Strategic Storage Growth Trust III, Inc. Reports Second Quarter 2025 Highlights
Strategic Storage Growth Trust III, Inc. ("SSGT III") announced highlights for the three months ended June 30, 2025.
"The second quarter was highlighted by continued lease up of our non-stabilized portfolio and the acquisition of two premier self-storage facilities," commented H. Michael Schwartz, President, Chief Executive Officer and Chairman of the Board of Directors of Strategic Storage Growth Trust III, Inc. "These acquisitions underscore our unwavering focus on growing our portfolio with high-quality properties in strategically advantageous markets."
Key Highlights for the Three Months Ended June 30, 2025:
- Acquired two high-quality self-storage facilities located in well-populated and high-growth markets.
- Acquisition of a parcel of land in New Westminster, British Columbia in the Greater Vancouver Area of Canada pursuant to a joint venture with SmartCentres Real Estate Investment Trust.
- Increased revenues by approximately $3.1 million or 139% for the quarter ending June 30, 2025, vs. the quarter ending June 30, 2024, primarily due to the acquisition of 13 self-storage properties over the last 12 months and the lease up of our non-stabilized properties.
Capital Transactions:
Acquisitions
On June 20, 2025, we acquired a self-storage facility located in Houston, Texas (the "Houston Property") for a purchase price of approximately $28.5 million. The Houston Property contains approximately 880 storage units and consists of approximately 98,900 net rentable square feet. The acquisition of the Houston property was funded with the assumption of a loan from the seller and a loan from SmartStop as described below.
On June 25, 2025, we acquired a self-storage facility located in Vancouver, BC (the "Vancouver Property") for a purchase price of CAD $36.3 million. The Vancouver Property contains approximately 800 storage units and consists of approximately 52,400 net rentable square feet. The acquisition of the Vancouver property was funded with a loan from SmartStop as described below.
On June 10, 2025, our Operating Partnership (through its subsidiaries) and SmartCentres (through its subsidiaries) acquired an undeveloped tract of land located in New Westminster, BC in the Greater Vancouver Area of Canada (the "New Westminster Land") from an unaffiliated third party. The New Westminster Land is owned by a limited partnership in which we (through our subsidiaries) and SmartCentres (through its subsidiaries) are each a 50% limited partner and each have an equal ranking general partner. At closing, our Operating Partnership (through its subsidiaries) subscribed for 50% of the units of the limited partnership at an agreed upon subscription price of approximately CAD $3.8 million, representing a contribution equivalent to 50% of the purchase price of the New Westminster Land. We expect that the limited partnership will develop the New Westminster Land into a self-storage facility (the "New Westminster Property") that will contain approximately 99,275 net rentable square feet and 1,170 storage units.
Debt Transactions
On June 3, 2025, we, through a wholly-owned subsidiaries of our Operating Partnership, entered into a delayed draw mezzanine loan agreement (the "Delayed Draw Mezzanine Loan Agreement") with SmartStop OP, an affiliate of our sponsor, for up to $25.0 million (the "Delayed Draw Mezzanine Loan"). The Delayed Draw Mezzanine Loan requires a commitment fee equal to 0.50% of the amount drawn on the loan. In June 2025, we borrowed $16.0 million pursuant to the Delayed Draw Mezzanine Loan. The proceeds of the loan were used to partially fund the acquisition of the Houston Property and the New Westminster Land. The interest rate on the Delayed Draw Mezzanine Loan is a variable rate equal to SOFR plus 3.00% per annum. Payments on the Delayed Draw Mezzanine Loan are interest only for the term of the loan. The initial maturity date is December 31, 2025, with two six-month extension options. The Delayed Draw Mezzanine Loan is prepayable in whole or in part at any time without fees or penalty.
On June 20, 2025, in connection with the acquisition of the Houston Property, we, through a special purpose entity formed to acquire and hold the Houston Property, assumed a loan with Aegon USA Realty Advisors, LLC as the lender affiliate responsible for managing and servicing the loan (the "Aegon Loan") for $18.5 million. The Aegon Loan is secured by a first mortgage lien on the Houston Property. Under the terms of the loan agreement (the "Aegon Loan Agreement"), the amount outstanding under the Aegon Loan bears interest at an annual fixed rate equal to approximately 4.10%. The Aegon Loan has a maturity date of November 1, 2046. Monthly payments due under the Aegon Loan are interest-only until December 2028, with principal and interest payments due monthly thereafter based on twenty-five year amortization. The loan documents contain: customary affirmative and negative covenants; agreements; representations; warranties and borrowing conditions; reserve requirements and events of default all as set forth in such loan documents. In addition, and pursuant to the terms of the limited recourse guaranty, we serve as a non-recourse guarantor with respect to the Aegon Loan.
