Strategic Storage Trust IV Inc., a publicly registered non-traded real estate investment trust sponsored by an affiliate of SmartStop Self Storage REIT Inc., has registered a $1.1 billion follow-on offering.
The initial offering was declared effective by the SEC on March 17, 2017, and the REIT can continue to sell shares under the original offering until mid-September 2020.
The offering is comprised of up to $1 billion in shares of common stock in the primary offering and up to $95 million in distribution reinvestment plan shares. Funds from the offering will be used to invest in a portfolio of income-producing and growth self-storage properties and related self-storage real estate investments.
The REIT plans to offer three classes of shares: Class A, Class T, and Class W shares. The share classes are available for different categories of investors and have differing sales commissions and fees. All investors can choose to purchase Class A shares or Class T shares, while Class W shares are only available to certain investors, such as those purchasing through certain fee-based programs or registered investment advisers.
Class A shares are priced at $24.89 each and include sales commissions of up to 6 percent and a 3 percent dealer manager fee.
Class T shares are priced at $24.10 each, and include sales commissions of up to 3 percent, a 3 percent dealer manager fee, and an annual 1 percent stockholder servicing fee.
Class W shares are priced at $22.65 each and have an annual 0.50 percent dealer manager servicing fee.
The advisor, Strategic Storage Advisor IV LLC, will fund 1.15 percent of gross offering proceeds from the sale of Class W shares to help pay organization and offering expenses, and will not seek reimbursement.
DRIP shares are priced at the per share net asset value, or $22.65 per share, and do not include a sales commission, dealer manager fee, stockholder servicing fee, or dealer manager servicing fee.
Select Capital Corporation serves as the dealer manager of the offering. The minimum purchase is generally $5,000, while purchases made by an IRA have a minimum of $1,500.
Strategic Storage Trust IV owns 23 properties comprising approximately 17,000 self-storage units, as well as four parcels of land under development. The REIT’s offering was declared effective in March 2017 and raised approximately $223.7 million in investor equity, as of January 17, 2020.