Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 21, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ck0001585389 | ||
Entity Registrant Name | STRATEGIC STORAGE TRUST II, INC. | ||
Entity Central Index Key | 1,585,389 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 34,684,810 | ||
Class A Common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 29,377,129 | ||
Class T Common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,545,444 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Real estate facilities: | ||
Land | $ 47,653,000 | $ 4,750,000 |
Buildings | 97,941,472 | 14,376,589 |
Site improvements | 10,650,078 | 1,731,291 |
Real estate investment property, gross | 156,244,550 | 20,857,880 |
Accumulated depreciation | (3,755,709) | (93,433) |
Real estate investment property | 152,488,841 | 20,764,447 |
Construction in process | 385,408 | 1,375 |
Real estate facilities, net | 152,874,249 | 20,765,822 |
Cash and cash equivalents | 28,104,470 | 6,531,152 |
Restricted cash | 410,492 | 382,792 |
Other assets | 6,017,845 | 4,666,438 |
Debt issuance costs, net of accumulated amortization | 2,336,268 | 713,062 |
Intangible assets, net of accumulated amortization | 3,910,966 | 1,991,383 |
Total assets | 193,654,290 | 35,050,649 |
LIABILITIES AND EQUITY | ||
Secured debt | 23,237,237 | 13,494,871 |
Accounts payable and accrued liabilities | 2,146,253 | 585,227 |
Due to affiliates | 208,483 | 4,324,235 |
Distributions payable | 986,886 | 80,424 |
Distributions payable to preferred unitholders in our Operating Partnership | 0 | 84,166 |
Total liabilities | $ 26,578,859 | $ 18,568,923 |
Commitments and contingencies (Note 7) | ||
Redeemable common stock | $ 1,223,483 | $ 73,514 |
Preferred equity in our Operating Partnership | 0 | 5,028,115 |
Equity | ||
Preferred stock, $0.001 par value; 200,000,000 shares authorized; none issued and outstanding at December 31, 2015 and 2014 | 0 | 0 |
Additional paid-in capital | 187,434,752 | 14,004,810 |
Distributions | (3,893,528) | (311,975) |
Accumulated deficit | (17,687,326) | (2,396,385) |
Total Strategic Storage Trust II, Inc. equity | 165,875,192 | 11,298,216 |
Noncontrolling interests in our Operating Partnership | (23,244) | 81,881 |
Total equity | 165,851,948 | 11,380,097 |
Total liabilities and equity | 193,654,290 | 35,050,649 |
Class A Common stock | ||
Equity | ||
Common stock, value | 20,685 | 1,766 |
Class T Common stock | ||
Equity | ||
Common stock, value | $ 609 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Class A Common stock | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 350,000,000 | 350,000,000 |
Common Stock, shares issued | 20,684,791 | 1,765,515 |
Common Stock, shares outstanding | 20,684,791 | 1,765,515 |
Class T Common stock | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 350,000,000 | 350,000,000 |
Common Stock, shares issued | 608,982 | 0 |
Common Stock, shares outstanding | 608,982 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Self storage rental revenue | $ 17,547,235 | $ 450,963 | $ 0 |
Ancillary operating revenue | 358,464 | 14,382 | 0 |
Total revenues | 17,905,699 | 465,345 | 0 |
Operating expenses: | |||
Property operating expenses | 6,754,391 | 167,434 | 0 |
Property operating expenses - affiliates | 2,124,892 | 69,541 | 0 |
General and administrative | 1,591,577 | 943,865 | 0 |
Depreciation | 3,967,981 | 94,063 | 0 |
Intangible amortization expense | 5,142,417 | 158,617 | 0 |
Acquisition expenses - affiliates | 2,776,679 | 1,089,783 | 0 |
Other property acquisition expenses | 624,642 | 198,907 | 0 |
Total operating expenses | 22,982,579 | 2,722,210 | 0 |
Operating loss | (5,076,880) | (2,256,865) | 0 |
Other income (expense): | |||
Interest expense | (2,908,171) | (116,920) | 0 |
Accretion of fair market value of secured debt | 91,061 | 16,543 | 0 |
Debt issuance costs | (1,011,121) | (4,343) | 0 |
Other | (32,430) | 0 | 0 |
Net loss | (8,937,541) | (2,361,585) | 0 |
Less: Distributions to preferred unitholders in our Operating Partnership | (4,825,139) | (117,472) | 0 |
Less: Accretion of preferred equity costs | (1,621,385) | (28,115) | 0 |
Net loss attributable to the noncontrolling interests in our Operating Partnership | 93,124 | 110,787 | 0 |
Net loss attributable to Strategic Storage Trust II, Inc. common stockholders | $ (15,290,941) | $ (2,396,385) | $ 0 |
Class A Common stock | |||
Other income (expense): | |||
Net loss per share-basic and diluted | $ (2.56) | $ (4.59) | $ 0 |
Weighted average shares outstanding-basic and diluted | 5,923,286 | 522,223 | 42 |
Class T Common stock | |||
Other income (expense): | |||
Net loss per share-basic and diluted | $ (2.56) | $ 0 | $ 0 |
Weighted average shares outstanding-basic and diluted | 45,924 | 0 | 0 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) | Total | Redeemable Common Stock [Member] | Common StockClass A Common stock | Common StockClass T Common stock | Additional Paid-in Capital [Member] | Distributions [Member] | Accumulated Deficit [Member] | Total Strategic Storage Trust II, Inc. Equity [Member] | Noncontrolling Interests in our Operating Partnership [Member] | Preferred Equity in our Operating Partnership |
Beginning Balance at Jan. 07, 2013 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Beginning Balance (in shares) at Jan. 07, 2013 | 0 | 0 | ||||||||
Gross proceeds from issuance of common stock | 1,000 | 0 | $ 1 | $ 0 | 999 | 0 | 0 | 1,000 | 0 | 0 |
Gross proceeds from issuance of common stock (in shares) | 100 | |||||||||
Issuance of limited partnership units in our Operating Partnership | 200,000 | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 200,000 | 0 |
Net loss attributable to Strategic Storage II Trust, Inc. | 0 | |||||||||
Net loss attributable to the noncontrolling interests in our Operating Partnership | 0 | |||||||||
Ending Balance at Dec. 31, 2013 | 201,000 | 0 | $ 1 | $ 0 | 999 | 0 | 0 | 1,000 | 200,000 | 0 |
Ending Balance (in shares) at Dec. 31, 2013 | 100 | 0 | ||||||||
Gross proceeds from issuance of common stock | 17,536,902 | 0 | $ 1,757 | $ 0 | 17,535,145 | 0 | 0 | 17,536,902 | 0 | 0 |
Gross proceeds from issuance of common stock (in shares) | 1,757,677 | 0 | ||||||||
Offering costs | (3,531,326) | 0 | $ 0 | $ 0 | (3,531,326) | 0 | 0 | (3,531,326) | 0 | 0 |
Changes to redeemable common stock | $ (73,514) | 73,514 | 0 | 0 | (73,514) | 0 | 0 | (73,514) | 0 | 0 |
Redemptions of common stock (in shares) | 0 | |||||||||
Distributions ($0.60 per share) | $ (311,975) | 0 | 0 | 0 | 0 | (311,975) | 0 | (311,975) | 0 | 0 |
Distributions for noncontrolling interests | (7,332) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (7,332) | 0 |
Issuance of shares for distribution reinvestment plan | 73,514 | 0 | $ 8 | $ 0 | 73,506 | 0 | 0 | 73,514 | 0 | 0 |
Issuance of shares for distribution reinvestment plan (in shares) | 7,738 | 0 | ||||||||
Net loss attributable to Strategic Storage II Trust, Inc. | (2,396,385) | 0 | $ 0 | $ 0 | 0 | 0 | (2,396,385) | (2,396,385) | 0 | 0 |
Net loss attributable to the noncontrolling interests in our Operating Partnership | (110,787) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (110,787) | 0 |
Gross proceeds from issuance of preferred equity in our Operating Partnership | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6,517,119 |
Preferred equity issuance costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1,517,119) |
Accretion of preferred equity issuance costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 28,115 |
Ending Balance at Dec. 31, 2014 | 11,380,097 | 73,514 | $ 1,766 | $ 0 | 14,004,810 | (311,975) | (2,396,385) | 11,298,216 | 81,881 | 5,028,115 |
Ending Balance (in shares) at Dec. 31, 2014 | 1,765,515 | 0 | ||||||||
Gross proceeds from issuance of common stock | 193,105,306 | 0 | $ 18,796 | $ 608 | 193,085,902 | 0 | 0 | 193,105,306 | 0 | 0 |
Gross proceeds from issuance of common stock (in shares) | 18,797,161 | 608,918 | ||||||||
Offering costs | (19,667,131) | 0 | $ 0 | $ 0 | (19,667,131) | 0 | 0 | (19,667,131) | 0 | 0 |
Changes to redeemable common stock | (1,177,289) | 1,177,289 | 0 | 0 | (1,177,289) | 0 | 0 | (1,177,289) | 0 | 0 |
Redemptions of common stock | (1) | (27,320) | $ (1) | $ 0 | 0 | 0 | 0 | (1) | 0 | 0 |
Redemptions of common stock (in shares) | (1,750) | 0 | ||||||||
Distributions ($0.60 per share) | (3,581,553) | 0 | $ 0 | $ 0 | 0 | (3,581,553) | 0 | (3,581,553) | 0 | 0 |
Distributions for noncontrolling interests | (12,001) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (12,001) | 0 |
Issuance of shares for distribution reinvestment plan | 1,177,289 | 0 | $ 124 | $ 1 | 1,177,164 | 0 | 0 | 1,177,164 | 0 | 0 |
Issuance of shares for distribution reinvestment plan (in shares) | 123,865 | 64 | ||||||||
Deferred compensation expense | 11,296 | 0 | $ 0 | $ 0 | 11,296 | 0 | 0 | 11,296 | 0 | 0 |
Net loss attributable to Strategic Storage II Trust, Inc. | (15,290,941) | 0 | 0 | 0 | 0 | 0 | (15,290,941) | (15,290,941) | 0 | 0 |
Net loss attributable to the noncontrolling interests in our Operating Partnership | (93,124) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (93,124) | 0 |
Gross proceeds from issuance of preferred equity in our Operating Partnership | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 52,952,380 |
Redemption of preferred equity in our Operating Partnership | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (59,469,500) |
Preferred equity issuance costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (132,380) |
Accretion of preferred equity issuance costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,621,385 |
Ending Balance at Dec. 31, 2015 | $ 165,851,948 | $ 1,223,483 | $ 20,685 | $ 609 | $ 187,434,752 | $ (3,893,528) | $ (17,687,326) | $ 165,875,192 | $ (23,244) | $ 0 |
Ending Balance (in shares) at Dec. 31, 2015 | 20,684,791 | 608,982 |
Consolidated Statements of Equ6
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Distributions, per share | $ 0.60 | $ 0.60 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net loss | $ (8,937,541) | $ (2,361,585) | $ 0 |
Adjustments to reconcile net loss to cash used in operating activities: | |||
Depreciation and amortization | 9,657,330 | 257,023 | 0 |
Accretion of fair market value adjustment of secured debt | (91,061) | (16,543) | 0 |
Expense related to issuance of restricted stock | 11,296 | 0 | 0 |
Increase (decrease) in cash from changes in assets and liabilities: | |||
Other assets | (1,516,214) | (145,776) | 0 |
Restricted cash | 59,215 | (177,701) | 0 |
Accounts payable and accrued liabilities | 1,125,839 | 501,065 | 0 |
Due to affiliates | (1,561,104) | 1,609,075 | 0 |
Net cash used in operating activities | (1,252,240) | (334,442) | 0 |
Cash flows from investing activities: | |||
Purchase of real estate | (136,121,758) | (9,481,306) | 0 |
Additions to real estate facilities | (2,170,514) | (2,255) | 0 |
Deposits on acquisition of real estate facilities | (2,486,163) | (4,000,000) | 0 |
Restricted cash | (86,915) | (205,091) | 0 |
Net cash flows used in investing activities | (140,865,350) | (13,688,652) | 0 |
Cash flows from financing activities: | |||
Gross proceeds from issuance of secured debt | 71,981,167 | 0 | 0 |
Principal payments on secured debt | (62,147,740) | (14,280) | 0 |
Proceeds from issuance of preferred equity in our Operating Partnership | 52,820,000 | 5,000,000 | 0 |
Redemption of preferred equity in our Operating Partnership | (59,469,500) | 0 | 0 |
Debt issuance costs | (2,582,779) | (200,842) | 0 |
Gross proceeds from issuance of common stock | 190,817,800 | 17,477,102 | 1,000 |
Offering costs | (21,291,432) | (1,710,059) | 0 |
Redemption of common stock | (17,500) | 0 | 0 |
Issuance of Operating Partnership units | 0 | 0 | 200,000 |
Distributions paid to common stockholders | (1,497,802) | (158,037) | 0 |
Distributions paid to preferred unitholders in our Operating Partnership | (4,909,305) | (33,306) | 0 |
Distributions paid to noncontrolling interests in our Operating Partnership | (12,001) | (7,332) | 0 |
Net cash flows provided by financing activities | 163,690,908 | 20,353,246 | 201,000 |
Change in cash and cash equivalents | 21,573,318 | 6,330,152 | 201,000 |
Cash and cash equivalents, beginning of period | 6,531,152 | 201,000 | 0 |
Cash and cash equivalents, end of period | 28,104,470 | 6,531,152 | 201,000 |
Supplemental disclosures and non-cash transactions: | |||
Cash paid for interest | 2,807,997 | 116,920 | 0 |
Supplemental disclosure of noncash activities: | |||
Deposit applied to the purchase of real estate facilities | 4,444,491 | 0 | 0 |
Proceeds from issuance of common stock in other assets | 2,346,306 | 59,800 | 0 |
Disposal of site improvements | 273,963 | 0 | 0 |
Transfer from intangibles to real estate facilities to finalize purchase price allocations | 958,000 | 0 | 0 |
Additions to construction in process included in accounts payable and accrued liabilities | 369,903 | 0 | 0 |
Offering costs included in due to affiliates | 160,512 | 1,811,795 | 0 |
Debt issuance costs included in due to affiliates | 0 | 441,873 | 0 |
Offering costs included in accounts payable and accrued liabilities | 45,275 | 9,472 | 0 |
Redemption of common stock | 9,820 | 0 | 0 |
Issuance of shares pursuant to distribution reinvestment plan | 1,177,289 | 73,514 | 0 |
Distributions payable | 986,886 | 80,424 | 0 |
Preferred equity issuance cost | 0 | 1,517,119 | 0 |
Secured debt assumed during the purchase of real estate | 0 | 12,618,694 | 0 |
Other assets included in due to affiliates | 0 | 461,492 | 0 |
Debt issuance costs included in accounts payable and accrued liabilities | 104,171 | 74,690 | 0 |
Distributions payable to preferred unitholders in our Operating Partnership | $ 0 | $ 84,166 | $ 0 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2015 | |
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,” “our,” and “Company” refer to Strategic Storage Trust II, Inc. Strategic Storage Holdings, LLC, a Delaware limited liability company (“SSH”), was the sponsor of our Offering (as defined below) through August 31, 2014. Effective August 31, 2014, SmartStop Self Storage, Inc. (“SmartStop”), formerly known as Strategic Storage Trust, Inc., entered into a series of transactions, agreements and amendments to its existing agreements and arrangements (such agreements and amendments hereinafter referred to collectively as the “Self Administration and Investment Management Transaction”) with SSH and its affiliates, pursuant to which, effective August 31, 2014, SmartStop acquired the self storage advisory, asset management, property management and investment management businesses of SSH including SSH’s sole membership interest in SmartStop Asset Management, LLC (formerly Strategic Storage Realty Group, LLC), which owns 97.5% of the economic interests (and 100% of the voting membership interests) of Strategic Storage Advisor II, LLC (our “Advisor”) and owns 100% of Strategic Storage Property Management II, LLC (our “Property Manager”). On October 1, 2015, SmartStop and Extra Space Storage Inc. (“Extra Space”), along with subsidiaries of each of SmartStop and Extra Space, closed on a merger transaction (the “Merger”) in which SmartStop was acquired by Extra Space for $13.75 per share in cash, representing an enterprise value of approximately $1.4 billion. At the closing of the Merger, SmartStop Asset Management, LLC, the owner of our Property Manager and majority and sole voting member of our Advisor, was sold to an entity controlled by H. Michael Schwartz, our Chairman of the Board of Directors, Chief Executive Officer and President, and became our sponsor (our “Sponsor”). The former executive management team of SmartStop continues to serve as the executive management team for our Sponsor. In addition, our management team remains the same, as well as the management team of our Advisor and Property Manager. We have no employees. Our Advisor, a Delaware limited liability company, 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 the advisory agreement we have with our Advisor (our “Advisory Agreement”). The officers of our Advisor are also officers of us and our Sponsor. 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, as amended, authorize 350,000,000 shares of Class A common stock, $0.001 par value per share (the “Class A Shares”) and 350,000,000 shares of Class T common stock, $0.001 par value per share (the “Class T Shares”) and 200,000,000 shares of preferred stock with a par value of $0.001. We are offering 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 $1.5 million minimum offering requirements of our Offering and commenced formal operations. On September 28, 2015, we revised our Primary Offering and are now offering two classes of shares of common stock: Class A Shares and Class T Shares. As of December 31, 2015, we had issued approximately 20.7 million Class A Shares and approximately 0.6 million Class T Shares in our Offering for gross proceeds of approximately $206.1 million and approximately $5.8 million, respectively. We intend to invest the net proceeds from the Offering primarily in self storage facilities and related self storage real estate investments. As of December 31, 2015 we owned 33 properties and subsequent to December 31, 2015 we acquired an additional seven properties (see Note 11). Our operating partnership, Strategic Storage Operating Partnership II, L.P., a Delaware limited partnership (our “Operating Partnership”), was formed on January 9, 2013. During 2013, our Advisor purchased limited partnership interests 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 owns, directly or indirectly through one or more special purpose entities, all of the self storage properties that we have acquired and the self storage properties we will acquire in the future. As of December 31, 2015, we owned approximately 99.9% of the common units of limited partnership interests of our Operating Partnership. The remaining approximately 0.1% of the common units are owned by our Advisor. Our Operating Partnership had issued approximately 2.4 million Series A Cumulative Redeemable Preferred Units (the “Preferred Units”) to SSTI Preferred Investor, LLC (the “Preferred Investor”), a wholly-owned subsidiary of SmartStop Self Storage Operating Partnership, L.P., the former operating partnership of SmartStop, in exchange for an investment in our Operating Partnership of approximately $59.5 million. Such Preferred Units were owned by Extra Space subsequent to the Merger. As of December 31, 2015, we had redeemed all of the Preferred Units. 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 conduct certain activities through our taxable REIT subsidiary, Strategic Storage TRS II, Inc., a Delaware corporation (the “TRS”), which is a wholly-owned subsidiary of our Operating Partnership. Our Property Manager was formed on January 8, 2013 to manage our properties. Our Property Manager derives 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. At the closing of the Merger, we entered into new property management agreements with our Property Manager and our Property Manager entered into sub-property management agreements with Extra Space for the management of our properties in the United States. Furthermore, Extra Space acquired the rights to the “SmartStop ® ® 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 owned, through a wholly-owned limited liability company, a 15% non-voting equity interest in our Dealer Manager through August 31, 2014. Effective August 31, 2014, SmartStop indirectly owned the 15% non-voting equity interest in our Dealer Manager, pursuant to the Self Administration and Investment Management Transaction. Effective October 1, 2015, in connection with the Merger, the 15% non-voting equity interest in our Dealer Manager is now owned by our Sponsor. An affiliate of our Dealer Manager continues to own 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 are 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 our Operating Partnership’s limited partnership agreement (the “Operating 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 Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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 subsidiaries, 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 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 December 31, 2015 and 2014, we had not entered into contracts/interests that would be 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. The most significant estimates made include the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed at fair value, the determination if certain entities should be consolidated, the evaluation of potential impairment of long-lived assets, and the useful lives of real estate assets and intangibles. 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. Restricted Cash Restricted cash consists primarily of impound reserve accounts for property taxes, insurance and capital improvements in connection with the requirements of our loan agreement. Real Estate Purchase Price Allocation We 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 requires 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 are 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 are 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 determine whether the acquisition includes intangible assets or liabilities. Substantially all of the leases in place at acquired properties are at market rates, as the majority of the leases are month-to-month contracts. We also consider whether in-place, market leases represent an intangible asset. We recorded approximately $8.0 million and approximately $1.2 million in intangible assets to recognize the value of in-place leases related to our acquisitions during 2015 and 2014, respectively. We do not expect, nor to date have we recorded, 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. Our acquisition-related transaction costs are required to be expensed as incurred. During the years ended December 31, 2015 and 2014 we expensed approximately $3.4 million and $1.3 million, respectively, of acquisition-related transaction costs. 