Attached files

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EX-10.2 - EX-10.2 - SmartStop Self Storage REIT, Inc.d776590dex102.htm
EX-10.3 - EX-10.3 - SmartStop Self Storage REIT, Inc.d776590dex103.htm
EX-10.1 - EX-10.1 - SmartStop Self Storage REIT, Inc.d776590dex101.htm
EX-10.5 - EX-10.5 - SmartStop Self Storage REIT, Inc.d776590dex105.htm
EX-10.4 - EX-10.4 - SmartStop Self Storage REIT, Inc.d776590dex104.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 8-K

 

 

Current Report

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 14, 2014

 

 

Strategic Storage Trust II, Inc.

(Exact name of registrant as specified in its charter)

 

 

Commission File Number: 333-190983

 

MD   46-1722812
(State or other jurisdiction of incorporation)   (IRS Employer Identification No.)

111 Corporate Drive, Suite 120, Ladera Ranch, California 92694

(Address of principal executive offices, including zip code)

(877) 327-3485

(Registrant’s telephone number, including area code)

None

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 1.01. Entry into a Material Definitive Agreement.

Entry into Partial Assignments of Purchase and Sale Agreement for the 26 Property Portfolio

On August 14, 2014, Strategic Storage Trust II, Inc. (the “Registrant”), through 26 wholly-owned subsidiaries of Strategic Storage Operating Partnership II, L.P., the Registrant’s operating partnership (the “Operating Partnership”), executed 26 partial assignments of the purchase and sale agreement originally executed by a subsidiary of the Registrant’s sponsor on July 9, 2014, with unaffiliated third parties (the “26 Property Purchase Agreement”) for the acquisition of a portfolio of 26 self storage facilities (the “26 Property Portfolio”). The 26 Property Portfolio consists of 14 self storage facilities located in California; four self storage facilities located in Michigan; three self storage facilities located in Colorado; two self storage facilities located in Illinois and one self storage facility located in each of New Jersey, Washington and Maryland.

The purchase price for the 26 Property Portfolio is approximately $128.2 million, plus closing costs and acquisition fees. The Registrant expects the acquisition of the 26 Property Portfolio to close in the third or fourth quarter of 2014 in several tranches and to fund such acquisition with a combination of net proceeds from its public offering, a credit facility or other debt financing and other potential financing sources. This discussion of the potential acquisition of the 26 Property Portfolio is qualified in its entirety by the text of the 26 Property Purchase Agreement, attached hereto as Exhibit 10.1

A summary of the properties in the 26 Property Portfolio is as follows:

 

Property

  

