What the SmartStop Merger Means for All

LADERA RANCH, CA—An excellent exit price and property management for SmartStop Self Stage Inc.‘s two new self-storage REITs are just two of the benefits of the company’s merger with Extra Space Storage, principals in the deal tell GlobeSt.com. As we reported earlier this week, SmartStop has entered into a definitive merger agreement under which it will be acquired by Extra Space Storage Inc. We spoke exclusively with H. Michael Schwartz, CEO, president and chairman of the board of directors for SmartStop, and Kevin Gannon, managing director/CEO of Robert A. Stanger & Co., one of SmartStop’s financial partners that worked on the merger, about what it means for the locally based firm and how the self-storage sector looks moving forward. We also heard from Latham & Watkins LLP, which advised Extra Space in the deal, about what it means for the acquiring firm.

Schwartz tells GlobeSt.com the exit price for his firm’s 16,000-plus shareholders is quite favorable. “A successful liquidity event for our shareholders substantiates my company’s ability to build a blind pool REIT into a viable and successful income- and growth-producing real estate company. In addition, Extra Space will provide property management for our two new self-storage REITs (Strategic Storage Trust II and Strategic Storage Growth Trust), which enables our two new REITs to leverage their technology and property-management platform for our shareholders.”