Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 07, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'ck0001585389 | ' |
Entity Registrant Name | 'STRATEGIC STORAGE TRUST II, INC. | ' |
Entity Central Index Key | '0001585389 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 430,491 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
ASSETS | ' | ' |
Cash and cash equivalents | $2,177,838 | $201,000 |
Escrow receivable | 9,200 | 0 |
Other assets | 971,631 | 0 |
Total assets | 3,158,669 | 201,000 |
LIABILITIES AND EQUITY | ' | ' |
Due to affiliates | 2,907,765 | 0 |
Distributions payable | 13,077 | 0 |
Total liabilities | 2,920,842 | 0 |
Commitments and contingencies (Note 4) | ' | ' |
Redeemable Common Stock | 991 | 0 |
Equity | ' | ' |
Preferred Stock, $0.001 par value; 200,000,000 shares authorized; none issued and outstanding at June 30, 2014 and December 31, 2013, respectively | 0 | 0 |
Common stock, $0.001 par value; 700,000,000 shares authorized; 265,287 and 100 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively | 265 | 1 |
Additional paid-in capital | 919,664 | 999 |
Distributions | -14,820 | 0 |
Accumulated deficit | -789,137 | 0 |
Total Strategic Storage Trust II, Inc. equity | 115,972 | 1,000 |
Noncontrolling interest in our Operating Partnership | 120,864 | 200,000 |
Total equity | 236,836 | 201,000 |
Total liabilities and equity | $3,158,669 | $201,000 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ' | ' |
Preferred Stock, par value | $0.00 | $0.00 |
Preferred Stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 700,000,000 | 700,000,000 |
Common stock, shares issued | 265,287 | 100 |
Common stock, shares outstanding | 265,287 | 100 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenues: | $0 | $0 | $0 | $0 |
Operating expenses: | ' | ' | ' | ' |
General and administrative | 442,739 | 0 | 442,739 | 0 |
Acquisition expenses - affiliates | 424,252 | 0 | 424,252 | 0 |
Total operating expenses | 866,991 | 0 | 866,991 | 0 |
Net loss | -866,991 | 0 | -866,991 | 0 |
Less: Net loss attributable to the noncontrolling interests in our Operating Partnership | -77,854 | 0 | -77,854 | 0 |
Net loss attributable to Strategic Storage Trust II, Inc. | ($789,137) | $0 | ($789,137) | $0 |
Net loss per share - basic and diluted | ($7.90) | $0 | ($15.70) | $0 |
Weighted average shares outstanding - basic and diluted | 99,904 | 0 | 50,278 | 0 |
Consolidated_Statement_of_Equi
Consolidated Statement of Equity (Unaudited) (USD $) | Total | Total Strategic Storage Trust II, Inc. Equity [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Distributions [Member] | Accumulated Deficit [Member] | Noncontrolling Interests [Member] |
Beginning Balance at Dec. 31, 2013 | $201,000 | $1,000 | $1 | $999 | $0 | $0 | $200,000 |
Beginning Balance (in shares) at Dec. 31, 2013 | ' | ' | 100 | ' | ' | ' | ' |
Gross proceeds from issuance of common stock (in shares) | 265,287 | ' | 265,083 | ' | ' | ' | ' |
Gross proceeds from issuance of common stock | 2,647,570 | 2,647,570 | 263 | 2,647,307 | 0 | 0 | 0 |
Offering costs | -1,728,641 | -1,728,641 | 0 | -1,728,641 | 0 | 0 | 0 |
Changes to redeemable common stock | -991 | -991 | 0 | -991 | 0 | 0 | 0 |
Distributions ($0.60 per share) | -14,820 | -14,820 | 0 | 0 | -14,820 | 0 | 0 |
Distributions to noncontrolling interests | -1,282 | 0 | 0 | 0 | 0 | 0 | -1,282 |
Issuance of shares for distribution reinvestment plan (in shares) | ' | ' | 104 | ' | ' | ' | ' |
Issuance of shares for distribution reinvestment plan | 991 | 991 | 1 | 990 | 0 | 0 | 0 |
Net loss attributable to Strategic Storage Trust II, Inc. | -789,137 | -789,137 | 0 | 0 | 0 | -789,137 | 0 |
Net loss attributable to the noncontrolling interests | -77,854 | 0 | 0 | 0 | 0 | 0 | -77,854 |
Ending Balance at Jun. 30, 2014 | $236,836 | $115,972 | $265 | $919,664 | ($14,820) | ($789,137) | $120,864 |
Ending Balance (in shares) at Jun. 30, 2014 | ' | ' | 265,287 | ' | ' | ' | ' |
Consolidated_Statement_of_Equi1
Consolidated Statement of Equity (Unaudited) (Parenthetical) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Statement Of Stockholders Equity [Abstract] | ' |
Distributions, per share | $0.60 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from operating activities: | ' | ' | ' | ' |
Net loss | ($866,991) | $0 | ($866,991) | $0 |
Increase in cash from change in liabilities: | ' | ' | ' | ' |
Due to affiliates | ' | ' | 866,991 | 0 |
Net cash flows provided by operating activities | ' | ' | 0 | 0 |
Cash flows from financing activities: | ' | ' | ' | ' |
Gross proceeds from issuance of common stock | ' | ' | 2,647,570 | 0 |
Offering costs | ' | ' | -259,498 | 0 |
Escrow receivable | ' | ' | -9,200 | 0 |
Due to affiliates | ' | ' | -400,000 | 0 |
Distributions paid to common stockholders | ' | ' | -1,739 | ' |
Distributions paid to noncontrolling interest | ' | ' | -295 | 0 |
Net cash flows provided by financing activities | ' | ' | 1,976,838 | 0 |
Net increase in cash and cash equivalents | ' | ' | 1,976,838 | 0 |
Cash and cash equivalents, beginning of period | ' | ' | 201,000 | 0 |
Cash and cash equivalents, end of period | 2,177,838 | 0 | 2,177,838 | 0 |
Supplemental cash flow and non-cash transactions: | ' | ' | ' | ' |
Distributions payable | 13,077 | 0 | 13,077 | 0 |
Issuance of shares pursuant to distribution reinvestment plan | ' | ' | 991 | 0 |
Non-cash transactions with our Sponsor and affiliates | ' | ' | 2,905,439 | 0 |
Amount due to Dealer Manager | $2,326 | $0 | $2,326 | $0 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Organization | ' |
Note 1. Organization | |
Strategic Storage Trust II, Inc., a Maryland corporation (the “Company”), was formed on January 8, 2013 under the Maryland General Corporation Law for the purpose of engaging in the business of investing in self storage facilities. The Company’s year-end is December 31. As used in this report, “we” “us” and “our” refer to Strategic Storage Trust II, Inc. | |
Strategic Storage Holdings, LLC, a Delaware limited liability company (our “Sponsor”), is the sponsor of our Offering. Our Sponsor was organized in 2008 to serve as the holding company for Strategic Storage Advisor, LLC and Strategic Storage Property Management, LLC, such affiliates provide management services to Strategic Storage Trust, Inc. Strategic Storage Realty Group, LLC, which is wholly-owned by our Sponsor, is the sole voting member of our Advisor and our Property Manager. | |
Our advisor is Strategic Storage Advisor II, LLC, a Delaware limited liability company (our “Advisor”) which was formed on January 8, 2013. Our Advisor is responsible for managing our affairs on a day-to-day basis and identifying and making acquisitions and investments on our behalf under the terms of an advisory agreement we have with our Advisor (our “Advisory Agreement”). The officers of our Advisor are also officers of us, our Sponsor and of Strategic Storage Trust, Inc. | |
On August 2, 2013, our Advisor purchased 100 shares of our common stock for $1,000 and became our initial stockholder. Our Articles of Amendment and Restatement authorize 700,000,000 shares of common stock with a par value of $0.001 and 200,000,000 shares of preferred stock with a par value of $0.001. We are offering a minimum of $1,500,000 (the “Minimum Offering Amount”) and a maximum of $1,000,000,000 of common shares for sale to the public (the “Primary Offering”) and $95,000,000 of common shares for sale pursuant to our distribution reinvestment plan (collectively, the “Offering”). | |
On January 10, 2014, the Securities and Exchange Commission (“SEC”) declared our registration statement effective. On May 23, 2014, we satisfied the minimum offering requirements of our public offering and commenced formal operations. As of June 30, 2014, we had issued 265,287 shares of our common stock for gross proceeds of approximately $2.6 million. We intend to invest the net proceeds from the Offering primarily in self storage facilities and related self storage real estate investments. As of June 30, 2014, we had neither purchased nor contracted to purchase any properties, however, our Sponsor had identified certain potential acquisitions (see Notes 6 and 7). | |
Our operating partnership, Strategic Storage Operating Partnership II, L.P., a Delaware limited partnership (our “Operating Partnership”), was formed on January 9, 2013. On August 2, 2013, our Advisor purchased a limited partnership interest in our Operating Partnership for $200,000 and on August 2, 2013, we contributed the initial $1,000 capital contribution we received to our Operating Partnership in exchange for the general partner interest. Our Operating Partnership will own, directly or indirectly through one or more special purpose entities, all of the self storage properties that we acquire in the future. As of June 30, 2014, we owned 92.99% of the limited partnership interests of our Operating Partnership. The remaining limited partnership interests are owned by our Advisor (7.01%). As the sole general partner of our Operating Partnership, we have the exclusive power to manage and conduct the business of our Operating Partnership. We will conduct certain activities (such as tenant insurance, selling packing supplies and locks and renting trucks or other moving equipment) through our taxable REIT subsidiary, Strategic Storage TRS II, Inc., a Delaware corporation (the “TRS”) which was formed on January 10, 2013, and is a wholly owned subsidiary of our Operating Partnership. | |
Our property manager will be Strategic Storage Property Management II, LLC, a Delaware limited liability company (our “Property Manager”), which was formed on January 8, 2013 to manage our properties. Our Property Manager will derive substantially all of its income from the property management services it performs for us. Our Property Manager may enter into sub-property management agreements with third party management companies and pay part of its management fee to such sub-property manager. | |
Our dealer manager is Select Capital Corporation, a California corporation (our “Dealer Manager”). Our Dealer Manager is responsible for marketing our shares being offered pursuant to our Primary Offering. Our president owns, through a wholly-owned limited liability company, a 15% non-voting equity interest in our Dealer Manager and an affiliate of our Dealer Manager owns a 2.5% non-voting membership interest in our Advisor. | |
