SSTI Buys Two FAcilities for $23 Million

February 26th, 2010

In an all-cash transaction, Strategic Storage Trust, Inc. (SSTI) — a publicly registered non-traded REIT targeting the self storage market — recently acquired two facilities located in Fort Lee, N.J. and Weston, Fla. for a combined purchase price of approximately $23 million.

“These facilities represent newer Class A properties in prime markets,” said H. Michael Schwartz, SSTI’s chairman and CEO. “Both properties offer the latest generation of secured climate-controlled self storage featuring convenient access to major roads and interstates.”

Built in 2000, the Fort Lee facility is situated on a 1.2 acre site located at 550 Main Street in Fort Lee, Bergen County, NJ. The Class A property is 88.2% occupied, offering 965 climate-controlled units. The three-story building offers a three door, drive-in, covered loading/unloading area. Additionally, the property contains a cellular tower, leased to multiple tenants located on the roof.

The Fort Lee facility is located approximately two miles north of Manhattan in close proximity to the George Washington Bridge. The self storage property, which is based in Bergen County, is accessible via the New Jersey Turnpike (I-95) and the Garden State Parkway. The turnpike provides access to upstate New York and New England to the north and Philadelphia and Washington D.C. to the south.
The Weston facility was built in 2005 and is situated on a 1.97 acre site located at 16400 State Road 84 in Weston, Broward County, FL. The four-story building is currently 86.1% occupied and offers 651 climate controlled units. The city of Weston is located in western Broward County. Primary access to the facility is provided by Interstate 75 and Interstate 595. The Sawgrass Parkway, located just to the north of the facility, connects the area to the Florida Turnpike and Interstate 95. The Weston area is currently in a stage of growth and development, as evidenced by new construction occurring in the overall market.

“Due to the recent development of the Weston community, the city has become a desirable environment for dining, nightlife and shopping among the community’s many shopping plazas. “The Ft. Lauderdale/Miami market is one where we see opportunity,” said Wayne Johnson, senior vice president of acquisitions for SSTI. “We are pleased with the high quality of storage we can provide to the Ft. Lauderdale/Weston market and surrounding region with this acquisition.”

Since the launch of the REIT a year and a half ago, the REIT’s portfolio of properties has expanded to include 28 properties in 14 states (Georgia, Mississippi, Florida, Virginia, New Jersey, Kentucky, Alabama, Arizona, California, Nevada, Texas, South Carolina, Tennessee and Pennsylvania). The seller of both properties, Chicago Five Properties, LLC, was represented by CB Richard Ellis.

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