The opportunity to create value through aggregation in the self-storage space remains massive. The self-storage industry has been the fastest-growing sector of U.S. commercial real estate over the last 35 years; and surprisingly, one of the few real estate sectors largely untapped by institutional investors. There are some 27,650 small business entrepreneurs (90% of all self storage companies) who own and operate just one primary self storage facility. The top 5 self storage companies, including the 4 public companies, own and operate some 5,800 self storage facilities, or less than 12% of all primary facilities.
South Coast has been investing in this sector since 2009 through our partner SmartStop Asset Management. In less than a decade, SmartStop has grown into one of the largest self storage companies in the country. Last year, they sold their first portfolio, SmartStop Self Storage (previously known as Strategic Storage Trust), consisting of 170 facilities across 33 states and Canada, to Extra Space Storage for $1.4 billion in one of the most successful transactions in the history of the non-traded REIT industry. Currently they have two new offerings available, Strategic Storage Trust II and Strategic Storage Growth Trust. At South Coast, we believe there is a long runway of opportunity and will discuss how SmartStop plans to take advantage moving forward.
Please join us for lunch on Wednesday, April 20th at 12:00 pm, in the South Coast Office. You must RSVP to attend and can do so by clicking the link below or contacting Megan Proulx by email at info@southcoastinvest.com or by phone at 877-922-7242.