SmartStop to spend $140M on storage, including $37M for two US sites
What's the deal? SmartStop Self Storage REITDealroom has a profile for this one. Try Dealroom → plans to invest $140 million across Canada and the US by year-end. The push spans a Canadian joint venture, two US acquisitions, and six US development projects.
The acquisitions: SmartStop is buying two self-storage facilities — in Asheville, North Carolina, and Las Vegas — for $37 million. Together they hold 186,000 net rentable square feet across 1,600 units.
Beyond the buy: SmartStop will put $54 million into Strategic Storage Canada LPDealroom has a profile for this one. Try Dealroom →, becoming a 50% general partner and 34% limited partner across 14 properties. It will manage those facilities for five years and hold a right of first offer when the assets are sold. A separate $40 million will fund six new developments with AXCS CapitalDealroom has a profile for this one. Try Dealroom →, a commercial real estate investment-management firm.
Why now? SmartStop is funding the growth on a leverage-neutral basis. To help offset the cost, it will sell underperforming secondary-market properties valued at $75 million to $125 million and reinvest the proceeds.
What's the endgame? The Canadian deal is subject to Competition Act approval, with closing expected by year-end. SmartStop already owns or manages 460 facilities across 36 US states and 53 properties in four Canadian provinces.
“We are significantly expanding our footprint in Canada, adding high-quality assets on-balance sheet in core U.S. markets,” said H. Michael Schwartz, founder, chairman, and chief executive officer. He expects a stabilised yield above 6% on the Canadian portfolio.
The signal: The moves reflect a consolidating self-storage market, where operators cluster assets to gain scale and operating efficiency. SmartStop, added to the Russell 3000 Index and listed on the New York Stock Exchange last year, is building density in its core markets while shedding weaker holdings.
Read more: insideselfstorage.com
Image credit: Scott Meyers Self Storage Investing