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 recognize any measurement adjustments during the period in which we determine the amount of the adjustment to 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, 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. For the years ended December 31, 2015 and 2014, no impairment losses were recognized. Revenue Recognition Management believes that all of our leases are operating leases. Rental income is recognized in accordance with the terms of the leases, which generally are month-to-month. Revenues from any long-term operating leases are 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 is included in accounts payable and accrued liabilities in our consolidated balance sheets and contractually due but unpaid rent is included in other assets. Allowance for Doubtful Accounts Tenant accounts receivable is reported net of an allowance for doubtful accounts. Management’s estimate of the allowance is based upon a review of the current status of tenant accounts receivable. It is reasonably possible that management’s estimate of the allowance will change in the future. Real Estate Facilities Real estate facilities are recorded at cost. We capitalize costs incurred to develop, construct, renovate and improve properties, including interest and property taxes incurred during the construction period. The construction period begins when expenditures for the real estate assets have been made and activities that are necessary to prepare the asset for its intended use are in progress. The construction period ends when the asset is substantially complete and ready for its intended use. Depreciation of Real Property Assets Our management is required to make subjective assessments as to the useful lives of our depreciable assets. We consider the period of future benefit of the asset to determine the appropriate useful lives. Depreciation of our real property assets is charged to expense on a straight-line basis over the estimated useful lives as follows: Description Standard Depreciable Life Land Not Depreciated Buildings 30-35 years Site Improvements 7-10 years As described in Note 1, after the close of the Merger all of our properties in the United States were re-branded under the Extra Space name. As such, during the three months ended September 30, 2015, the depreciable lives for capitalized SmartStop branded signs were reduced to their estimated remaining useful lives. Depreciation expense for the year ended December 31, 2015 includes approximately $230,000 of accelerated depreciation related to the SmartStop branded signs. Depreciation of Personal Property Assets Personal property assets consist primarily of furniture, fixtures and equipment and are depreciated on a straight-line basis over the estimated useful lives generally ranging from 3 to 5 years, and are included in other assets on our consolidated balance sheets. Intangible Assets We have allocated a portion of our real estate purchase price to in-place leases. We are amortizing in-place leases on a straight-line basis over the estimated future benefit period. As of December 31, 2015, the gross amounts allocated to in-place lease intangibles was approximately $9.2 million and accumulated amortization of in-please lease intangibles totaled approximately $5.3 million. As of December 31, 2014, the gross amounts allocated to in-place lease intangibles was approximately $2.1 million and accumulated amortization of in-place lease intangibles totaled approximately $0.2 million. The total estimated amortization expense of intangible assets for the years ending December 31, 2016, and 2017, is approximately $3.8 million, and $100,000, respectively, and none for the years thereafter. Debt Issuance Costs Costs incurred in connection with obtaining financing are deferred and amortized on a straight-line basis over the term of the related loan, which is not materially different than the effective interest method. As of December 31, 2015 and 2014 accumulated amortization of debt issuance costs totaled approximately $48,000 and approximately $4,000, respectively. Organizational and Offering Costs Our Advisor may 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 requirements 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 December 31, 2015, 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 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. For the year ended December 31, 2015 we received two redemption requests, one for approximately 1,750 shares which was fulfilled in July 2015, and another for approximately 1,095 shares which was fulfilled in January 2016. For the year ended December 31, 2014, we did not receive any requests for redemptions. Accounting for Equity Awards The cost of restricted stock is required to be measured based on the grant date fair value and the cost recognized over the relevant service period. 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. Financial and non-financial assets and liabilities measured at fair value on a non-recurring basis in our consolidated financial statements consist of real estate and related liabilities assumed related to our acquisitions. The fair values of these assets and liabilities were determined as of the acquisition dates using widely accepted valuation techniques, including (i) discounted cash flow analysis, which considers, among other things, leasing assumptions, growth rates, discount rates and terminal capitalization rates, (ii) income capitalization approach, which considers prevailing market capitalization rates, and (iii) comparable sales activity. In general, we consider multiple valuation techniques when measuring fair values. However, in certain circumstances, a single valuation technique may be appropriate. All of the fair values of the assets and liabilities as of the acquisition dates were derived using Level 3 inputs. The carrying amounts of cash and cash equivalents, tenant 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. The table below summarizes our fixed rate notes payable at December 31, 2015 and 2014. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of the fixed rate notes payable was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented below are not necessarily indicative of the amounts we would realize in a current market exchange. December 31, 2015 December 31, 2014 Fair Value Carrying Value Fair Value Carrying Value Fixed Rate Secured Debt $ 13,300,000 $ 13,237,237 $ 13,500,000 $ 13,494,871 To comply with GAAP, we 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 non-performance 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 subsidiaries, are 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 made 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 ended December 31, 2014. To continue 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 are organized and operate in such a manner as to continue 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 continue to 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 filed elections to treat our TRS as a taxable REIT subsidiary effective January 1, 2014. In general, the TRS performs additional services for our customers and generally engages in any real estate or non-real estate related business. The TRS is subject to corporate federal and state income tax. The TRS follows accounting guidance which requires the use of the asset and liability method. Deferred income taxes represent the tax effect of future differences between the book and tax bases of assets and liabilities. Per Share Data Basic earnings per share attributable to Strategic Storage Trust II, Inc. for all periods presented are computed by dividing net income (loss) attributable to Strategic Storage Trust II, Inc. by the weighted average number of shares outstanding during the period, excluding unvested restricted stock. Diluted earnings per share are computed by dividing net income (loss) attributable to Strategic Storage Trust II, Inc. by the weighted average number of shares outstanding, adjusted for the dilutive effect of unvested restricted stock, utilizing the treasury stock method. For all periods presented the dilutive effective of unrestricted stock was not included in the dilutive weighted average shares as such shares were antidilutive. 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 in the FASB ASC. In July 2015, the FASB voted to defer the effective date by one year to annual reporting periods (including interim periods within those periods) beginning after December 15, 2017 and early adoption is permitted. This ASU shall still be applied using either a full retrospective or modified retrospective approach. 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. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. Specifically, ASU 2015-02 modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, and affects the evaluation of fee arrangements in the primary beneficiary determination. ASU 2015-02 is effective for periods beginning after December 15, 2015 and early adoption is 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. In April 2015, the FASB issued ASU 2015-03, “Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, in August 2015, the FASB issued ASU 2015-15, “Interest – Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements”, which clarifies ASU No. 2015-03 by stating that the staff of the SEC would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-03 is effective for periods beginning after December 15, 2015 and early adoption is 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. In September 2015, the FASB issued ASU 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments”. The amendments in the update require an acquirer in a business combination to recognize adjustments to estimated amounts identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer must record the effect of the adjustments on earnings as if the accounting had been completed at the acquisition date and the acquirer must disclose in its financial statements the portion of the amounts recorded in each line item of current-period earnings that would have been recorded in previous periods if the adjustments to estimated amounts had been recognized as of the acquisition date. The update is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, with early adoption permitted for financial statements that have not been issued. We have early adopted this new guidance and the effect on our financial statements is discussed in Note 3. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”, which amends the guidance on accounting for leases. Under ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under ASU 2016-02, lessor accounting is largely unchanged. It also includes extensive amendments to the disclosure requirements. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted for financial statements that have not yet been made available for issuance. ASU 2016-02 requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. 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. |
Real Estate Facilities
Real Estate Facilities | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate [Abstract] | |
Real Estate Facilities | Note 3. Real Estate Facilities The following summarizes the activity in real estate facilities during the years ended December 31, 2015 and 2014: Real estate facilities Balance at December 31, 2013 $ — Facility acquisitions 20,857,000 Improvements and additions 880 Balance at December 31, 2014 20,857,880 Facility acquisitions 132,546,249 Finalized purchase price allocations related to 2014 acquisitions 958,000 Improvements and additions 2,156,384 Asset disposals (273,963 ) Balance at December 31, 2015 $ 156,244,550 Accumulated depreciation Balance at December 31, 2013 $ — Depreciation expense (93,433 ) Balance at December 31, 2014 (93,433 ) Depreciation expense (3,936,239 ) Asset disposals 273,963 Balance at December 31, 2015 $ (3,755,709 ) The following table summarizes the purchase price allocation for our acquisitions during the year ended December 31, 2015: Property Acquisition Real Estate Intangibles Total Principal of 2015 (2) 2015 (3) La Verne 1/23/2015 $ 3,986,875 $ 180,000 $ 4,166,875 $ 2,370,000 $ 705,564 444,668 Chico 1/23/2015 1,736,875 90,000 1,826,875 1,230,000 553,611 313,050 Riverside 1/23/2015 2,696,875 110,000 2,806,875 1,740,000 862,574 482,506 Fairfield 1/23/2015 3,676,875 250,000 3,926,875 2,250,000 621,060 366,104 Littleton 1/23/2015 4,136,875 210,000 4,346,875 2,310,000 568,008 354,357 Crestwood 1/23/2015 2,346,875 140,000 2,486,875 1,650,000 489,340 246,268 Forestville 1/23/2015 6,286,875 410,000 6,696,875 3,870,000 1,033,216 716,896 Upland 1/29/2015 5,966,875 310,000 6,276,875 3,540,000 310,001 134,707 Lancaster 1/29/2015 1,716,875 90,000 1,806,875 1,140,000 411,394 174,715 Santa Rosa 1/29/2015 9,866,875 600,000 10,466,875 5,760,000 475,487 258,042 Vallejo 1/29/2015 4,936,875 350,000 5,286,875 3,360,000 511,791 293,887 Federal Heights 1/29/2015 4,446,875 300,000 4,746,875 2,550,000 557,445 348,501 Santa Ana 2/5/2015 8,896,875 380,000 9,276,875 4,350,000 1,149,866 714,694 La Habra 2/5/2015 4,416,875 190,000 4,606,875 2,340,000 667,218 428,452 Monterey Park 2/5/2015 4,236,875 190,000 4,426,875 2,340,000 482,731 251,907 Huntington Beach 2/5/2015 10,316,875 560,000 10,876,875 5,760,000 841,183 550,143 Lompoc 2/5/2015 3,746,875 290,000 4,036,875 2,460,000 508,933 248,116 Aurora 2/5/2015 6,716,875 620,000 7,336,875 4,140,000 503,657 281,333 Everett 2/5/2015 4,966,875 230,000 5,196,875 2,190,000 476,990 196,759 Whittier 2/19/2015 5,646,875 270,000 5,916,875 3,330,000 623,323 333,470 Bloomingdale 2/19/2015 4,666,874 330,000 4,996,874 2,520,000 323,982 160,580 Warren I 5/8/2015 3,196,875 240,000 3,436,875 1,620,000 328,826 187,575 Warren II 5/8/2015 3,306,875 330,000 3,636,875 2,040,000 480,171 311,680 Troy 5/8/2015 4,416,875 400,000 4,816,875 2,880,000 343,136 190,639 Sterling Heights 5/21/2015 3,536,875 320,000 3,856,875 2,190,000 251,168 114,146 Beverly 5/28/2015 2,096,875 80,000 2,176,875 1,365,000 451,703 229,891 Foley (1) 9/11/2015 7,615,000 350,000 7,965,000 — 290,184 171,265 Tampa (1) 11/3/2015 2,962,500 200,000 3,162,500 — 61,468 14,446 2015 Total $ 132,546,249 $ 8,020,000 $ 140,566,249 $ 71,295,000 $ 14,884,030 $ 8,518,797 (1) The allocations noted above are based on a preliminary determination of the fair value of the total consideration provided. Such valuations may change as we complete our purchase price accounting. (2) The operating results of the facilities acquired above have been included in our statement of operations since their respective acquisition date. (3) Property operating income excludes corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization, and acquisition expenses. Certain purchase price allocations included above are preliminary and therefore, subject to change upon the completion of our analysis of appraisals and other information related to the acquisitions. We anticipate finalizing the purchase price allocations within one year of their acquisition date, as further evaluations are completed and additional information is received from third parties. The following table summarizes our purchase price allocation for our acquisitions during the year ended December 31, 2014: Property Acquisition Real Estate Intangibles Total Principal of Allocation 2014 (1) 2014 (2) Morrisville 11/03/2014 $ 1,968,000 $ 250,000 $ 2,218,000 $ 1,216,000 $ 88,000 $ 57,533 $ 29,825 Cary 11/03/2014 4,377,500 380,000 4,757,500 2,610,000 187,500 85,820 56,170 Raleigh 11/03/2014 3,670,500 410,000 4,080,500 2,238,000 160,500 76,672 42,563 Myrtle Beach I 11/03/2014 5,584,000 600,000 6,184,000 3,392,000 244,000 132,962 89,847 Myrtle Beach II 11/03/2014 5,257,000 510,000 5,767,000 3,163,000 227,000 112,358 72,799 Finalized Purchase Price Allocations 958,000 (958,000 ) — — — — — 2014 Total $ 21,815,000 $ 1,192,000 $ 23,007,000 $ 12,619,000 $ 907,000 $ 465,345 $ 291,204 (1) The operating results of the facilities acquired above have been included in our statement of operations since their respective acquisition date. (2) Property operating income excludes corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization, and acquisition expenses. We incurred acquisition fees to our Advisor related to the above properties of approximately $2.5 million and $0.4 million for the years ended December 31, 2015 and 2014, respectively. During 2015 we completed the purchase price allocations for our five properties acquired in 2014 and recognized the adjustments during the fourth quarter measurement period in 2015. These adjustments had the aggregate impact of increasing our allocation to land by approximately $1.2 million and site improvements by approximately $140,000, with reductions to buildings and intangible assets of approximately $380,000 and $960,000 respectively. The impact of such reclassifications was that we recognized measurement period adjustments during the fourth quarter of 2015 to our consolidated statement of operations, which had the net impact of an increase to depreciation expense of approximately $2,000 and a decrease to intangible amortization expense of approximately $180,000. We also completed the purchase accounting for the properties acquired during the first and second quarters of 2015 and recognized adjustments during the fourth quarter measurement period, which had the aggregate impact of increasing our allocation to land by approximately $1.2 million, building by approximately $4.2 million, and site improvements by approximately $0.7 million, with reductions to intangible assets of approximately $6.1 million. The impact of such reclassifications was that we recognized measurement period adjustments during the fourth quarter of 2015 to our consolidated statement of operations, which had the net impact of an increase to depreciation expense of approximately $130,000 and a decrease to intangible amortization expense of approximately $450,000. |
Secured Debt
Secured Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Secured Debt | Note 4. Secured Debt Raleigh/Myrtle Beach Loan In connection with the acquisition of the five properties in 2014 (collectively, the “Raleigh/Myrtle Beach Portfolio”), we, through five special purpose entities formed to acquire and hold the properties comprising the Raleigh/Myrtle Beach Portfolio (collectively, the “Raleigh/Myrtle Beach Borrowing Entities”), assumed a secured promissory note with C-III Commercial Mortgage LLC (“C-III”) dated August 30, 2013, in the amount of approximately $12,600,000 (the “Raleigh/Myrtle Beach Promissory Note”). The Raleigh/Myrtle Beach Promissory Note matures in September 2023 and carries a fixed interest rate of 5.73%. The Raleigh/Myrtle Beach Promissory Note has a prepayment lockout for the first two years of the note. After September 2015, we may defease the Raleigh/Myrtle Beach Promissory Note upon the occurrence of certain conditions. The Raleigh/Myrtle Beach Promissory Note is secured by deeds of trust on our interest in three of the properties in the Raleigh/Myrtle Beach Portfolio, a mortgage on our interest in the other two properties comprising the Raleigh/Myrtle Beach Portfolio and certain of the assets of the Raleigh/Myrtle Beach Borrowing Entities. In addition, we and SmartStop executed a guaranty in favor of C-III guaranteeing the payment of the Raleigh/Myrtle Beach Promissory Note (the “Raleigh/Myrtle Beach Guaranty”). The obligations of SmartStop under the Raleigh/Myrtle Beach Guarantee were assumed by a subsidiary of Extra Space in the Merger. The Raleigh/Myrtle Beach Guaranty requires that we and the Extra Space subsidiary, collectively, maintain a net worth of at least $6.0 million and an aggregate liquidity of at least $2.0 million, exclusive of the interest in the Raleigh/Myrtle Beach Portfolio, and provides that the Extra Space subsidiary may be released from the Raleigh/Myrtle Beach Guarantee if we alone meet certain conditions, including net worth and liquidity requirements. As of December 31, 2015 we alone meet such requirements and conditions and have submitted a request to the lender to release the Extra Space subsidiary from the Raleigh/Myrtle Beach Guarantee. Amended KeyBank Credit Facility On December 22, 2015, we, through our Operating Partnership, and certain affiliated entities, entered into an amended and restated revolving credit facility (the “Amended KeyBank Credit Facility”) with KeyBank, as administrative agent and KeyBanc Capital Markets, LLC, as the sole book runner and sole lead arranger, and Texas Capital Bank, N.A., and Comerica Bank as co-lenders. The Amended KeyBank Credit Facility replaced our term credit facility with KeyBank in which we had a maximum borrowing capacity of approximately $71.3 million. Under the terms of the Amended KeyBank Credit Facility, we have a maximum borrowing capacity of $105 million. It is anticipated that the Amended KeyBank Credit Facility will be used to fund our future self storage property acquisitions. The Amended KeyBank Credit Facility may be increased by up to an additional $395 million, to a maximum credit facility size of $500 million, in minimum increments of $10 million, which KeyBank will arrange on a best efforts basis. Subsequent to December 31, 2015 we increased our maximum borrowing capacity to $145 million (see Note 11). The Amended KeyBank Credit Facility is a revolving loan with an initial term of three years, maturing on December 22, 2018, with two one-year extension options subject to certain conditions outlined further in the credit agreement for the Amended KeyBank Credit Facility (the “Amended Credit Agreement”). Payments due pursuant to the Amended KeyBank Credit Facility are interest-only for the first 36 months and a 30-year amortization schedule thereafter. The Amended KeyBank Credit Facility bears interest based on the type of borrowing. The ABR Loans bear interest at the lesser of (x) the Alternate Base Rate (as defined in the Amended Credit Agreement) plus the Applicable Rate, or (y) the Maximum Rate (as defined in the Amended Credit Agreement). The Eurodollar Loans bear interest at the lesser of (a) the Adjusted LIBO Rate (as defined in the Amended Credit Agreement) for the Interest Period in effect plus the Applicable Rate, or (b) the Maximum Rate (as defined in the Amended Credit Agreement). The Applicable Rate corresponds to our total leverage, as specified in the Amended Credit Agreement. For any ABR Loans, the Applicable Rate is 125 basis points if our total leverage is less than 50%, and 150 basis points if our leverage is greater than 50%. For any Eurodollar Loan, the Applicable Rate is 225 basis points if our total leverage is less than 50% and 250 basis points if our total leverage is greater than 50%. The Amended KeyBank Credit Facility is fully recourse and is secured by cross-collateralized first mortgage liens on 28 Mortgaged Properties (as defined in the Amended Credit Agreement). The Amended KeyBank Credit Facility may be prepaid or terminated at any time without penalty, provided, however, that the Lenders (as defined in the Amended Credit Agreement) shall be indemnified for any breakage costs. Pursuant to that certain guaranty (the “KeyBank Guaranty”), dated December 22, 2015, in favor of the Lenders, we serve as a guarantor of all obligations due under the Amended KeyBank Credit Facility. Under certain conditions, the Borrower may cause the release of one or more of the properties serving as collateral for the Amended KeyBank Credit Facility, provided that no default or event of default is then outstanding or would reasonably occur as a result of such release, and after taking into account any prepayment of outstanding Loans (as defined in the Amended Credit Agreement) necessary to maintain compliance with the financial covenants. The Amended KeyBank Credit Facility contains a number of other customary terms and covenants, including the following (capitalized terms are as defined in the Amended Credit Agreement): the aggregate borrowing base availability under the Amended KeyBank Facility is limited to the lesser of: (1) 60% of the Pool Value of the properties in the collateral pool, or (2) an amount that would provide a minimum Debt Service Coverage Ratio of no less than 1.35 to 1.0; and we must meet the following financial tests, calculated as of the close of each fiscal quarter: (1) a Total Leverage Ratio of no more than 60%; (2) a Tangible Net Worth not at any time to be less than the Base Amount plus 80% of Net Equity Proceeds received after the Effective Date; (3) an Interest Coverage Ratio of no less than 1.85 to 1.0; (4) a Fixed Charge Ratio of no less than 1.6 to 1.0; (5) a ratio of varying rate Indebtedness to total Indebtedness not in excess of 30%; (6) a Loan to Value Ratio of not greater than 60%; and (7) a Debt Service Coverage Ratio of not less than 1.35 to 1.0. Additionally, on May 21, 2015, our Operating Partnership purchased an interest rate cap with a notional amount of $50 million, such that in no event will our interest rate exceed 5.25% thereon through June 1, 2016. As of December 31, 2015, we had an outstanding principal balance of $10.0 million on the Amended KeyBank Credit Facility. The following table presents the future principal payment requirements on outstanding secured debt as of December 31, 2015: 2016 $ 174,449 2017 186,921 2018 10,198,075 2019 209,893 2020 220,483 2021 and thereafter 11,448,020 Total payments 22,437,841 Unamortized fair value adjustment 799,396 Total $ 23,237,237 |
