Northgate Self-Storage of Randburg, South Africa, is supporting the Owl Rescue Centre of Hartbeespoort, a resort town north of Johannesburg. The storage facility at 220 Elsecar St. will serve as a drop-off location for the donation of plastic bottles, which will be cut up, processed and turned into bat, bee and owl houses.

“With the amount of plastic landing up in the oceans, we brainstormed how we can also make a difference and this is what we came up with,” said Brendan Murray, co-founder of Owl Rescue, which is seeking 200 tons of plastic bottles. Each house requires about 650 containers. The plastic is melted and put through a hydraulic press to create the animal house, according to the source.

Owl Rescue is encouraging community members, schools and companies to participate in the collection effort. Additional drop-off sites have been established at businesses in Cape Town, Eastern Cape, KwaZulu Natal, Johannesburg, North West Province and Northern Cape, South Africa, according to its Facebook page.

Several self-storage facilities supported animal causes and other charities during the winter holidays. AmeriStor Self Storage held its annual “Santa Paws Holiday Market” in Killeen, Texas. The dog- and kid-friendly event featured gifts and services for people and pets as well as information about local animal rescues. All proceeds benefited Emancipet Killeen, a nonprofit veterinary clinic that provides spay/neuter and other pet services.  

Sheridan Village Self Storage has opened in Pembroke Pines, Fla., as part of a mixed-use project. The property at 16602-16660 Sheridan St. comprises 63,654 square feet of space.

The first phase of Sheridan Village, completed in December 2016, included 15,098 square feet of ground-floor retail fronting Sheridan Street. Phase two, completed last December, added another 14,029 square feet of retail and 34,527 square feet of climate-controlled storage on the second and third floors.

Open daily, the storage facility features electronic access, video cameras, and a retail store that sells moving and packing supplies. Customers have access to online billpay and reservations, and the option to purchase tenant insurance. The onsite management will also accept packages on behalf of tenants.

The $14.23 million construction loan was secured by Holliday Fenoglio Fowler L.P. (HFF) on behalf of construction firm ANF Group Inc. and its affiliated company, Sheridan Real Estate Group LLC, according to a press release. Mercantil Bank provided the seven-year, fixed-rate loan. The HFF debt-placement team included senior director Scott Wadler and associate Jesse Wright.

HFF is a provider of commercial real estate and capital-markets services to self-storage and other commercial sectors. The company and its affiliates offer a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, and loan sales and servicing.

AAA Storage Inc. is building two self-storage facilities in Iowa. The first, at 2175 N. Ankeny Blvd. in Ankeny, is nearly complete. It’ll feature single- and multi-story buildings comprising 102,000 square feet of storage space, some of which will be climate-controlled, according to a press release.

The company also received site-plan approval to build a 125,000-square-foot multi-story facility at 6340 Stagecoach Drive in West Des Moines. Construction will begin this spring and wrap up by the end of the year, the release stated.

Open daily, the facilities will offer a retail store that sells moving and packing supplies. Tenant insurance will also be available to customers. Security measures will include access-controlled entry and video cameras.

Founded in 1995, AAA Storage also operates a location in South Elgin, Ill.

The self-storage industry has enjoyed unprecedented development over the past few years, with scores of operators expanding their portfolios and new investors joining the ranks. With this growth comes design innovations, zoning challenges and new construction techniques. Creating a blueprint for project success has never been more critical.

The Inside Self-Storage World Expo, April 3-6, at the Paris Hotel & Resort in Las Vegas, can help you draft your plans and build your business. With 45 seminars, eight workshops, six networking opportunities and nearly 200 exhibitors, you’ll find the tools you need to profitably develop and construct a self-storage facility in today’s competitive climate.

Sketch a Plan

The seminar-track education program includes a dedicated Building Track on April 4 to guide you in your development and construction efforts. Sessions include:

• Self-Storage Site Layout for Maximum ROI and Minimum Headaches: Get insight to designing a successful layout. Topics include where to locate large and climate-controlled units, when to go vertical, and proper placement of the office, gate and keypads.
• Design Principles for Urban-Infill Self-Storage Projects: Standards are changing, and developers must embrace them to gain zoning approval. This session will offer strategies for applying urban design to self-storage.
• Conversions: The Self-Storage Industry’s Diamond in the Rough: With an abundance of vacant sites, conversions have become the go-to development project for many new owners. Learn how to spot the right site, plan your budget and what to expect during the transformation.
• Building Self-Storage in Small Secondary and Tertiary Markets: Many smaller markets are now being targeted for development. Find out the pros and cons to these markets, unit-mix and building-type strategies, and how to make a smaller site a financially viable project.

Dig Deeper

Those looking for a deeper dive into the subject of building should attend the popular Development Workshops, which have been expanded this year to include even more content. The two, four-hour events on April 3 will be led by a panel of industry experts.

• “Development Workshop: Planning Phase,” at 8 a.m., will open with a discussion of national development activity and overbuilding, then drills down on vital topics such as site selection and feasibility, the key members of the development and construction team, site layout and unit mix, and the zoning and approvals process.
• “Development Workshop: Building Phase,” at 1 p.m., will address traditional and multi-story construction, conversion projects, renovations, and site expansion. The presenters will also discuss building components and materials, construction methods, pitfalls to avoid, and more.

Contract With Strong Partners

Whether you’re ready to draw up blueprints or need a building manufacturer for your project, you’ll find potential partners in the ISS Exhibit Hall on April 4 and 5. The event’s nearly 200 suppliers represent all facets of the development and construction industry, including architects, building and component manufacturers, renovation experts, and general contractors.