As we accept subscriptions for shares of our common stock, we transfer substantially all of the net offering proceeds | |
to our Operating Partnership as capital contributions in exchange for additional units of interest in our Operating Partnership. However, we are deemed to have made capital contributions in the amount of gross proceeds received from investors, and our Operating Partnership is deemed to have simultaneously paid the sales commissions and other costs associated with the Offering. In addition, our Operating Partnership is structured to make distributions with respect to limited partnership units that will be equivalent to the distributions made to holders of common stock. Finally, a limited partner in our Operating Partnership may later exchange his or her limited partnership units in our Operating Partnership for shares of our common stock at any time after one year following the date of issuance of their limited partnership units, subject to certain restrictions outlined in the limited partnership agreement. Our Advisor is prohibited from exchanging or otherwise transferring its limited partnership units so long as it is acting as our Advisor pursuant to our Advisory Agreement. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Summary of Significant Accounting Policies | ' | |||
Note 2. Summary of Significant Accounting Policies | ||||
Basis of Presentation | ||||
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC. | ||||
Principles of Consolidation | ||||
Our financial statements, and the financial statements of our Operating Partnership, including its wholly-owned subsidiary, are consolidated in the accompanying consolidated financial statements. The portion of these entities not wholly-owned by us is presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated in consolidation. | ||||
Consolidation Considerations for Investments in Joint Ventures | ||||
Current accounting guidance provides a framework for identifying a variable interest entity (“VIE”) and determining when a company should include the assets, liabilities, noncontrolling interests, and results of activities of a VIE in its consolidated financial statements. In general, a VIE is an entity or other legal structure used to conduct activities or hold assets that either (1) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (2) has a group of equity owners that are unable to make significant decisions about its activities, or (3) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns generated by its operations. Generally, a VIE should be consolidated if a party with an ownership, contractual, or other financial interest in the VIE (a variable interest holder) has the power to direct the VIE’s most significant activities and the obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. A variable interest holder that consolidates the VIE is called the primary beneficiary. Upon consolidation, the primary beneficiary generally must initially record all of the VIE’s assets, liabilities, and noncontrolling interest at fair value and subsequently account for the VIE as if it were consolidated based on majority voting interest. As of June 30, 2014, we had not entered into contracts/interests that would deemed to be variable interests in VIEs. | ||||
Use of Estimates | ||||
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions. Management will adjust such estimates when facts and circumstances dictate. Actual results could materially differ from those estimates. | ||||
Cash and Cash Equivalents | ||||
We consider all short-term, highly liquid investments that are readily convertible to cash with a maturity of three months or less at the time of purchase to be cash equivalents. | ||||
We may maintain cash equivalents in financial institutions in excess of insured limits, but believe this risk will be mitigated by only investing in or through major financial institutions. | ||||
Other Assets | ||||
As of June 30, 2014, other assets included approximately $300,000 related to deferred financing costs associated with loans related to potential acquisitions (see Notes 6 and 7). The remaining amount relates to acquisition deposits funded by our Advisor on the properties described in Notes 6 and 7 that our Sponsor intends to assign to us. Based on the terms of our Advisory Agreement we are liable to the Advisor for costs they incur in sourcing, selecting, evaluating and acquiring properties on our behalf. | ||||
Real Estate Purchase Price Allocation | ||||
We will account for acquisitions in accordance with amended accounting guidance which requires that we allocate the purchase price of the property to the tangible and intangible assets acquired and the liabilities assumed based on estimated fair values. This guidance will require us to make significant estimates and assumptions, including fair value estimates, as of the acquisition date and to adjust those estimates as necessary during the measurement period (defined as the period, not to exceed one year, in which we may adjust the provisional amounts recognized for an acquisition). Acquisitions of portfolios of facilities will be allocated to the individual facilities based upon an income approach or a cash flow analysis using appropriate risk adjusted capitalization rates which take into account the relative size, age, and location of the individual facility along with current and projected occupancy and rental rate levels or appraised values, if available. Allocations to the individual assets and liabilities will be based upon comparable market sales information for land and estimates of depreciated replacement cost of equipment, building and site improvements. In allocating the purchase price, we will determine whether the acquisition includes intangible assets or liabilities. Substantially all of the leases in place at acquired properties will be at market rates, as the majority of the leases will be month-to-month contracts. We will also consider whether in-place, market leases represent an intangible asset. We do not expect intangible assets for the value of customer relationships because we expect we will not have concentrations of significant customers and the average customer turnover will be fairly frequent. | ||||
Should the initial accounting for an acquisition be incomplete by the end of a reporting period that falls within the measurement period, we will report provisional amounts in our financial statements. During the measurement period, we will adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date and we will record those adjustments to our financial statements. We will apply those measurement period adjustments that we determine to be significant retrospectively to comparative information in our financial statements, potentially including adjustments to interest, depreciation and amortization expense. | ||||
Evaluation of Possible Impairment of Long-Lived Assets | ||||
Management will continually monitor events and changes in circumstances that could indicate that the carrying amounts of our long-lived assets, including those held through joint ventures, may not be recoverable. When indicators of potential impairment are present that indicate that the carrying amounts of the assets may not be recoverable, we will assess the recoverability of the assets by determining whether the carrying value of the long-lived assets will be recovered through the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying value, we will adjust the value of the long-lived assets to the fair value and recognize an impairment loss. | ||||
Equity Investments | ||||
Investments in unconsolidated real estate joint ventures and VIEs in which we are not the primary beneficiary, where we have significant influence, but not control, will be recorded under the equity method of accounting in our consolidated financial statements. Under the equity method, our investments in real estate ventures will be stated at cost and adjusted for our share of net earnings or losses and reduced by distributions. Equity in earnings of real estate ventures will be generally recognized based on the allocation of cash distributions upon liquidation of the investment in accordance with the joint venture agreements. | ||||
Investments representing passive preferred equity and/or minority interests will be accounted for under the cost method. Under the cost method, our investments in real estate ventures will be carried at cost and adjusted for other-than-temporary declines in fair value, distributions representing a return of capital and additional investments. | ||||
Revenue Recognition | ||||
Management expects that all of our leases will be operating leases. Rental income will be recognized in accordance with the terms of the leases, which generally are month-to-month. Revenues from any long-term operating leases will be recognized on a straight-line basis over the term of the lease. The excess of rents received over amounts contractually due pursuant to the underlying leases will be included in accounts payable and accrued liabilities in our consolidated balance sheet and contractually due but unpaid rent will be included in other assets. | ||||
Allowance for Doubtful Accounts | ||||
Customer accounts receivable will be reported net of an allowance for doubtful accounts. Management’s estimate of the allowance will be based upon a review of the current status of customer accounts receivable. It is reasonably possible that management’s estimate of the allowance will change in the future. | ||||
Depreciation of Real Property Assets | ||||
Our management will be required to make subjective assessments as to the useful lives of our depreciable assets. We will consider the period of future benefit of the asset to determine the appropriate useful lives. | ||||
Depreciation of our real property assets is expected to be charged to expense on a straight-line basis over the estimated useful lives as follows: | ||||
Description | Standard Depreciable Life | |||
Land | Not Depreciated | |||
Buildings | 30 to 35 years | |||
Site Improvements | 7 to 15 years | |||
Depreciation of Personal Property Assets | ||||