Preferred Equity
Preferred Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Preferred Equity | Note 5. Preferred Equity Issuance of Preferred Units by our Operating Partnership On November 3, 2014, we and our Operating Partnership entered into a Series A Cumulative Redeemable Preferred Unit Purchase Agreement (the “Unit Purchase Agreement”) with SSTI Preferred Investor, LLC (the “Preferred Investor”), a wholly-owned subsidiary of SmartStop Self Storage Operating Partnership, L.P. through September 30, 2015, and a subsidiary of Extra Space effective October 1, 2015 as a result of the Merger. Pursuant to the Unit Purchase Agreement, the Preferred Investor agreed to provide up to $65 million through a preferred equity investment in our Operating Partnership (the “Preferred Equity Investment”), to be used solely for investments in self storage properties, as described in the underlying documents, in exchange for up to 2.6 million preferred units of limited partnership interest of our Operating Partnership (the “Preferred Units”), each having a liquidation preference of $25.00 per Preferred Unit (the “Liquidation Amount”), plus all of accumulated and unpaid distributions. In addition to the Unit Purchase Agreement, we and our Operating Partnership entered into a Second Amended and Restated Limited Partnership Agreement of the Operating Partnership (the “Second Amended and Restated Limited Partnership Agreement”) and Amendment No. 1 to the Second Amended and Restated Limited Partnership Agreement (the “Amendment”). The Second Amended and Restated Limited Partnership Agreement authorized the issuance of additional classes of units of limited partnership interest in the Operating Partnership, established a new series of preferred units of limited partnership interest in the Operating Partnership and sets forth other necessary corresponding changes. All other terms of the Second Amended and Restated Limited Partnership Agreement remained substantially the same as the original Limited Partnership Agreement. The Amendment sets forth key terms of the Preferred Units, some of which are discussed below. The Preferred Investor invested a total of approximately $59.5 in our Operating Partnership for approximately 2.4 million Preferred Units. Such Preferred Units were owned by Extra Space subsequent to the Merger. On July 22, 2015, our Operating Partnership redeemed 240,000 Preferred Units for $6 million; on September 23, 2015, our Operating Partnership redeemed 340,000 Preferred Units for $8.5 million; and on October 30, 2015, our Operating Partnership redeemed 1.0 million Preferred Units for $25 million. The Redemption Price for the Preferred Units for the partial redemptions equaled the sum of the Liquidation Amount plus all accumulated and unpaid Current Distributions thereon to the date of redemption. On November 9, 2015, our Operating Partnership redeemed the remaining approximately 800,000 Preferred Units for approximately $22 million resulting in the redemption of all of the Preferred Units. The Redemption Price for the Preferred Units for the redemption of the remaining outstanding Preferred Units equaled the sum of the Liquidation Amount plus all accumulated and unpaid Current Distributions and any accumulated Deferred Distributions thereon to the date of redemption. As of December 31, 2015, there were no Preferred Units outstanding and we no longer have any obligations to the Preferred Investor, including the payment of any distributions. The holders of the Preferred Units received current distributions (the “Current Distributions”) at a rate of a one-month LIBOR plus 6.5% per annum on the Liquidation Amount, payable monthly and calculated on an actual/360 basis. In addition to the Current Distributions, our Operating Partnership had the obligation to elect either (A) to pay the holder of the Preferred Units additional distributions monthly in an amount equal to: (i) 4.35% per annum of the Liquidation Amount through March 31, 2017; and (ii) beginning April 1, 2017, 6.35% per annum of the Liquidation Amount or (B) defer the additional distributions ( the “Deferred Distributions”) in an amount that accumulated monthly in an amount equal to (i) LIBOR plus 10.85% of the Deferred Distributions through March 31, 2017; and (ii) beginning April 1, 2017, LIBOR plus 12.85% of the Deferred Distributions. The Preferred Units could be redeemed by our Operating Partnership, in whole or in part, at the option of our Operating Partnership at any time. The redemption price (the “Redemption Price”) for the Preferred Units was equal to: (i) in the event of a partial redemption, the sum of the Liquidation Amount plus all accumulated and unpaid Current Distributions thereon to the date of redemption; and (ii) in the event of the redemption of all outstanding Preferred Units, the sum of the Liquidation Amount plus all accumulated and unpaid Current Distributions and any accumulated Deferred Distributions thereon to the date of redemption. If fewer than all of the outstanding Preferred Units were to be redeemed at the option of our Operating Partnership, the Preferred Units to be redeemed would be determined pro rata or by lot or in such other manner as determined by us, as the general partner of our Operating Partnership to be fair and equitable to all holders of the Preferred Units. The holder of the Preferred Units could have required our Operating Partnership to repurchase the Preferred Units upon the occurrence of any of the following (each an “Optional Repurchase Event”) and as defined within the Amendment: (A) a breach of any of the Protective Provisions; (B) an Event of Default; (C) a Change of Control that has not been consented to in accordance with the terms of the Amendment; (D) our failure to qualify as a REIT under the Internal Revenue Code; or (E) the occurrence and continuance of a monetary or a material default beyond any applicable cure period under any of the loan documents for each of the properties in our portfolio. The repurchase price for the Preferred Units would have been the Redemption Price. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 6. 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 Offering. Organization and offering costs consist of all expenses (other than sales commissions and the dealer manager fee) 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 receives various fees and expenses under the terms of our Advisory Agreement. We are required under our Advisory Agreement to reimburse our Advisor for organization and offering costs; provided, however, our Advisor is 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 receives 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 also receives 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 receives 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. Our Advisor is also 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 is 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 of Class A Shares and up to 2.0% of gross proceeds from the sales of Class T Shares in the Primary Offering and a dealer manager fee up to 3.0% of gross proceeds from sales of both Class A Shares and Class T Shares in the Primary Offering under the terms of the Dealer Manager Agreement. In addition, our Dealer Manager receives an ongoing stockholder servicing fee that is payable monthly and accrues daily in an amount equal to 1/365th of 1% of the purchase price per share of the Class T Shares sold in the Primary Offering. We will cease paying the stockholder servicing fee with respect to the Class T shares sold in the Primary Offering at the earlier of (i) the date we list our shares on a national securities exchange, merge or consolidate with or into another entity, or sell or dispose of all or substantially all of our assets, (ii) the date at which the aggregate underwriting compensation from all sources equals 10% of the gross proceeds from the sale of both Class A shares and Class T shares in our Primary Offering (i.e., excluding proceeds from sales pursuant to our distribution reinvestment plan); (iii) the fifth anniversary of the last day of the fiscal quarter in which our Public Offering (excluding our distribution reinvestment plan offering) terminates; and (iv) the date that such Class T share is redeemed or is no longer outstanding. 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 re-allows all of the sales commissions and, subject to certain limitations, the stockholder servicing fees paid in connection with sales made by these broker-dealers. Our Dealer Manager may also re-allow to these broker-dealers a portion of their 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 in connection with our Public Offering, may not exceed 3% of gross offering proceeds from sales in the Public Offering. Affiliated Dealer Manager Our Chief Executive Officer and President owned, through a wholly-owned limited liability company, a 15% non-voting equity interest in our Dealer Manager through August 31, 2014. Effective, August 31, 2014, SmartStop indirectly owned the 15% non-voting equity interest in our Dealer Manager, pursuant to the Self Administration and Investment Management Transaction. Effective October 1, 2015, in connection with the Merger, the 15% non-voting equity interest in our Dealer Manager is now owned by our Sponsor. An affiliate of our Dealer Manager continues to own a 2.5% non-voting membership interest in our Advisor. Property Management Agreement Through September 30, 2015, each of our self storage properties was managed by our Property Manager under separate property management agreements. Under each agreement, our Property Manager received a fee for its services in managing our properties, generally equal to the greater of $3,000 or 6% of the gross revenues from the properties plus reimbursement of the Property Manager’s costs of managing the properties. Reimbursable costs and expenses included wages and salaries and other expenses of employees engaged in operating, managing and maintaining our properties. Our Property Manager also received a one-time fee for each property acquired by us that was managed by our Property Manager in the amount of $3,750. In the event that our Property Manager assisted with the development or redevelopment of a property, we paid a separate market-based fee for such services. In addition, our Property Manager was 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 tenant at one of our properties in connection with the tenant insurance program. Additionally, each agreement included a non-solicitation provision and a provision regarding the Property Manager’s use of trademarks and other intellectual property owned by SmartStop. As of October 1, 2015, each of our self storage properties are subject to separate property management agreements with our Property Manager, which in turn has entered into sub-property management agreements with Extra Space, which provides on-site management of our properties. Such agreements were entered into effective on October 1, 2015. Under the property management agreements, our Property Manager receives a monthly management fee of $2,500 or 6% of the gross revenues, whichever is greater, plus reimbursement of the Property Manager’s costs of managing the properties. Extra Space agreed to pay up to $25,000 for each property managed toward the signage and set-up costs associated with converting each property to the Extra Space brand (the “Set-Up Amount”). The property management agreements have a three year term and automatically renew for successive one year periods thereafter, unless we or our Property Manager provides prior written notice at least 90 days prior to the expiration of the term. We may terminate a property management agreement without cause at any time during the initial three year term if we pay the Property Manager a termination fee equal to the Set-Up Amount, reduced by 1/36th of the Set-Up Amount for every full month of the term. After the end of the initial three year term, we may terminate a property management agreement on 30 days prior written notice without payment of a termination fee. Our Property Manager may terminate a property management agreement on 60 days prior written notice to us. The sub-property management agreements between our Property Manager and Extra Space are substantially the same as the property management agreements between us and our Property Manager. Under the sub-property management agreements, our Property Manager pays Extra Space a monthly management fee of $2,500 or 6% of the gross revenues, whichever is greater, plus reimbursement of Extra Space’s costs of managing the properties; provided, however that no management fee is due and payable to Extra Space for the months of January and July each year during the term. Extra Space has the exclusive right to offer tenant insurance to the tenants and is entitled to all of the benefits of such tenant insurance. The sub-property management agreements also have a three year term and automatically renew for successive one year periods thereafter, unless our Property Manager or Extra Space provides prior written notice at least 90 days prior to the expiration of the term. Our Property Manager may terminate the sub-property management agreement without cause at any time during the initial three year term if it pays Extra Space a termination fee equal to the Set-Up Amount, reduced by 1/36th of the Set-Up Amount for every full month of the term. After the end of the initial three year term, our Property Manager may terminate a sub-property management agreement on 30 days prior written notice without payment of a termination fee. Extra Space may terminate a property management agreement on 60 days prior written notice to our Property Manager. In addition, we entered into an agreement with Extra Space and our Property Manager in which we agreed that, subject to certain limitations, our Property Manager will retain Extra Space as sub-property manager for all self storage properties we acquire in the United States that will be managed by our Property Manager. Pursuant to the terms of the agreements described above, the following table summarizes related party costs incurred and paid by us for the years ended December 31, 2015 and 2014, and any related amounts payable as of December 31, 2015 and 2014 (there were no related party costs during the period from January 8, 2013 (date of inception) through December 31, 2013): Year Ended December 31, 2014 Year Ended December 31, 2015 Incurred Paid Payable Incurred Paid Payable Expensed Operating expenses (including organizational costs) $ 862,827 $ 26,326 $ 836,501 $ 1,200,003 $ 1,988,533 $ 47,971 Asset management fees 22,254 — 22,254 865,757 888,011 — Property management fees (1) 47,287 — 47,287 1,259,135 1,306,422 — Acquisition expenses 1,089,783 386,750 703,033 2,776,679 3,479,712 — Capitalized Debt issuance costs 441,873 — 441,873 214,006 655,879 — Other assets 461,492 — 461,492 77,556 539,048 — Additional Paid-in Capital Selling commissions 1,201,157 1,201,157 — 14,761,271 14,761,271 — Dealer Manager fee 514,781 508,902 5,879 3,690,318 3,535,685 160,512 Offering costs 1,805,916 — 1,805,916 319,882 2,125,798 — Total $ 6,447,370 $ 2,123,135 $ 4,324,235 $ 25,164,607 $ 29,280,359 $ 208,483 (1) During the year ended December 31, 2015, property management fees included approximately $0.3 million of fees paid to the sub-property manager of our properties. Tenant Insurance Program Prior to the closing of the Merger on October 1, 2015, SmartStop participated in a tenant reinsurance program whereby customers of our self storage facilities were able to purchase insurance to cover damage or destruction to their property while stored at our facilities. SmartStop invested in a Cayman Islands company (the “Reinsurance Company”) that insured 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 provided fees (approximately 50% of the tenant premium paid) to us as owner of the facilities. The Reinsurance Company was required to fund additional capital or entitled to receive distributions of profits depending on actual losses incurred under the program. Commensurate with the effective date of the Self Administration and Investment Management Transaction of August 31, 2014, SmartStop acquired its interest in the Reinsurance Company from our Chief Executive Officer and President. For the years ended December 31, 2015 and 2014, we recorded revenue of approximately $260,000 and approximately $12,000, respectively, from the program insurer. Effective October 1, 2015, Extra Space was entitled to all tenant insurance revenues for properties located in the United States and we will no longer receive any such tenant insurance revenues. Extra Space Self Storage In connection with the merger of SmartStop into Extra Space, certain of our executive officers, including H. Michael Schwartz, Paula Mathews, Michael McClure and James Berg, received units of limited partnership interest in Extra Space Storage LP, the operating partnership for Extra Space, in exchange for units of limited partnership of SmartStop Self Storage Operating Partnership, L.P., the operating partnership for SmartStop, owned by such executives. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 7. Commitments and Contingencies Distribution Reinvestment Plan We have adopted an amended and restated distribution reinvestment plan that allows both our Class A and Class T stockholders to have distributions otherwise distributable to them invested in additional shares of our Class A and Class T Shares, respectively. 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. As of December 31, 2015, we had sold approximately 132,000 shares through our distribution reinvestment plan offering for Class A Shares and 64 shares for our Class T Shares. 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. For the year ended December 31, 2015, we received two redemption requests, one for approximately 1,750 shares which was fulfilled in July 2015, and another for approximately 1,095 shares which was fulfilled in January 2016. For the year ended December 31, 2014, we did not receive any requests for redemptions. 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 Advisor is acting as our advisor under the Advisory Agreement. Other Contingencies From time to time, we are party to legal proceedings that arise in the ordinary course of our business. We are not aware of any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on our results of operations or financial condition, nor are we aware of any such legal proceedings contemplated by governmental authorities. |
Declaration of Distributions
Declaration of Distributions | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Declaration of Distributions | Note 8. Declaration of Distributions On December 3, 2015, our board of directors declared a distribution rate for the first quarter of 2016 of $0.00163934426 per day per share on the outstanding shares of common stock payable to both Class A and Class T stockholders of record of such shares as shown on our books at the close of business on each day during the period, commencing on January 1, 2016 and continuing on each day thereafter through and including March 31, 2016. Such distributions payable to each stockholder of record during a month will be paid on such date of the following month as our Chief Executive Officer may determine. |
Pro Forma Financial Information
Pro Forma Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Pro Forma Financial Information (Unaudited) | Note 9. Pro Forma Financial Information (Unaudited) The table set forth below summarizes on an unaudited pro forma basis the combined results of operations of the Company for the years ended December 31, 2015 and 2014 as if the Company’s acquisitions discussed in Note 3 were completed as of January 1, 2014. This pro forma information does not purport to represent what the actual results of operations of the Company would have been for the periods indicated, nor do they purport to predict the results of operations for future periods. Year Ended Year Ended Pro forma revenue $ 21,017,312 $ 19,674,346 Pro forma operating expenses $ 19,783,189 $ 21,687,080 Pro forma net loss attributable to common stockholders $ (9,194,927 ) $ (13,171,002 ) The pro forma financial information for the years ended December 31, 2015 and 2014 were adjusted to exclude approximately $3.4 million and $1.3 million, respectively, for acquisition related expenses. |
Selected Quarterly Data
Selected Quarterly Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Data | Note 10. Selected Quarterly Data (Unaudited) The following is a summary of quarterly financial information for the years ended December 31, 2015 and 2014 (there were no operations during the period from January 8, 2013 (date of inception) through December 31, 2013): Three months ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 (1) Total revenues $ 3,006,780 $ 4,488,212 $ 5,053,724 $ 5,356,983 Total operating expenses $ 5,925,633 $ 5,613,146 $ 5,989,195 $ 5,454,605 Operating loss $ (2,918,853 ) $ (1,124,934 ) $ (935,471 ) $ (97,622 ) Net loss $ (3,580,205 ) $ (1,990,815 ) $ (1,854,575 ) $ (1,511,945 ) Net loss attributable to the Company $ (4,979,729 ) $ (4,037,637 ) $ (3,739,454 ) $ (2,534,121 ) Net loss per Class A Share-basic and diluted $ (2.26 ) $ (1.36 ) $ (0.82 ) $ (0.18 ) Net loss per Class T Share-basic and diluted $ — $ — $ — $ (0.18 ) Three months ended March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 Total revenues $ — $ — $ — $ 465,345 Total operating expenses $ — $ 866,991 $ 498,335 $ 1,356,884 Operating loss $ — $ (866,991 ) $ (498,335 ) $ (891,539 ) Net loss $ — $ (866,991 ) $ (498,335 ) $ (996,259 ) Net loss attributable to the Company $ — $ (789,137 ) $ (482,603 ) $ (1,124,645 ) Net loss per Class A Share-basic and diluted $ — $ (7.90 ) $ (0.77 ) $ (0.84 ) Net loss per Class T Share-basic and diluted $ — $ — $ — $ — (1) Includes a net decrease of approximately $500,000 of depreciation and amortization expense related to the finalization of purchase price allocations. As discussed in Note 3, during 2015 we completed the purchase price allocations for our five properties acquired in 2014 and 26 properties acquired in 2015 and recognized the cumulative measurement period adjustments in our consolidated statement of operations during the fourth quarter of 2015. If such measurement period adjustments were retroactively recorded they would have had the net impact of increasing depreciation by approximately none, $25,000, $50,000, and $60,000 and decreasing intangible amortization expense by approximately $30,000, $160,000, $220,000, and $230,000, respectively related to the fourth quarter of 2014 and the first, second and third quarters of 2015. However, as discussed in Note 2 we early adopted new amended accounting guidance and the cumulative measurement period adjustments were recorded in the fourth quarter. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11. Subsequent Events Dividend Declaration On March 22, 2016, our board of directors declared distributions in the amount of $0.00163934426 per day per share (equivalent to an annualized distribution rate of 6.00% assuming the Class A share was purchased for $10.00, and an annualized distribution rate of 6.34% assuming the Class T share was purchased for $9.47) on the outstanding shares of common stock payable to both Class A and Class T stockholders of record at the close of business on each day during the period from April 1, 2016 through June 30, 2016. Such distributions payable to each stockholder of record during a month will be paid on such date of the following month as our Chief Executive Officer may determine. Acquisitions Acquisition of Boynton Beach Property On January 7, 2016, we purchased a self storage facility located in Boynton Beach, Florida (the “Boynton Beach Property”). We acquired the Boynton Beach Property from an unaffiliated third party for a purchase price of approximately $17.9 million, plus closing costs and acquisition fees. Our Advisor earned approximately $0.3 million in acquisition fees in connection with this acquisition. We financed the acquisition of the Boynton Beach Property with net proceeds from our Offering. Acquisition of Lancaster Property On January 11, 2016, we purchased a self storage facility located in Lancaster, California (the “Lancaster Property”). We acquired the Lancaster Property from an unaffiliated third party for a purchase price of approximately $4.7 million, plus closing costs and acquisition fees. Our Advisor earned approximately $80,000 in acquisition fees in connection with the acquisition. We financed the acquisition of the Lancaster Property with net proceeds from our Offering. Acquisition of Toronto Portfolio On February 11, 2016, we purchased three self storage facilities located in the Burlington, Milton and Oakville areas of Toronto, Canada (the “Toronto Portfolio”). We acquired the Toronto Portfolio from an unaffiliated third party for a U.S. dollar equivalent purchase price of approximately $38.2 million, plus closing costs and acquisition fees. Our Advisor earned approximately $670,000 in acquisition fees in connection with this acquisition. We financed the acquisition of the Toronto Portfolio with a combination of net proceeds from our Offering, assumptions of existing mortgages and a new loan. Since the Toronto Portfolio is located in Canada, our Property Manager will manage the Toronto Portfolio and such properties will be branded using the SmartStop ® In connection with the acquisition of the Toronto Portfolio, we, through two special purpose entities formed to acquire and hold two of the properties, assumed two secured loans with Wells Fargo Bank (“Wells Fargo”). We assumed a loan dated June 10, 2014 with Wells Fargo in the U.S. dollar equivalent principal amount of approximately $6.9 million (the “Burlington Loan”) at closing that is secured by the property located in Burlington (the “Burlington Property”). The Burlington Loan accrues interest at a fixed rate of 6.05% annually on approximately $4.7 million of principal amount and a floating rate equal to the three-month CDOR Rate (as defined in the loan agreement) plus 4.05% annually on approximately $2.2 million of principal amount. The Burlington Loan matures on October 15, 2018. The Burlington Loan is secured by a first mortgage on the Burlington Property. In addition, we executed a guaranty in favor of Wells Fargo guaranteeing 50% of the Burlington Loan amount. We also assumed a loan dated October 15, 2013 with Wells Fargo in the U.S. dollar equivalent principal amount of approximately $4.8 million (the “Milton Loan”) at closing that is secured by the property located in Milton (the “Milton Property”). The Milton Loan matures on October 15, 2018 and carries a fixed interest rate of 5.81%. The Milton Loan is secured by a first mortgage on the Milton Property. In addition, we executed a guaranty in favor of Wells Fargo guaranteeing 50% of the Milton Loan amount. In connection with the closing of the property located in Oakville (the “Oakville Property”), a special purpose entity formed to acquire and hold the Oakville Property entered into a new loan with the Bank of Montreal (“BMO”) in an amount up to approximately the U.S. dollar equivalent of $10.8 million (the “Oakville Loan”) with respect to which interest accrues at the BMO’s prime rate plus 1.75% per annum. At closing, approximately $7.1 million was outstanding on the Oakville Loan. The balance of approximately $3.7 million will be used in connection with future construction of a retail component at the Oakville Property. The Oakville Loan matures on December 31, 2017. In addition, we provided a guaranty in connection with the Oakville Loan in the U.S. dollar equivalent amount of $7.2 million. Acquisition of Appleby Portfolio On February 29, 2016, we purchased two self storage facilities located in the Burlington and Oakville areas of Toronto, Canada (the “Appleby Portfolio”). We acquired the Appleby Portfolio from an unaffiliated third party for a U.S. dollar equivalent purchase price of approximately $21.4 million, plus closing costs and acquisition fees. Our Advisor earned approximately $370,000 in acquisition fees in connection with this acquisition. We financed the acquisition of the Appleby Portfolio with a combination of net proceeds from our Offering and new debt. In connection with the Appleby Portfolio, we, through four property holding special purpose entities, entered into a loan agreement with Fifth Third Bank (the “Fifth Third Loan”). The loan agreement (the “Fifth Third Loan Agreement”) provides for a non-revolving loan in the U.S. dollar equivalent principal amount of $12.4 million (the “Loan Amount”). The Loan Amount incurs interest at a rate equal to CDOR on such day plus 2.50% per annum. Principal and interest payments must be made monthly. The Fifth Third Loan may be prepaid at any time as long as we provide 30 days prior written notice. The Fifth Third Loan is secured by the Appleby Portfolio properties and matures on February 28, 2021. Pursuant to the Fifth Third Loan Agreement, we must maintain a debt service coverage ratio of no less than the following: (a) prior to March 31, 2018, 1.25 to 1.00; and (b) thereafter, 1.30 to 1.00. We must also maintain a tangible net worth of at least $50 million. In addition, we executed a guaranty in favor of Fifth Third Bank guaranteeing 20% of the Loan Amount. Potential Acquisitions Potential Acquisition of Seven Properties On February 4, 2016, one of our subsidiaries executed a purchase and sale agreement with certain subsidiaries of Extra Space (the “Seven Property Purchase Agreement”) for the acquisition of seven self storage facilities, five of which are located in Ohio and two of which are located in Indiana (the “Seven Properties”). The purchase price for the Seven Properties is approximately $18 million, plus closing costs and acquisition fees. We expect to close on the acquisition of the Seven Properties in the second quarter of 2016 and to fund such acquisition with net proceeds from our Offering. Potential Acquisition of Sacramento Property On March 2, 2016, one of our subsidiaries executed a purchase and sale agreement with an unaffiliated third party (the “Sacramento Purchase Agreement”) for the acquisition of a self storage facility located in Sacramento, California (the “Sacramento Property”). The purchase price for the Sacramento Property is approximately $8.2 million, plus closing costs and acquisition fees. We expect to close on the acquisition of the Sacrament Property in the second quarter of 2016 and to fund such acquisition with net proceeds from our Offering. Potential Acquisition of Port St. Lucie Property On March 9, 2016, one of our subsidiaries executed a purchase and sale agreement (the “Port St. Lucie Purchase Agreement”) with an unaffiliated third party for the acquisition of a self storage facility located in Port St. Lucie, Florida (the “Port St. Lucie Property”). The purchase price for the Port St. Lucie Property is approximately $9.8 million, plus closing costs and acquisition fees. We expect to close on the acquisition of the Port St. Lucie Property in the second quarter of 2016 and to fund such acquisition with net proceeds from our public offering. Potential Acquisition of Oakland Portfolio On March 25, 2016, one of our subsidiaries executed a purchase and sale agreement with an unaffiliated third party (the “Oakland Purchase Agreement”) for the acquisition of two self storage facilities located in Oakland, California (the “Oakland Properties”). The purchase price for the Oakland Properties is approximately $50 million, plus closing costs and acquisition fees. We expect to close on the acquisition of the Oakland Properties in the second or third quarter of 2016 and to fund such acquisition with net proceeds from our Offering and an assumption of an existing mortgage. Potential Acquisition of 27 Property Portfolio On March 25, 2016, one of our subsidiaries executed purchase and sale agreements with unaffiliated third parties (the “27 Property Purchase Agreement”) for the acquisition of 22 self storage facilities (10 in Florida, 11 in North Carolina, and one in Maryland), four parcels of land adjacent to the North Carolina properties and one redevelopment property in North Carolina (the “27 Property Portfolio”). The purchase price for the 27 Property Portfolio is approximately $371 million, plus closing costs and acquisition fees. We expect to close on the acquisition of the 27 Property Portfolio in the second and or third quarters of 2016 and to fund such acquisition with net proceeds from our Offering, a drawdown on our existing credit facility, an assumption of an existing mortgage, and other potential debt financing. Update to the KeyBank Credit Facility On February 18, 2016, we, through our Operating Partnership, and certain affiliated entities, entered into a first amendment and joinder to amended and restated credit agreement (the “First Amendment”) with KeyBank National Association, as administrative agent (“KeyBank”). Under the terms of the First Amendment, we added an additional $40 million to our maximum borrowing capacity for a total of $145 million with the admission of US Bank National Association (the “Subsequent Lender”). It is anticipated that the additional borrowing capacity will be used to fund our future self storage property acquisitions. The Subsequent Lender also became a party to the Amended KeyBank Facility through a joinder agreement in the First Amendment. As of March 29, 2016, there was no outstanding principal balance under the Amended KeyBank Facility. Forward Contract to Hedge Exposure to Foreign Currency Rate Fluctuations On March 8, 2016 we entered into a foreign currency forward contract (the “Forward Contract”) in order to hedge foreign currency exposure related to our investment in subsidiaries that hold properties we recently acquired in Canada. A foreign currency forward contract is a commitment to deliver a certain amount of currency at a certain price on a specific date in the future. By entering into the Forward Contract and holding it to maturity, we are locked into a future currency exchange rate in an amount equal to and for the term of the Forward Contract. The Forward Contract has a notional amount of $42.5 million CAD, a duration of 12 months, and a forward rate of approximately 1.339. Offering Status As of March 21, 2016, in connection with our Primary Offering we have issued approximately 29.4 million Class A shares of our common stock and approximately 1.5 million Class T shares of our common stock for gross proceeds of approximately $292.6 million and approximately $14.6 million, respectively. |
Schedule III Real Estate and Ac
Schedule III Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2015 | |
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III Real Estate and Accumulated Depreciation | STRATEGIC STORAGE TRUST II, INC. AND SUBSIDIARIES SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION December 31, 2015 Initial Cost to Company Gross Carrying Amount at December 31, 2015 Description ST Encumbrance Land Building and Total Net Land Building and (1) Accumulated Date of Date Morrisville NC $ 1,198,757 $ 531,000 $ 1,891,000 $ 2,422,000 $ 88,983 $ 531,000 $ 1,979,983 $ 2,510,983 $ 83,708 2004 11/3/2014 Cary NC 2,571,986 1,064,000 3,301,000 4,365,000 46,214 1,064,000 3,347,214 4,411,214 141,441 1998/2005/ 2006 11/3/2014 Raleigh NC 2,206,165 1,186,000 2,540,000 3,726,000 57,844 1,186,000 2,597,844 3,783,844 127,964 1999 11/3/2014 Myrtle Beach I SC 3,343,018 1,482,000 4,476,000 5,958,000 113,317 1,482,000 4,589,317 6,071,317 196,827 1998/2005- 2007 11/3/2014 Myrtle Beach II SC 3,117,914 1,690,000 3,654,000 5,344,000 65,715 1,690,000 3,719,715 5,409,715 165,230 1999/ 2006 11/3/2014 Whittier CA 442,513 2,730,000 2,916,875 5,646,875 70,514 2,730,000 2,987,389 5,717,389 109,586 1989 02/18/15 La Verne CA 312,428 1,950,000 2,036,875 3,986,875 48,802 1,950,000 2,085,677 4,035,677 86,027 1986 01/23/15 Santa Ana CA 697,196 4,890,000 4,006,875 8,896,875 79,368 4,890,000 4,086,243 8,976,243 156,474 1978 02/05/15 Upland CA 467,589 2,950,000 3,016,875 5,966,875 65,035 2,950,000 3,081,910 6,031,910 120,812 1979 01/29/15 La Habra CA 346,125 2,060,000 2,356,875 4,416,875 29,840 2,060,000 2,386,715 4,446,715 80,604 1981 02/05/15 Monterey Park CA 332,019 2,020,000 2,216,875 4,236,875 51,694 2,020,000 2,268,569 4,288,569 72,211 1987 02/05/15 Huntington Beach CA 808,473 5,460,000 4,856,875 10,316,875 69,502 5,460,000 4,926,377 10,386,377 179,856 1986 02/05/15 Chico CA 136,109 400,000 1,336,875 1,736,875 25,705 400,000 1,362,580 1,762,580 49,909 1984 01/23/15 Lancaster CA 134,541 200,000 1,516,875 1,716,875 58,408 200,000 1,575,283 1,775,283 63,952 1980 01/29/15 Riverside CA 211,338 370,000 2,326,875 2,696,875 46,883 370,000 2,373,758 2,743,758 85,830 1985 01/23/15 Fairfield CA 288,135 730,000 2,946,875 3,676,875 28,506 730,000 2,975,381 3,705,381 110,100 1984 01/23/15 Lompoc CA 293,621 1,000,000 2,746,875 3,746,875 47,068 1,000,000 2,793,943 3,793,943 99,532 1982 02/05/15 Santa Rosa CA 773,209 3,150,000 6,716,875 9,866,875 67,778 3,150,000 6,784,653 9,934,653 251,399 1979- 1981 01/29/15 Vallejo CA — 990,000 3,946,875 4,936,875 60,847 990,000 4,007,722 4,997,722 145,671 1981 01/29/15 Federal Heights CO 348,476 1,100,000 3,346,875 4,446,875 58,584 1,100,000 3,405,459 4,505,459 140,212 1983 01/29/15 Aurora CO 526,362 810,000 5,906,875 6,716,875 51,948 810,000 5,958,823 6,768,823 211,718 1984 02/05/15 Littleton CO 324,183 1,680,000 2,456,875 4,136,875 27,361 1,680,000 2,484,236 4,164,236 95,128 1985 01/23/15 Bloomingdale IL 365,716 810,000 3,856,874 4,666,874 47,620 810,000 3,904,494 4,714,494 129,121 1987 02/18/15 Crestwood IL 183,911 250,000 2,096,875 2,346,875 100,573 250,000 2,197,448 2,447,448 79,090 1987 01/23/15 Forestville MD 492,666 1,940,000 4,346,875 6,286,875 82,979 1,940,000 4,429,854 6,369,854 189,219 1988 01/23/15 Warren I MI 250,520 230,000 2,966,875 3,196,875 63,649 230,000 3,030,524 3,260,524 75,613 1996 05/08/15 Sterling Heights MI 277,164 250,000 3,286,875 3,536,875 60,591 250,000 3,347,466 3,597,466 74,294 1977 05/21/15 Troy MI 346,125 240,000 4,176,875 4,416,875 65,279 240,000 4,242,154 4,482,154 140,058 1988 05/08/15 Warren II MI 259,140 240,000 3,066,875 3,306,875 67,513 240,000 3,134,388 3,374,388 79,350 1987 05/08/15 Beverly NJ 164,320 400,000 1,696,875 2,096,875 26,318 400,000 1,723,193 2,123,193 37,430 1988 05/28/15 Everett WA 389,225 2,010,000 2,956,875 4,966,875 50,949 2,010,000 3,007,824 5,017,824 97,276 1986 02/05/15 Foley AL 596,743 1,830,000 5,785,000 7,615,000 53,850 1,830,000 5,838,850 7,668,850 68,819 1985/1996/ 2006 09/11/15 Tampa FL 232,154 1,010,000 1,952,500 2,962,500 4,064 1,010,000 1,956,564 2,966,564 11,248 1985 11/03/15 $ 22,437,841 $ 47,653,000 $ 106,708,249 $ 154,361,249 $ 1,883,301 $ 47,653,000 $ 108,591,550 $ 156,244,550 $ 3,755,709 Activity in real estate facilities during 2015 was as follows: Real estate facilities Balance at December 31, 2014 $ 20,857,880 Facility acquisitions 132,546,249 Finalized purchase price allocations related to 2014 acquisitions 958,000 Improvements and additions 2,156,384 Asset disposals (273,963 ) Balance at December 31, 2015 $ 156,244,550 Accumulated depreciation Balance at December 31, 2014 $ (93,433 ) Depreciation expense (3,936,239 ) Asset disposals 273,963 Balance at December 31, 2015 $ (3,755,709 ) |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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 subsidiaries, 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 | Consolidation Considerations 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 December 31, 2015 and 2014, we had not entered into contracts/interests that would be 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. The most significant estimates made include the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed at fair value, the determination if certain entities should be consolidated, the evaluation of potential impairment of long-lived assets, and the useful lives of real estate assets and intangibles. |
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. |
Restricted Cash | Restricted Cash Restricted cash consists primarily of impound reserve accounts for property taxes, insurance and capital improvements in connection with the requirements of our loan agreement. |
Real Estate Purchase Price Allocation | Real Estate Purchase Price Allocation We 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 requires 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 are 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 are 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 determine whether the acquisition includes intangible assets or liabilities. Substantially all of the leases in place at acquired properties are at market rates, as the majority of the leases are month-to-month contracts. We also consider whether in-place, market leases represent an intangible asset. We recorded approximately $8.0 million and approximately $1.2 million in intangible assets to recognize the value of in-place leases related to our acquisitions during 2015 and 2014, respectively. We do not expect, nor to date have we recorded, 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. Our acquisition-related transaction costs are required to be expensed as incurred. During the years ended December 31, 2015 and 2014 we expensed approximately $3.4 million and $1.3 million, respectively, of acquisition-related transaction costs. 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 recognize any measurement adjustments during the period in which we determine the amount of the adjustment to 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, 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. For the years ended December 31, 2015 and 2014, no impairment losses were recognized. |
Revenue Recognition | Revenue Recognition Management believes that all of our leases are operating leases. Rental income is recognized in accordance with the terms of the leases, which generally are month-to-month. Revenues from any long-term operating leases are 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 is included in accounts payable and accrued liabilities in our consolidated balance sheets and contractually due but unpaid rent is included in other assets. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Tenant accounts receivable is reported net of an allowance for doubtful accounts. Management’s estimate of the allowance is based upon a review of the current status of tenant accounts receivable. It is reasonably possible that management’s estimate of the allowance will change in the future. |
Real Estate Facilities | Real Estate Facilities Real estate facilities are recorded at cost. We capitalize costs incurred to develop, construct, renovate and improve properties, including interest and property taxes incurred during the construction period. The construction period begins when expenditures for the real estate assets have been made and activities that are necessary to prepare the asset for its intended use are in progress. The construction period ends when the asset is substantially complete and ready for its intended use. |
Depreciation of Real Property Assets | Depreciation of Real Property Assets Our management is required to make subjective assessments as to the useful lives of our depreciable assets. We consider the period of future benefit of the asset to determine the appropriate useful lives. Depreciation of our real property assets is charged to expense on a straight-line basis over the estimated useful lives as follows: Description Standard Depreciable Life Land Not Depreciated Buildings 30-35 years Site Improvements 7-10 years As described in Note 1, after the close of the Merger all of our properties in the United States were re-branded under the Extra Space name. As such, during the three months ended September 30, 2015, the depreciable lives for capitalized SmartStop branded signs were reduced to their estimated remaining useful lives. Depreciation expense for the year ended December 31, 2015 includes approximately $230,000 of accelerated depreciation related to the SmartStop branded signs. |
Depreciation of Personal Property Assets | Depreciation of Personal Property Assets Personal property assets consist primarily of furniture, fixtures and equipment and are depreciated on a straight-line basis over the estimated useful lives generally ranging from 3 to 5 years, and are included in other assets on our consolidated balance sheets. |
Intangible Assets | Intangible Assets We have allocated a portion of our real estate purchase price to in-place leases. We are amortizing in-place leases on a straight-line basis over the estimated future benefit period. As of December 31, 2015, the gross amounts allocated to in-place lease intangibles was approximately $9.2 million and accumulated amortization of in-please lease intangibles totaled approximately $5.3 million. As of December 31, 2014, the gross amounts allocated to in-place lease intangibles was approximately $2.1 million and accumulated amortization of in-place lease intangibles totaled approximately $0.2 million. The total estimated amortization expense of intangible assets for the years ending December 31, 2016, and 2017, is approximately $3.8 million, and $100,000, respectively, and none for the years thereafter. |
Debt Issuance Costs | Debt Issuance Costs Costs incurred in connection with obtaining financing are deferred and amortized on a straight-line basis over the term of the related loan, which is not materially different than the effective interest method. As of December 31, 2015 and 2014 accumulated amortization of debt issuance costs totaled approximately $48,000 and approximately $4,000, respectively. |
Organizational and Offering Costs | Organizational and Offering Costs Our Advisor may 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 requirements 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 December 31, 2015, 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 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. For the year ended December 31, 2015 we received two redemption requests, one for approximately 1,750 shares which was fulfilled in July 2015, and another for approximately 1,095 shares which was fulfilled in January 2016. For the year ended December 31, 2014, we did not receive any requests for redemptions. |
Accounting for Equity Awards | Accounting for Equity Awards The cost of restricted stock is required to be measured based on the grant date fair value and the cost recognized over the relevant service period. |
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. Financial and non-financial assets and liabilities measured at fair value on a non-recurring basis in our consolidated financial statements consist of real estate and related liabilities assumed related to our acquisitions. The fair values of these assets and liabilities were determined as of the acquisition dates using widely accepted valuation techniques, including (i) discounted cash flow analysis, which considers, among other things, leasing assumptions, growth rates, discount rates and terminal capitalization rates, (ii) income capitalization approach, which considers prevailing market capitalization rates, and (iii) comparable sales activity. In general, we consider multiple valuation techniques when measuring fair values. However, in certain circumstances, a single valuation technique may be appropriate. All of the fair values of the assets and liabilities as of the acquisition dates were derived using Level 3 inputs. The carrying amounts of cash and cash equivalents, tenant 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. The table below summarizes our fixed rate notes payable at December 31, 2015 and 2014. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of the fixed rate notes payable was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented below are not necessarily indicative of the amounts we would realize in a current market exchange. December 31, 2015 December 31, 2014 Fair Value Carrying Value Fair Value Carrying Value Fixed Rate Secured Debt $ 13,300,000 $ 13,237,237 $ 13,500,000 $ 13,494,871 To comply with GAAP, we 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 non-performance 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 subsidiaries, are 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 made 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 ended December 31, 2014. To continue 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 are organized and operate in such a manner as to continue 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 continue to 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 filed elections to treat our TRS as a taxable REIT subsidiary effective January 1, 2014. In general, the TRS performs additional services for our customers and generally engages in any real estate or non-real estate related business. The TRS is subject to corporate federal and state income tax. The TRS follows accounting guidance which requires the use of the asset and liability method. Deferred income taxes represent the tax effect of future differences between the book and tax bases of assets and liabilities. |
Per Share Data | Per Share Data Basic earnings per share attributable to Strategic Storage Trust II, Inc. for all periods presented are computed by dividing net income (loss) attributable to Strategic Storage Trust II, Inc. by the weighted average number of shares outstanding during the period, excluding unvested restricted stock. Diluted earnings per share are computed by dividing net income (loss) attributable to Strategic Storage Trust II, Inc. by the weighted average number of shares outstanding, adjusted for the dilutive effect of unvested restricted stock, utilizing the treasury stock method. For all periods presented the dilutive effective of unrestricted stock was not included in the dilutive weighted average shares as such shares were antidilutive. |
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 in the FASB ASC. In July 2015, the FASB voted to defer the effective date by one year to annual reporting periods (including interim periods within those periods) beginning after December 15, 2017 and early adoption is permitted. This ASU shall still be applied using either a full retrospective or modified retrospective approach. 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. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. Specifically, ASU 2015-02 modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, and affects the evaluation of fee arrangements in the primary beneficiary determination. ASU 2015-02 is effective for periods beginning after December 15, 2015 and early adoption is 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. In April 2015, the FASB issued ASU 2015-03, “Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, in August 2015, the FASB issued ASU 2015-15, “Interest – Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements”, which clarifies ASU No. 2015-03 by stating that the staff of the SEC would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-03 is effective for periods beginning after December 15, 2015 and early adoption is 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. In September 2015, the FASB issued ASU 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments”. The amendments in the update require an acquirer in a business combination to recognize adjustments to estimated amounts identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer must record the effect of the adjustments on earnings as if the accounting had been completed at the acquisition date and the acquirer must disclose in its financial statements the portion of the amounts recorded in each line item of current-period earnings that would have been recorded in previous periods if the adjustments to estimated amounts had been recognized as of the acquisition date. The update is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, with early adoption permitted for financial statements that have not been issued. We have early adopted this new guidance and the effect on our financial statements is discussed in Note 3. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”, which amends the guidance on accounting for leases. Under ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under ASU 2016-02, lessor accounting is largely unchanged. It also includes extensive amendments to the disclosure requirements. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted for financial statements that have not yet been made available for issuance. ASU 2016-02 requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. 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 Accoun21
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives used to Depreciate Real Property Assets | Depreciation of our real property assets is charged to expense on a straight-line basis over the estimated useful lives as follows: Description Standard Depreciable Life Land Not Depreciated Buildings 30-35 years Site Improvements 7-10 years |
Summary of Fixed Rate Notes Payable | The table below summarizes our fixed rate notes payable at December 31, 2015 and 2014. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of the fixed rate notes payable was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented below are not necessarily indicative of the amounts we would realize in a current market exchange. December 31, 2015 December 31, 2014 Fair Value Carrying Value Fair Value Carrying Value Fixed Rate Secured Debt $ 13,300,000 $ 13,237,237 $ 13,500,000 $ 13,494,871 |
Real Estate Facilities (Tables)
Real Estate Facilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate [Abstract] | |
Summary of Activity in Real Estate Facilities | The following summarizes the activity in real estate facilities during the years ended December 31, 2015 and 2014: Real estate facilities Balance at December 31, 2013 $ — Facility acquisitions 20,857,000 Improvements and additions 880 Balance at December 31, 2014 20,857,880 Facility acquisitions 132,546,249 Finalized purchase price allocations related to 2014 acquisitions 958,000 Improvements and additions 2,156,384 Asset disposals (273,963 ) Balance at December 31, 2015 $ 156,244,550 Accumulated depreciation Balance at December 31, 2013 $ — Depreciation expense (93,433 ) Balance at December 31, 2014 (93,433 ) Depreciation expense (3,936,239 ) Asset disposals 273,963 Balance at December 31, 2015 $ (3,755,709 ) |
Summary of Purchase Price Allocation for Acquisitions | The following table summarizes the purchase price allocation for our acquisitions during the year ended December 31, 2015: Property Acquisition Real Estate Intangibles Total Principal of 2015 (2) 2015 (3) La Verne 1/23/2015 $ 3,986,875 $ 180,000 $ 4,166,875 $ 2,370,000 $ 705,564 444,668 Chico 1/23/2015 1,736,875 90,000 1,826,875 1,230,000 553,611 313,050 Riverside 1/23/2015 2,696,875 110,000 2,806,875 1,740,000 862,574 482,506 Fairfield 1/23/2015 3,676,875 250,000 3,926,875 2,250,000 621,060 366,104 Littleton 1/23/2015 4,136,875 210,000 4,346,875 2,310,000 568,008 354,357 Crestwood 1/23/2015 2,346,875 140,000 2,486,875 1,650,000 489,340 246,268 Forestville 1/23/2015 6,286,875 410,000 6,696,875 3,870,000 1,033,216 716,896 Upland 1/29/2015 5,966,875 310,000 6,276,875 3,540,000 310,001 134,707 Lancaster 1/29/2015 1,716,875 90,000 1,806,875 1,140,000 411,394 174,715 Santa Rosa 1/29/2015 9,866,875 600,000 10,466,875 5,760,000 475,487 258,042 Vallejo 1/29/2015 4,936,875 350,000 5,286,875 3,360,000 511,791 293,887 Federal Heights 1/29/2015 4,446,875 300,000 4,746,875 2,550,000 557,445 348,501 Santa Ana 2/5/2015 8,896,875 380,000 9,276,875 4,350,000 1,149,866 714,694 La Habra 2/5/2015 4,416,875 190,000 4,606,875 2,340,000 667,218 428,452 Monterey Park 2/5/2015 4,236,875 190,000 4,426,875 2,340,000 482,731 251,907 Huntington Beach 2/5/2015 10,316,875 560,000 10,876,875 5,760,000 841,183 550,143 Lompoc 2/5/2015 3,746,875 290,000 4,036,875 2,460,000 508,933 248,116 Aurora 2/5/2015 6,716,875 620,000 7,336,875 4,140,000 503,657 281,333 Everett 2/5/2015 4,966,875 230,000 5,196,875 2,190,000 476,990 196,759 Whittier 2/19/2015 5,646,875 270,000 5,916,875 3,330,000 623,323 333,470 Bloomingdale 2/19/2015 4,666,874 330,000 4,996,874 2,520,000 323,982 160,580 Warren I 5/8/2015 3,196,875 240,000 3,436,875 1,620,000 328,826 187,575 Warren II 5/8/2015 3,306,875 330,000 3,636,875 2,040,000 480,171 311,680 Troy 5/8/2015 4,416,875 400,000 4,816,875 2,880,000 343,136 190,639 Sterling Heights 5/21/2015 3,536,875 320,000 3,856,875 2,190,000 251,168 114,146 Beverly 5/28/2015 2,096,875 80,000 2,176,875 1,365,000 451,703 229,891 Foley (1) 9/11/2015 7,615,000 350,000 7,965,000 — 290,184 171,265 Tampa (1) 11/3/2015 2,962,500 200,000 3,162,500 — 61,468 14,446 2015 Total $ 132,546,249 $ 8,020,000 $ 140,566,249 $ 71,295,000 $ 14,884,030 $ 8,518,797 (1) The allocations noted above are based on a preliminary determination of the fair value of the total consideration provided. Such valuations may change as we complete our purchase price accounting. (2) The operating results of the facilities acquired above have been included in our statement of operations since their respective acquisition date. (3) Property operating income excludes corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization, and acquisition expenses. The following table summarizes our purchase price allocation for our acquisitions during the year ended December 31, 2014: Property Acquisition Real Estate Intangibles Total Principal of Allocation 2014 (1) 2014 (2) Morrisville 11/03/2014 $ 1,968,000 $ 250,000 $ 2,218,000 $ 1,216,000 $ 88,000 $ 57,533 $ 29,825 Cary 11/03/2014 4,377,500 380,000 4,757,500 2,610,000 187,500 85,820 56,170 Raleigh 11/03/2014 3,670,500 410,000 4,080,500 2,238,000 160,500 76,672 42,563 Myrtle Beach I 11/03/2014 5,584,000 600,000 6,184,000 3,392,000 244,000 132,962 89,847 Myrtle Beach II 11/03/2014 5,257,000 510,000 5,767,000 3,163,000 227,000 112,358 72,799 Finalized Purchase Price Allocations 958,000 (958,000 ) — — — — — 2014 Total $ 21,815,000 $ 1,192,000 $ 23,007,000 $ 12,619,000 $ 907,000 $ 465,345 $ 291,204 (1) The operating results of the facilities acquired above have been included in our statement of operations since their respective acquisition date. (2) Property operating income excludes corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization, and acquisition expenses. |
Secured Debt (Tables)
Secured Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Future Principal Payment Requirements on Outstanding Secured Debt | The following table presents the future principal payment requirements on outstanding secured debt as of December 31, 2015: 2016 $ 174,449 2017 186,921 2018 10,198,075 2019 209,893 2020 220,483 2021 and thereafter 11,448,020 Total payments 22,437,841 Unamortized fair value adjustment 799,396 Total $ 23,237,237 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Costs | Pursuant to the terms of the agreements described above, the following table summarizes related party costs incurred and paid by us for the years ended December 31, 2015 and 2014, and any related amounts payable as of December 31, 2015 and 2014 (there were no related party costs during the period from January 8, 2013 (date of inception) through December 31, 2013): Year Ended December 31, 2014 Year Ended December 31, 2015 Incurred Paid Payable Incurred Paid Payable Expensed Operating expenses (including organizational costs) $ 862,827 $ 26,326 $ 836,501 $ 1,200,003 $ 1,988,533 $ 47,971 Asset management fees 22,254 — 22,254 865,757 888,011 — Property management fees (1) 47,287 — 47,287 1,259,135 1,306,422 — Acquisition expenses 1,089,783 386,750 703,033 2,776,679 3,479,712 — Capitalized Debt issuance costs 441,873 — 441,873 214,006 655,879 — Other assets 461,492 — 461,492 77,556 539,048 — Additional Paid-in Capital Selling commissions 1,201,157 1,201,157 — 14,761,271 14,761,271 — Dealer Manager fee 514,781 508,902 5,879 3,690,318 3,535,685 160,512 Offering costs 1,805,916 — 1,805,916 319,882 2,125,798 — Total $ 6,447,370 $ 2,123,135 $ 4,324,235 $ 25,164,607 $ 29,280,359 $ 208,483 (1) During the year ended December 31, 2015, property management fees included approximately $0.3 million of fees paid to the sub-property manager of our properties. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 |
Pro Forma Financial Informati26
Pro Forma Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Summary of Consolidated Results of Operations on Pro Forma Basis | The table set forth below summarizes on an unaudited pro forma basis the combined results of operations of the Company for the years ended December 31, 2015 and 2014 as if the Company’s acquisitions discussed in Note 3 were completed as of January 1, 2014. This pro forma information does not purport to represent what the actual results of operations of the Company would have been for the periods indicated, nor do they purport to predict the results of operations for future periods. Year Ended Year Ended Pro forma revenue $ 21,017,312 $ 19,674,346 Pro forma operating expenses $ 19,783,189 $ 21,687,080 Pro forma net loss attributable to common stockholders $ (9,194,927 ) $ (13,171,002 ) |
Selected Quarterly Data (Tables
Selected Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | The following is a summary of quarterly financial information for the years ended December 31, 2015 and 2014 (there were no operations during the period from January 8, 2013 (date of inception) through December 31, 2013): Three months ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 (1) Total revenues $ 3,006,780 $ 4,488,212 $ 5,053,724 $ 5,356,983 Total operating expenses $ 5,925,633 $ 5,613,146 $ 5,989,195 $ 5,454,605 Operating loss $ (2,918,853 ) $ (1,124,934 ) $ (935,471 ) $ (97,622 ) Net loss $ (3,580,205 ) $ (1,990,815 ) $ (1,854,575 ) $ (1,511,945 ) Net loss attributable to the Company $ (4,979,729 ) $ (4,037,637 ) $ (3,739,454 ) $ (2,534,121 ) Net loss per Class A Share-basic and diluted $ (2.26 ) $ (1.36 ) $ (0.82 ) $ (0.18 ) Net loss per Class T Share-basic and diluted $ — $ — $ — $ (0.18 ) Three months ended March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 Total revenues $ — $ — $ — $ 465,345 Total operating expenses $ — $ 866,991 $ 498,335 $ 1,356,884 Operating loss $ — $ (866,991 ) $ (498,335 ) $ (891,539 ) Net loss $ — $ (866,991 ) $ (498,335 ) $ (996,259 ) Net loss attributable to the Company $ — $ (789,137 ) $ (482,603 ) $ (1,124,645 ) Net loss per Class A Share-basic and diluted $ — $ (7.90 ) $ (0.77 ) $ (0.84 ) Net loss per Class T Share-basic and diluted $ — $ — $ — $ — (1) Includes a net decrease of approximately $500,000 of depreciation and amortization expense related to the finalization of purchase price allocations. |
Organization - Additional Infor
Organization - Additional Information (Detail) | Mar. 21, 2016USD ($)shares | Jan. 01, 2016Property | Dec. 31, 2015USD ($)Property$ / sharesshares | Oct. 01, 2015USD ($)$ / shares | May. 23, 2014USD ($) | Aug. 02, 2013USD ($)shares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)shares | Dec. 12, 2015USD ($)shares | Aug. 31, 2014 |
Organization and Nature of Operations [Line Items] | |||||||||||
Date of formation of company | Jan. 8, 2013 | ||||||||||
Preferred Stock, shares authorized | shares | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||
Preferred Stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Shares issuable pursuant to distribution reinvestment plan | $ 95,000,000 | ||||||||||
Sale of common shares | 193,105,306 | $ 17,536,902 | $ 1,000 | ||||||||
Number of self storage facilities | Property | 33 | ||||||||||
Preferred equity investment | $ 0 | $ 0 | $ 5,028,115 | ||||||||
Percentage of non-voting equity owned | 15.00% | ||||||||||
Primary Offering | Minimum | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Sale of common shares | $ 1,500,000 | ||||||||||
Primary Offering | Maximum | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Common stock, value authorized | $ 1,000,000,000 | $ 1,000,000,000 | |||||||||
Investments in Majority-owned Subsidiaries | Affiliate | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Percentage owned by affiliate | 2.50% | ||||||||||
Class A Common stock | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Common Stock, shares authorized | shares | 350,000,000 | 350,000,000 | 350,000,000 | ||||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Class T Common stock | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Common Stock, shares authorized | shares | 350,000,000 | 350,000,000 | 350,000,000 | ||||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Common Stock | Class A Common stock | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Sale of common shares | $ 18,796 | $ 1,757 | $ 1 | ||||||||
Number of common stock issued | shares | 18,797,161 | 1,757,677 | 100 | ||||||||
Gross proceeds from issuance of common stock | $ 206,100,000 | ||||||||||
Common Stock | Class A Common stock | Subsequent Event | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Number of common stock issued | shares | 29,400,000 | ||||||||||
Gross proceeds from issuance of common stock | $ 292,600,000 | ||||||||||
Common Stock | Class T Common stock | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Sale of common shares | $ 608 | $ 0 | $ 0 | ||||||||
Number of common stock issued | shares | 608,918 | 0 | |||||||||
Gross proceeds from issuance of common stock | $ 5,800,000 | ||||||||||
Common Stock | Class T Common stock | Subsequent Event | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Number of common stock issued | shares | 1,500,000 | ||||||||||
Gross proceeds from issuance of common stock | $ 14,600,000 | ||||||||||
Dealer Manager | President | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Percentage of non-voting equity owned | 15.00% | ||||||||||
SmartStop Asset Management | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Percentage of non-voting equity owned | 15.00% | ||||||||||
SmartStop Asset Management | President | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Percentage of non-voting equity owned | 15.00% | ||||||||||
SSTI Preferred Investor | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Number of Preferred Units received in the Operating Partnership | shares | 2,400,000 | ||||||||||
Preferred equity investment | $ 59,500,000 | ||||||||||
Strategic Storage Operating Partnership II, L.P. | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Date of formation of company | Jan. 9, 2013 | ||||||||||
Advisor purchased a limited partnership interest in Operating Partnership | $ 200,000 | ||||||||||
Initial capital contribution | $ 1,000 | ||||||||||
Percentage of limited partnership interests | 99.90% | 99.90% | |||||||||
Percentage of limited partnership interests owned by noncontrolling owners | 0.10% | 0.10% | |||||||||
SmartStop Self Storage, Inc. | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Sale price per share | $ / shares | $ 13.75 | ||||||||||
Enterprise value on sale | $ 1,400,000,000 | ||||||||||
SmartStop Self Storage, Inc. | Strategic Storage Trust Advisor II, LLC | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Economic Interests | 97.50% | ||||||||||
Percentage of voting membership interest | 100.00% | ||||||||||
SmartStop Self Storage, Inc. | Property Management Agreement | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Percentage of voting membership interest | 100.00% | ||||||||||
Strategic Storage Advisor II, LLC | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Number of shares sold to advisor | shares | 100 | ||||||||||
Sale of common shares to advisor | $ 1,000 | ||||||||||
Seven Property Portfolio | Subsequent Event | |||||||||||
Organization and Nature of Operations [Line Items] | |||||||||||
Number of self storage facilities | Property | 7 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jul. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Payments to acquire intangible assets | $ 8,000,000 | $ 1,200,000 | ||
Business acquisition, transaction costs | 3,400,000 | 1,300,000 | ||
Impairment losses recognized | 0 | 0 | ||
Gross amounts of lease intangibles | 9,200,000 | 2,100,000 | ||
Accumulated amortization of lease intangibles | 5,300,000 | 200,000 | ||
Total estimated amortization expense of intangible assets, year 2016 | 3,800,000 | |||
Total estimated amortization expense of intangible assets, year 2017 | 100,000 | |||
