SmartStop Asset Management Achieves 5th Largest Capital Raise Amongst Non-traded REIT Sponsors in 2016
Company Also Launches New Business Divisions for Growth in 2017
LADERA RANCH, CA–(Marketwired – Jan 13, 2017) – SmartStop Asset Management, LLC (SmartStop), a diversified real estate company, is celebrating an unprecedented year of success. In 2016, SmartStop expanded its owned/managed portfolio to include 103 self-storage facilities in the United States and Toronto, launched new divisions to acquire student and senior housing, and completed the development of a $35 million mixed-use facility. In addition, Robert A. Stanger & Co. recently announced SmartStop achieved the 5th largest capital raise amongst non-traded REIT sponsors in 2016.
“We successfully ended 2016 by achieving all of our acquisition, operational and marketing goals,” said H Michael Schwartz, Chairman/CEO of SmartStop. “We now have a more diversified platform of high quality assets and additional investment offerings that will give us momentum for continued growth and expansion in 2017.”
Last year, SmartStop and its affiliates raised more than $417 million for self-storage acquisitions and acquired 49 properties with an aggregate purchase price of $607 million. The company’s owned/managed portfolio now includes more than 65,000 self-storage units and approximately 7.5 million rentable square feet.
“Our portfolios include institutional-grade assets that exhibit strong demographics, have consistently high traffic counts and are located in active markets,” said Chief Investment Officer Wayne Johnson. “We look forward to offering our tenants a better self-storage experience through world-class personalized service.”
One of those active markets is the Greater Toronto area, where SmartStop owns/manages 12 properties. Two of those properties are undergoing construction — one as a renovation and the other from the ground up. Once they are open for business, SmartStop will have approximately 11,000 units and 1,035,000 square feet of storage space in the Greater Toronto area.
“The Canadian market has historically been underserved in self-storage and provides diversification in our real estate portfolio,” Schwartz said. “Its economy is considered to be very stable and its commercial lending industry is healthy, which makes it a good place for us to do business.”
In 2016, SmartStop also launched a new division to acquire student and senior housing projects. The company’s first purchase was The Summit, a $70 million student housing complex at the University of Nevada in Reno.
“SmartStop intends to acquire well located, institutional grade communities with heavy amenity packages in primary and secondary markets nationally,” said Senior Vice President of Acquisitions John Strockis. “Student and senior housing will complement our very successful self-storage platform. Strategically, both property types have similar defensive investment characteristics to self-storage, including higher residual valuations and an expectation of outperforming return benchmarks during cyclical downturns.”
Another highly anticipated 2016 milestone was the completion of a $35 million state-of-the-art, mixed-use facility in Ladera Ranch, California. The facility encompasses the 63,000-square foot Ladera Sports Center; a 42,000-square foot self-storage facility (which was sold to a third party); and more than 15,000 square feet of office space that is now the corporate headquarters for SmartStop and its affiliates. The building recently received LEED certification due to its environmental design that includes a solar field on the roof, electric car charging stations, high efficiency lighting and low flow water fixtures.
Ladera Sports Center has eight climate controlled basketball and volleyball courts, a fitness area, a café and concourse with seating for more than 130 guests, office space, a study area and a conference room. The facility’s other amenities include 28 LCD monitors, cameras on each court, livestreaming capabilities, free Wi-Fi, noise reduction systems, electronic court dividers and premium Connor® Sports wood flooring.
Since opening in August, the center has hosted several sold out tournaments and camps for various organizations, including the LA Clippers. The center is also home to four prominent youth basketball and volleyball programs. In November, the sports center reported a positive net operating income just three months after its launch. There are already 25 tournaments, including a state championship, booked for 2017.
About SmartStop Asset Management, LLC:
SmartStop Asset Management, LLC (SmartStop) is a diversified real estate company with a managed portfolio that currently includes more than 65,000 self-storage units and approximately 7.5 million rentable square feet and approximately $1 billion of real estate assets under management. The company is the asset manager for 103 self-storage facilities located throughout the United States and Toronto, Canada. SmartStop is the sponsor of Strategic Storage Trust II, Inc. and Strategic Storage Growth Trust Inc., both public non-traded REITs focusing on self-storage assets. The facilities offer affordable and accessible storage units for residential and commercial customers. In addition, they offer secure interior and exterior storage units as well as outside storage areas for vehicles, RVs and boats. Additional information is available at www.smartstopassetmanagement.com
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