Personal property assets are expected to consist primarily of furniture, fixtures and equipment and will be depreciated on a straight-line basis over the estimated useful lives generally ranging from 3 to 5 years, and will be included in other assets on our consolidated balance sheet. | ||||
Intangible Assets | ||||
We will allocate a portion of our real estate purchase price to in-place leases. We will amortize in-place leases on a straight-line basis over the estimated future benefit period. | ||||
Amortization of Deferred Financing Costs | ||||
Costs incurred in connection with obtaining financing will be deferred and amortized over the term of the related loan. | ||||
Organizational and Offering Costs | ||||
Our Advisor will fund organization and offering costs on our behalf. We will be required to reimburse our Advisor for such organization and offering costs; provided, however, our Advisor must reimburse us within 60 days after the end of the month in which the Offering terminates to the extent we paid or reimbursed organization and offering costs (excluding sales commissions and dealer manager fees) in excess of 3.5% of the gross offering proceeds from the Primary Offering. Such costs will be recognized as a liability when we have a present responsibility to reimburse our Advisor, which is defined in our Advisory Agreement as the date we satisfied the Minimum Offering Amount of our Offering (which occurred on May 23, 2014). If at any point in time we determine that the total organization and offering costs are expected to exceed 3.5% of the gross proceeds anticipated to be received from the Primary Offering, we will recognize such excess as a capital contribution from our Advisor. As of June 30, 2014, we do not believe total organization and offering costs will exceed 3.5% of the gross proceeds anticipated to be received from the Primary Offering. Offering costs are recorded as an offset to additional paid-in capital, and organization costs are recorded as an expense. | ||||
Redeemable Common Stock | ||||
We adopted a share redemption program that will enable stockholders to sell their shares to us in limited circumstances. | ||||
We record amounts that are redeemable under the share redemption program as redeemable common stock in the accompanying consolidated balance sheet since the shares are mandatorily redeemable at the option of the holder and therefore their redemption is outside our control. The maximum amount redeemable under our share redemption program is limited to the number of shares we can repurchase with the amount of the net proceeds from the sale of shares under the distribution reinvestment plan. However, accounting guidance states that determinable amounts that can become redeemable but that are contingent on an event that is likely to occur (e.g., the passage of time) should be presented as redeemable when such amount is known. Therefore, the net proceeds from the distribution reinvestment plan are considered to be temporary equity and are presented as redeemable common stock in the accompanying consolidated balance sheet. | ||||
In addition, current accounting guidance requires, among other things, that financial instruments that represent a mandatory obligation of us to repurchase shares be classified as liabilities and reported at settlement value. Our redeemable common shares will be contingently redeemable at the option of the holder. When we determine we have a mandatory obligation to repurchase shares under the share redemption program, we will reclassify such obligations from temporary equity to a liability based upon their respective settlement values. | ||||
Through June 30, 2014 we had not received any requests for redemptions. | ||||
Fair Value Measurements | ||||
The accounting standard for fair value measurements and disclosures defines fair value, establishes a framework for measuring fair value, and provides for expanded disclosure about fair value measurements. Fair value is defined by the accounting standard for fair value measurements and disclosures as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels. The following summarizes the three levels of inputs and hierarchy of fair value we will use when measuring fair value: | ||||
• | Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access; | |||
• | Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as interest rates and yield curves that are observable at commonly quoted intervals; and | |||
• | Level 3 inputs are unobservable inputs for the assets or liabilities that are typically based on an entity’s own assumptions as there is little, if any, related market activity. | |||
In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the fair value measurement will fall within the lowest level that is significant to the fair value measurement in its entirety. | ||||
The accounting guidance for fair value measurements and disclosures provides a framework for measuring fair value and establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In determining fair value, we will utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment will be necessary to interpret Level 2 and 3 inputs in determining fair value of our financial and non-financial assets and liabilities. Accordingly, there can be no assurance that the fair values we will present will be indicative of amounts that may ultimately be realized upon sale or other disposition of these assets. | ||||
The carrying amounts of cash and cash equivalents, customer accounts receivable, other assets, accounts payable and accrued liabilities, distributions payable and amounts due to affiliates will approximate fair value because of the relatively short-term nature of these instruments. | ||||
To comply with GAAP, we will incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of derivative contracts for the effect of nonperformance risk, we will consider the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. | ||||
Noncontrolling Interest in Consolidated Entities | ||||
We account for the noncontrolling interest in our Operating Partnership in accordance with the related accounting guidance. Due to our control through our general partnership interest in our Operating Partnership and the limited rights of the limited partner, our Operating Partnership, including its wholly-owned subsidiary, is consolidated with the Company and the limited partner interest is reflected as a noncontrolling interest in the accompanying consolidated balance sheet. The noncontrolling interest shall be attributed its share of income and losses, even if that attribution results in a deficit noncontrolling interest balance. | ||||
Income Taxes | ||||
We intend to make an election to be taxed as a Real Estate Investment Trust (“REIT”), under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with our taxable year ending December 31, 2014. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the REIT’s ordinary taxable income to stockholders. As a REIT, we generally will not be subject to federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will then be subject to federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the IRS grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders. However, we believe that we will be organized and operate in such a manner as to qualify for treatment as a REIT and intend to operate in the foreseeable future in such a manner that we will remain qualified as a REIT for federal income tax purposes. | ||||
Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property, and federal income and excise taxes on our undistributed income. | ||||
We will file elections to treat our TRS as a taxable REIT subsidiary effective January 1, 2014. In general, the TRS may perform additional services for our customers and generally may engage in any real estate or non-real estate related business. The TRS is subject to corporate federal and state income tax. The TRS will follow accounting guidance which will require the use of the asset and liability method. Deferred income taxes will represent the tax effect of future differences between the book and tax bases of assets and liabilities. | ||||
Per Share Data | ||||
We currently have no potentially dilutive instruments. Both basic and diluted earnings per share attributable for all periods presented are computed by dividing net income (loss) by the weighted average number of shares outstanding during the period. | ||||
Recently Issued Accounting Guidance | ||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09 “Revenue from Contracts with Customers” (“ASU 2014-09”) as Accounting Standards Codification (“ASC”) Topic 606. The objective of ASU 2014-09 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the new standard, companies will perform a five-step analysis of transactions to determine when and how revenue is recognized. ASU 2014-09 applies to all contracts with customers except those that are within the scope of other topics is the FASB ASC. This ASU is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2016 and shall be applied using either a full retrospective or modified retrospective approach. Early adoption is not permitted. We are in the process of evaluating the impact of this standard on our consolidated financial statements and the impact is unknown at this time. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Related Party Transactions | ' | ||||||||||||||||
Note 3. Related Party Transactions | |||||||||||||||||
Fees to Affiliates | |||||||||||||||||
Our Advisory Agreement with our Advisor and dealer manager agreement (“Dealer Manager Agreement”) with our Dealer Manager, entitle our Advisor and our Dealer Manager to specified fees upon the provision of certain services with regard to the Offering and investment of funds in real estate properties, among other services, as well as reimbursement for organizational and offering costs incurred by our Advisor on our behalf and reimbursement of certain costs and expenses incurred by our Advisor in providing services to us. | |||||||||||||||||
Organization and Offering Costs | |||||||||||||||||