Accumulated amortization of debt issuance costs | $ 48,000 | $ 4,000 | ||
Maximum period for reimbursement of offering cost | 60 days | |||
Maximum offering cost rate | 3.50% | |||
Redemptions of common stock (in shares) | 1,750 | 0 | ||
Minimum percentage of ordinary taxable income to be distributed to stockholders | 90.00% | |||
SmartStop Branded Signs | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Accelerated depreciation | $ 230,000 | |||
Subsequent Event | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Redemptions of common stock (in shares) | 1,095 | |||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 3 years | |||
Maximum | ||||
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) | 12 Months Ended |
Dec. 31, 2015 | |
Land | |
Property, Plant and Equipment [Line Items] | |
Standard Depreciable Life | Not Depreciated |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Standard Depreciable Life | 30 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Standard Depreciable Life | 35 years |
Site Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Standard Depreciable Life | 7 years |
Site Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Standard Depreciable Life | 10 years |
Summary of Fixed Rate Notes Pay
Summary of Fixed Rate Notes Payable (Detail) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Value | $ 23,237,237 | $ 13,494,871 |
Fixed Rate Secured Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 13,300,000 | 13,500,000 |
Carrying Value | $ 13,237,237 | $ 13,494,871 |
Schedule of Activity in Real Es
Schedule of Activity in Real Estate Facilities (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Real estate facilities | ||
Real estate facilities, beginning balance | $ 20,857,880 | $ 0 |
Facility acquisitions | 132,546,249 | 20,857,000 |
Finalized purchase price allocations related to 2014 acquisitions | 958,000 | |
Improvements and additions | 2,156,384 | 880 |
Asset disposals | (273,963) | |
Real estate facilities, ending balance | 156,244,550 | 20,857,880 |
Accumulated depreciation | ||
Accumulated depreciation, beginning balance | (93,433) | 0 |
Depreciation expense | (3,936,239) | (93,433) |
Asset disposals | 273,963 | |
Accumulated depreciation, ending balance | $ (3,755,709) | $ (93,433) |
Summary of Purchase Price Alloc
Summary of Purchase Price Allocation for Acquisitions (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Business Acquisition [Line Items] | |||
Real Estate Assets | $ 132,546,249 | $ 21,815,000 | |
Intangibles | 8,020,000 | 1,192,000 | |
Total | 140,566,249 | 23,007,000 | |
Principal of Debt Issued or Assumed | 71,295,000 | 12,619,000 | |
Allocation of Debt Premium | 907,000 | ||
Revenue | [1] | 14,884,030 | 465,345 |
Property Operating Income | [2] | $ 8,518,797 | 291,204 |
Finalized Purchase Price Allocation | |||
Business Acquisition [Line Items] | |||
Real Estate Assets | 958,000 | ||
Intangibles | (958,000) | ||
Total | 0 | ||
Principal of Debt Issued or Assumed | 0 | ||
Allocation of Debt Premium | 0 | ||
Revenue | [1] | 0 | |
Property Operating Income | [2] | $ 0 | |
La Verne | California | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Jan. 23, 2015 | ||
Real Estate Assets | $ 3,986,875 | ||
Intangibles | 180,000 | ||
Total | 4,166,875 | ||
Principal of Debt Issued or Assumed | 2,370,000 | ||
Revenue | [1] | 705,564 | |
Property Operating Income | [2] | $ 444,668 | |
Chico | California | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Jan. 23, 2015 | ||
Real Estate Assets | $ 1,736,875 | ||
Intangibles | 90,000 | ||
Total | 1,826,875 | ||
Principal of Debt Issued or Assumed | 1,230,000 | ||
Revenue | [1] | 553,611 | |
Property Operating Income | [2] | $ 313,050 | |
Riverside | California | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Jan. 23, 2015 | ||
Real Estate Assets | $ 2,696,875 | ||
Intangibles | 110,000 | ||
Total | 2,806,875 | ||
Principal of Debt Issued or Assumed | 1,740,000 | ||
Revenue | [1] | 862,574 | |
Property Operating Income | [2] | $ 482,506 | |
Fairfield | California | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Jan. 23, 2015 | ||
Real Estate Assets | $ 3,676,875 | ||
Intangibles | 250,000 | ||
Total | 3,926,875 | ||
Principal of Debt Issued or Assumed | 2,250,000 | ||
Revenue | [1] | 621,060 | |
Property Operating Income | [2] | $ 366,104 | |
Littleton | Colorado | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Jan. 23, 2015 | ||
Real Estate Assets | $ 4,136,875 | ||
Intangibles | 210,000 | ||
Total | 4,346,875 | ||
Principal of Debt Issued or Assumed | 2,310,000 | ||
Revenue | [1] | 568,008 | |
Property Operating Income | [2] | $ 354,357 | |
Crestwood | Illinois | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Jan. 23, 2015 | ||
Real Estate Assets | $ 2,346,875 | ||
Intangibles | 140,000 | ||
Total | 2,486,875 | ||
Principal of Debt Issued or Assumed | 1,650,000 | ||
Revenue | [1] | 489,340 | |
Property Operating Income | [2] | $ 246,268 | |
Forestville | Maryland | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Jan. 23, 2015 | ||
Real Estate Assets | $ 6,286,875 | ||
Intangibles | 410,000 | ||
Total | 6,696,875 | ||
Principal of Debt Issued or Assumed | 3,870,000 | ||
Revenue | [1] | 1,033,216 | |
Property Operating Income | [2] | $ 716,896 | |
Upland | California | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Jan. 29, 2015 | ||
Real Estate Assets | $ 5,966,875 | ||
Intangibles | 310,000 | ||
Total | 6,276,875 | ||
Principal of Debt Issued or Assumed | 3,540,000 | ||
Revenue | [1] | 310,001 | |
Property Operating Income | [2] | $ 134,707 | |
Lancaster | California | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Jan. 29, 2015 | ||
Real Estate Assets | $ 1,716,875 | ||
Intangibles | 90,000 | ||
Total | 1,806,875 | ||
Principal of Debt Issued or Assumed | 1,140,000 | ||
Revenue | [1] | 411,394 | |
Property Operating Income | [2] | $ 174,715 | |
Santa Rosa | California | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Jan. 29, 2015 | ||
Real Estate Assets | $ 9,866,875 | ||
Intangibles | 600,000 | ||
Total | 10,466,875 | ||
Principal of Debt Issued or Assumed | 5,760,000 | ||
Revenue | [1] | 475,487 | |
Property Operating Income | [2] | $ 258,042 | |
Vallejo | California | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Jan. 29, 2015 | ||
Real Estate Assets | $ 4,936,875 | ||
Intangibles | 350,000 | ||
Total | 5,286,875 | ||
Principal of Debt Issued or Assumed | 3,360,000 | ||
Revenue | [1] | 511,791 | |
Property Operating Income | [2] | $ 293,887 | |
Federal Heights | Colorado | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Jan. 29, 2015 | ||
Real Estate Assets | $ 4,446,875 | ||
Intangibles | 300,000 | ||
Total | 4,746,875 | ||
Principal of Debt Issued or Assumed | 2,550,000 | ||
Revenue | [1] | 557,445 | |
Property Operating Income | [2] | $ 348,501 | |
Santa Ana | California | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Feb. 5, 2015 | ||
Real Estate Assets | $ 8,896,875 | ||
Intangibles | 380,000 | ||
Total | 9,276,875 | ||
Principal of Debt Issued or Assumed | 4,350,000 | ||
Revenue | [1] | 1,149,866 | |
Property Operating Income | [2] | $ 714,694 | |
La Habra | California | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Feb. 5, 2015 | ||
Real Estate Assets | $ 4,416,875 | ||
Intangibles | 190,000 | ||
Total | 4,606,875 | ||
Principal of Debt Issued or Assumed | 2,340,000 | ||
Revenue | [1] | 667,218 | |
Property Operating Income | [2] | $ 428,452 | |
Monterey Park | California | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Feb. 5, 2015 | ||
Real Estate Assets | $ 4,236,875 | ||
Intangibles | 190,000 | ||
Total | 4,426,875 | ||
Principal of Debt Issued or Assumed | 2,340,000 | ||
Revenue | [1] | 482,731 | |
Property Operating Income | [2] | $ 251,907 | |
Huntington Beach | California | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Feb. 5, 2015 | ||
Real Estate Assets | $ 10,316,875 | ||
Intangibles | 560,000 | ||
Total | 10,876,875 | ||
Principal of Debt Issued or Assumed | 5,760,000 | ||
Revenue | [1] | 841,183 | |
Property Operating Income | [2] | $ 550,143 | |
Lompoc | California | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Feb. 5, 2015 | ||
Real Estate Assets | $ 3,746,875 | ||
Intangibles | 290,000 | ||
Total | 4,036,875 | ||
Principal of Debt Issued or Assumed | 2,460,000 | ||
Revenue | [1] | 508,933 | |
Property Operating Income | [2] | $ 248,116 | |
Aurora | Colorado | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Feb. 5, 2015 | ||
Real Estate Assets | $ 6,716,875 | ||
Intangibles | 620,000 | ||
Total | 7,336,875 | ||
Principal of Debt Issued or Assumed | 4,140,000 | ||
Revenue | [1] | 503,657 | |
Property Operating Income | [2] | $ 281,333 | |
Everett | Washington | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Feb. 5, 2015 | ||
Real Estate Assets | $ 4,966,875 | ||
Intangibles | 230,000 | ||
Total | 5,196,875 | ||
Principal of Debt Issued or Assumed | 2,190,000 | ||
Revenue | [1] | 476,990 | |
Property Operating Income | [2] | $ 196,759 | |
Whittier | California | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Feb. 19, 2015 | ||
Real Estate Assets | $ 5,646,875 | ||
Intangibles | 270,000 | ||
Total | 5,916,875 | ||
Principal of Debt Issued or Assumed | 3,330,000 | ||
Revenue | [1] | 623,323 | |
Property Operating Income | [2] | $ 333,470 | |
Bloomingdale | Illinois | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Feb. 19, 2015 | ||
Real Estate Assets | $ 4,666,874 | ||
Intangibles | 330,000 | ||
Total | 4,996,874 | ||
Principal of Debt Issued or Assumed | 2,520,000 | ||
Revenue | [1] | 323,982 | |
Property Operating Income | [2] | $ 160,580 | |
Warren | Michigan | Property One | |||
Business Acquisition [Line Items] | |||
Acquisition Date | May 8, 2015 | ||
Real Estate Assets | $ 3,196,875 | ||
Intangibles | 240,000 | ||
Total | 3,436,875 | ||
Principal of Debt Issued or Assumed | 1,620,000 | ||
Revenue | [1] | 328,826 | |
Property Operating Income | [2] | $ 187,575 | |
Warren | Michigan | Property Two | |||
Business Acquisition [Line Items] | |||
Acquisition Date | May 8, 2015 | ||
Real Estate Assets | $ 3,306,875 | ||
Intangibles | 330,000 | ||
Total | 3,636,875 | ||
Principal of Debt Issued or Assumed | 2,040,000 | ||
Revenue | [1] | 480,171 | |
Property Operating Income | [2] | $ 311,680 | |
Troy | Michigan | |||
Business Acquisition [Line Items] | |||
Acquisition Date | May 8, 2015 | ||
Real Estate Assets | $ 4,416,875 | ||
Intangibles | 400,000 | ||
Total | 4,816,875 | ||
Principal of Debt Issued or Assumed | 2,880,000 | ||
Revenue | [1] | 343,136 | |
Property Operating Income | [2] | $ 190,639 | |
Sterling Heights | Michigan | |||
Business Acquisition [Line Items] | |||
Acquisition Date | May 21, 2015 | ||
Real Estate Assets | $ 3,536,875 | ||
Intangibles | 320,000 | ||
Total | 3,856,875 | ||
Principal of Debt Issued or Assumed | 2,190,000 | ||
Revenue | [1] | 251,168 | |
Property Operating Income | [2] | $ 114,146 | |
Beverly | New Jersey | |||
Business Acquisition [Line Items] | |||
Acquisition Date | May 28, 2015 | ||
Real Estate Assets | $ 2,096,875 | ||
Intangibles | 80,000 | ||
Total | 2,176,875 | ||
Principal of Debt Issued or Assumed | 1,365,000 | ||
Revenue | [1] | 451,703 | |
Property Operating Income | [2] | $ 229,891 | |
Foley | Alabama | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Sep. 11, 2015 | ||
Real Estate Assets | $ 7,615,000 | ||
Intangibles | 350,000 | ||
Total | 7,965,000 | ||
Principal of Debt Issued or Assumed | 0 | ||
Revenue | [1] | 290,184 | |
Property Operating Income | [2] | $ 171,265 | |
Tampa | Florida | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Nov. 3, 2015 | ||
Real Estate Assets | $ 2,962,500 | ||
Intangibles | 200,000 | ||
Total | 3,162,500 | ||
Principal of Debt Issued or Assumed | 0 | ||
Revenue | [1] | 61,468 | |
Property Operating Income | [2] | $ 14,446 | |
Morrisville | North Carolina | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Nov. 3, 2014 | ||
Real Estate Assets | $ 1,968,000 | ||
Intangibles | 250,000 | ||
Total | 2,218,000 | ||
Principal of Debt Issued or Assumed | 1,216,000 | ||
Allocation of Debt Premium | 88,000 | ||
Revenue | [1] | 57,533 | |
Property Operating Income | [2] | $ 29,825 | |
Cary | North Carolina | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Nov. 3, 2014 | ||
Real Estate Assets | $ 4,377,500 | ||
Intangibles | 380,000 | ||
Total | 4,757,500 | ||
Principal of Debt Issued or Assumed | 2,610,000 | ||
Allocation of Debt Premium | 187,500 | ||
Revenue | [1] | 85,820 | |
Property Operating Income | [2] | $ 56,170 | |
Raleigh | North Carolina | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Nov. 3, 2014 | ||
Real Estate Assets | $ 3,670,500 | ||
Intangibles | 410,000 | ||
Total | 4,080,500 | ||
Principal of Debt Issued or Assumed | 2,238,000 | ||
Allocation of Debt Premium | 160,500 | ||
Revenue | [1] | 76,672 | |
Property Operating Income | [2] | $ 42,563 | |
Myrtle Beach I | South Carolina | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Nov. 3, 2014 | ||
Real Estate Assets | $ 5,584,000 | ||
Intangibles | 600,000 | ||
Total | 6,184,000 | ||
Principal of Debt Issued or Assumed | 3,392,000 | ||
Allocation of Debt Premium | 244,000 | ||
Revenue | [1] | 132,962 | |
Property Operating Income | [2] | $ 89,847 | |
Myrtle Beach II | South Carolina | |||
Business Acquisition [Line Items] | |||
Acquisition Date | Nov. 3, 2014 | ||
Real Estate Assets | $ 5,257,000 | ||
Intangibles | 510,000 | ||
Total | 5,767,000 | ||
Principal of Debt Issued or Assumed | 3,163,000 | ||
Allocation of Debt Premium | 227,000 | ||
Revenue | [1] | 112,358 | |
Property Operating Income | [2] | $ 72,799 | |
[1] | The operating results of the facilities acquired above have been included in our statement of operations since their respective acquisition date. | ||
[2] | Property operating income excludes corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization, and acquisition expenses. |
Real Estate Facilities - Additi
Real Estate Facilities - Additional Information (Detail) | Dec. 31, 2015USD ($)Property | Dec. 31, 2015USD ($)Property | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) |
Business Acquisition [Line Items] | |||||||
Acquisition fees incurred to the advisor | $ 2,500,000 | $ 400,000 | |||||
Number of properties purchase price allocation adjusted | Property | 33 | ||||||
Decrease in purchase price allocation, buildings | $ 132,546,249 | $ 132,546,249 | 132,546,249 | 21,815,000 | |||
Decrease in purchase price allocation, intangible assets | 8,020,000 | 8,020,000 | 8,020,000 | 1,192,000 | |||
Increase in purchase price allocation | 3,755,709 | $ 3,755,709 | 3,755,709 | ||||
2014 Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Number of properties purchase price allocation adjusted | Property | 5 | ||||||
2015 Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Number of properties purchase price allocation adjusted | Property | 26 | ||||||
Adjustments for New Accounting Principle, Early Adoption [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Increase in purchase price allocation | 0 | $ 60,000 | $ 50,000 | $ 25,000 | |||
Decrease in purchase price allocation, intangible amortization expense | $ (30,000) | $ (230,000) | $ (220,000) | $ (160,000) | |||
Adjustments for New Accounting Principle, Early Adoption [Member] | 2014 Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Number of properties purchase price allocation adjusted | Property | 5 | ||||||
Increase in purchase price allocation, land | 1,200,000 | $ 1,200,000 | 1,200,000 | ||||
Increase in purchase price allocation, site improvements | 140,000 | 140,000 | 140,000 | ||||
Decrease in purchase price allocation, buildings | (380,000) | (380,000) | (380,000) | ||||
Decrease in purchase price allocation, intangible assets | (960,000) | (960,000) | (960,000) | ||||
Increase in purchase price allocation | 2,000 | 2,000 | 2,000 | ||||
Decrease in purchase price allocation, intangible amortization expense | (180,000) | (180,000) | (180,000) | ||||
Adjustments for New Accounting Principle, Early Adoption [Member] | 2015 Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Increase in purchase price allocation, land | 1,200,000 | 1,200,000 | 1,200,000 | ||||
Increase in purchase price allocation, site improvements | 700,000 | 700,000 | 700,000 | ||||
Decrease in purchase price allocation, buildings | 4,200,000 | 4,200,000 | 4,200,000 | ||||
Decrease in purchase price allocation, intangible assets | (6,100,000) | (6,100,000) | (6,100,000) | ||||
Increase in purchase price allocation | 130,000 | 130,000 | 130,000 | ||||
Decrease in purchase price allocation, intangible amortization expense | $ (450,000) | $ (450,000) | $ (450,000) |
Secured Debt - Additional Infor
Secured Debt - Additional Information (Detail) | 12 Months Ended | |||||
Dec. 31, 2015USD ($)PropertyExtension | Dec. 31, 2014Property | Mar. 08, 2016CAD | Feb. 18, 2016USD ($) | Dec. 22, 2015USD ($) | May. 21, 2015USD ($) | |
Debt Instrument [Line Items] | ||||||
Mortgage loan, principal | $ 22,437,841 | |||||
Operating Partnership | ||||||
Debt Instrument [Line Items] | ||||||
Notional amount for interest rate cap | $ 50,000,000 | |||||
Effective interest rate cap on derivative instrument | 5.25% | |||||
Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Notional amount for interest rate cap | CAD | CAD 42,500,000 | |||||
Raleigh/Myrtle Beach Portfolio | ||||||
Debt Instrument [Line Items] | ||||||
Number of properties acquired | Property | 5 | |||||
Mortgage Loan | Raleigh/Myrtle Beach Portfolio | ||||||
Debt Instrument [Line Items] | ||||||
Mortgage loan, principal | $ 12,600,000 | |||||
Mortgage loan, maturity date | Sep. 1, 2023 | |||||
Mortgage loan, interest rate | 5.73% | |||||
Prepayment lockout period | 2 years | |||||
Minimum net worth maintained | $ 6,000,000 | |||||
Aggregate minimum liquidity amount | $ 2,000,000 | |||||
KeyBank Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowings under credit facility | $ 71,300,000 | |||||
Amended KeyBank Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowings under credit facility | 105,000,000 | |||||
Additional borrowings under credit facility | 395,000,000 | |||||
Potential maximum borrowings under credit facility | 500,000,000 | |||||
Increment in borrowing capacity | $ 10,000,000 | |||||
Line of credit facility, initial term | 3 years | |||||
Line of credit facility, maturity date | Dec. 22, 2018 | |||||
Line of credit facility, term of extension options | 1 year | |||||
Line of credit facility, number of extension options | Extension | 2 | |||||
Line of credit facility, description | The Amended KeyBank Credit Facility is a revolving loan with an initial term of three years, maturing on December 22, 2018, with two one-year extension options subject to certain conditions outlined further in the credit agreement for the Amended KeyBank Credit Facility (the "Amended Credit Agreement"). Payments due pursuant to the Amended KeyBank Credit Facility are interest-only for the first 36 months and a 30-year amortization schedule thereafter. | |||||
Line of credit facility amortization schedule | 30 years | |||||
Line of credit facility interest-only period | 36 months | |||||
Line of credit facility, interest rate description | The Eurodollar Loans bear interest at the lesser of (a) the Adjusted LIBO Rate (as defined in the Amended Credit Agreement) for the Interest Period in effect plus the Applicable Rate, or (b) the Maximum Rate (as defined in the Amended Credit Agreement). The Applicable Rate corresponds to our total leverage, as specified in the Amended Credit Agreement. For any ABR Loans, the Applicable Rate is 125 basis points if our total leverage is less than 50%, and 150 basis points if our leverage is greater than 50%. For any Eurodollar Loan, the Applicable Rate is 225 basis points if our total leverage is less than 50% and 250 basis points if our total leverage is greater than 50%. | |||||
Number of Mortgaged Properties | Property | 28 | |||||
Percent of collateral properties used for aggregate borrowing capacity | 60.00% | |||||
Minimum debt service coverage ratio | 1.35% | |||||
Total leverage ratio | 60.00% | |||||
Percentage of net proceeds of equity received | 80.00% | |||||
Minimum interest service coverage ratio | 1.85 | |||||
Minimum fixed charge ratio | 1.6 | |||||
Ratio of varying rate indebtedness | 30.00% | |||||
Percentage of required loan to value ratio | 60.00% | |||||
Outstanding principal amount | $ 10,000,000 | |||||
Amended KeyBank Credit Facility | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowings under credit facility | $ 145,000,000 | |||||
Additional borrowings under credit facility | $ 40,000,000 | |||||
Amended KeyBank Credit Facility | Eurodollar Loan | Loans with Total Leverage Less Than 50% | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, applicable interest rate | 2.25% | |||||
Amended KeyBank Credit Facility | Eurodollar Loan | Loans with Total Leverage Greater Than 50% | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, applicable interest rate | 2.50% | |||||
Amended KeyBank Credit Facility | ABR Loan | Loans with Total Leverage Less Than 50% | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, applicable interest rate | 1.25% | |||||
Amended KeyBank Credit Facility | ABR Loan | Loans with Total Leverage Greater Than 50% | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, applicable interest rate | 1.50% |
Future Principal Payment Requir
Future Principal Payment Requirements on Outstanding Secured Debt (Detail) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Long-term Debt, Fiscal Year Maturity | ||
2,016 | $ 174,449 | |
2,017 | 186,921 | |
2,018 | 10,198,075 | |
2,019 | 209,893 | |
2,020 | 220,483 | |
2021 and thereafter | 11,448,020 | |
Total payments | 22,437,841 | |
Unamortized fair value adjustment | 799,396 | |
Total | 23,237,237 | $ 13,494,871 |
Total payments | $ 22,437,841 |
Preferred Equity - Additional I
Preferred Equity - Additional Information (Detail) - USD ($) | Nov. 09, 2015 | Oct. 30, 2015 | Sep. 23, 2015 | Jul. 22, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 03, 2014 |
Preferred Units [Line Items] | |||||||
Redeemable preferred equity | $ 1,223,483 | $ 73,514 | |||||
Redemption of operating partnership units | $ 0 | ||||||
Number of preferred units outstanding | 0 | ||||||
Distribution description | The holders of the Preferred Units received current distributions (the “Current Distributions”) at a rate of a one-month LIBOR plus 6.5% per annum on the Liquidation Amount, payable monthly and calculated on an actual/360 basis. In addition to the Current Distributions, our Operating Partnership had the obligation to elect either (A) to pay the holder of the Preferred Units additional distributions monthly in an amount equal to: (i) 4.35% per annum of the Liquidation Amount through March 31, 2017; and (ii) beginning April 1, 2017, 6.35% per annum of the Liquidation Amount or (B) defer the additional distributions ( the “Deferred Distributions”) in an amount that accumulated monthly in an amount equal to (i) LIBOR plus 10.85% of the Deferred Distributions through March 31, 2017; and (ii) beginning April 1, 2017, LIBOR plus 12.85% of the Deferred Distributions. | ||||||
Preferred Units | |||||||
Preferred Units [Line Items] | |||||||
