Is Your Investment in SmartStop Self Storage REIT “Locked Up”?

If you invested in SmartStop Self Storage REIT (formerly known as Strategic Storage Trust II), you may have recently noticed significant changes to your account statement. From reverse stock splits to the suspension of share redemption programs, many investors are finding that their “stable” real estate investment feels increasingly volatile and difficult to exit.

At The Securities Lawyers, we are hearing from investors who feel they were misled about the risks, liquidity, and long-term value of this product.

The Problem with SmartStop Self Storage REIT

For years, SmartStop was sold as a non-traded REIT—a product often pitched by financial advisors as a safe, high-yield alternative to the stock market. However, these products come with hidden dangers that advisors don’t always disclose:

• Illiquidity: For long periods, investors were unable to sell their shares. Even when a Share Redemption Program (SRP) existed, the company often suspended it, leaving investors with no way to access their principal.
• The 1-for-4 Reverse Split: In early 2025, SmartStop executed a 1-for-4 reverse stock split. While companies claim this is to “increase share price,” it often masks a decline in the overall value of the initial investment and can be confusing for shareholders tracking their original cost basis.
• Conflicts of Interest: Non-traded REITs often pay high commissions (sometimes up to 10%) to the brokers who sell them. This creates a massive incentive for an advisor to recommend the product even if it isn’t “suitable” for your specific financial goals.
• Valuation Drops: Many investors have seen the “Estimated Net Asset Value” (NAV) of their shares fluctuate or drop significantly from the original $25.00 or $10.00 per share purchase price.

“Do You Dare Sue Your Broker?”

Many of our clients are hesitant to take action. They have a long-standing relationship with their financial advisor and feel that the market is simply “having a bad year.” But as we explain in our video, Do You Dare Sue Your Broker?, this isn’t about a personal vendetta—it’s about accountability.

If your broker told you SmartStop was “safe” or “liquid” while knowing it was a complex, high-commission, non-traded product, they may have violated FINRA suitability rules. You aren’t suing the storage company; you are seeking recovery from the brokerage firm that failed to protect your interests.

How to Recover Your SmartStop Losses

You don’t have to wait for the company to “go public” or for the market to rebound to get your money back. Through FINRA Arbitration, you can bring a claim against the brokerage firm that sold you the investment.

File a Complaint: Learn the process in our guide: How to File a Complaint Against a Financial Advisor.

Review Your Disclosures: Did your broker explain the 10% commission? Did they warn you the redemption program could be suspended?

Check for Overconcentration: Did your advisor put too much of your net worth into this single REIT?

Request a Free Portfolio Review

If you have lost money in SmartStop Self Storage REIT or are unable to liquidate your shares, you may have a claim for damages. We work on a contingency fee basis, meaning you pay nothing unless we recover money for you.

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