California-based SmartStop Self Storage REIT is expanding in Canada's largest city, adding eight facilities in the greater Toronto area for $CA300 million.
The company said its affiliates, Strategic Storage Trust VI Inc. and Strategic Growth Trust III Inc., acquired the eight-facility portfolio with 7,400 units and 758,000 rentable square feet. With the acquisition, SmartStop now owns or manages 33 operating self-storage properties in Canada with 3 million square feet, making it the fifth largest operator in Canada.
"I firmly believe that our recent expansion in Canada is a pivotal move that perfectly demonstrates our vision for strategic growth," said H. Michael Schwartz, chief executive of SmartStop, in a statement. "With these Class-A facilities, we are bolstering our commitment to serving the Canadian market while addressing a significant demand for purpose-built self-storage in the thriving greater Toronto area. Our commitment to expansion in Canada remains unwavering."
A REIT official told CoStar News the sites are 1450 Don Mills Rd., 411 Cityview Blvd., 19 Esandar Drive, 1230 Lakeshore Rd. E, 24 Sanford Ave. N, 2068 South Sheridan Way, 1770 Appleby Line and 7 Ingram Drive.
SmartStop said the locations are desirable high-growth areas with strong demographics, solid household incomes and populations, and excellent visibility.
In the past 12 months, SmartStop has added 14 operating self-storage facilities across Canada, including an expansion into Edmonton and Vancouver, with a total value of CA$450 million.
"Each of these Class-A assets represents a unique opportunity for growth and innovation, enabling us to strengthen our presence in this dynamic landscape," said Bliss Edwards, executive vice president of Canada for SmartStop, in a statement.
In March, the Municipal Property Assessment Corporation or MPAC reported that 4.2 million square feet of self-storage had been added in Ontario over the last three years, an 11% increase.
The 37.3 million square feet of commercial self-storage space is the equivalent of the total ice surface of approximately 2,200 NHL rinks.
“There are a number of factors contributing to the self-storage boom, such as smaller dwellings—particularly condominiums—providing less space to store personal possessions,” said Greg Martino, MPAC vice-president and chief valuation and standards officer, in a comment on his group's findings.
MPAC is an independent, not-for-profit corporation funded by all Ontario municipalities, accountable to the Province, municipalities and property taxpayers through its 13-member board of directors.