PHOENIX-Strategic Storage Trust Inc. has acquired two self-storage facilities totaling 880 units for $3.5 million. The non-traded REIT bought the 1980s-era properties in an all-cash transaction.
The two facilities – one located in Phoenix and one located in Tempe, AZ – were acquired from a local owner-operator. Bill Alter with R&G Commercial brokered the transaction.
With the addition of these two properties, Strategic Storage Trust now owns four self-storage assets in the Phoenix metro area. Last month, the REIT acquired a 570-unit self storage property in nearby Mesa AZ. The company also owns a 520-unit property at 2727 West Missouri Ave. in Phoenix.
The recent Phoenix acquisition is situated on 3.3 acres at 3636 East Washington St. It contains approximately 73,000 rentable square feet in about 440 units. The Tempe property is situated on 2.8 acres at 1135 West Broadway Rd. It contains roughly 55,500 rentable square feet in about 440 units.
The properties have a combined economic occupancy of 71 percent, according to Wayne Johnson, senior vice president of acquisitions for Strategic Storage Trust. Both properties will be rebranded under the SmartStop Self Storage trade name.
Johnson describes the properties as “bread and butter” self-storage, pointing to the single-story design, wide drive lanes and lack of corridors or elevators. He tells GlobeSt. that Strategic Storage Trust plans to invest $500,000 to upgrade and improve the properties.
“This is truly a value-added deal,” Johnson says. “We plan to make significant capital expenditures including new roofs, door replacement, drive lanes, painting and new signage. These are well-located, seasoned properties, and with capex and aggressive management, we are confident we can increase performance.”
Johnson says Strategic Storage Trust is actively looking for more acquisition opportunities in the Phoenix area. “From a management standpoint, we’ve aggregated enough properties where management is more efficient,” he explains. “We’re very interested in additional properties.”
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