Address

   Purchase Price      Year Built      Approx.
Sq. Ft.
(net)
     Approx.
Units
 

Whittier - CA

   10231 S. Colima Rd, Whittier, CA 90603    $ 5,870,000         1989         58,600         510   

La Verne - CA

   2234 Arrow Hwy, La Verne, CA 91750    $ 4,120,000         1986         49,800         520   

Santa Ana - CA

   4200 Westminster Ave., Santa Ana, CA 92703    $ 9,230,000         1978         84,500         840   

Upland - CA

   1571 W Foothill Blvd, Upland, CA 91786    $ 6,230,000         1979         56,500         610   

La Habra - CA

   580 E Lambert Rd, La Habra, CA 90631    $ 4,560,000         1981         51,400         420   

Monterey Park - CA

   404 Potrero Grande, Monterey Park, CA 91755    $ 4,380,000         1987         31,200         390   

Huntington Beach - CA    

   7611 Talbert Avenue, Huntington Beach, CA 92648    $ 10,830,000         1986         61,000         610   

Chico - CA

   3860 Benetar Way, Chico, CA 95928    $ 1,780,000         1984         38,800         360   

Lancaster - CA

   43745 N. Sierra Hwy, Lancaster, CA 93534    $ 1,760,000         1980         64,700         700   

Riverside - CA

   6667 Van Buren Blvd, Riverside, CA 92503    $ 2,760,000         1985         61,000         570   

Fairfield - CA

   2998 Rockville Rd, Fairfield, CA 94534    $ 3,880,000         1984         41,000         440   

Lompoc - CA

   517 N. 8th Street, Lompoc, CA 93436    $ 3,990,000         1982         46,500         430   

Santa Rosa - CA

   3937 Santa Rosa Ave, Santa Rosa, CA 95407    $ 10,420,000         1979-1981         116,400         1,150   

Vallejo - CA

   1401 Enterprise St, Vallejo, CA 94589    $ 5,240,000         1981         54,400         510   

Federal Heights - CO

   8920 Federal Blvd, Federal Heights, CO 80221    $ 4,700,000         1983         40,600         450   

Aurora - CO

   435 Airport Blvd, Aurora, CO 80011    $ 7,290,000         1984         87,400         890   

Littleton - CO

   3757 Norwood Dr, Littleton, CO 80125    $ 4,300,000         1985         45,800         400   

Bloomingdale - IL

   240 W. Army Trail Road, Bloomingdale, IL 60108    $ 4,950,000         1987         58,200         570   

Crestwood - IL

   4747 W Calumet-Sag Road, Crestwood, IL 60445    $ 2,440,000         1987         49,300         460   

Forestville - MD

   4100 Forestville Rd, Forestville, MD 20747    $ 6,650,000         1988         55,200         530   

Warren I - MI

   27203 Groesbeck Hwy, Warren, MI 48089    $ 3,390,000         1996         63,100         500   


Property

  

Address

   Purchase Price      Year Built      Approx.
Sq. Ft.
(net)
     Approx.
Units
 

Sterling Heights - MI    

   42557 Van Dyke Avenue, Sterling Heights, MI 48314    $ 3,810,000         1977         57,900         460   

Troy - MI

   262 E. Maple Road, Troy, MI 48083    $ 4,770,000         1988         82,200         730   

Warren II - MI

   24623 Ryan Road, Warren, MI 48091    $ 3,590,000         1987         52,100         490   

Beverly - NJ

   4233 Route 130 South, Beverly, NJ 08010    $ 2,130,000         1988         51,000         460   

Everett - WA

   10919 Evergreen Way, Everett, WA 98204    $ 5,150,000         1986         48,100         490   

TOTAL

      $ 128,220,000            1,506,700         14,490   

Pursuant to the 26 Property Purchase Agreement, the Registrant would be obligated to purchase the 26 Property Portfolio only after satisfactory completion of agreed upon closing conditions. The Registrant will decide whether to acquire the 26 Property Portfolio generally based upon:

 

    the ability of the Registrant to raise sufficient net proceeds from its public offering and obtain debt and other financing;

 

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

 

    satisfaction of the conditions to the acquisition in accordance with the 26 Property Purchase Agreement, including but not limited to, approval of the seller’s investors; and

 

    no material adverse changes relating to the properties, the sellers of the properties or certain economic conditions.

There can be no assurance that the Registrant will complete the acquisition of the 26 Property Portfolio. In some circumstances, if the Registrant fails to acquire some or all of the facilities, in addition to the incurred acquisition costs, it may forfeit up to approximately $4.4 million in earnest money on the 26 Property Portfolio.

Other properties may be identified in the future that the Registrant may acquire prior to or instead of the 26 Property Portfolio. Due to the considerable conditions to the consummation of the acquisition of the 26 Property Portfolio, the Registrant cannot make any assurances that the closing of the 26 Property Portfolio is probable.

