{"id":1004128663,"date":"2015-10-05T04:45:57","date_gmt":"2015-10-05T12:45:57","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004128663"},"modified":"2020-04-06T22:11:01","modified_gmt":"2020-04-07T06:11:01","slug":"smartstop-completes-major-1-4b-merger","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/smartstop-completes-major-1-4b-merger\/","title":{"rendered":"Inside SmartStop’s $1.4B Merger"},"content":{"rendered":"

\"Extra<\/a>By Barbra Murray, Contributing Editor<\/em><\/p>\n

The self-storage sector\u2018s number two player, Extra Space Storage Inc.<\/a>, has further solidified its position. The fully integrated, self-administered and self-managed REIT has become one with SmartStop Self Storage Inc. with the completion of a $1.4 billion merger<\/a>.<\/p>\n

SmartStop held the title of the seventh largest owner and operator of self-storage facilities; however, size isn\u2019t everything. \u201cExtra Space plans to continue to grow, and we want that growth to be accretive to shareholders.\u00a0 We don\u2019t want to grow simply for growth\u2019s sake, and are focused on being responsible stewards of capital,\u201d Jeff Norman, a senior director with Extra Space, told Commercial Property Executive<\/em>.<\/p>\n

Extra Space paid SmartStop stockholders $13.75 per share, marking a 27 percent premium over the public non-traded REIT\u2019s most recently stated asset value. SmartStop, founded in 2007 as Strategic Storage Trust Inc., came to the table as the seventh largest owner and operator of self-storage facilities, offering a total of 122 stores and 42 third-party management contracts.<\/p>\n

\u201cWe are excited that our stockholders have been rewarded for believing in our vision to create a high quality self-storage company that blended the right balance of stabilized properties for cash flow and lease-up opportunities for growth,\u201d H. Michael Schwartz, founder of SmartStop, said.<\/p>\n

With the union finalized, Extra Space has a 1,335-property portfolio encompassing 885,000 units. The REIT\u2019s 99.8 million-square-foot footprint extends to 36 states and the District of Columbia, as well as Puerto Rico.<\/p>\n

It\u2019s still a really good time to be a powerhouse in the self-storage sector. Comparing the total returns among core property types, self-storage has led the pack over the past five-year, 10-year and 15-year periods, as noted in a report by MJ Partners Real Estate Services. Multifamily may be all the rage among commercial real estate investors, but the five-year average return for the self-storage sector is 24.4 percent, followed by the multifamily sector\u2019s 20.6 percent. It\u2019s all about demand.<\/p>\n

\u201cThere are many drivers in the self-storage sector today, and they are largely the same drivers that were in place 20 years ago,\u201d Norman said. \u201cStorage continues to be a need-based product, driven by life transitions including moving, remodeling, death, divorce, upsizing, downsizing, going to college, military deployment.\u201d\u00a0 And the list goes on.<\/p>\n","protected":false},"excerpt":{"rendered":"

Two major players in the self-storage industry have joined forces.<\/p>\n","protected":false},"author":969,"featured_media":1004128665,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21742],"tags":[],"class_list":["post-1004128663","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-latest"],"acf":[],"yoast_head":"\nInside SmartStop's $1.4B Merger - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/smartstop-completes-major-1-4b-merger\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Inside SmartStop's $1.4B Merger\" \/>\n<meta property=\"og:description\" content=\"Two major players in the self-storage industry have joined forces.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/smartstop-completes-major-1-4b-merger\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2015-10-05T12:45:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-07T06:11:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2015\/10\/Extra-Space-Storage.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"899\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Barbra Murray\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/smartstop-completes-major-1-4b-merger\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/smartstop-completes-major-1-4b-merger\/\",\"name\":\"Inside SmartStop's $1.4B Merger - 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