Frequently Asked Questions
Why consider becoming a PRO?
There are many reasons to consider becoming a National Storage Affiliates PRO, including the ability to contribute assets on a tax-deferred basis while retaining operational control of your self storage facilities. NSA ultimately provides the best of both local operational knowledge and nationwide scale, resulting in opportunities to reduce cost of capital as well as operating and marketing costs.
Who is the ideal candidate for becoming a PRO?
National Storage Affiliates is ideal for private operators of self storage facilities who desire to continue operating and growing their portfolio, leveraging the significant advantages of a lower cost of capital, up-sized internet marketing opportunities and reduced operating and administrative costs associated with NSA's economies of scale. At the same time, NSA's PROs are offered the advantages of a tax-deferred transaction as well as an eventual exit strategy should they decide to retire from managing their portfolio.
How does it work?
PROs contribute their portfolio of properties into NSA through a tax-efficient UPREIT structure and in return receive NSA equity with the advantage of a tax-deferred transaction. NSA provides capital to replace existing debt and any JV equity that is not contributing into NSA.
What happens after I contribute my portfolio?
After contribution, PROs enter into a management contract to continue to manage and grow their own portfolios under the NSA umbrella.
How are acquisitions handled?
Each PRO will have the opportunity to identify attractive acquisitions in its designated markets, and NSA's lower cost of capital will provide an edge in the competition for acquisitions. NSA's board will review and approve proposed acquisitions, and NSA will provide capital to complete the transaction.
How is my cash flow affected by becoming a PRO?
Although each portfolio must be evaluated based on specific circumstances, in many cases, cash distributions to PROs improve after contribution primarily due to NSA's lower cost of capital.
I'm interested in learning more about becoming an NSA PRO. Whom should I contact?
Please contact Curt Fleming with Knightsbridge Realty Capital. Curt may be reached at 949.719.1994.