MD
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32-0211624
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(State or other jurisdiction of
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(IRS Employer
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incorporation)
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Identification No.)
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[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
On February 9, 2011, Strategic Storage Trust, Inc. (the "Registrant"), through a wholly-owned subsidiary of the Registrant's operating partnership, executed two purchase and sale agreements with unaffiliated third parties (collectively, the "Ladera Ranch Purchase Agreements") for the acquisition of a self storage facility (the "Ladera Ranch property") and an adjacent parcel of land (the "Ladera Ranch land"), both located in Ladera Ranch, California. The purchase price for the Ladera Ranch property is $17.0 million, plus closing costs and acquisition fees, which includes the assumption of an approximately $7.0 million loan. The purchase price for the Ladera Ranch land is approximately $3.9 million, plus closing costs and acquisition fees. The Registrant expects these acquisitions to close in the second quarter of 2011 and to fund such acquisitions with net proceeds from its initial public offering.
The Ladera Ranch property is an approximately 980-unit self storage facility that sits on approximately 3.7 acres and contains approximately 102,000 rentable square feet of self storage space. The Ladera Ranch property is located at 30 Terrace Road, Ladera Ranch, California. It was constructed in 2002. The Ladera Ranch land is an approximately 3.6 acre parcel located immediately adjacent to the Ladera Ranch property.
The seller of the Ladera Ranch land has an option to repurchase the Ladera Ranch land upon the occurrence of certain events, subject to certain terms and conditions. The closing of the Ladera Ranch property and the Ladera Ranch land are contingent upon each other.
Pursuant to the Ladera Ranch Purchase Agreements, the Registrant would be obligated to purchase the Ladera Ranch property and the Ladera Ranch land only after satisfactory completion of agreed upon closing conditions. The Registrant will decide whether to acquire the Ladera Ranch property and the Ladera Ranch land generally based upon:
- satisfactory completion of due diligence on the properties and the sellers of the properties;
There can be no assurance that the Registrant will complete the acquisitions of the Ladera Ranch property and the Ladera Ranch land. In some circumstances, if the Registrant fails to complete the acquisitions, it may forfeit up to $150,000 in earnest money on the Ladera Ranch property and up to $50,000 in earnest money on the Ladera Ranch land.
Other properties may be identified in the future that the Registrant may acquire prior to or instead of the Ladera Ranch property and the Ladera Ranch land. Due to the considerable conditions to the consummation of the acquisition of the Ladera Ranch property and the Ladera Ranch land, the Registrant cannot make any assurances that the closing of the Ladera Ranch property and the Ladera Ranch land is probable.
Strategic Storage Trust, Inc.
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Date: February 11, 2011
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By:
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/s/ Michael S. McClure
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Michael S. McClure
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Chief Financial Officer
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