Many vendors will have samples of their products in their booths, including roll-up doors, hallway systems, lighting configurations and more. As in years past, Trachte Building Systems will erect an actual self-storage structure inside the hall. The 20-by-30 booth will include a typical storage unit, partial roof demonstrating the company’s “no fasteners over the storage units” design, and a portion of a storage corridor.

Not only can you get a better look at new products in the market, many exhibits will have freebies on hand. Forge Building Co., for example, plans to raffle a $200 Bass Pro Shop gift card and give away other items including golf T-shirts, pens and contractor pencils. Come on down and grab some swag!

Whether you’re considering self-storage for the first time, seeking insight to building specifics or vetting suppliers, the ISS World Expo has the education, connections and opportunities you require to succeed. To register or learn more about the education tracks, seminars and speakers, visit www.issworldexpo.com.

How much to pay staff is among the most common questions asked by self-storage owners. Payroll is one of the biggest operational expenses you incur, and it can be a costly item to get wrong. Hiring and training is also expensive, so for those of you who have only one or two staff members, high turnover will cost your company more than it can afford.

Though there isn’t a magic formula to calculate how much to pay facility managers and other employees, there are some key areas on which you can focus to feel confident you’re compensating them fairly.

Offer a Reasonable Wage

Paying a realistic living wage is critical to limiting staff turnover. A self-storage facility is worth millions of dollars, so paying minimum wage to those responsible for its success is like stepping over $5 to pick up a quarter. Managers make or break the business by how they answer the phone, treat customers and rent units. They’re the face of the operation, so pay them in such a way that their needs are met.

Keep in mind, determining a fair wage will depend on where your facility is located. It’ll be very different, for example, in Los Angeles vs. New Iberia, La. Housing, food, health insurance, transportation, etc., are important factors to consider. Calculate the average cost of these items to help determine a base salary that would cover employees’ basic needs.

Stay on Budget

When determining compensation for staff, pick a base salary or wage that fits comfortably within your budget. Choose a few activities to reward, calculate how much they will cost, and then build your bonus program around that number.

For example, let’s say you decided to pay an employee $30,000 a year and offer bonuses up to $10,000 a year. Identify a few areas you want to incentivize and then determine how they’ll increase over time. Create a series “mile markers” at various intervals and the reward attached to each. Think about how often these incentives will come into play and ensure the payouts fit your budget.

Keep It Simple

Offering bonuses and incentives is a great way to reward employees who help your business succeed. Any plans offered should be easy to calculate and encourage the behavior you want to reward. They should be attainable but not too easily achievable.

If your bonus structure is overly complicated, requiring detailed accounting before staff members know how much they’ve earned, it will fail. If employees can’t readily explain how they earn a bonus or meet an incentive, they don’t understand it and won’t work for it. The KISS adage still applies: Keep it simple, stupid!

Reward the Positive, Reduce the Negative

What can you incentivize? Anything! However, your bonus program should be built around encouraged procedures and behaviors. For example, if an increase in move-ins is desired, consider offering bonuses based off new rentals or unit reservations. Just keep in mind that if you reward managers based on the number of move-ins but don’t consider total rental revenue, they may be motivated to drop unit prices to close deals.

If you’ve been in business for a while and are trying to reach the next level, consider offering a bonus program that rewards managers for beating income by a certain percentage over the previous comparable period. For example, I know an operator who offers a bonus for 5 percent growth in money collected compared to the same period the preceding year.

Ancillary sales are another great place to offer incentives. For example, to encourage growth in add-on profit centers, you might offer a percentage or bonus on each merchandise sale, moving-truck rental or insurance policy sold.

No self-storage owner wants to deal with delinquencies or lien sales. Programs that include incentives for reducing past-due accounts will encourage staff to stay on top of collections.

Finally, don’t allow employees to double-dip! Think about how the structure will work and ensure multiple rewards aren’t being paid on the same income. For example, let’s say you offer one bonus for total money collected and another for tenant-insurance sales. The insurance income is already part of the total collected, so the employee would be receiving a double bonus on any insurance sales. (Also, if your facility collects sales tax, make sure you exclude that income from any revenue goals.)

Provide Non-Monetary Perks

People are motivated for many reasons other than money. Sure, we all need to earn a living, but beyond that, people want freedom, autonomy, respect and a feeling of a job well done. Treating your staff with kindness and respect will go a long way toward ensuring they’ll want to remain on your team. With that in mind, here are some free ways to reward staff:

• Say “Thank you.”
• Let them leave early on a Friday.
• Write a note detailing what you appreciate about them.
• Tell them how they’re doing a good job and why you enjoy having them on your team.
• Bring them a small treat, coffee or candy. (This isn’t technically free, but it’s not expensive.)
• If you have a large staff, honor a team member of the month.
• Brag about them in front of your customers or partners, or their family members.
• Take time to understand their personalities and communicate in their preferred language, not yours.
• Ask them what they need.
• Ask them for ideas on how to improve the business.
• Ask their opinions and ensure they feel like part of a team.

Practice Communication and Care

Sometimes even the best-laid plans go awry. Communication between the owner and staff is the key to a strong compensation structure. When everyone understands the goals of the company and, as a team, buys into the policies and procedures designed to achieve them, success is possible.

There are many ways to compensate staff. No matter how you structure wages, bonuses and incentives, it’s better to increase pay than decrease it, so start a little low and increase slowly. If you treat your staff with kindness and respect, they’ll want to stay onboard and succeed alongside you.

Magen Smith is a former self-storage manager turned certified public accountant (CPA). