Strategic Storage Trust VI (SST VI) – SSGT III Merger, Investor Complaints & FINRA Arbitration
Strategic Storage Trust VI, Inc. (SST VI) has agreed to acquire Strategic Storage Growth Trust III, Inc. (SSGT III) in an all-stock merger, combining two nontraded self-storage real estate investment trusts sponsored by affiliates of SmartStop Self Storage REIT. The White Law Group continues to investigate potential securities claims on behalf of investors who purchased shares of SST VI, a publicly registered, non-traded REIT that has already suspended its share redemption program.
What the SSGT III Merger Means for Investors
SSGT III shareholders will not receive cash in the deal. Each share of SSGT III common stock converts into one share of SST VI Class A common stock, and SSGT III’s Series A convertible preferred stock converts into a new series of SST VI preferred stock on substantially similar terms. Once the deal closes, existing SST VI stockholders are expected to hold approximately 59% of the combined company and SSGT III stockholders approximately 38%.
For investors, the key point is that the merger does not create liquidity. SST VI shares still will not trade on a public exchange, and Strategic Storage Trust VI’s share redemption program remains suspended, so shareholders receiving SST VI stock in the exchange are trading one illiquid, non-traded REIT position for another.
The deal is expected to close in the fourth quarter of 2026 and requires approval from a majority of SSGT III’s outstanding shares; SST VI stockholders do not get a vote. SSGT III will hold a special stockholders meeting once proxy materials tied to the SEC S-4 filing are available. Deal figures reported here are drawn from company statements and trade press coverage; final terms will be set out in the SEC filings once made public.
Suspension of Share Redemption Program (August 2025 Update)
On August 6, 2025, Strategic Storage Trust VI’s board of directors approved the suspension of the company’s share redemption program (SRP), effective September 6, 2025.
This suspension applies to all redemption requests except those made due to:
- Death of a stockholder
- Commitment to a long-term care facility
- Qualifying disability
- Bankruptcy of a stockholder
Pending redemption requests not meeting these criteria will not be processed, and no new standard redemptions will be honored until further notice. The SRP will remain suspended unless the board approves its resumption. For investors, this means selling shares for cash is now largely impossible in the short term, creating additional liquidity concerns — concerns the pending merger does not resolve, since SSGT III shareholders would receive SST VI stock rather than cash.
Risks of Non-Traded REITs Like Strategic Storage Trust VI
Although marketed for their potential income and diversification benefits, non-traded REITs come with notable drawbacks:
- Illiquidity – Shares are not traded on a public exchange, making resale difficult, especially when redemption programs are suspended.
- High Commissions & Fees – Broker-dealer commissions can be as high as 10%, reducing the amount actually invested.
- Valuation & Transparency Issues – The value of shares may not reflect market reality, particularly during volatile periods.
- Dependence on Sponsor Performance – Returns are closely tied to management’s ability to operate and grow the portfolio effectively.
Broker Due Diligence Responsibilities
FINRA rules require brokerage firms to conduct adequate due diligence before recommending complex or illiquid investments like Strategic Storage Trust VI. Brokers must ensure investments are suitable for each client based on:
- Risk tolerance
- Liquidity needs
- Investment objectives
- Financial situation
If your financial advisor failed to disclose the risks or misrepresented the investment, you may have legal recourse.
Recovering Losses Through FINRA Arbitration
Investors who suffered losses in Strategic Storage Trust VI may be able to pursue claims against their broker-dealers through FINRA arbitration. This dispute resolution process allows investors to seek recovery for losses caused by:
- Misrepresentation or omission of material facts
- Unsuitable investment recommendations
- Failure to conduct proper due diligence
- Overconcentration in illiquid securities
The White Law Group has represented investors in claims against brokerage firms for improperly recommending non-traded REITs and other alternative investments.
Free Consultation
If you have concerns about your investment in Strategic Storage Trust VI, particularly in light of the suspension of the share redemption program or the pending SSGT III merger, contact The White Law Group at (888) 637-5510 for a free evaluation. You may be able to recover your losses through a FINRA arbitration claim against your brokerage firm.
Frequently Asked Questions: Strategic Storage Trust VI
1. What is Strategic Storage Trust VI?
SST VI is a publicly registered, non-traded REIT that invests in self-storage properties in the U.S. and Canada. It is affiliated with SmartStop Self Storage REIT, Inc.
2. What does the SSGT III merger mean for SST VI investors?
SST VI has agreed to acquire SSGT III in an all-stock deal expected to close in the fourth quarter of 2026. Existing SST VI stockholders would end up owning approximately 59% of the combined company. The merger does not restore liquidity for SST VI shareholders, since the SRP remains suspended and SST VI shares still do not trade on a public exchange.
3. How can I recover losses in Strategic Storage Trust VI?
If your broker failed to fully disclose the risks or recommended SST VI without a reasonable basis, you may be able to file a FINRA arbitration claim for recovery.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago and Seattle. If you have concerns about your investment in Strategic Storage Trust VI, contact the firm at (888) 637-5510 for a free consultation, or learn more about the FINRA arbitration process, or visit the firm’s contact page to get started.
