Talonvest Capital Inc., a boutique real estate adviser serving the self-storage industry, is a Platinum-Level sponsor of the Urban Land Institutes (ULI) Premier West Coast Capital Markets event, The Money Chase 2014, on Feb. 13 at the Pacific Club in Newport Beach, Calif. The networking event, hosted by ULIs Orange County/Inland Empire chapter, will focus on the most current trends related to debt and equity in commercial real estate. It will include more than 250 executive officers, owners, investors and financial experts.

This years program will include a discussion on the current state of the maturing capital markets while digging into a much deeper discussion about the equity markets. Attendees will hear insights about investment objectives for 2014 as well as specifics about recent transactions.

The keynote speaker is Randy Anderson, head of research for CBRE. The equity panel will be led by moderator Christopher Rising, president and chief operating officer of Rising Realty Partners. Panelists include Henry Bandet, founder and partner of HgCapital; Bryan Crane, principal of Artemis Real Estate Partners; Chris Graham, head of West Coast acquisitions for J.P. Morgan Global Real Assets; and Pat Jackson, CEO and founder of Sabal Financial Group L.P.

The cost to attend the event is $100 for ULI members and $135 for non-members through Feb. 10. Late and onsite registration is $120 for ULI members and $160 for non-members.

Event sponsorships are available on a Platinum, Gold or Silver Level. Joining Talonvest on the Platinum Level is Bixby Land Co., SheppardMullin and U.S. Bank.

ULI is an international, nonprofit research and educational organization that was founded in 1937 to provide leadership in the responsible use of land, and in creating and sustaining thriving communities worldwide.

Founded in 2010 and based in Orange County, Calif., Talonvest structures debt and equity for self-storage and commercial real estate investors and developers nationwide. The principals of the firm have more than 70 years of combined experience.

The William Warren Group Inc. (WWG), a real estate company that owns and operates the StorQuest Self Storage portfolio, appointed Gary Sugarman as the companys newest principal and first chief strategy officer. In this role, hell be responsible for strategic business planning for the companys development, acquisition and third-party self-storage management platform. Additionally, Sugarman will be charged with direct oversight of the companys national growth initiative for the StorQuest brand.

The newly created position signifies the progression of WWGs strategic growth plans, initiated in spring 2012 with the hiring of Kent Christensen, the former executive vice president and chief financial officer for Extra Space Storage Inc., as the companys chief operating officer, according to a company press release.

Sugarman adds tremendous strength and diversity to our executive management team, said Bill Hobin, president and CEO. Over the past two years, we have focused on investing in our infrastructure and building an industry-leading team of professionals. Were assembling an incredibly talented group of self-storage individuals who not only have demonstrated an ability to execute at a high level but also have tremendous industry relationships. Gary is just the type of forward-thinker our company requires to execute a new world business plan and strategy that will support our nationally expanding brand.

Prior to joining WWG, Sugarman served for five years as the chief operating officer of Edison Properties LLC, where he maintained full profit-and-loss responsibility for all business units of the companys real estate portfolio, including direct accountability for all aspects of operating the Manhattan Mini Storage portfolio. Prior to his role at Edison, Sugarman spent 20 years operating several national retail chains and practiced as a Wall Street corporate finance attorney. 

Sugarman is a graduate of Harvard Law School and The University of Michigan. He has served as chairman of the New York Self Storage Association, a board member of the national Self Storage Associations Large Operators Council and a member of CubeSmarts Board of Strategic Advisors.

Based in Santa Monica, Calif., WWG develops, acquires and operates self-storage assets in Arizona, California, Colorado, Florida, Hawaii, South Carolina and Texas. The company was founded in 1994.

Self-storage has been the subject of several popular reality-television shows and even a handful of movies in recent months, but British horror film Storage 24 had the unenviable distinction of being the lowest-grossing movie at the U.S. box office last year, earning just $72 and lasting a single day.

One explanation for the dismal showing was a supposedly planned one-day viewing at a single American theater as part of a larger deal to get the movie on U.S. television, according to the source. Storage 24 cost about £1.6 million to make and reportedly earned £225,000 after it was released in the United Kingdom in June 2012.

British filmmaker Noel Clarke co-wrote the script and cast himself in the lead role. In the movie, Clarkes character is trapped in a London storage facility with his girlfriend, and the couple gets terrorized by an alien creature who wants to eat them. The movie also stars Antonia Campbell-Hughes, Laura Haddock, Colin O'Donoghue and Jamie Thomas King.

Clarke was reportedly bullish about the potential for an American audience for Storage 24, encouraged by the stateside success of Adulthood, an earlier movie he wrote, directed and starred in. It is unclear if the film could still make its way to American television. Last year, U.S. viewers created a social media sensation out of the low-budget, made-for-TV horror film Sharknado, which aired on SyFy.

New DVD copies of Storage 24 are currently selling for $14.99 on Amazon.com. The film has received 60 public reviews on the website, averaging three stars.

Integra Realty Resources Inc. (IRR), a commercial real estate valuation and consulting firm, has released its IRR Viewpoint 2014, an annual report providing data, analysis and forecasts on local and national market conditions for self-storage and seven other U.S. commercial real estate sectors: debt capital markets, office, multi-family, retail, industrial, lodging and senior housing. This years report forecasts increases in self-storage property values and the number of new development projects during the next few years.

Across most commercial sectors, real estate values are expected to rise during the next three years, according to the report. Improved property fundamentals will drive the upward trend in real estate values, and they are likely to offset any potential increases in cap rates during this period, IRR officials said in a press release. The strong recovery of property fundamentals has already established the real estate sector as a safe harbor for investors in search of yield in the current low-interest-rate environment. These dynamics will add to favorable value appreciation during the next three years.

In the self-storage market, cap rates have dropped to near-record lows during the past two years due to a reduction in the number of properties for sale, IRR analysts said. This, combined with income growth and lower overall rates, has storage values increasing, with that trend expected to continue this year, according to the report.

IRR also credits the four publicly traded, U.S.-based self-storage real estate investment trustsCubeSmart, Extra Space Storage Inc., Public Storage Inc. and Sovran Self Storage Inc.with exhibiting materially positive absorption last year. This has allowed the industry to decrease the amount of promotional discounts and concessions, further enhancing revenue potential within the sector, IRR analysts said. Occupancy is expected to stabilize as operators continue to push rental rates higher.

Favorable cap rates, income growth and lower overall rates will likely continue to result in increased self-storage values, according to IRR. Market conditions in many areas also indicate that new self-storage construction will increase in the coming years, company analysts said.

Now in its 24th year, the IRR Viewpoint includes a forecast section dedicated to forward-looking analysis and commentary on commercial real estate markets and property types. With Viewpoint 2014, we have expanded the report to include a forecasting section intended to help our clients prepare for potential opportunities and risks within the commercial real estate sector, said John Albrecht, CEO. We have also broadened the scope of our survey and research to include class-B property metrics.

Founded in 1999, IRR is headquartered in New York City and operates 66 offices throughout the United States and the Caribbean. The firm specializes in real estate appraisals, feasibility and market studies, expert testimony and related property-consulting services.

Update 1/13/14 Bird-B-Gone received a patent on its Bird Jolt Flat Track, an anti-arcing and glue-trough design technology that creates a safer electric track and bird-deterrent system, according to a company press release.

It increases the distance on the surface area of the track, between the conductors, making it less likely to arc, said Mike Dougherty, a bird-control engineer for Bird-B-Gone. The glue trough design prevents arcing underneath the track and helps the track stay on the surface better.

Bird Jolt Flat Track is available in clear, black, stone, gray, red and terra cotta. Each color is available in 100-foot rolls and can be purchased in a kit that includes the installation tools.

Bird-B-Gone Inc., a manufacturer of products designed to safely keep birds away from self-storage facilities and other types of buildings, released an addition to its line of electric bird deterrents. Effective for small and large birds, the Clear Track Bird Jolt Flat Track System deters pests by emitting a slight shock when they land on its surface. The shock will not harm birds, but will train them to stay clear of its surface, the company said in a press release.

Clear Track is a part of the original Bird Jolt Flat Track System. Made of clear, lightweight, transparent PVC, Clear Track blends with any colored surface and extends up to one-quarter of an inch. It can be powered using solar or electric charge and is UV-protected for durability.

Founded in 1992, Bird-B-Gone Inc. is a manufacturer of professional-grade bird deterrents. The companys products help solve pest-bird problems in commercial, industrial and residential settings.

Compass Self Storage LLC, a member of the Amsdell family of companies, recently acquired a self-storage property in Spring Hill, Fla., the companys 11th facility in the Florida market. The property at 10161 County Line Road encompasses more than 89,000 net rentable square feet and will be rebranded under the Compass name. The facility features drive-up and climate-controlled units, outdoor parking, digital video surveillance, online payment options, and moving and packing supplies.

We look forward to servicing the moving and storage needs of our new customers in Spring Hill with the acquisition of this self-storage center, said Todd Amsdell, president.

The acquisition was made by separate affiliates of Amsdell Group LLC and Compass Self Storage and gives the company a larger footprint in the Tampa-St. Petersburg, Fla., market, where it currently operates three facilities. Company growth is projected to continue in 2014 with the acquisition and development of self-storage properties in select markets, according to a company press release.

Headquartered in Cleveland, the Amsdell Cos. draws its roots from the family-owned construction company founded in 1928. Since its inception, the company has been active in several billions of dollars of real estate ventures, with a primary focus on self-storage. It has owned and operated more than 500 storage centers under various trade names in more than 27 states. It currently owns and operates properties in Florida, Georgia, Kentucky, Michigan, Mississippi, New Jersey, Ohio, Pennsylvania and Tennessee.

Far too many self-storage owners are risking their assets by using untrained or poorly trained facility managers. There are also several myths surrounding the concept of manager training in the industry. Lets break them down and uncover the truth.

Myth 1: My Managers Dont Need Any Training

Most facility owners believe any sort of systematic training is a waste of time. When you ask a group of owners how many of them have a manager-training program, the number of raised hands is woefully small. Many are leaving too much to chance when it comes to ensuring their facilities are managed effectively and profitably.

Its incomprehensible that an entrepreneur would develop or invest in self-storage and then turn his assets over to people with no formalized training. The idea that any person hired to manage a facility would naturally know how to rent space, collect money or do any of the other tasks necessary to effectively manage the site borders on ridiculous. Unfortunately, many owners believe just that. Their training program is like Moses at the Red Seathrowing up their hands and hoping for a miracle.

Myth 2: I Can Train My Managers Myself

No, you cant. You wont. You shouldnt. For reasons that might seem illogical, theres something magical about having an outsider conduct training for your managers. I dont know why, but it's true. Making training a special event and bringing in an outside teacher is much more effective than throwing in some occasional tidbits in the midst of all the other communication you have with your managers.

The fact is most owners just are not very good at training their managers. They dont have the experience, personality, resources or systems that a training professional or company can bring to the table. The most successful people in this or any industry keep their egos out of the way and realize they dont have to be the smartest man or woman in the room. Dont let your ego keep your self-storage organization from succeeding at the most professional and profitable levels.

Myth 3: I Trained My Managers Years Ago and That Was Enough

Really? Considering the highest-paid athletes in the world attend spring training every year, its obvious your managers need regular training as well. Youre fooling yourself if you believe otherwise. Everyone gets rusty, forgets, or needs a refresher or update on the latest and the greatest. Your managers need that as well.

Can your managers really maintain a high level of professional sales skills or collection efforts with the training you provided all those many months or years ago? No. For you to expect that of them is unfair and naïve. You cannot expect your staff to keep up with the industrys best practices and techniques if the only training they received was that lame book or CD you gave them when they first started years ago.

Myth 4: There Are No Good Training Options

Between the national and state self-storage associations, industry conferences, and the plethora of vendors who offer various training webinars, books, workshops, etc., there are more than enough high-quality training options available in the self-storage industry. To believe there are none available is mindboggling. (By the way, the so-called training program you developed is not a good option.)

Do you have access to the Internet? Then use it. Type in "self-storage training" and youll be overwhelmed with the choices. Your state association has resources. Take advantage of the conventions and meetings all around the country. Send your managers to local training opportunities. Closing your facility for a few hours during the middle of the month wont destroy your business. It will allow your managers to learn how to rent more space and collect more money, which will be well worth it.

Myth 5: My Managers Were Trained Before I Hired Them

Hah. Do you really believe the other seven or eight self-storage companies on your managers résumé did any better at training him than you can or will? Instead of a super-trained superstar, its more likely youve inherited years of bad habits. Since most owners have the same beliefs about training that you do, it would be unbelievably risky to believe your new experienced manager is already well-trained.

You would be far better off to hire managers with sales experience instead of industry experience. You need managers with an outgoing personality, not a jaded one. Hire employees with superior customer skills, not those who believe past-due customers are deadbeats. Hire people who know how to effectively answer the phone, not those who cant function without their cell phone.

Training Top Five

So what kind of training should you provide your self-storage managers? Heres a breakdown of the top five elements that should be included in every program:

• Sales training: This should include how to answer the phone, manage leads and effectively turn more of your prospects into tenants.
• Collections training: This consists of ways to maximize revenue, document efforts and reduce lien actions.
• Time management: This includes how to stay organized, work more efficiently and get everything done.
• Customer service: This training encompasses acting proactively, reducing customer complaints and producing a superior customer experience.
• Revenue management: This includes implementing rent increases, reducing discounts and concessions, and improving ancillary goods and services income.

You have a self-storage asset that may be worth millions. Isnt time you started treating it that way? Use the industry resources available and implement an effective and professional manager-training program today. Quit leaving your success to chance.

Bob Copper is the partner in charge at Self Storage 101, an industry consulting firm that assists facility owner/operators and managers in developing more effective and profitable operational systems. It also aids in conducting performance reviews and providing the necessary tools to perform at higher levels in a competitive industry. To reach him, call 866.269.1311; e-mail [email protected]; visit www.selfstorage101.com .

The U-Haul Co. of Fargo purchased The Vault Nightclub in Sioux Falls, S.D., and plans to convert it into a self-storage facility. The property at 1501 W. 10^th St. has three separate parcels of land and multiple buildings containing 66,331 square feet. U-Haul is operating its moving services at 923 W 11^th St.

When complete, U-Haul Moving and Storage of Sioux Falls will offer 24-hour security with electronically controlled access, digital video surveillance, some climate-controlled units and tenant insurance. It will also feature drive-up access and extended hours of operation.

"We are excited to have this opportunity to expand U-Haul self-storage operations in Sioux Falls. With this purchase, we are better equipped to meet our customers' current and future storage needs by expanding our presence in the local community," said Shawn Odden, president, U-Haul Company of Fargo.

Dennis Breske and Bill Connelly of NAI Sioux Falls oversaw the acquisition.

According to The Vaults website, the nightclub was open for three years and provided a large dance floor, music powered by a DJ, towering ceilings and a VIP area.

Established in 1945, U-Haul has 36 million square feet of storage space at more than 1,000 owned and managed facilities throughout North America.

Dean Jernigan, the former CEO of self-storage real estate investment trust (REIT) CubeSmart, has launched Jernigan Capital LLC, a Miami Beach, Fla.-based merchant bank and advisory firm specializing in self-storage. The longtime storage executive is investing his own money to back loans and is in the process of recruiting a joint-venture partner to provide capital, according to The Storage Facilitator, an industry blog.

I decided that all the things Ive learned over the years being a borrower, Id like to use as a lender, Jernigan told the blog. I think I have a unique perspective to offer many people out there looking to build, buy or refinance a facility.

Jernigans self-storage experience spans more than 30 years, beginning as founder of Storage USA Inc. in 1984. That company eventually became the industrys first publicly traded REIT. In 2006, he became CEO of U-Store-It Trust Inc. and ushered the company through consistent growth and a change in branding to CubeSmart. He officially retired from CubeSmart on Dec. 31.

Jernigan Capital will examine loans as low as $1 million for single storage properties, but Jernigan expects most loans to be between $8 million and $10 million, he told the source. The company will consider transactions in the top 50 U.S. metropolitan statistical areas (MSAs) for acquisitions and refinancing projects but narrow its focus to the top 20 MSAs for development loans. The companys first deals are expected to be signed in March.

Jernigans timing is partly aimed at $10 billion in commercial mortgage-backed security loans he says are coming due in the next five years. With many self-storage assets built between 2005 and 2008 now underperforming, he believes those operators wont be able to refinance through traditional programs.

Many of these people will struggle to refinance their existing loan amounts, he told the source. My plan is to be a source for those people.