SSGT Invests in Massachusetts
- Aug 25, 2017
Strategic Storage Growth Trust Inc.’s shopping spree continues with the purchase of a property in Nantucket, Mass. The public non-traded REIT, sponsored by SmartStop Asset Management LLC, acquired the 840-unit facility for $37.5 million. The seller was Ch Realty Vi-Cfb I Nantucet Storage, an entity of Crow Holdings, according to an SEC document.
Carrying the address of 6 Sun Island Road, SSGT’s newest acquisition occupies 1.7 acres on Nantucket Island, and the property caters to its market with such special offerings as wine storage units and various safety features. The 93,000-square-foot self-storage facility made its debut in 2002 and today, it’s 91 percent occupied.
“The acquisition of this stabilized property strengthens the balance sheet of Strategic Storage Growth Trust, allowing the REIT to expand its development pipeline and acquire additional properties with certificates of occupancy,” Michael Schwartz, chairman & CEO of Strategic Storage Growth Trust, said in a prepared statement.
SSGT financed the acquisition of 6 Sun Island with proceeds from its public offering.
The Nantucket deal follows a string of purchases by SSGT this year. Recent portfolio additions include a newly developed 500-unit property in suburban Charleston, N.C., which the REIT bought in July, and a 510-unit facility in Sarasota, Fla., snapped up in May. In various transactions during the first six months of 2017, SSGT invested a total of approximately $44.9 million on the acquisition of five properties across the U.S.
While self-storage is facing certain headwinds, including increasing supply, the sector remains strong. “Positive demographic trends and the strength of the multifamily market will stimulate further need for storage space,” per a report by real estate investment services firm Marcus & Millichap. “Strong population growth and rising incomes foster a broad and widening tenant pool. In addition, the retirement and downsizing of baby boomers plus the continued emergence of millennial households will sustain demand for self-storage.”
Image courtesy of Strategic Storage Growth Trust