Redemption of operating partnership units (Shares) | 800,000 | 1,000,000 | 340,000 | 240,000 | |||
Redemption of operating partnership units | $ 22,000,000 | $ 25,000,000 | $ 8,500,000 | $ 6,000,000 | |||
Current Distributions | |||||||
Preferred Units [Line Items] | |||||||
Distribution rate | 6.50% | ||||||
Additional Distributions | March 31, 2017 | |||||||
Preferred Units [Line Items] | |||||||
Distribution rate description | 4.35% per annum of the Liquidation Amount | ||||||
Distribution rate | 4.35% | ||||||
Additional Distributions | April 1, 2017 | |||||||
Preferred Units [Line Items] | |||||||
Distribution rate description | 6.35% per annum of the Liquidation Amount | ||||||
Distribution rate | 6.35% | ||||||
Deferred Distributions | March 31, 2017 | |||||||
Preferred Units [Line Items] | |||||||
Distribution rate | 10.85% | ||||||
Deferred Distributions | April 1, 2017 | |||||||
Preferred Units [Line Items] | |||||||
Distribution rate | 12.85% | ||||||
LIBOR | Current Distributions | |||||||
Preferred Units [Line Items] | |||||||
Distribution rate description | LIBOR plus 6.5% | ||||||
LIBOR | Deferred Distributions | March 31, 2017 | |||||||
Preferred Units [Line Items] | |||||||
Distribution rate description | LIBOR plus 10.85% | ||||||
LIBOR | Deferred Distributions | April 1, 2017 | |||||||
Preferred Units [Line Items] | |||||||
Distribution rate description | LIBOR plus 12.85% | ||||||
Raleigh/Myrtle Beach Portfolio | SSTI Preferred Investor LLC | |||||||
Preferred Units [Line Items] | |||||||
Preferred investor received | 2,400,000 | ||||||
Preferred investor investment in operating partnership | $ 59,500,000 | ||||||
Unit Purchase Agreement | |||||||
Preferred Units [Line Items] | |||||||
Liquidation preference | $ 25 | ||||||
Unit Purchase Agreement | Maximum | |||||||
Preferred Units [Line Items] | |||||||
Redeemable preferred equity | $ 65,000,000 | ||||||
Preferred investor received | 2,600,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Oct. 01, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||||
Maximum period for reimbursement of offering cost | 60 days | |||
Maximum offering cost rate | 3.50% | |||
Percentage of non-voting equity owned | 15.00% | |||
Related party costs | $ 0 | |||
Tenant Insurance Program | ||||
Related Party Transaction [Line Items] | ||||
Percentage of tenant premium paid approximately, fees provided by program insurer | 50.00% | |||
Revenue recorded in connection with reinsurance program | $ 260,000 | $ 12,000 | ||
Advisory Agreement | ||||
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% | |||
Monthly asset management fee | 0.05208% | |||
Monthly asset management fee one twelfth of less than one percentage of average invested assets | One-twelfth of 0.625% | |||
Disposition fees percentage of sale price of property | 1.00% | |||
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 | |||
Percentage owned by affiliate | 2.50% | |||
Advisory Agreement | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Commission percentage of sale price of property | 6.00% | |||
Dealer Manager | ||||
Related Party Transaction [Line Items] | ||||
Maximum dealer manager commission fee percentage of proceeds from Primary Offering | 3.00% | |||
Underwriting commission | 10.00% | |||
Dealer Manager | Class A Common stock | ||||
Related Party Transaction [Line Items] | ||||
Sale commission fees percentage of proceed from Primary Offering | 7.00% | |||
Dealer Manager | Class T Common stock | ||||
Related Party Transaction [Line Items] | ||||
Sale commission fees percentage of proceed from Primary Offering | 2.00% | |||
Monthly stockholder servicing fee accrual description | 1/365th of 1% of the purchase price per share | |||
SmartStop Asset Management | ||||
Related Party Transaction [Line Items] | ||||
Percentage of non-voting equity owned | 15.00% | |||
Property Management Agreement | ||||
Related Party Transaction [Line Items] | ||||
Percentage of fee of property manager | 6.00% | |||
One time fee for property manager | $ 3,750 | |||
Construction management fee | 5.00% | |||
Cost of construction or capital improvement work | $ 10,000 | |||
Property administration fee | $ 0.50 | |||
Property management agreement termination description | The property management agreements have a three year term and automatically renew for successive one year periods thereafter, unless we or our Property Manager provides prior written notice at least 90 days prior to the expiration of the term. We may terminate a property management agreement without cause at any time during the initial three year term if we pay the Property Manager a termination fee equal to the Set-Up Amount, reduced by 1/36th of the Set-Up Amount for every full month of the term. After the end of the initial three year term, we may terminate a property management agreement on 30 days prior written notice without payment of a termination fee. Our Property Manager may terminate a property management agreement on 60 days prior written notice to us. | |||
Agreement date | Oct. 1, 2015 | |||
Property Management Agreement | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Property management monthly management fee | $ 2,500 | |||
Property management monthly management fee percentage on gross revenue | 6.00% | |||
Signage and set-up costs associated with converting each property to extra space brand | $ 25,000 | |||
Property Management Agreement | Minimum | ||||
Related Party Transaction [Line Items] | ||||
Our property management fee | $ 3,000 | |||
Strategic Storage Trust Sub Property Management Limited Liability Company | ||||
Related Party Transaction [Line Items] | ||||
Property management agreement termination description | The sub-property management agreements also have a three year term and automatically renew for successive one year periods thereafter, unless our Property Manager or Extra Space provides prior written notice at least 90 days prior to the expiration of the term. Our Property Manager may terminate the sub-property management agreement without cause at any time during the initial three year term if it pays Extra Space a termination fee equal to the Set-Up Amount, reduced by 1/36th of the Set-Up Amount for every full month of the term. After the end of the initial three year term, our Property Manager may terminate a sub-property management agreement on 30 days prior written notice without payment of a termination fee. Extra Space may terminate a property management agreement on 60 days prior written notice to our Property Manager. | |||
Strategic Storage Trust Sub Property Management Limited Liability Company | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Property management monthly management fee | $ 2,500 | |||
Property management monthly management fee percentage on gross revenue | 6.00% | |||
Primary Offering Dealer Manager Agreement | Class A Common stock | ||||
Related Party Transaction [Line Items] | ||||
Percentage of gross proceeds from sale of shares | 10.00% | |||
Primary Offering Dealer Manager Agreement | Class T Common stock | ||||
Related Party Transaction [Line Items] | ||||
Percentage of gross proceeds from sale of shares | 10.00% |
Summary of Related Party Costs
Summary of Related Party Costs (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | |||
Related party costs, Incurred | $ 25,164,607 | $ 6,447,370 | |
Related party costs, Paid | 29,280,359 | 2,123,135 | |
Related party costs, Payable | 208,483 | 4,324,235 | |
Operating expenses (including organizational costs) | |||
Related Party Transaction [Line Items] | |||
Related party costs, Incurred | 1,200,003 | 862,827 | |
Related party costs, Paid | 1,988,533 | 26,326 | |
Related party costs, Payable | 47,971 | 836,501 | |
Asset management fees | |||
Related Party Transaction [Line Items] | |||
Related party costs, Incurred | 865,757 | 22,254 | |
Related party costs, Paid | 888,011 | 0 | |
Related party costs, Payable | 0 | 22,254 | |
Property management fees | |||
Related Party Transaction [Line Items] | |||
Related party costs, Incurred | [1] | 1,259,135 | 47,287 |
Related party costs, Paid | [1] | 1,306,422 | 0 |
Related party costs, Payable | [1] | 0 | 47,287 |
Acquisition expenses | |||
Related Party Transaction [Line Items] | |||
Related party costs, Incurred | 2,776,679 | 1,089,783 | |
Related party costs, Paid | 3,479,712 | 386,750 | |
Related party costs, Payable | 0 | 703,033 | |
Debt issuance costs | |||
Related Party Transaction [Line Items] | |||
Related party costs, Incurred | 214,006 | 441,873 | |
Related party costs, Paid | 655,879 | 0 | |
Related party costs, Payable | 0 | 441,873 | |
Other assets | |||
Related Party Transaction [Line Items] | |||
Related party costs, Incurred | 77,556 | 461,492 | |
Related party costs, Paid | 539,048 | 0 | |
Related party costs, Payable | 0 | 461,492 | |
Selling commissions | |||
Related Party Transaction [Line Items] | |||
Related party costs, Incurred | 14,761,271 | 1,201,157 | |
Related party costs, Paid | 14,761,271 | 1,201,157 | |
Related party costs, Payable | 0 | 0 | |
Dealer Manager fee | |||
Related Party Transaction [Line Items] | |||
Related party costs, Incurred | 3,690,318 | 514,781 | |
Related party costs, Paid | 3,535,685 | 508,902 | |
Related party costs, Payable | 160,512 | 5,879 | |
Offering costs | |||
Related Party Transaction [Line Items] | |||
Related party costs, Incurred | 319,882 | 1,805,916 | |
Related party costs, Paid | 2,125,798 | 0 | |
Related party costs, Payable | $ 0 | $ 1,805,916 | |
[1] | During the years ended December 31, 2015 and 2014, property management fees included approximately $0.3 million and none, respectively, of fees paid to the sub-property manager of our properties |
Summary of Related Party Cost40
Summary of Related Party Costs (Parenthetical) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | |||
Related party costs, Incurred | $ 25,164,607 | $ 6,447,370 | |
Property management fees | |||
Related Party Transaction [Line Items] | |||
Related party costs, Incurred | [1] | 1,259,135 | $ 47,287 |
Sub-property manager | Property management fees | |||
Related Party Transaction [Line Items] | |||
Related party costs, Incurred | $ 300,000 | ||
[1] | During the years ended December 31, 2015 and 2014, property management fees included approximately $0.3 million and none, respectively, of fees paid to the sub-property manager of our properties |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jul. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies [Line Items] | ||||
Redemptions of common stock (in shares) | 1,750 | 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 | |||
Distribution Reinvestment Plan | ||||
Commitments and Contingencies [Line Items] | ||||
Percentage of offering price under distribution reinvestment plan | 95.00% | |||
Amendment, suspension or termination period for distribution reinvestment Plan | 10 days | |||
Sales commission or dealer manager fee payable | $ 0 | |||
Class A Common stock | Distribution Reinvestment Plan | ||||
Commitments and Contingencies [Line Items] | ||||
Shares issued pursuant to distribution reinvestment plan | 132,000 | |||
Class T Common stock | Distribution Reinvestment Plan | ||||
Commitments and Contingencies [Line Items] | ||||
Shares issued pursuant to distribution reinvestment plan | 64 | |||
Subsequent Event | ||||
Commitments and Contingencies [Line Items] | ||||
Redemptions of common stock (in shares) | 1,095 |
Stock for Redemptions Based on
Stock for Redemptions Based on Number of Years Stock Held (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Less than 1 | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Redemption price | 0.00% |
1 or more but less than 3 | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Redemption price | 90.00% |
3 or more but less than 4 | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Redemption price | 95.00% |
4 or more | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |
Redemption price | 100.00% |
Declaration of Distributions -
Declaration of Distributions - Additional Information (Detail) | Dec. 03, 2015$ / shares |
Class A Common stock | |
Dividend Declared [Line Items] | |
Common stock per share outstanding per day declared | $ 0.0016393443 |
Cash distribution record date start | Jan. 1, 2016 |
Cash distribution record date end | Mar. 31, 2016 |
Class T Common stock | |
Dividend Declared [Line Items] | |
Common stock per share outstanding per day declared | $ 0.0016393443 |
Cash distribution record date start | Jan. 1, 2016 |
Cash distribution record date end | Mar. 31, 2016 |
Summary of Consolidated Results
Summary of Consolidated Results of Operations on Pro Forma Basis (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Pro forma revenue | $ 21,017,312 | $ 19,674,346 |
Pro forma operating expenses | 19,783,189 | 21,687,080 |
Pro forma net loss attributable to common stockholders | $ (9,194,927) | $ (13,171,002) |
Pro Forma Financial Informati45
Pro Forma Financial Information - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Pro forma acquisition related expenses | $ 3.4 | $ 1.3 |
Selected Quarterly Data - Summa
Selected Quarterly Data - Summary of Quarterly Financial Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | [1] | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Quarterly Financial Information [Line Items] | ||||||||||||
Total revenues | $ 5,356,983 | $ 5,053,724 | $ 4,488,212 | $ 3,006,780 | $ 465,345 | $ 0 | $ 0 | $ 0 | $ 17,905,699 | $ 465,345 | $ 0 | |
Total operating expenses | 5,454,605 | 5,989,195 | 5,613,146 | 5,925,633 | 1,356,884 | 498,335 | 866,991 | 0 | 22,982,579 | 2,722,210 | 0 | |
Operating loss | (97,622) | (935,471) | (1,124,934) | (2,918,853) | (891,539) | (498,335) | (866,991) | 0 | (5,076,880) | (2,256,865) | 0 | |
Net loss | (1,511,945) | (1,854,575) | (1,990,815) | (3,580,205) | (996,259) | (498,335) | (866,991) | 0 | $ (8,937,541) | $ (2,361,585) | $ 0 | |
Net loss attributable to the Company | $ (2,534,121) | $ (3,739,454) | $ (4,037,637) | $ (4,979,729) | $ (1,124,645) | $ (482,603) | $ (789,137) | $ 0 | ||||
Class A Common stock | ||||||||||||
Schedule Of Quarterly Financial Information [Line Items] | ||||||||||||
Net loss per share-basic and diluted | $ (0.18) | $ (0.82) | $ (1.36) | $ (2.26) | $ (0.84) | $ (0.77) | $ (7.90) | $ 0 | $ (2.56) | $ (4.59) | $ 0 | |
Class T Common stock | ||||||||||||
Schedule Of Quarterly Financial Information [Line Items] | ||||||||||||
Net loss per share-basic and diluted | $ (0.18) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (2.56) | $ 0 | $ 0 | |
[1] | Includes a net decrease of approximately $500,000 of depreciation and amortization expense related to the finalization of purchase price allocations. |
Selected Quarterly Data - Sum47
Selected Quarterly Data - Summary of Quarterly Financial Information (Parenthetical) (Detail) | 3 Months Ended |
Dec. 31, 2015USD ($) | |
Quarterly Financial Information Disclosure [Abstract] | |
Net decrease in depreciation and amortization expense | $ 500,000 |
Selected Quarterly Data - Addit
Selected Quarterly Data - Additional Information (Detail) | Dec. 31, 2015USD ($)Property | Dec. 31, 2015USD ($)Property | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Schedule Of Quarterly Financial Information [Line Items] | ||||||
Number of properties | Property | 33 | |||||
Increase in purchase price allocation, depreciation | $ 3,755,709 | $ 3,755,709 | ||||
2014 Acquisitions | ||||||
Schedule Of Quarterly Financial Information [Line Items] | ||||||
Number of properties | Property | 5 | |||||
2015 Acquisitions | ||||||
Schedule Of Quarterly Financial Information [Line Items] | ||||||
Number of properties | Property | 26 | |||||
Adjustments for New Accounting Principle, Early Adoption [Member] | ||||||
Schedule Of Quarterly Financial Information [Line Items] | ||||||
Increase in purchase price allocation, depreciation | $ 60,000 | $ 50,000 | $ 25,000 | $ 0 | ||
Decrease in purchase price allocation, intangible amortization expense | $ (230,000) | $ (220,000) | $ (160,000) | $ (30,000) | ||
Adjustments for New Accounting Principle, Early Adoption [Member] | 2014 Acquisitions | ||||||
Schedule Of Quarterly Financial Information [Line Items] | ||||||
Number of properties | Property | 5 | |||||
Increase in purchase price allocation, depreciation | 2,000 | $ 2,000 | ||||
Decrease in purchase price allocation, intangible amortization expense | (180,000) | (180,000) | ||||
Adjustments for New Accounting Principle, Early Adoption [Member] | 2015 Acquisitions | ||||||
Schedule Of Quarterly Financial Information [Line Items] | ||||||
Increase in purchase price allocation, depreciation | 130,000 | 130,000 | ||||
Decrease in purchase price allocation, intangible amortization expense | $ (450,000) | $ (450,000) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Mar. 25, 2016USD ($)Property | Mar. 22, 2016$ / shares | Mar. 21, 2016USD ($)shares | Mar. 09, 2016USD ($) | Mar. 08, 2016CAD | Mar. 02, 2016USD ($) | Feb. 29, 2016USD ($)Property | Feb. 11, 2016USD ($)Property | Feb. 04, 2016USD ($) | Jan. 11, 2016USD ($)Property | Jan. 07, 2016USD ($) | Dec. 31, 2015USD ($)Property | Dec. 03, 2015$ / shares | Jun. 10, 2014USD ($) | Oct. 15, 2013USD ($) | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013shares | Feb. 18, 2016USD ($) | Dec. 22, 2015USD ($) |
Subsequent Event [Line Items] | ||||||||||||||||||||
Number of self storage facilities | Property | 33 | |||||||||||||||||||
Debt outstanding principal amount | $ 22,437,841 | $ 22,437,841 | ||||||||||||||||||
Acquisition fees incurred to the advisor | 2,500,000 | $ 400,000 | ||||||||||||||||||
Amended KeyBank Credit Facility | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Maximum borrowings under credit facility | $ 105,000,000 | |||||||||||||||||||
Principal amount of loan | 10,000,000 | $ 10,000,000 | ||||||||||||||||||
Additional borrowing capacity | $ 395,000,000 | |||||||||||||||||||
Burlington Loan | Toronto Portfolio | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Liabilities assumed on acquisition | $ 6,900,000 | |||||||||||||||||||
Liabilities assumed on acquisition, fixed rate | 4,700,000 | |||||||||||||||||||
Liabilities assumed on acquisition, floating rate | $ 2,200,000 | |||||||||||||||||||
Fixed interest rate | 6.05% | |||||||||||||||||||
Maturity date of loan | Oct. 15, 2018 | |||||||||||||||||||
Percentage of guarantee executed | 50.00% | |||||||||||||||||||
Burlington Loan | Canadian Dollar Offered Rate [Member] | Toronto Portfolio | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 4.05% | |||||||||||||||||||
Milton Loan | Toronto Portfolio | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Liabilities assumed on acquisition | $ 4,800,000 | |||||||||||||||||||
Maturity date of loan | Oct. 15, 2018 | |||||||||||||||||||
Percentage of guarantee executed | 50.00% | |||||||||||||||||||
Loan interest rate | 5.81% | |||||||||||||||||||
Oakville Loan | Toronto Portfolio | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Maturity date of loan | Dec. 31, 2017 | |||||||||||||||||||
Maximum borrowings under credit facility | 10,800,000 | $ 10,800,000 | ||||||||||||||||||
Debt outstanding principal amount | 7,100,000 | 7,100,000 | ||||||||||||||||||
Balance amount of loan | 3,700,000 | 3,700,000 | ||||||||||||||||||
Guarantor obligations | $ 7,200,000 | $ 7,200,000 | ||||||||||||||||||
Oakville Loan | Prime Rate [Member] | Toronto Portfolio | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 1.75% | |||||||||||||||||||
Class A Common stock | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Common stock per share outstanding per day declared | $ / shares | $ 0.0016393443 | |||||||||||||||||||
Cash distribution record date start | Jan. 1, 2016 | |||||||||||||||||||
Cash distribution record date end | Mar. 31, 2016 | |||||||||||||||||||
Class A Common stock | Common Stock | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Common stock issued in connection with Offering | shares | 18,797,161 | 1,757,677 | 100 | |||||||||||||||||
Gross proceeds from issuance of common stock | $ 206,100,000 | |||||||||||||||||||
Class T Common stock | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Common stock per share outstanding per day declared | $ / shares | $ 0.0016393443 | |||||||||||||||||||
Cash distribution record date start | Jan. 1, 2016 | |||||||||||||||||||
Cash distribution record date end | Mar. 31, 2016 | |||||||||||||||||||
Class T Common stock | Common Stock | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Common stock issued in connection with Offering | shares | 608,918 | 0 | ||||||||||||||||||
Gross proceeds from issuance of common stock | $ 5,800,000 | |||||||||||||||||||
Subsequent Event | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Derivative, notional amount | CAD | CAD 42,500,000 | |||||||||||||||||||
Duration of derivative | 12 months | |||||||||||||||||||
Forward rate of derivative | 1.339 | |||||||||||||||||||
Derivative, description | On March 8, 2016 we entered into a foreign currency forward contract (the “Forward Contract”) in order to hedge foreign currency exposure related to our investment in subsidiaries that hold properties we recently acquired in Canada. A foreign currency forward contract is a commitment to deliver a certain amount of currency at a certain price on a specific date in the future. By entering into the Forward Contract and holding it to maturity, we are locked into a future currency exchange rate in an amount equal to and for the term of the Forward Contract. The Forward Contract has a notional amount of $42.5 million CAD, a duration of 12 months, and a forward rate of approximately 1.339. | |||||||||||||||||||
Subsequent Event | Boynton Beach Property Acquisition | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Business acquisition purchase price | $ 17,900,000 | |||||||||||||||||||
Business combination acquisition fee paid | $ 300,000 | |||||||||||||||||||
Subsequent Event | Lancaster Property Acquisition | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Business acquisition purchase price | $ 4,700,000 | |||||||||||||||||||
Business combination acquisition fee paid | $ 80,000 | |||||||||||||||||||
Number of self storage facilities | Property | 1 | |||||||||||||||||||
Subsequent Event | Toronto Portfolio | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Business acquisition purchase price | $ 38,200,000 | |||||||||||||||||||
Business combination acquisition fee paid | $ 670,000 | |||||||||||||||||||
Number of self storage facilities | Property | 3 | |||||||||||||||||||
Subsequent Event | Appleby Portfolio | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Business acquisition purchase price | $ 21,400,000 | |||||||||||||||||||
Number of self storage facilities | Property | 2 | |||||||||||||||||||
Maturity date of loan | Feb. 28, 2021 | |||||||||||||||||||
Acquisition fees incurred to the advisor | $ 370,000 | |||||||||||||||||||
Period to provide written notice | 30 days | |||||||||||||||||||
Minimum net worth maintained | $ 50,000,000 | |||||||||||||||||||
Loan Agreement guarantee percentage | 20.00% | |||||||||||||||||||
Subsequent Event | Seven Properties | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Business acquisition purchase price | $ 18,000,000 | |||||||||||||||||||