Entry into Partial Assignments of Purchase and Sale Agreement for the Raleigh/Myrtle Beach Portfolio

On August 14, 2014, the Registrant, through five wholly-owned subsidiaries of the Operating Partnership, executed five partial assignments of the purchase and sale agreement originally executed by a subsidiary of the Registrant’s sponsor on January 21, 2014, with an unaffiliated third party (the “Storkwik Purchase Agreement”) for the acquisition of a portfolio of five self storage facilities, consisting of three self storage facilities located in Raleigh, North Carolina and two self storage facilities located in Myrtle Beach, South Carolina (the “Raleigh/Myrtle Beach Portfolio”).

The purchase price for the Raleigh/Myrtle Beach Portfolio is approximately $22.1 million, plus closing costs and acquisition fees. The Registrant expects the acquisition of the Raleigh/Myrtle Beach Portfolio to close in the third or fourth quarter of 2014 and to fund such acquisition with a combination of net proceeds from its public offering, an assumption of an existing $12.8 million loan encumbering the properties of the Raleigh/Myrtle Beach Portfolio and other potential financing sources. This discussion of the potential acquisition of the Raleigh/Myrtle Beach Portfolio is qualified in its entirety by the text of the Storkwik Purchase Agreement, attached hereto as Exhibit 10.3.


A summary of the properties in Raleigh/Myrtle Beach Portfolio is as follows:

 

Property

  

Address

   Purchase
Price
     Year
Built
     Approx.
Sq. Ft.
(net)
     Approx.
Units
 

Morrisville - NC

   150 Airport Blvd, Morrisville, NC    $ 2,130,000         2003         38,160         310   

Cary - NC

   120 Centrewest Ct, Cary, NC    $ 4,570,000         1997         62,600         320   

Raleigh - NC

   5012 New Bern Ave, Raleigh, NC    $ 3,920,000         1999         44,930         390   

Myrtle Beach I - SC

   338 Jesse St, Myrtle Beach, SC    $ 5,940,000         2004         96,080         730   

Myrtle Beach II - SC            

   4630 Dick Pond Rd, Myrtle Beach, SC    $ 5,540,000         2006         75,370         600   

TOTAL

      $ 22,100,000            317,140         2,350   

Pursuant to the Storkwik Purchase Agreement, the Registrant would be obligated to purchase the Raleigh/Myrtle Beach Portfolio only after satisfactory completion of agreed upon closing conditions. The Registrant will decide whether to acquire the Raleigh/Myrtle Beach Portfolio generally based upon:

 

    the ability of the Registrant to raise sufficient net proceeds from its public offering and obtain other financing;

 

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

 

    approval by the current lender of the Registrant’s assumption of the existing loan encumbering the properties in the Raleigh/Myrtle Beach Portfolio;

 

    satisfaction of the conditions to the acquisition in accordance with the Storkwik Purchase Agreement; and

 

    no material adverse changes relating to the properties, the sellers of the properties or certain economic conditions.

There can be no assurance that the Registrant will complete the acquisition of the Raleigh/Myrtle Beach Portfolio. In some circumstances, if the Registrant fails to complete the acquisition, it may forfeit up to $0.2 million in earnest money on the Raleigh/Myrtle Beach Portfolio.

Other properties may be identified in the future that the Registrant may acquire prior to or instead of the Raleigh/Myrtle Beach Portfolio. Due to the considerable conditions to the consummation of the acquisition of the Raleigh/Myrtle Beach Portfolio, the Registrant cannot make any assurances that the closing of the Raleigh/Myrtle Beach Portfolio is probable.

 

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

 

  10.1 26 Property Portfolio Purchase Agreement

 

  10.2 Partial Assignment of one of the properties of the 26 Property Portfolio

 

  10.3 Raleigh/Myrtle Beach Portfolio Purchase Agreement

 

  10.4 Partial Assignment of one of the properties of the Raleigh/Myrtle Beach Portfolio

 

  10.5 Schedule of Omitted Documents


Signature(s)

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    STRATEGIC STORAGE TRUST II, INC.
Date: August 19, 2014     By:   /s/ Michael S. McClure
      Michael S. McClure
      Executive Vice President and Chief Financial Officer