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Strategic Storage Trust II Buys 11 Properties for $275 Million

Strategic Storage Trust II Inc., a publicly registered non-traded real estate investment trust, completed the purchase of 11 self storage facilities in Florida and Maryland for approximately $275 million, plus closing costs and acquisition fees. The purchase represents the first phase in the acquisition of a 27-property portfolio, which was reported by The DI Wire last month. The remaining properties are expected to close in the third quarter of 2016.

“The Mindful acquisition is accretive to our portfolio in many categories — including asking rents and occupancy,” Michael Schwartz, chairman & chief executive officer of SST II, said in a prepared statement. “At 96 percent occupancy, these 11 properties represent a proven income stream with imbedded operational upside.”

Of the 11 facilities, 10 are located in Florida and one is located in Baltimore. All properties provide easy access with grade level drive-up units, climate controlled units and RV units. The properties total approximately 9,540 units and 985,500 square feet of storage space.

The purchase was funded with a combination of proceeds from the REIT’s public offering, a drawdown of approximately $100 million under its existing credit facility with KeyBank, a $105 million property loan with KeyBank, and a $30 million subordinate loan with KeyBank.

The REIT incurred acquisition fees of approximately $4.8 million.

Strategic Storage Trust II focuses on stabilized self storage properties and owns a portfolio of approximately 39,630 self storage units totaling 4.3 million square feet. The REIT went effective in January 2014 and has raised $379.6 million since inception, according to the latest issue of the Stanger Market Pulse.

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