On October 15, 2010, the Registrant, through a wholly-owned subsidiary of the Registrant's operating partnership, executed a purchase and sale agreement with an unaffiliated third party (the "Las Vegas IV Purchase Agreement") for the acquisition of a self storage facility located in Las Vegas, Nevada (the "Las Vegas IV Property"). The purchase price for the Las Vegas IV Property is $7.0 million, plus closing costs and acquisition fees. The Registrant expects this acquisition to close in the fourth quarter of 2010 and to fund such acquisition with a combination of net proceeds from its initial public offering and debt proceeds from a group of loans previously obtained from The Prudential Insurance Company of America that are secured by a first priority mortgage or deed of trust on eleven of the properties in the Registrant's existing portfolio.

        The Las Vegas IV property is an approximately 540-unit self storage facility that sits on approximately 1.7 acres and contains approximately 81,600 rentable square feet and approximately 108,000 gross square feet. The Las Vegas IV property is located at 1120 South Las Vegas Boulevard, Las Vegas, Nevada. It was constructed in 1996.

        On October 15, 2010, the Registrant, through a wholly-owned subsidiary of the Registrant's operating partnership, executed a purchase and sale agreement with an unaffiliated third party (the "Las Vegas V Purchase Agreement") for the acquisition of a self storage facility located in Las Vegas, Nevada (the "Las Vegas V Property"). The purchase price for the Las Vegas V Property is $4.6 million, including the assumption of a loan in the original principal amount of $1.9 million, plus closing costs and acquisition fees. The Registrant expects this acquisition to close in the fourth quarter of 2010 or the first quarter of 2011 and to fund such acquisition with a combination of net proceeds from its initial public offering and debt proceeds from a group of loans previously obtained from The Prudential Insurance Company of America that are secured by a first priority mortgage or deed of trust on eleven of the properties in the Registrant's existing portfolio.

        The Las Vegas V property is an approximately 785-unit self storage facility that sits on approximately 2.6 acres and contains approximately 69,000 rentable square feet and approximately 90,600 gross square feet. The Las Vegas V property is located at 4770 South Pecos Road, Las Vegas, Nevada. It was constructed in 1997.        

        Pursuant to the Las Vegas IV Purchase Agreement and the Las Vegas V Purchase Agreement, the Registrant would be obligated to purchase the Las Vegas IV Property and the Las Vegas V Property only after satisfactory completion of agreed upon closing conditions. The Registrant will decide whether to acquire the Las Vegas IV Property and the Las Vegas V Property generally based upon:

- satisfactory completion of due diligence on the properties and the sellers of the properties;

        There can be no assurance that the Registrant will complete the acquisition of the Las Vegas IV Property or the Las Vegas V Property. In some circumstances, if the Registrant fails to complete the acquisitions, it may forfeit up to $100,000 in earnest money on each of the Las Vegas IV Property and the Las Vegas V Property.