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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) June 21, 1996 (June 19, 1996)
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Storage USA, Inc.
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(Exact name of registrant as specified in its charter)
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<S> <C> <C>
Tennessee 001-12910 62-1251239
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
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10440 Little Patuxent Parkway, Suite 1100, Columbia, Maryland 21044
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (410) 730-9500
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ITEM 2: ACQUISITION OF ASSETS
Storage USA, Inc., (the "Company") has consummated the acquisition of 29
self-storage facilities through SUSA Partnership L.P. ("OP"), a limited
partnership controlled by the Company. The 29 facilities totaling
approximately 1,860,000 square feet are located in eleven states and were
purchased for approximately $96 million.
The Company had an approximately 5% general partnership interest in two of the
facilities (indicated with a *). The Company managed, for a fee, the 11
facilities acquired on June 18, 1996 and the facility acquired on March 7, 1996
(indicated with a **).
All of the facilities were acquired with cash or units of limited partnership
interest in the Operating Partnership ("Units"). The acquisitions were funded
by cash generated from operations, the issuance of Units, and borrowings under
the Company's lines of credit with The First National Bank of Chicago and First
Tennesse Bank. Each of the facilities acquired was used by the seller as a
self-storage facility prior to its acquisition by the Company, and the Company
intends to continue the use of all facilities for that purpose. The Company's
management determined the contract price through arms-length negotiations,
after taking into consideration such factors as: the age and condition of the
facility; the projected amounts of maintenance costs; anticipated capital
improvements; the facility's current revenues; comparable facilities competing
in the applicable market; market rental rates for comparable facilities; the
occupancy rate of the facility; and the estimated amount of taxes, utility
costs, personnel costs, and other anticipated expenses.
The following provides certain additional information concerning the 29
facilities acquired:
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<CAPTION>
Location Seller Date of Acquisition
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<S> <C> <C>
Mesa, AZ Paul & Ingrid Mitchell January 2, 1996
Thousand Palms, CA Sav On Storage Systems of Indio January 9, 1996
Norristown, PA ** Bryn Mawr Trust Company March 7, 1996
Atlanta, GA Stone Mountain Management, Inc. March 21, 1996
Boca Raton, FL Boca Raton Management, Inc. March 21, 1996
Ft. Lauderdale, FL Ft. Lauderdale Management, Inc. March 21, 1996
Salinas, CA Rossi Storage Partners, LTD April 3, 1996
Northborough, MA Space Management, Inc. April 4, 1996
Las Vegas, NV Victor and Greta Loraux April 8, 1996
Whittier, CA Linkletter Enterprises April 11, 1996
Brockton, MA Westgate Self Storage April 12, 1996
Coral Way, FL * CRM Realty II April 30, 1996
Miller Road, FL * CRM Realty II April 30, 1996
Florin, CA Starker Services, Inc. June 5, 1996
Phoenix, AZ Doss Family Trust June 6, 1996
Phoenix, AZ Doss Family Trust June 6, 1996
Port Charlotte, FL Port Charlotte Self Storage, Inc. June 11, 1996
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<S> <C> <C>
Tyngsboro, MA ** Dover Mini Storage Partners - I June 18, 1996
Abscon, NJ ** Dover Mini Storage Partners - I June 18, 1996
South Easton, MA ** Dover Mini Storage Partners - II June 18, 1996
North Attleboro, MA ** Dover Mini Storage Partners - II June 18, 1996
Mays Landing, NJ ** Dover Mini Storage Partners - II June 18, 1996
Fall River, MA ** Dover Mini Storage Partners - 3 June 18, 1996
Salisbury, MA ** Dover Mini Storage Partners - 3 June 18, 1996
Waterbury, CN ** Dover Mini Storage Partners - 5 June 18, 1996
Rocky Hill, CN ** Dover Mini Storage Partners - 6 June 18, 1996
Coram, NY ** Dover Mini Storage Partners - 7 June 18, 1996
Farmington, CN ** Dover Mini Storage Partners - 7 June 18, 1996
Bedford, TX F.A. Pestarino, Jr. June 19, 1996
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The following data related to the facilities is derived from the Company's
internal records as of the last day of the month following closing:
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<CAPTION>
Square Rent per Economic Physical
Location feet square foot Occupancy Occupancy Total Units Contract Price
- -------- ---- ----------- --------- --------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C>
Mesa, AZ 78,880 $ 7.25 71% 80% 850 $2,953,000
Thousand Palms, CA 48,447 9.91 70 83 1,020 2,442,000
Norristown, PA 61,590 13.65 81 93 618 3,093,000
Atlanta, GA 81,270 7.23 93 96 633 3,946,000
Boca Raton, FL 83,479 10.89 97 99 644 5,562,000
Ft. Lauderdale, FL 63,298 10.71 89 94 803 3,964,000
Salinas, CA 58,100 7.95 81 84 464 2,304,000
Northborough, MA 64,200 9.14 74 84 514 3,025,000
Las Vegas, NV 73,150 7.26 90 97 610 3,843,000
Whittier, CA 68,625 8.10 81 84 595 3,401,000
Brockton, MA 70,175 10.18 84 91 715 4,185,000
Coral Way, FL 75,873 14.05 73 79 840 2,451,000
Miller Road, FL 73,815 15.03 57 70 993 1,745,000
Florin, CA 58,340 9.23 85 89 657 3,050,000
Phoenix, AZ 46,453 7.69 94 98 404 2,224,000
Phoenix, AZ 24,808 12.71 99 99 471 1,925,000
Port Charlotte, FL 49,725 9.38 86 88 603 3,250,000
Tyngsboro, MA 79,100 8.45 96 99 575 4,440,000
Abscon, NJ 34,400 10.13 80 94 327 1,940,000
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
South Easton, MA 64,490 8.24 93 96 466 3,334,000
North Attleboro, MA 46,025 10.27 97 97 430 3,330,000
Mays Landing, NJ 29,680 9.54 86 92 269 1,416,000
Fall River, MA 76,400 7.30 82 88 616 2,836,000
Salisbury, MA 59,005 8.88 81 96 482 2,824,000
Waterbury, CN 50,950 9.71 86 94 515 2,730,000
Rocky Hill, CN 84,750 8.98 84 91 666 4,855,000
Coram, NY 94,714 11.73 88 91 942 7,244,000
Farmington, CN 82,900 8.80 93 98 594 4,652,000
Bedford, TX 76,865 7.62 86 93 641 3,422,000
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Total 1,859,507 $ 9.59 84% 91% 17,957 $96,386,000
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ITEM 7: FINANCIAL STATEMENTS AND EXHIBITS
(a) FINANCIAL STATEMENTS APPLICABLE TO REAL ESTATE PROPERTIES
ACQUIRED.
It is impracticable to provide at the time of filing this Report on Form
8-K any of the financial statements and the additional information
specified by Rule 3-14 of Regulation S-X as required by Item 7(a)(3).
The required financial information and additional information will be
filed by amendment within 60 days of the date of filing of this report.
(b) PRO FORMA FINANCIAL INFORMATION
It is impracticable to provide at the time of filing of this Report on
Form 8-K any of the pro forma financial information required pursuant to
Article 11 of Regulation S-X as required by Item 7(b)(1). The required
pro forma financial information will be filed by amendment within 60
days of the date of filing the Report.
(c) EXHIBITS
None.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
DATED: June 21, 1996
STORAGE USA, INC.
By: /s/ John R. Erickson
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John R. Erickson
Senior Vice President and
Chief Financial Officer
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