Organization and offering costs of the Offering may be paid by our Advisor on our behalf and will be reimbursed to our Advisor from the proceeds of our initial public Offering. Organization and offering costs will consist of all expenses (other than sales commissions and the dealer manager fee) to be paid by us in connection with the Offering, including our legal, accounting, printing, mailing and filing fees, charges of our escrow holder and other accountable organization and offering expenses, including, but not limited to, (i) amounts to reimburse our Advisor for all marketing related costs and expenses such as salaries and direct expenses of employees of our Advisor and its affiliates in connection with registering and marketing our shares; (ii) technology costs associated with the Offering; (iii) our costs of conducting our training and education meetings; (iv) our costs of attending retail seminars conducted by participating broker-dealers; and (v) payment or reimbursement of bona fide due diligence expenses. Our Advisor must reimburse us within 60 days after the end of the month which the Offering terminates to the extent we paid or reimbursed organization and offering costs (excluding sales commissions and dealer manager fees) in excess of 3.5% of the gross offering proceeds from the Primary Offering. | |||||||||||||||||
Advisory Agreement | |||||||||||||||||
We do not have any employees. Our Advisor is primarily responsible for managing our business affairs and carrying out the directives of our board of directors. Our Advisor will receive various fees and expenses under the terms of our Advisory Agreement. As discussed above, we will be required under our Advisory Agreement to reimburse our Advisor for organization and offering costs; provided, however, our Advisor will be required to reimburse us within 60 days after the end of the month in which the Offering terminates to the extent we paid or reimbursed organization and offering costs (excluding sales commissions and dealer manager fees) in excess of 3.5% of the gross offering proceeds from the Primary Offering. | |||||||||||||||||
Our Advisory Agreement also requires our Advisor to reimburse us to the extent that offering expenses, including sales commissions, dealer manager fees and organization and offering expenses, are in excess of 15% of gross proceeds from the Offering. | |||||||||||||||||
Our Advisor will receive acquisition fees equal to 1.75% of the contract purchase price of each property we acquire plus reimbursement of any acquisition expenses our Advisor incurs. Our Advisor will also receive a monthly asset management fee equal to 0.05208%, which is one-twelfth of 0.625%, of our aggregate asset value, as defined. | |||||||||||||||||
Under our Advisory Agreement, our Advisor will receive disposition fees in an amount equal to the lesser of (i) one-half of the competitive real estate commission or (ii) 1% of the contract sale price for each property we sell, as long as our Advisor provides substantial assistance in connection with the sale. The total real estate commissions paid (including the disposition fee paid to our Advisor) may not exceed the lesser of a competitive real estate commission or an amount equal to 6% of the contract sale price of the property, and our fee is subordinated to receipt of our stockholders of a 6% cumulative, non-compounded, annual return on such stockholders’ invested capital. | |||||||||||||||||
Our Advisor may also be entitled to various subordinated distributions pursuant to our Operating Partnership agreement if we (1) list our shares of common stock on a national exchange, (2) terminate our Advisory Agreement (other than a voluntary termination), (3) liquidate our portfolio, or (4) enter into an Extraordinary Transaction, as defined in the Operating Partnership agreement. | |||||||||||||||||
Our Advisory Agreement provides for reimbursement of our Advisor’s direct and indirect costs of providing administrative and management services to us. Beginning four fiscal quarters after we acquire our first real estate asset, our Advisor will be required to pay or reimburse us the amount by which our aggregate annual operating expenses, as defined, exceed the greater of 2% of our average invested assets or 25% of our net income, as defined, unless a majority of our independent directors determine that such excess expenses were justified based on unusual and non-recurring factors. For any fiscal quarter for which total operating expenses for the 12 months then ended exceed the limitation, we will disclose this fact in our next quarterly report or within 60 days of the end of that quarter and send a written disclosure of this fact to our stockholders. In each case the disclosure will include an explanation of the factors that the independent directors considered in arriving at the conclusion that the excess expenses were justified. | |||||||||||||||||
Dealer Manager Agreement | |||||||||||||||||
Our Dealer Manager receives a sales commission of up to 7.0% of gross proceeds from sales in the Primary Offering and a dealer manager fee equal to up to 3.0% of gross proceeds from sales in the Primary Offering under the terms of our Dealer Manager Agreement. Our Dealer Manager has entered into participating dealer agreements with certain other broker-dealers which authorizes them to sell our shares. Upon sale of our shares by such broker-dealers, our Dealer Manager will re-allow all of the sales commissions paid in connection with sales made by these broker-dealers. Our Dealer Manager may also re-allow to these broker-dealers a portion of the 3.0% dealer manager fee as marketing fees, reimbursement of certain costs and expenses of attending training and education meetings sponsored by our Dealer Manager, payment of attendance fees required for employees of our Dealer Manager or other affiliates to attend retail seminars and public seminars sponsored by these broker-dealers, or to defray other distribution-related expenses. Our Dealer Manager also receives reimbursement of bona fide due diligence expenses; however, to the extent these due diligence expenses cannot be justified, any excess over actual due diligence expenses will be considered underwriting compensation subject to a 10% FINRA limitation and, when aggregated with all other non-accountable expenses may not exceed 3% of gross offering proceeds from sales in the Primary Offering. | |||||||||||||||||
Affiliated Dealer Manager | |||||||||||||||||
Our Chairman of the Board of Directors, Chief Executive Officer and President owns, through a wholly-owned limited liability company, a 15% non-voting equity interest in our Dealer Manager and an affiliate of our Dealer Manager owns a 2.5% non-voting membership interest in our Advisor. | |||||||||||||||||
Property Management Agreement | |||||||||||||||||
Each of our self storage properties will be managed by our Property Manager under separate property management agreements. Under each agreement, our Property Manager will receive a fee for its services in managing our properties, generally equal to 6% of the gross revenues from the properties plus reimbursement of the Property Manager’s costs of managing the properties. Reimbursable costs and expenses include wages and salaries and other expenses of employees engaged in operating, managing and maintaining our properties. In the event that our Property Manager assists with the development or redevelopment of a property, we may pay a separate market-based fee for such services. In addition, our Property Manager will be entitled to a construction management fee equal to 5% of the cost of construction or capital improvement work in excess of $10,000 and an administration fee equal to $0.50 a month for each insurance policy purchased by a customer at one of our facilities in connection with the tenant insurance program. Additionally, each agreement will include a non-solicitation provision and a provision regarding the Property Manager’s use of trademarks and other intellectual property owned by our Sponsor. | |||||||||||||||||
Pursuant to the terms of the agreements described above, the following related party costs incurred by the Company for the three months ended June 30, 2014 and 2013 and for the six months ended June 30, 2014 and for the period from January 8, 2013 (date of inception) through June 30, 2013, and any related amounts payable as of June 30, 2014 are summarized below: | |||||||||||||||||
Three Months | Three Months | Six Months | Period from | ||||||||||||||
Ended | Ended | Ended | January 8, | ||||||||||||||
June 30, | June 30, | June 30, | 2013 (date of | ||||||||||||||
2014 | 2013 | 2014 | inception) | ||||||||||||||
through | |||||||||||||||||
June 30, | |||||||||||||||||
2013 | |||||||||||||||||
Expensed | |||||||||||||||||
Reimbursement of operating expenses (including organizational costs) | $ | 442,739 | $ | — | $ | 442,739 | $ | — | |||||||||
Acquisition expenses | 424,252 | — | 424,252 | — | |||||||||||||
Capitalized | |||||||||||||||||
Other assets | 971,631 | — | 971,631 | — | |||||||||||||
Additional Paid-in Capital | |||||||||||||||||
Selling commissions | 183,279 | — | 183,279 | — | |||||||||||||
Dealer Manager fee | 78,548 | — | 78,548 | — | |||||||||||||
Reimbursement of offering costs | 1,466,814 | — | 1,466,814 | — | |||||||||||||
Total | $ | 3,567,263 | $ | — | $ | 3,567,263 | $ | — | |||||||||
As of June 30, 2014 and December 31, 2013, we had amounts due to affiliates totaling approximately $2.9 million and none, respectively. | |||||||||||||||||
Tenant Reinsurance Program | |||||||||||||||||
Affiliates of our Sponsor, including our Chairman of the Board of Directors, Chief Executive Officer and President participate in a tenant reinsurance program whereby we expect that customers of our self storage facilities will be able to purchase insurance to cover damage or destruction to their property while stored at our facilities. Such affiliates have invested in a Cayman Islands company (the “Reinsurance Company”) that will insure a portion of the insurance required by the program insurer to cover the risks of loss at participating facilities in the program. The program insurer will provide fees (approximately 50% of the tenant premium paid) to us as owner of the facilities. The Reinsurance Company may be required to fund additional capital or entitled to receive distributions of profits depending on actual losses incurred under the program. As of June 30, 2014, we had not incurred any fees in connection with the Tenant Reinsurance Program. | |||||||||||||||||
Storage Auction Program | |||||||||||||||||
