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Strategic Storage Growth

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Disclosures & prior history4 disclosures · worst high

Material items extracted from the risk-factor, conflicts, and prior-performance sections of Strategic Storage Growth's PPMs. Each is quoted verbatim with its source page — surfaced, not editorialized.

Related-party conflict disclosed — Strategic Storage Advisor II, LLC serving simultaneously as Advisor, Original Limited Partner, and Special Limited Partner

High

The Advisor (Strategic Storage Advisor II, LLC) simultaneously holds the role of Advisor, Original Limited Partner, and Special Limited Partner in the operating partnership — all three roles held by the same entity, signed by the same individual (H. Michael Schwartz). This creates a conflict of interest as the Advisor/Special LP has a direct economic interest in distributions (15% promote above 6% hurdle) that it manages through its advisory role.

ORIGINAL LIMITED PARTNER: STRATEGIC STORAGE ADVISOR II, LLC By: H. Michael Schwartz, President SPECIAL LIMITED PARTNER: STRATEGIC STORAGE ADVISOR II, LLC By: H. Michael Schwartz, President
PPM p.4395% confidence

Related-party conflict disclosed — Affiliate employment — GP may retain affiliates on terms it deems fair and reasonable

Medium

Section 6.7 permits any Affiliate of the General Partner to be employed or retained by the Partnership in any capacity (buyer, lessor, manager, broker, lender, etc.) and to receive compensation the General Partner deems fair and reasonable, without independent oversight.

Any Affiliate of the General Partner may be employed or retained by the Partnership and may otherwise deal with the Partnership (whether as a buyer, lessor, lessee, manager, furnisher of goods or services, broker, agent, lender or otherwise) and may receive from the Partnership any compensation, price, or other payment therefor which the General Partner determines to be fair and reasonable.
PPM p.2990% confidence

Related-party conflict disclosed — Outside Activities — affiliates may compete with the Partnership

Medium

Section 6.6 expressly permits officers, directors, employees, agents, trustees, affiliates, and stockholders of the General Partner to engage in business activities substantially similar or identical to those of the Partnership, with no obligation to offer such opportunities to the Partnership.

any officer, director, employee, agent, trustee, Affiliate or stockholder of the General Partner shall be entitled to and may have business interests and engage in business activities in addition to those relating to the Partnership, including business interests and activities substantially similar or identical to those of the Partnership. Neither the Partnership nor any of the Limited Partners shall have any rights by virtue of this Agreement in any such business ventures, interest or activities.
PPM p.2890% confidence

Related-party conflict disclosed — Advisor lock-up on LP units — Strategic Storage Advisor II, LLC prohibited from exchanging $200,000 LP units while serving as Advisor

Low

Section 8.4(f) prohibits the Advisor from exchanging or transferring the $200,000 LP units it purchased on August 2, 2013, while it continues to act as Advisor — aligning the Advisor economically with the Partnership but also restricting its liquidity.

Strategic Storage Advisor II, LLC is prohibited from exchanging or otherwise transferring the Partnership Units purchased by it on August 2, 2013 for $200,000 cash, so long as it continues acting as the Advisor pursuant to the Advisory Agreement.
PPM p.3692% confidence

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