-traded REIT focused on acquiring stabilized and growth properties, and Strategic Storage Growth Trust II Inc., a private REIT focused on opportunistic self-storage assets.
These two REITs currently have approximately $219 million of properties and approximately $75 million in new acquisitions under contract. These properties are expected to generate approximately $3 million in annual asset management fees to SmartStop, plus incremental property management fees and tenant insurance revenues, with the potential to substantially increase fees as new properties are acquired.
As a result of this transaction, the company said that it has eliminated potential conflicts of interests which exist for externally advised REITs and are now positioned for a future listing on a national securities exchange or another strategic event designed to provide investor liquidity.
SmartStop also changed its leadership structure by appointing the following individuals to the following positions within the company: H. Michael Schwartz as executive chairman, Michael McClure as chief executive officer, Wayne Johnson as president and chief investment officer, James Barry as chief financial officer and treasurer, Michael Terjung as chief accounting officer, Nicholas Look as general counsel and secretary, and Gerald Valle as senior vice president of self-storage operations.
In June 26, 2019, the board approved an estimated net asset value per share of $10.66.
SmartStop Self Storage REIT Inc, which was previously engaged in an offering focused on acquiring self-storage assets, closed its primary offering to new investors in January 2017. As of July 5, 2019, it had raised approximately $608 million in investor equity. The company is now the ninth largest fully integrated, self-administered and self-managed self-storage company, owning 113 self-storage properties in 17 states and Ontario, Canada.