On June 24, 2025, in connection with the acquisition of the Vancouver Property, we, through a wholly-owned subsidiary of our Operating Partnership, entered into a loan agreement (the "Vancouver Bridge Loan Agreement") with SmartStop OP, an affiliate of our sponsor, for a $25 million loan (the "Vancouver Bridge Loan"). The Vancouver Bridge Loan is secured by a pledge of the equity interest in the indirect, wholly-owned subsidiary of our Operating Partnership that owns the Vancouver Property and required a commitment fee equal to 0.50% of the loan amount. The proceeds of the Vancouver Bridge Loan were used to partially fund the acquisition of the Vancouver Property. The interest rate on the loan is a variable rate equal to SOFR plus 3.00% per annum. Payments on the Vancouver Bridge Loan are interest only for the term of the loan. The initial maturity date is December 31, 2025 with two six month extension options. The Vancouver Bridge Loan is prepayable in whole or in part at any time without fees or penalty.
In June 2023, in connection with the acquisition of the Toronto Property, we, through a special purpose entity formed to acquire and hold the Toronto Property, entered into a term loan with Bank of Montreal (the "Bank of Montreal Toronto Loan") for approximately CAD $18.8 million, which is secured by a first mortgage lien on the Toronto Property. Under the terms of the loan agreement (the "Bank of Montreal Toronto Loan Agreement"), the interest rate is equal to the Compounded Canadian Overnight Repo Rate Average ("CORRA") plus a spread of approximately 2.80%. In addition, we entered into an interest rate swap agreement with a notional amount of approximately CAD $18.8 million and effective date of June 15 ,2023, whereby the CORRA is fixed at approximately 4.50% through June 15, 2026 (the "Bank of Montreal Toronto Swap"). The Bank of Montreal Toronto Loan had an initial term of two years, maturing on June 15, 2025, with a one-year extension option. On June 16, 2025, we amended the Bank of Montreal Toronto Loan to extend the maturity date by three years to June 15, 2028, and we amended the interest rate swap agreement whereby the CORRA is fixed at approximately 3.35% through June 15, 2028.
DST Transactions
On August 30, 2024, we, through our subsidiaries, initiated an offering to sell up to a maximum aggregate offering amount of approximately $29.8 million of beneficial interests in Blue Door Property I, DST, a DST ("Blue Door I DST"), to accredited investors in a private offering (the "Blue Door I DST Offering"). As of June 30, 2025, we have substantially sold out the beneficial interests in Blue Door I DST pursuant to the Blue Door I DST Offering.
During June 2025, we commenced an offering (the "Blue Door II DST Offering") by Blue Door Property Holdings II, LLC, a Delaware limited liability company (the "Depositor"), to issue and sell up to a maximum aggregate offering amount of approximately $64.8 million of beneficial interests in Blue Door Property II, DST (the "Blue Door II DST") to investors seeking a like-kind exchange transaction under Section 1031 of the Internal Revenue Code. The Blue Door II DST is comprised of the Orlando Property, Corinth Property, and Pasadena Property that were acquired as part of the Six Property Portfolio.
About Strategic Storage Growth Trust III, Inc. (SSGT III):
SSGT III is a Maryland corporation that elected to qualify as a REIT for federal income tax purposes. SSGT III's primary investment strategy is to invest in growth-oriented self-storage facilities and related self-storage real estate investments in the United States and Canada. As of August 15, 2025, SSGT III has a portfolio of 10 operating properties in the United States, comprising approximately 8,000 units and 880,600 net rentable square feet; five operating properties in Canada, comprising approximately 3,180 units and 327,000 net rentable square feet; and joint venture interests in three developments in two Canadian provinces (Québec and British Columbia). In addition, a subsidiary of SSGT III serves as the sponsor of two Delaware Statutory Trusts, which currently owns five operating properties in the United States comprising approximately 3,440 units and 472,100 net rentable square feet.
About SmartStop Self Storage REIT, Inc. (SmartStop):
SmartStop Self Storage REIT, Inc. ("SmartStop") (NYSE:SMA), is a self-managed REIT with a fully integrated operations team of more than 600 self-storage professionals focused on growing the SmartStop® Self Storage brand. SmartStop, through its indirect subsidiary SmartStop REIT Advisors, LLC, also sponsors other self-storage programs. As of August 19, 2025, SmartStop has an owned or managed portfolio of 230 operating properties in 23 states, the District of Columbia, and Canada, comprising approximately 167,200 units and 18.7 million rentable square feet. SmartStop and its affiliates own or manage 44 operating self-storage properties in Canada, which total approximately 39,000 units and 3.9 million rentable square feet. Additional information regarding SmartStop is available at www.smartstopselfstorage.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250819853747/en/
David Corak
SVP of Corporate Finance & Strategy
SmartStop Self Storage REIT, Inc.
[email protected]