Subsequent Event | Potential Acquisition of Port St Lucie Property [Member] | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Business acquisition purchase price | $ 9,800,000 | |||||||||||||||||||
Subsequent Event | Potential Acquisition Of Sacramento Property [Member] | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Business acquisition purchase price | $ 8,200,000 | |||||||||||||||||||
Subsequent Event | Potential Acquisition of Oakland Portfolio | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Business acquisition purchase price | $ 50,000,000 | |||||||||||||||||||
Number of self storage facilities | Property | 2 | |||||||||||||||||||
Subsequent Event | Potential Acquisition of 27 Property Portfolio [Member] | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Business acquisition purchase price | $ 371,000,000 | |||||||||||||||||||
Number of self storage facilities | Property | 22 | |||||||||||||||||||
Subsequent Event | Prior To March 31, 2018 [Member] | Appleby Portfolio | Maximum | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Debt service coverage ratio | 125.00% | |||||||||||||||||||
Subsequent Event | Prior To March 31, 2018 [Member] | Appleby Portfolio | Minimum | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Debt service coverage ratio | 100.00% | |||||||||||||||||||
Subsequent Event | Thereafter March 31, 2018 [Member] | Appleby Portfolio | Maximum | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Debt service coverage ratio | 130.00% | |||||||||||||||||||
Subsequent Event | Thereafter March 31, 2018 [Member] | Appleby Portfolio | Minimum | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Debt service coverage ratio | 100.00% | |||||||||||||||||||
Subsequent Event | Amended KeyBank Credit Facility | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Maximum borrowings under credit facility | $ 145,000,000 | |||||||||||||||||||
Additional borrowing capacity | $ 40,000,000 | |||||||||||||||||||
Subsequent Event | Canadian Dollar Offered Rate [Member] | Appleby Portfolio | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Basis spread on variable rate | 2.50% | |||||||||||||||||||
Subsequent Event | Fifth Third Loan Agreement | Appleby Portfolio | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Principal amount of loan | $ 12,400,000 | |||||||||||||||||||
Subsequent Event | Class A Common stock | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Common stock per share outstanding per day declared | $ / shares | $ 0.0016393443 | |||||||||||||||||||
Common stock shares outstanding distribution percentage | 6.00% | |||||||||||||||||||
Common stock purchase price per share | $ / shares | $ 10 | |||||||||||||||||||
Cash distribution record date start | Apr. 1, 2016 | |||||||||||||||||||
Cash distribution record date end | Jun. 30, 2016 | |||||||||||||||||||
Subsequent Event | Class A Common stock | Common Stock | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Common stock issued in connection with Offering | shares | 29,400,000 | |||||||||||||||||||
Gross proceeds from issuance of common stock | $ 292,600,000 | |||||||||||||||||||
Subsequent Event | Class T Common stock | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Common stock per share outstanding per day declared | $ / shares | $ 0.0016393443 | |||||||||||||||||||
Common stock shares outstanding distribution percentage | 6.34% | |||||||||||||||||||
Common stock purchase price per share | $ / shares | $ 9.47 | |||||||||||||||||||
Cash distribution record date start | Apr. 1, 2016 | |||||||||||||||||||
Cash distribution record date end | Jun. 30, 2016 | |||||||||||||||||||
Subsequent Event | Class T Common stock | Common Stock | ||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||
Common stock issued in connection with Offering | shares | 1,500,000 | |||||||||||||||||||
Gross proceeds from issuance of common stock | $ 14,600,000 |
Schedule III Real Estate Asset
Schedule III Real Estate Asset and Accumulated Depreciation (Detail) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 22,437,841 |
Initial Cost to Company, Land | 47,653,000 |
Initial Cost to Company, Buildings and Improvements | 106,708,249 |
Initial Cost to Company, Total | 154,361,249 |
Net Cost Capitalized Subsequent to Acquisition | 1,883,301 |
Gross Carrying Amount, Land | 47,653,000 |
Gross Carrying Amount, Buildings and Improvements | 108,591,550 |
Gross Carrying Amount, Total | 156,244,550 |
Accumulated Depreciation | 3,755,709 |
Morrisville | North Carolina | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | 1,198,757 |
Initial Cost to Company, Land | 531,000 |
Initial Cost to Company, Buildings and Improvements | 1,891,000 |
Initial Cost to Company, Total | 2,422,000 |
Net Cost Capitalized Subsequent to Acquisition | 88,983 |
Gross Carrying Amount, Land | 531,000 |
Gross Carrying Amount, Buildings and Improvements | 1,979,983 |
Gross Carrying Amount, Total | 2,510,983 |
Accumulated Depreciation | $ 83,708 |
Date of Construction | 2,004 |
Date Acquired | Nov. 3, 2014 |
Cary | North Carolina | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 2,571,986 |
Initial Cost to Company, Land | 1,064,000 |
Initial Cost to Company, Buildings and Improvements | 3,301,000 |
Initial Cost to Company, Total | 4,365,000 |
Net Cost Capitalized Subsequent to Acquisition | 46,214 |
Gross Carrying Amount, Land | 1,064,000 |
Gross Carrying Amount, Buildings and Improvements | 3,347,214 |
Gross Carrying Amount, Total | 4,411,214 |
Accumulated Depreciation | $ 141,441 |
Date of Construction | 1998/2005/2006 |
Date Acquired | Nov. 3, 2014 |
Raleigh | North Carolina | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 2,206,165 |
Initial Cost to Company, Land | 1,186,000 |
Initial Cost to Company, Buildings and Improvements | 2,540,000 |
Initial Cost to Company, Total | 3,726,000 |
Net Cost Capitalized Subsequent to Acquisition | 57,844 |
Gross Carrying Amount, Land | 1,186,000 |
Gross Carrying Amount, Buildings and Improvements | 2,597,844 |
Gross Carrying Amount, Total | 3,783,844 |
Accumulated Depreciation | $ 127,964 |
Date of Construction | 1,999 |
Date Acquired | Nov. 3, 2014 |
Myrtle Beach I | South Carolina | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 3,343,018 |
Initial Cost to Company, Land | 1,482,000 |
Initial Cost to Company, Buildings and Improvements | 4,476,000 |
Initial Cost to Company, Total | 5,958,000 |
Net Cost Capitalized Subsequent to Acquisition | 113,317 |
Gross Carrying Amount, Land | 1,482,000 |
Gross Carrying Amount, Buildings and Improvements | 4,589,317 |
Gross Carrying Amount, Total | 6,071,317 |
Accumulated Depreciation | $ 196,827 |
Date of Construction | 1998/2005-2007 |
Date Acquired | Nov. 3, 2014 |
Myrtle Beach II | South Carolina | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 3,117,914 |
Initial Cost to Company, Land | 1,690,000 |
Initial Cost to Company, Buildings and Improvements | 3,654,000 |
Initial Cost to Company, Total | 5,344,000 |
Net Cost Capitalized Subsequent to Acquisition | 65,715 |
Gross Carrying Amount, Land | 1,690,000 |
Gross Carrying Amount, Buildings and Improvements | 3,719,715 |
Gross Carrying Amount, Total | 5,409,715 |
Accumulated Depreciation | $ 165,230 |
Date of Construction | 1999/2006 |
Date Acquired | Nov. 3, 2014 |
Whittier | California | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 442,513 |
Initial Cost to Company, Land | 2,730,000 |
Initial Cost to Company, Buildings and Improvements | 2,916,875 |
Initial Cost to Company, Total | 5,646,875 |
Net Cost Capitalized Subsequent to Acquisition | 70,514 |
Gross Carrying Amount, Land | 2,730,000 |
Gross Carrying Amount, Buildings and Improvements | 2,987,389 |
Gross Carrying Amount, Total | 5,717,389 |
Accumulated Depreciation | $ 109,586 |
Date of Construction | 1,989 |
Date Acquired | Feb. 18, 2015 |
La Verne | California | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 312,428 |
Initial Cost to Company, Land | 1,950,000 |
Initial Cost to Company, Buildings and Improvements | 2,036,875 |
Initial Cost to Company, Total | 3,986,875 |
Net Cost Capitalized Subsequent to Acquisition | 48,802 |
Gross Carrying Amount, Land | 1,950,000 |
Gross Carrying Amount, Buildings and Improvements | 2,085,677 |
Gross Carrying Amount, Total | 4,035,677 |
Accumulated Depreciation | $ 86,027 |
Date of Construction | 1,986 |
Date Acquired | Jan. 23, 2015 |
Santa Ana | California | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 697,196 |
Initial Cost to Company, Land | 4,890,000 |
Initial Cost to Company, Buildings and Improvements | 4,006,875 |
Initial Cost to Company, Total | 8,896,875 |
Net Cost Capitalized Subsequent to Acquisition | 79,368 |
Gross Carrying Amount, Land | 4,890,000 |
Gross Carrying Amount, Buildings and Improvements | 4,086,243 |
Gross Carrying Amount, Total | 8,976,243 |
Accumulated Depreciation | $ 156,474 |
Date of Construction | 1,978 |
Date Acquired | Feb. 5, 2015 |
Upland | California | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 467,589 |
Initial Cost to Company, Land | 2,950,000 |
Initial Cost to Company, Buildings and Improvements | 3,016,875 |
Initial Cost to Company, Total | 5,966,875 |
Net Cost Capitalized Subsequent to Acquisition | 65,035 |
Gross Carrying Amount, Land | 2,950,000 |
Gross Carrying Amount, Buildings and Improvements | 3,081,910 |
Gross Carrying Amount, Total | 6,031,910 |
Accumulated Depreciation | $ 120,812 |
Date of Construction | 1,979 |
Date Acquired | Jan. 29, 2015 |
La Habra | California | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 346,125 |
Initial Cost to Company, Land | 2,060,000 |
Initial Cost to Company, Buildings and Improvements | 2,356,875 |
Initial Cost to Company, Total | 4,416,875 |
Net Cost Capitalized Subsequent to Acquisition | 29,840 |
Gross Carrying Amount, Land | 2,060,000 |
Gross Carrying Amount, Buildings and Improvements | 2,386,715 |
Gross Carrying Amount, Total | 4,446,715 |
Accumulated Depreciation | $ 80,604 |
Date of Construction | 1,981 |
Date Acquired | Feb. 5, 2015 |
Monterey Park | California | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 332,019 |
Initial Cost to Company, Land | 2,020,000 |
Initial Cost to Company, Buildings and Improvements | 2,216,875 |
Initial Cost to Company, Total | 4,236,875 |
Net Cost Capitalized Subsequent to Acquisition | 51,694 |
Gross Carrying Amount, Land | 2,020,000 |
Gross Carrying Amount, Buildings and Improvements | 2,268,569 |
Gross Carrying Amount, Total | 4,288,569 |
Accumulated Depreciation | $ 72,211 |
Date of Construction | 1,987 |
Date Acquired | Feb. 5, 2015 |
Huntington Beach | California | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 808,473 |
Initial Cost to Company, Land | 5,460,000 |
Initial Cost to Company, Buildings and Improvements | 4,856,875 |
Initial Cost to Company, Total | 10,316,875 |
Net Cost Capitalized Subsequent to Acquisition | 69,502 |
Gross Carrying Amount, Land | 5,460,000 |
Gross Carrying Amount, Buildings and Improvements | 4,926,377 |
Gross Carrying Amount, Total | 10,386,377 |
Accumulated Depreciation | $ 179,856 |
Date of Construction | 1,986 |
Date Acquired | Feb. 5, 2015 |
Chico | California | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 136,109 |
Initial Cost to Company, Land | 400,000 |
Initial Cost to Company, Buildings and Improvements | 1,336,875 |
Initial Cost to Company, Total | 1,736,875 |
Net Cost Capitalized Subsequent to Acquisition | 25,705 |
Gross Carrying Amount, Land | 400,000 |
Gross Carrying Amount, Buildings and Improvements | 1,362,580 |
Gross Carrying Amount, Total | 1,762,580 |
Accumulated Depreciation | $ 49,909 |
Date of Construction | 1,984 |
Date Acquired | Jan. 23, 2015 |
Lancaster | California | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 134,541 |
Initial Cost to Company, Land | 200,000 |
Initial Cost to Company, Buildings and Improvements | 1,516,875 |
Initial Cost to Company, Total | 1,716,875 |
Net Cost Capitalized Subsequent to Acquisition | 58,408 |
Gross Carrying Amount, Land | 200,000 |
Gross Carrying Amount, Buildings and Improvements | 1,575,283 |
Gross Carrying Amount, Total | 1,775,283 |
Accumulated Depreciation | $ 63,952 |
Date of Construction | 1,980 |
Date Acquired | Jan. 29, 2015 |
Riverside | California | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 211,338 |
Initial Cost to Company, Land | 370,000 |
Initial Cost to Company, Buildings and Improvements | 2,326,875 |
Initial Cost to Company, Total | 2,696,875 |
Net Cost Capitalized Subsequent to Acquisition | 46,883 |
Gross Carrying Amount, Land | 370,000 |
Gross Carrying Amount, Buildings and Improvements | 2,373,758 |
Gross Carrying Amount, Total | 2,743,758 |
Accumulated Depreciation | $ 85,830 |
Date of Construction | 1,985 |
Date Acquired | Jan. 23, 2015 |
Fairfield | California | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 288,135 |
Initial Cost to Company, Land | 730,000 |
Initial Cost to Company, Buildings and Improvements | 2,946,875 |
Initial Cost to Company, Total | 3,676,875 |
Net Cost Capitalized Subsequent to Acquisition | 28,506 |
Gross Carrying Amount, Land | 730,000 |
Gross Carrying Amount, Buildings and Improvements | 2,975,381 |
Gross Carrying Amount, Total | 3,705,381 |
Accumulated Depreciation | $ 110,100 |
Date of Construction | 1,984 |
Date Acquired | Jan. 23, 2015 |
Lompoc | California | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 293,621 |
Initial Cost to Company, Land | 1,000,000 |
Initial Cost to Company, Buildings and Improvements | 2,746,875 |
Initial Cost to Company, Total | 3,746,875 |
Net Cost Capitalized Subsequent to Acquisition | 47,068 |
Gross Carrying Amount, Land | 1,000,000 |
Gross Carrying Amount, Buildings and Improvements | 2,793,943 |
Gross Carrying Amount, Total | 3,793,943 |
Accumulated Depreciation | $ 99,532 |
Date of Construction | 1,982 |
Date Acquired | Feb. 5, 2015 |
Santa Rosa | California | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 773,209 |
Initial Cost to Company, Land | 3,150,000 |
Initial Cost to Company, Buildings and Improvements | 6,716,875 |
Initial Cost to Company, Total | 9,866,875 |
Net Cost Capitalized Subsequent to Acquisition | 67,778 |
Gross Carrying Amount, Land | 3,150,000 |
Gross Carrying Amount, Buildings and Improvements | 6,784,653 |
Gross Carrying Amount, Total | 9,934,653 |
Accumulated Depreciation | $ 251,399 |
Date of Construction | 1979-1981 |
Date Acquired | Jan. 29, 2015 |
Vallejo | California | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Initial Cost to Company, Land | $ 990,000 |
Initial Cost to Company, Buildings and Improvements | 3,946,875 |
Initial Cost to Company, Total | 4,936,875 |
Net Cost Capitalized Subsequent to Acquisition | 60,847 |
Gross Carrying Amount, Land | 990,000 |
Gross Carrying Amount, Buildings and Improvements | 4,007,722 |
Gross Carrying Amount, Total | 4,997,722 |
Accumulated Depreciation | $ 145,671 |
Date of Construction | 1,981 |
Date Acquired | Jan. 29, 2015 |
Federal Heights | Colorado | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 348,476 |
Initial Cost to Company, Land | 1,100,000 |
Initial Cost to Company, Buildings and Improvements | 3,346,875 |
Initial Cost to Company, Total | 4,446,875 |
Net Cost Capitalized Subsequent to Acquisition | 58,584 |
Gross Carrying Amount, Land | 1,100,000 |
Gross Carrying Amount, Buildings and Improvements | 3,405,459 |
Gross Carrying Amount, Total | 4,505,459 |
Accumulated Depreciation | $ 140,212 |
Date of Construction | 1,983 |
Date Acquired | Jan. 29, 2015 |
Aurora | Colorado | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 526,362 |
Initial Cost to Company, Land | 810,000 |
Initial Cost to Company, Buildings and Improvements | 5,906,875 |
Initial Cost to Company, Total | 6,716,875 |
Net Cost Capitalized Subsequent to Acquisition | 51,948 |
Gross Carrying Amount, Land | 810,000 |
Gross Carrying Amount, Buildings and Improvements | 5,958,823 |
Gross Carrying Amount, Total | 6,768,823 |
Accumulated Depreciation | $ 211,718 |
Date of Construction | 1,984 |
Date Acquired | Feb. 5, 2015 |
Littleton | Colorado | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 324,183 |
Initial Cost to Company, Land | 1,680,000 |
Initial Cost to Company, Buildings and Improvements | 2,456,875 |
Initial Cost to Company, Total | 4,136,875 |
Net Cost Capitalized Subsequent to Acquisition | 27,361 |
Gross Carrying Amount, Land | 1,680,000 |
Gross Carrying Amount, Buildings and Improvements | 2,484,236 |
Gross Carrying Amount, Total | 4,164,236 |
Accumulated Depreciation | $ 95,128 |
Date of Construction | 1,985 |
Date Acquired | Jan. 23, 2015 |
Bloomingdale | Illinois | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 365,716 |
Initial Cost to Company, Land | 810,000 |
Initial Cost to Company, Buildings and Improvements | 3,856,874 |
Initial Cost to Company, Total | 4,666,874 |
Net Cost Capitalized Subsequent to Acquisition | 47,620 |
Gross Carrying Amount, Land | 810,000 |
Gross Carrying Amount, Buildings and Improvements | 3,904,494 |
Gross Carrying Amount, Total | 4,714,494 |
Accumulated Depreciation | $ 129,121 |
Date of Construction | 1,987 |
Date Acquired | Feb. 18, 2015 |
Crestwood | Illinois | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 183,911 |
Initial Cost to Company, Land | 250,000 |
Initial Cost to Company, Buildings and Improvements | 2,096,875 |
Initial Cost to Company, Total | 2,346,875 |
Net Cost Capitalized Subsequent to Acquisition | 100,573 |
Gross Carrying Amount, Land | 250,000 |
Gross Carrying Amount, Buildings and Improvements | 2,197,448 |
Gross Carrying Amount, Total | 2,447,448 |
Accumulated Depreciation | $ 79,090 |
Date of Construction | 1,987 |
Date Acquired | Jan. 23, 2015 |
Forestville | Maryland | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 492,666 |
Initial Cost to Company, Land | 1,940,000 |
Initial Cost to Company, Buildings and Improvements | 4,346,875 |
Initial Cost to Company, Total | 6,286,875 |
Net Cost Capitalized Subsequent to Acquisition | 82,979 |
Gross Carrying Amount, Land | 1,940,000 |
Gross Carrying Amount, Buildings and Improvements | 4,429,854 |
Gross Carrying Amount, Total | 6,369,854 |
Accumulated Depreciation | $ 189,219 |
Date of Construction | 1,988 |
Date Acquired | Jan. 23, 2015 |
Warren | Michigan | Property One | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 250,520 |
Initial Cost to Company, Land | 230,000 |
Initial Cost to Company, Buildings and Improvements | 2,966,875 |
Initial Cost to Company, Total | 3,196,875 |
Net Cost Capitalized Subsequent to Acquisition | 63,649 |
Gross Carrying Amount, Land | 230,000 |
Gross Carrying Amount, Buildings and Improvements | 3,030,524 |
Gross Carrying Amount, Total | 3,260,524 |
Accumulated Depreciation | $ 75,613 |
Date of Construction | 1,996 |
Date Acquired | May 8, 2015 |
Warren | Michigan | Property Two | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 259,140 |
Initial Cost to Company, Land | 240,000 |
Initial Cost to Company, Buildings and Improvements | 3,066,875 |
Initial Cost to Company, Total | 3,306,875 |
Net Cost Capitalized Subsequent to Acquisition | 67,513 |
Gross Carrying Amount, Land | 240,000 |
Gross Carrying Amount, Buildings and Improvements | 3,134,388 |
Gross Carrying Amount, Total | 3,374,388 |
Accumulated Depreciation | $ 79,350 |
Date of Construction | 1,987 |
Date Acquired | May 8, 2015 |
Sterling Heights | Michigan | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 277,164 |
Initial Cost to Company, Land | 250,000 |
Initial Cost to Company, Buildings and Improvements | 3,286,875 |
Initial Cost to Company, Total | 3,536,875 |
Net Cost Capitalized Subsequent to Acquisition | 60,591 |
Gross Carrying Amount, Land | 250,000 |
Gross Carrying Amount, Buildings and Improvements | 3,347,466 |
Gross Carrying Amount, Total | 3,597,466 |
Accumulated Depreciation | $ 74,294 |
Date of Construction | 1,977 |
Date Acquired | May 21, 2015 |
Troy | Michigan | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 346,125 |
Initial Cost to Company, Land | 240,000 |
Initial Cost to Company, Buildings and Improvements | 4,176,875 |
Initial Cost to Company, Total | 4,416,875 |
Net Cost Capitalized Subsequent to Acquisition | 65,279 |
Gross Carrying Amount, Land | 240,000 |
Gross Carrying Amount, Buildings and Improvements | 4,242,154 |
Gross Carrying Amount, Total | 4,482,154 |
Accumulated Depreciation | $ 140,058 |
Date of Construction | 1,988 |
Date Acquired | May 8, 2015 |
Beverly | New Jersey | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 164,320 |
Initial Cost to Company, Land | 400,000 |
Initial Cost to Company, Buildings and Improvements | 1,696,875 |
Initial Cost to Company, Total | 2,096,875 |
Net Cost Capitalized Subsequent to Acquisition | 26,318 |
Gross Carrying Amount, Land | 400,000 |
Gross Carrying Amount, Buildings and Improvements | 1,723,193 |
Gross Carrying Amount, Total | 2,123,193 |
Accumulated Depreciation | $ 37,430 |
Date of Construction | 1,988 |
Date Acquired | May 28, 2015 |
Everett | Washington | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 389,225 |
Initial Cost to Company, Land | 2,010,000 |
Initial Cost to Company, Buildings and Improvements | 2,956,875 |
Initial Cost to Company, Total | 4,966,875 |
Net Cost Capitalized Subsequent to Acquisition | 50,949 |
Gross Carrying Amount, Land | 2,010,000 |
Gross Carrying Amount, Buildings and Improvements | 3,007,824 |
Gross Carrying Amount, Total | 5,017,824 |
Accumulated Depreciation | $ 97,276 |
Date of Construction | 1,986 |
Date Acquired | Feb. 5, 2015 |
Foley | Alabama | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 596,743 |
Initial Cost to Company, Land | 1,830,000 |
Initial Cost to Company, Buildings and Improvements | 5,785,000 |
Initial Cost to Company, Total | 7,615,000 |
Net Cost Capitalized Subsequent to Acquisition | 53,850 |
Gross Carrying Amount, Land | 1,830,000 |
Gross Carrying Amount, Buildings and Improvements | 5,838,850 |
Gross Carrying Amount, Total | 7,668,850 |
Accumulated Depreciation | $ 68,819 |
Date of Construction | 1985/1996/2006 |
Date Acquired | Sep. 11, 2015 |
Tampa | Florida | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |
Encumbrances | $ 232,154 |
Initial Cost to Company, Land | 1,010,000 |
Initial Cost to Company, Buildings and Improvements | 1,952,500 |
Initial Cost to Company, Total | 2,962,500 |
Net Cost Capitalized Subsequent to Acquisition | 4,064 |
Gross Carrying Amount, Land | 1,010,000 |
Gross Carrying Amount, Buildings and Improvements | 1,956,564 |
Gross Carrying Amount, Total | 2,966,564 |
Accumulated Depreciation | $ 11,248 |
Date of Construction | 1,985 |
Date Acquired | Nov. 3, 2015 |
Schedule III Summary of Activit
Schedule III Summary of Activity in Real Estate Facilities (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Real estate facilities | ||
Real estate facilities, beginning balance | $ 20,857,880 | $ 0 |
Facility acquisitions | 132,546,249 | 20,857,000 |
Finalized purchase price allocations related to 2014 acquisitions | 958,000 | |
Improvements and additions | 2,156,384 | 880 |
Asset disposals | (273,963) | |
Real estate facilities, ending balance | 156,244,550 | 20,857,880 |
Accumulated depreciation | ||
Accumulated depreciation, beginning balance | (93,433) | 0 |
Depreciation expense | (3,936,239) | (93,433) |
Asset disposals | 273,963 | |
Accumulated depreciation, ending balance | $ (3,755,709) | $ (93,433) |