Our Chairman of the Board of Directors, Chief Executive Officer and President, and our Senior Vice President – Property Management and the president of our Property Manager, own minority interests in a company (the “Auction Company”) that serves as a web portal for self storage companies to post their auctions online instead of using live auctions conducted at the self storage facilities. Once the contents of a storage unit are sold at auction, we will pay the Auction Company a service fee based upon the sale price of the unit. Collectively, these officers own 9% of the voting interests in the Auction Company. As of June 30, 2014, we had not incurred any fees in connection with the Auction Company. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments And Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Note 4. Commitments and Contingencies | ||||
Distribution Reinvestment Plan | ||||
We adopted a distribution reinvestment plan that allows our stockholders to have distributions otherwise distributable to them invested in additional shares of our common stock. The purchase price per share is 95% of the current offering price of our shares in the Primary Offering. No sales commission or dealer manager fee will be paid on shares sold through the distribution reinvestment plan. We may amend or terminate the distribution reinvestment plan for any reason at any time upon 10 days’ prior written notice to stockholders. | ||||
Share Redemption Program | ||||
We adopted a share redemption program that enables stockholders to sell their shares to us in limited circumstances. As long as our common stock is not listed on a national securities exchange or over-the-counter market, our stockholders who have held their stock for at least one year may be able to have all or any portion of their shares of stock redeemed by us. We may redeem the shares of stock presented for redemption for cash to the extent that we have sufficient funds available to fund such redemption. | ||||
Our board of directors may amend, suspend or terminate the share redemption program with 30 days’ notice to our stockholders. We may provide this notice by including such information in a Current Report on Form 8-K or in our annual or quarterly reports, all publicly filed with the SEC, or by a separate mailing to our stockholders. The complete terms of our share redemption program are described in our prospectus. | ||||
The amount that we may pay to redeem stock for redemptions is the redemption price set forth in the following table which is based upon the number of years the stock is held: | ||||
Number Years Held | Redemption Price | |||
Less than 1 | No Redemption Allowed | |||
1 or more but less than 3 | 90.0% of Redemption Amount | |||
3 or more but less than 4 | 95.0% of Redemption Amount | |||
4 or more | 100.0% of Redemption Amount | |||
At any time we are engaged in an offering of shares, the Redemption Amount for shares purchased under our share redemption program will always be equal to or lower than the applicable per share offering price. As long as we are engaged in an offering, the Redemption Amount shall be the lesser of the amount the stockholder paid for their shares or the price per share in the current Offering. If we are no longer engaged in an offering, the per share Redemption Amount will be determined by our board of directors. Our board of directors will announce any redemption price adjustment and the time period of its effectiveness as a part of its regular communications with our stockholders. At any time the redemption price during an offering is determined by any method other than the offering price, if we have sold property and have made one or more special distributions to our stockholders of all or a portion of the net proceeds from such sales, the per share redemption price will be reduced by the net sale proceeds per share distributed to investors prior to the redemption date as a result of the sale of such property in the special distribution. Our board of directors will, in its sole discretion, determine which distributions, if any, constitute a special distribution. While our board of directors does not have specific criteria for determining a special distribution, we expect that a special distribution will only occur upon the sale of a property and the subsequent distribution of the net sale proceeds. | ||||
There are several limitations on our ability to redeem shares under the share redemption program including, but not limited to: | ||||
• | Unless the shares are being redeemed in connection with a stockholder’s death, “qualifying disability” (as defined under the share redemption program) or bankruptcy, we may not redeem shares until the stockholder has held his or her shares for one year. | |||
• | During any calendar year, we will not redeem in excess of 5% of the weighted-average number of shares outstanding during the prior calendar year. | |||
• | The cash available for redemption is limited to the proceeds from the sale of shares pursuant to our distribution reinvestment plan. | |||
• | We have no obligation to redeem shares if the redemption would violate the restrictions on distributions under Maryland law, which prohibits distributions that would cause a corporation to fail to meet statutory tests of solvency. | |||
Operating Partnership Redemption Rights | ||||
The limited partners of our Operating Partnership have the right to cause our Operating Partnership to redeem their limited partnership units for cash equal to the value of an equivalent number of our shares, or, at our option, we may purchase their limited partnership units by issuing one share of our common stock for each limited partnership unit redeemed. These rights may not be exercised under certain circumstances that could cause us to lose our REIT election. Furthermore, limited partners may exercise their redemption rights only after their limited partnership units have been outstanding for one year. Our Advisor is prohibited from exchanging or otherwise transferring its limited partnership units so long as our Sponsor is acting as our sponsor. |
Declaration_of_Distributions
Declaration of Distributions | 6 Months Ended |
Jun. 30, 2014 | |
Text Block [Abstract] | ' |
Declaration of Distributions | ' |
Note 5. Declaration of Distributions | |
On June 18, 2014, our board of directors declared a distribution rate for the third quarter of 2014 of $0.00164383561 per day per share on the outstanding shares of common stock payable to stockholders of record of such shares as shown on our books as of the close of business on each day during the period, commencing on July 1, 2014 and continuing on each day thereafter through and including September 30, 2014. |
Potential_Acquisitions
Potential Acquisitions | 6 Months Ended |
Jun. 30, 2014 | |
Business Combinations [Abstract] | ' |
Potential Acquisitions | ' |
Note 6. Potential Acquisitions | |
Storkwik Portfolio | |
On January 21, 2014, our Sponsor executed a purchase and sale agreement with an unaffiliated third party for the acquisition of a portfolio of five self storage facilities, consisting of three facilities located in Raleigh, North Carolina and two facilities located in Myrtle Beach, South Carolina (the “Raleigh/Myrtle Beach Portfolio”). Our Board of Directors approved our potential acquisition of the Raleigh/Myrtle Beach Portfolio on March 25, 2014 and on August 14, 2014 our Sponsor assigned its interests in the purchase and sale agreement to us. | |
The purchase price for the Raleigh/Myrtle Beach Portfolio is $22.1 million, plus closing costs and acquisition fees. Subject to and approval by the current lender of our assumption of the existing loan encumbering the properties, we expect this acquisition to close in the third or fourth quarter of 2014 and to fund such acquisition with a combination of net proceeds from our Offering, assumption of an existing $12.8 million loan encumbering the properties in the Raleigh/Myrtle Beach Portfolio and other potential financing sources. The properties in the Raleigh/Myrtle Beach Portfolio consist of an aggregate of approximately 2,350 self storage units and approximately 317,000 rentable square feet. We will only be obligated to purchase the Raleigh/Myrtle Beach Portfolio after satisfactory completion of agreed upon closing conditions. There can be no assurance that we will complete the acquisition. If we fail to complete such acquisition, in addition to incurred acquisition costs, we may also forfeit earnest money as a result. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Note 7. Subsequent Events | |
Offering Status | |
As of August 7, 2014, in connection with our Offering we have issued approximately 430,000 shares of our common stock for gross proceeds of approximately $4.3 million. | |
Potential Acquisitions | |
26 Property Portfolio | |
On August 13, 2014, our Board of Directors approved our potential acquisition of a 26 property portfolio (the “26 Property Portfolio”) that our Sponsor had under contract through a purchase and sale agreement with unaffiliated third parties. Commensurate with such approval, our Sponsor assigned its interests in the purchase and sale agreement relating to the 26 Property Portfolio to us and we are now obligated to make an additional earnest money deposit of approximately $4 million. The portfolio consists of 14 facilities located in California; four facilities located in Michigan; three facilities located in Colorado; two facilities located in Illinois and one facility in each of New Jersey, Washington and Maryland. | |
The purchase price for the 26 Property Portfolio is approximately $128.1 million, plus closing costs and acquisition fees. We expect this acquisition 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 our Offering, a credit facility or other debt financing, and other potential financing sources. The properties in the 26 Property Portfolio consist of an aggregate of approximately 14,490 self storage units and approximately 1,504,000 rentable square feet. There can be no assurance that we will complete the acquisition. If we fail to acquire some or all of the facilities, in addition to the incurred acquisition costs, we may also forfeit earnest money as a result. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Basis of Presentation | ' | |||
Basis of Presentation | ||||
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC. | ||||
