Blue Door Property III, DST — Self-Storage
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Delaware Statutory Trust (DST) · Self-Storage

Blue Door Property III, DST

Sponsored by SmartStop · Core-Plus · Updated 11/13/2025
Available506(c)45.96% LTV7 Yr Hold721 Exchange Optional

4860 North 83rd Avenue, Phoenix, AZ — image provided by sponsor.

$52.6M
Total Offering
$100K
Minimum Investment
45.96%
In-Place LTV
7 Yr
Estimated Hold
The Offering

Blue Door Property III is a leveraged DST holding three SmartStop-branded self-storage facilities (~1,927 units) across Phoenix, Longwood, and Dallas at ~90% occupancy, financed at 45.96% LTV on separate fixed-rate, interest-only mortgages aggregating $24.2M.

96% LTV and operated under the SmartStop brand across Phoenix AZ, Longwood FL, and Dallas TX. Each property carries a separate fixed-rate, interest-only mortgage from a SmartStop-affiliated lender, leased to a state-specific master tenant under a base/additional/bonus-rent waterfall.

The thesis is leveraged, inflation-responsive operating income with an optional Section 721 rollover ahead of the November 2032 loan maturity.

Return Profile
4.00%
Year 1 Distribution
4.28%
Average Yield
7.08%
Tax-Adjusted Yield
8.08%
Cap Rate Equivalent
Projected Annual Distribution by Year (%)
4.00
4.25
4.27
4.28
4.31
4.32
4.52
Sold
Sold
Sold
Y1Y2Y3Y4Y5Y6Y7Y8Y9Y10
Projected, pre-tax cash-on-cash distributions; "Sold" reflects the modeled disposition within the hold. Distributions are not guaranteed. Tax-adjusted yield (where shown) assumes a 40% effective rate for non-1031 cash investors; the cap-rate equivalent is an estimate. All figures are qualified by the private placement memorandum.
Financing
LenderSMST Lender, LLC
Interest Rate5.00% (Fixed)
Loan Term7 years
Interest-Only Period7 years
Total Debt$24.2M ($24,191,359)
In-Place LTV45.96%
Year 1 DSCR1.81x
Investment Highlights
01

Leveraged structure (45.96% LTV) financed at a fixed 5.00%, interest-only for the full seven-year term, maturing November 2032.

02

Operated on the SmartStop Self Storage platform (NYSE: SMA) with affiliated master tenants and property manager.

03

Three-market geographic diversification across Phoenix, Orlando/Longwood, and Dallas at ~90% occupancy.

Strengths & Considerations
Strengths

A geographically diversified self-storage portfolio operated by a public-REIT platform, with fixed-rate interest-only financing and a healthy 1.81x Year-1 coverage; substantial depreciation shelter (~7.08% tax-equivalent yield) and an optional 721 exit.

Considerations & Risks

Interest-only with a hard 2032 balloon; pervasive SmartStop affiliation across lender, master tenants, manager, and 721 counterparty; low 4.00% going-in yield against a 15.19% load.

Educational opinion · read the PPM

The analysis below is Baker 1031's educational opinion — not investment, tax, or legal advice, a recommendation, or a guarantee, and it does not replace the offering's Private Placement Memorandum (PPM), which governs in all respects. Read the PPM and consult your own CPA and attorney before investing.

Baker 1031 Analysis
Our Take

A moderately leveraged, core-plus self-storage vehicle whose return rests on SmartStop lifting NOI across three Sun Belt facilities; the after-tax profile is the strongest feature, but the 4.00% going-in yield and affiliated structure suit tax-sensitive investors comfortable with leverage.

Educational opinion · read the PPM

The analysis below is Baker 1031's educational opinion — not investment, tax, or legal advice, a recommendation, or a guarantee, and it does not replace the offering's Private Placement Memorandum (PPM), which governs in all respects. Read the PPM and consult your own CPA and attorney before investing.

Benchmark vs. Market
MetricThis OfferingMarket Avg.Assessment
Avg. Income4.28%4.50%Meets Average
Income Growth13.00%13.87%Meets Average
Peak Income4.52%4.79%Meets Average
Sponsor
Disclosures

Securities offered through Aurora Securities, Inc. (CRD #46147 / SEC #8-51322), member FINRA / SIPC; Baker 1031 Investments, LLC is independent of Aurora Securities, Inc. and is not a registered broker-dealer or investment adviser. This is not an offer to sell or a solicitation of an offer to buy any security; any offer is made solely by the confidential private placement memorandum (PPM), which qualifies all information herein in its entirety. Delaware Statutory Trust interests are speculative, illiquid securities offered under Rule 506(c) of Regulation D and sold only to investors whose accredited-investor status has been verified; offering documents and subscription materials are provided only after that verification. They involve substantial risk, including possible loss of the entire investment.

Distributions, yields, the cap-rate equivalent, DSCR, occupancy, and benchmark figures are sponsor estimates or projections, are not guaranteed, and may differ materially from actual results. Any tax-adjusted yield assumes a 40% effective rate for non-1031 cash investors and is not tax advice. No tax, legal, or investment advice is provided — consult your own CPA and attorney. Past performance does not guarantee future results.

Blue Door Property III, DST

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