Specialty REIT Acquires 530-Unit Self-Storage Facility In Sacramento
Strategic Storage Trust II (SST II), a public non-traded REIT, has purchased a self-storage facility near Sacramento. The five-building facility has 530 units totaling around 61k RSF and covers 2.8 acres.
“We are excited to acquire our first self-storage facility in Sacramento,” says SST II chairman and CEO Michael Schwartz. SST II controls 28,200 self-storage units that total more than 3.1M RSF.
The Sacramento facility was built in 2006 and is 93% occupied. It joins other investments the company has made in Toronto, Canada.
SST II makes investments in dense urban centers with a stable economy and population growth. The company sees the self-storage market as "fragmented and underserved" and hopes to achieve economies of scale through consolidation.
The choice in Sacramento was particularly attractive, Schwartz tells Bisnow. The facility "has a high current occupancy, is 65% climate controlled and borders high-traffic streets totaling 54,000-plus cars per day," he says.
A non-public REIT is similar to its publicly traded cousin but does not trade on a public exchange. This makes shares in the non-public entity illiquid for a period of eight or more years.