Principles of Consolidation | ' | |||
Principles of Consolidation | ||||
Our financial statements, and the financial statements of our Operating Partnership, including its wholly-owned subsidiary, are consolidated in the accompanying consolidated financial statements. The portion of these entities not wholly-owned by us is presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated in consolidation. | ||||
Consolidation Considerations for Investments in Joint Ventures | ' | |||
Consolidation Considerations for Investments in Joint Ventures | ||||
Current accounting guidance provides a framework for identifying a variable interest entity (“VIE”) and determining when a company should include the assets, liabilities, noncontrolling interests, and results of activities of a VIE in its consolidated financial statements. In general, a VIE is an entity or other legal structure used to conduct activities or hold assets that either (1) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (2) has a group of equity owners that are unable to make significant decisions about its activities, or (3) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns generated by its operations. Generally, a VIE should be consolidated if a party with an ownership, contractual, or other financial interest in the VIE (a variable interest holder) has the power to direct the VIE’s most significant activities and the obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. A variable interest holder that consolidates the VIE is called the primary beneficiary. Upon consolidation, the primary beneficiary generally must initially record all of the VIE’s assets, liabilities, and noncontrolling interest at fair value and subsequently account for the VIE as if it were consolidated based on majority voting interest. As of June 30, 2014, we had not entered into contracts/interests that would deemed to be variable interests in VIEs. | ||||
Use of Estimates | ' | |||
Use of Estimates | ||||
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions. Management will adjust such estimates when facts and circumstances dictate. Actual results could materially differ from those estimates. | ||||
Cash and Cash Equivalents | ' | |||
Cash and Cash Equivalents | ||||
We consider all short-term, highly liquid investments that are readily convertible to cash with a maturity of three months or less at the time of purchase to be cash equivalents. | ||||
We may maintain cash equivalents in financial institutions in excess of insured limits, but believe this risk will be mitigated by only investing in or through major financial institutions. | ||||
Other Assets | ' | |||
Other Assets | ||||
As of June 30, 2014, other assets included approximately $300,000 related to deferred financing costs associated with loans related to potential acquisitions (see Notes 6 and 7). The remaining amount relates to acquisition deposits funded by our Advisor on the properties described in Notes 6 and 7 that our Sponsor intends to assign to us. Based on the terms of our Advisory Agreement we are liable to the Advisor for costs they incur in sourcing, selecting, evaluating and acquiring properties on our behalf. | ||||
Real Estate Purchase Price Allocation | ' | |||
Real Estate Purchase Price Allocation | ||||
We will account for acquisitions in accordance with amended accounting guidance which requires that we allocate the purchase price of the property to the tangible and intangible assets acquired and the liabilities assumed based on estimated fair values. This guidance will require us to make significant estimates and assumptions, including fair value estimates, as of the acquisition date and to adjust those estimates as necessary during the measurement period (defined as the period, not to exceed one year, in which we may adjust the provisional amounts recognized for an acquisition). Acquisitions of portfolios of facilities will be allocated to the individual facilities based upon an income approach or a cash flow analysis using appropriate risk adjusted capitalization rates which take into account the relative size, age, and location of the individual facility along with current and projected occupancy and rental rate levels or appraised values, if available. Allocations to the individual assets and liabilities will be based upon comparable market sales information for land and estimates of depreciated replacement cost of equipment, building and site improvements. In allocating the purchase price, we will determine whether the acquisition includes intangible assets or liabilities. Substantially all of the leases in place at acquired properties will be at market rates, as the majority of the leases will be month-to-month contracts. We will also consider whether in-place, market leases represent an intangible asset. We do not expect intangible assets for the value of customer relationships because we expect we will not have concentrations of significant customers and the average customer turnover will be fairly frequent. | ||||
Should the initial accounting for an acquisition be incomplete by the end of a reporting period that falls within the measurement period, we will report provisional amounts in our financial statements. During the measurement period, we will adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date and we will record those adjustments to our financial statements. We will apply those measurement period adjustments that we determine to be significant retrospectively to comparative information in our financial statements, potentially including adjustments to interest, depreciation and amortization expense. | ||||
Evaluation of Possible Impairment of Long-Lived Assets | ' | |||
Evaluation of Possible Impairment of Long-Lived Assets | ||||
Management will continually monitor events and changes in circumstances that could indicate that the carrying amounts of our long-lived assets, including those held through joint ventures, may not be recoverable. When indicators of potential impairment are present that indicate that the carrying amounts of the assets may not be recoverable, we will assess the recoverability of the assets by determining whether the carrying value of the long-lived assets will be recovered through the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying value, we will adjust the value of the long-lived assets to the fair value and recognize an impairment loss. | ||||
Equity Investments | ' | |||
Equity Investments | ||||
Investments in unconsolidated real estate joint ventures and VIEs in which we are not the primary beneficiary, where we have significant influence, but not control, will be recorded under the equity method of accounting in our consolidated financial statements. Under the equity method, our investments in real estate ventures will be stated at cost and adjusted for our share of net earnings or losses and reduced by distributions. Equity in earnings of real estate ventures will be generally recognized based on the allocation of cash distributions upon liquidation of the investment in accordance with the joint venture agreements. | ||||
Investments representing passive preferred equity and/or minority interests will be accounted for under the cost method. Under the cost method, our investments in real estate ventures will be carried at cost and adjusted for other-than-temporary declines in fair value, distributions representing a return of capital and additional investments. | ||||
Revenue Recognition | ' | |||
Revenue Recognition | ||||
Management expects that all of our leases will be operating leases. Rental income will be recognized in accordance with the terms of the leases, which generally are month-to-month. Revenues from any long-term operating leases will be recognized on a straight-line basis over the term of the lease. The excess of rents received over amounts contractually due pursuant to the underlying leases will be included in accounts payable and accrued liabilities in our consolidated balance sheet and contractually due but unpaid rent will be included in other assets. | ||||
Allowance for Doubtful Accounts | ' | |||
Allowance for Doubtful Accounts | ||||
Customer accounts receivable will be reported net of an allowance for doubtful accounts. Management’s estimate of the allowance will be based upon a review of the current status of customer accounts receivable. It is reasonably possible that management’s estimate of the allowance will change in the future. | ||||
Depreciation of Real Property Assets | ' | |||
Depreciation of Real Property Assets | ||||
Our management will be required to make subjective assessments as to the useful lives of our depreciable assets. We will consider the period of future benefit of the asset to determine the appropriate useful lives. | ||||
Depreciation of our real property assets is expected to be charged to expense on a straight-line basis over the estimated useful lives as follows: | ||||
Description | Standard Depreciable Life | |||
Land | Not Depreciated | |||
Buildings | 30 to 35 years | |||
Site Improvements | 7 to 15 years | |||
Depreciation of Personal Property Assets | ' | |||
Depreciation of Personal Property Assets | ||||
Personal property assets are expected to consist primarily of furniture, fixtures and equipment and will be depreciated on a straight-line basis over the estimated useful lives generally ranging from 3 to 5 years, and will be included in other assets on our consolidated balance sheet. | ||||
Intangible Assets | ' | |||
Intangible Assets | ||||
We will allocate a portion of our real estate purchase price to in-place leases. We will amortize in-place leases on a straight-line basis over the estimated future benefit period. | ||||
Amortization of Deferred Financing Costs | ' | |||
Amortization of Deferred Financing Costs | ||||
Costs incurred in connection with obtaining financing will be deferred and amortized over the term of the related loan. | ||||
Organizational and Offering Costs | ' | |||
Organizational and Offering Costs | ||||
Our Advisor will fund organization and offering costs on our behalf. We will be required to reimburse our Advisor for such organization and offering costs; provided, however, our Advisor must reimburse us within 60 days after the end of the month in which the Offering terminates to the extent we paid or reimbursed organization and offering costs (excluding sales commissions and dealer manager fees) in excess of 3.5% of the gross offering proceeds from the Primary Offering. Such costs will be recognized as a liability when we have a present responsibility to reimburse our Advisor, which is defined in our Advisory Agreement as the date we satisfied the Minimum Offering Amount of our Offering (which occurred on May 23, 2014). If at any point in time we determine that the total organization and offering costs are expected to exceed 3.5% of the gross proceeds anticipated to be received from the Primary Offering, we will recognize such excess as a capital contribution from our Advisor. As of June 30, 2014, we do not believe total organization and offering costs will exceed 3.5% of the gross proceeds anticipated to be received from the Primary Offering. Offering costs are recorded as an offset to additional paid-in capital, and organization costs are recorded as an expense. | ||||
Redeemable Common Stock | ' | |||
Redeemable Common Stock | ||||
We adopted a share redemption program that will enable stockholders to sell their shares to us in limited circumstances. | ||||
We record amounts that are redeemable under the share redemption program as redeemable common stock in the accompanying consolidated balance sheet since the shares are mandatorily redeemable at the option of the holder and therefore their redemption is outside our control. The maximum amount redeemable under our share redemption program is limited to the number of shares we can repurchase with the amount of the net proceeds from the sale of shares under the distribution reinvestment plan. However, accounting guidance states that determinable amounts that can become redeemable but that are contingent on an event that is likely to occur (e.g., the passage of time) should be presented as redeemable when such amount is known. Therefore, the net proceeds from the distribution reinvestment plan are considered to be temporary equity and are presented as redeemable common stock in the accompanying consolidated balance sheet. | ||||
In addition, current accounting guidance requires, among other things, that financial instruments that represent a mandatory obligation of us to repurchase shares be classified as liabilities and reported at settlement value. Our redeemable common shares will be contingently redeemable at the option of the holder. When we determine we have a mandatory obligation to repurchase shares under the share redemption program, we will reclassify such obligations from temporary equity to a liability based upon their respective settlement values. | ||||
Through June 30, 2014 we had not received any requests for redemptions. | ||||
Fair Value Measurements | ' | |||
Fair Value Measurements | ||||
The accounting standard for fair value measurements and disclosures defines fair value, establishes a framework for measuring fair value, and provides for expanded disclosure about fair value measurements. Fair value is defined by the accounting standard for fair value measurements and disclosures as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels. The following summarizes the three levels of inputs and hierarchy of fair value we will use when measuring fair value: | ||||
• | Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access; | |||
• | Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as interest rates and yield curves that are observable at commonly quoted intervals; and | |||
• | Level 3 inputs are unobservable inputs for the assets or liabilities that are typically based on an entity’s own assumptions as there is little, if any, related market activity. | |||
In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the fair value measurement will fall within the lowest level that is significant to the fair value measurement in its entirety. | ||||
The accounting guidance for fair value measurements and disclosures provides a framework for measuring fair value and establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In determining fair value, we will utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment will be necessary to interpret Level 2 and 3 inputs in determining fair value of our financial and non-financial assets and liabilities. Accordingly, there can be no assurance that the fair values we will present will be indicative of amounts that may ultimately be realized upon sale or other disposition of these assets. | ||||
The carrying amounts of cash and cash equivalents, customer accounts receivable, other assets, accounts payable and accrued liabilities, distributions payable and amounts due to affiliates will approximate fair value because of the relatively short-term nature of these instruments. | ||||
To comply with GAAP, we will incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of derivative contracts for the effect of nonperformance risk, we will consider the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. | ||||
Noncontrolling Interest in Consolidated Entities | ' | |||
Noncontrolling Interest in Consolidated Entities | ||||
We account for the noncontrolling interest in our Operating Partnership in accordance with the related accounting guidance. Due to our control through our general partnership interest in our Operating Partnership and the limited rights of the limited partner, our Operating Partnership, including its wholly-owned subsidiary, is consolidated with the Company and the limited partner interest is reflected as a noncontrolling interest in the accompanying consolidated balance sheet. The noncontrolling interest shall be attributed its share of income and losses, even if that attribution results in a deficit noncontrolling interest balance. | ||||
Income Taxes | ' | |||
Income Taxes | ||||
We intend to make an election to be taxed as a Real Estate Investment Trust (“REIT”), under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with our taxable year ending December 31, 2014. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the REIT’s ordinary taxable income to stockholders. As a REIT, we generally will not be subject to federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will then be subject to federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the IRS grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders. However, we believe that we will be organized and operate in such a manner as to qualify for treatment as a REIT and intend to operate in the foreseeable future in such a manner that we will remain qualified as a REIT for federal income tax purposes. | ||||
Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property, and federal income and excise taxes on our undistributed income. | ||||
We will file elections to treat our TRS as a taxable REIT subsidiary effective January 1, 2014. In general, the TRS may perform additional services for our customers and generally may engage in any real estate or non-real estate related business. The TRS is subject to corporate federal and state income tax. The TRS will follow accounting guidance which will require the use of the asset and liability method. Deferred income taxes will represent the tax effect of future differences between the book and tax bases of assets and liabilities. | ||||
Per Share Data | ' | |||
Per Share Data | ||||
We currently have no potentially dilutive instruments. Both basic and diluted earnings per share attributable for all periods presented are computed by dividing net income (loss) by the weighted average number of shares outstanding during the period. | ||||
Recently Issued Accounting Guidance | ' | |||
Recently Issued Accounting Guidance | ||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09 “Revenue from Contracts with Customers” (“ASU 2014-09”) as Accounting Standards Codification (“ASC”) Topic 606. The objective of ASU 2014-09 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the new standard, companies will perform a five-step analysis of transactions to determine when and how revenue is recognized. ASU 2014-09 applies to all contracts with customers except those that are within the scope of other topics is the FASB ASC. This ASU is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2016 and shall be applied using either a full retrospective or modified retrospective approach. Early adoption is not permitted. We are in the process of evaluating the impact of this standard on our consolidated financial statements and the impact is unknown at this time. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | ||
Jun. 30, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Estimated Useful Lives used to Depreciate Real Property Assets | ' | ||
Depreciation of our real property assets is expected to be charged to expense on a straight-line basis over the estimated useful lives as follows: | |||
Description | Standard Depreciable Life | ||
Land | Not Depreciated | ||
Buildings | 30 to 35 years | ||
Site Improvements | 7 to 15 years |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Summary of Related Party Costs Incurred | ' | ||||||||||||||||
Pursuant to the terms of the agreements described above, the following related party costs incurred by the Company for the three months ended June 30, 2014 and 2013 and for the six months ended June 30, 2014 and for the period from January 8, 2013 (date of inception) through June 30, 2013, and any related amounts payable as of June 30, 2014 are summarized below: | |||||||||||||||||
Three Months | Three Months | Six Months | Period from | ||||||||||||||
Ended | Ended | Ended | January 8, | ||||||||||||||
June 30, | June 30, | June 30, | 2013 (date of | ||||||||||||||
2014 | 2013 | 2014 | inception) | ||||||||||||||
through | |||||||||||||||||
June 30, | |||||||||||||||||
2013 | |||||||||||||||||
Expensed | |||||||||||||||||
Reimbursement of operating expenses (including organizational costs) | $ | 442,739 | $ | — | $ | 442,739 | $ | — | |||||||||
Acquisition expenses | 424,252 | — | 424,252 | — | |||||||||||||
Capitalized | |||||||||||||||||
Other assets | 971,631 | — | 971,631 | — | |||||||||||||
Additional Paid-in Capital | |||||||||||||||||
Selling commissions | 183,279 | — | 183,279 | — | |||||||||||||
Dealer Manager fee | 78,548 | — | 78,548 | — | |||||||||||||
Reimbursement of offering costs | 1,466,814 | — | 1,466,814 | — | |||||||||||||
Total | $ | 3,567,263 | $ | — | $ | 3,567,263 | $ | — | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | ||
Jun. 30, 2014 | |||
Commitments And Contingencies Disclosure [Abstract] | ' | ||
Stock for Redemptions Based on Number of Years Stock Held | ' | ||
The amount that we may pay to redeem stock for redemptions is the redemption price set forth in the following table which is based upon the number of years the stock is held: | |||
Number Years Held | Redemption Price | ||
Less than 1 | No Redemption Allowed | ||
1 or more but less than 3 | 90.0% of Redemption Amount | ||
3 or more but less than 4 | 95.0% of Redemption Amount | ||
4 or more | 100.0% of Redemption Amount |
Organization_Additional_Inform
Organization - Additional Information (Detail) (USD $) | 6 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | ||||
Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Aug. 02, 2013 | Jun. 30, 2014 | Aug. 02, 2013 | |
Primary Offering | Primary Offering | IN | Advisor | Strategic Storage Operating Partnership II, L.P. | Strategic Storage Operating Partnership II, L.P. | Strategic Storage Advisor II, LLC | |||
Minimum | Maximum | BY | Affiliate | ||||||
Organization and Nature of Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date of formation of company | 8-Jan-13 | ' | ' | ' | ' | ' | ' | 9-Jan-13 | ' |
Number of common stock issued | 265,287 | ' | ' | ' | ' | ' | ' | ' | 100 |
Issuance of common stock | $2,647,570 | ' | $1,500,000 | $1,000,000,000 | ' | ' | ' | ' | $1,000 |
Common stock, shares authorized | 700,000,000 | 700,000,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, shares authorized | 200,000,000 | 200,000,000 | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, par value | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' |
Shares issuable pursuant to distribution reinvestment plan | 95,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Advisor purchased a limited partnership interest in Operating Partnership | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' |
Initial capital contribution | ' | ' | ' | ' | ' | ' | $1,000 | ' | ' |
Percentage of limited partnership interests | ' | ' | ' | ' | ' | ' | ' | 92.99% | ' |
Percentage of limited partnership interests owned by noncontrolling owners | ' | ' | ' | ' | ' | ' | ' | 7.01% | ' |
Percentage owned by president in dealer manager | 15.00% | ' | ' | ' | 15.00% | ' | ' | ' | ' |
Percentage owned by affiliate in Advisor | 2.50% | ' | ' | ' | ' | 2.50% | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | ' |
Deferred financing costs | $300,000 |
Maximum period for reimbursement of offering cost | '60 days |
Maximum offering cost rate | 3.50% |
Minimum percentage of ordinary taxable income to be distributed to stockholders | 90.00% |
Minimum | Personal Property | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Estimated useful life | '3 years |
Maximum | Personal Property | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Estimated useful life | '5 years |
Estimated_Useful_Lives_used_to
Estimated Useful Lives used to Depreciate Real Property Assets (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
Land | ' |
Property, Plant and Equipment [Line Items] | ' |
Standard Depreciable Life | 'Not Depreciated |
Minimum | Buildings | ' |
Property, Plant and Equipment [Line Items] | ' |
Standard Depreciable Life | '30 years |
Minimum | Site Improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Standard Depreciable Life | '7 years |
Maximum | Buildings | ' |
Property, Plant and Equipment [Line Items] | ' |
Standard Depreciable Life | '35 years |
Maximum | Site Improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Standard Depreciable Life | '15 years |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | ' | ' |
Maximum period for reimbursement of offering cost | '60 days | ' |
Maximum offering cost rate | 3.50% | ' |
Gross proceeds from offering, threshold percentage of expenses for reimbursement | 15.00% | ' |
Rate of acquisition fees of purchase price of contract | 1.75% | ' |
Asset management fee | 0.05% | ' |
Monthly asset management fee one twelfth of less than one percentage of asset value payable | 'One-twelfth of 0.625% | ' |
Disposition fees percentage of sale price of property | 1.00% | ' |
Cumulative, non compounded, annual return on such stockholders' invested capital | 6.00% | ' |
Operating expenses reimbursement percentage of average investment in assets | 2.00% | ' |
Operating expenses reimbursement percentage of net income | 25.00% | ' |
Operating expenses exceed limitation | '12 months | ' |
Maximum days for disclosure fact | '60 days | ' |
Sale commission fees percentage of proceed from Primary Offering | 7.00% | ' |
Maximum dealer manager commission fee percentage of proceeds from Primary Offering | 3.00% | ' |
Underwriting commission | 10.00% | ' |
Maximum percentage other non-accountable expenses | 3.00% | ' |
Percentage owned by chief executive officer in Dealer Manager | 15.00% | ' |
Percentage owned by affiliate | 2.50% | ' |
Percentage of fee of property manager | 6.00% | ' |
Construction management fee | 5.00% | ' |
Cost of construction or capital improvement work | $10,000 | ' |
Property administration fee | 0.5 | ' |
Amounts due to affiliates | 2,907,765 | 0 |
Percentage of tenant premium paid approximately, fees provided by program insurer | 50.00% | ' |
Reinsurance fees | 0 | ' |
Auction fee | $0 | ' |
Maximum | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Commission percentage of sale price of property | 6.00% | ' |
Auction Company | Officers | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Percentage owned by officers in Auction Company | 9.00% | ' |
Summary_of_Related_Party_Costs
Summary of Related Party Costs Incurred (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Capitalized | ' | ' | ' | ' |
Other assets | $971,631 | $0 | $971,631 | $0 |
Additional Paid-in Capital | ' | ' | ' | ' |
Selling commissions | 183,279 | 0 | 183,279 | 0 |
Dealer Manager fee | 78,548 | 0 | 78,548 | 0 |
Reimbursement of offering costs | 1,466,814 | 0 | 1,466,814 | 0 |
Total | 3,567,263 | 0 | 3,567,263 | 0 |
Reimbursement of operating expenses (including organizational costs) | ' | ' | ' | ' |
Expensed | ' | ' | ' | ' |
Related party costs expensed | 442,739 | 0 | 442,739 | 0 |
Acquisition expenses | ' | ' | ' | ' |
Expensed | ' | ' | ' | ' |
Related party costs expensed | $424,252 | $0 | $424,252 | $0 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Distribution Reinvestment Plan | ' |
Commitments and Contingencies [Line Items] | ' |
Percentage of offering price under distribution reinvestment plan | 95.00% |
Sales commission or dealer manager fee payable | $0 |
Amendment, suspension or termination period for distribution reinvestment Plan | '10 days |
Sales commission or dealer manager fee paid on shares sold through distribution reinvestment plan | $0 |
Share Redemption Program | ' |
Commitments and Contingencies [Line Items] | ' |
Amendment, suspension or termination period of share | '30 days |
Maximum weighted-average number of shares outstanding percentage | 5.00% |
Share Redemption Program | Minimum | ' |
Commitments and Contingencies [Line Items] | ' |
Shareholders share holding period | '1 year |
Stock_for_Redemptions_Based_on
Stock for Redemptions Based on Number of Years Stock Held (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
Less than 1 | ' |
Recorded Unconditional Purchase Obligation [Line Items] | ' |
Redemption price | 0.00% |
1 or more but less than 3 | ' |
Recorded Unconditional Purchase Obligation [Line Items] | ' |
Redemption price | 90.00% |
3 or more but less than 4 | ' |
Recorded Unconditional Purchase Obligation [Line Items] | ' |
Redemption price | 95.00% |
4 or more | ' |
Recorded Unconditional Purchase Obligation [Line Items] | ' |
Redemption price | 100.00% |
Declaration_of_Distributions_A
Declaration of Distributions - Additional Information (Detail) (USD $) | Jun. 18, 2014 |
Equity [Abstract] | ' |
Common stock per share outstanding per day declared | $0.00 |
Potential_Acquisitions_Additio
Potential Acquisitions - Additional Information (Detail) (Storkwik Portfolio, USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Store | |
Raleigh/Myrtle Beach Portfolio | ' |
Business Acquisition [Line Items] | ' |
Number of wholly-owned self storage facilities | 5 |
Total rental area of properties not owned yet | 317,000 |
Raleigh/Myrtle Beach Portfolio | Expected to close on third or fourth quarter 2014 | ' |
Business Acquisition [Line Items] | ' |
Business acquisition purchase price | $22.10 |
Loans assumed as purchase consideration | $12.80 |
Number of operation units | 2,350 |
Raleigh, North Carolina | ' |
Business Acquisition [Line Items] | ' |
Number of wholly-owned self storage facilities | 3 |
Myrtle Beach, South Carolina | ' |
Business Acquisition [Line Items] | ' |
Number of wholly-owned self storage facilities | 2 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 6 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Aug. 07, 2014 | Aug. 13, 2014 | Aug. 13, 2014 | Aug. 13, 2014 | Aug. 13, 2014 | Aug. 13, 2014 | Aug. 13, 2014 | Aug. 13, 2014 | Aug. 13, 2014 | Aug. 13, 2014 |
Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | ||
26 Property Portfolio | 26 Property Portfolio | 26 Property Portfolio | 26 Property Portfolio | 26 Property Portfolio | 26 Property Portfolio | 26 Property Portfolio | 26 Property Portfolio | 26 Property Portfolio | |||
sqft | Expected to close on third or fourth quarter 2014 | CALIFORNIA | MICHIGAN | Colorado | ILLINOIS | NEW JERSEY | WASHINGTON | MARYLAND | |||
Store | Store | Store | Store | Store | Store | Store | Store | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued in connection with Offering | 265,287 | 430,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross proceeds from issuance of common stock | ' | $4.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of wholly-owned self storage facilities | ' | ' | 26 | ' | 14 | 4 | 3 | 2 | 1 | 1 | 1 |
Earnest money deposit | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition purchase price | ' | ' | ' | $128.10 | ' | ' | ' | ' | ' | ' | ' |
Number of operation units | ' | ' | 14,490 | ' | ' | ' | ' | ' | ' | ' | ' |
Total rental area of properties not owned yet | ' | ' | 1,504,000 | ' | ' | ' | ' | ' | ' | ' | ' |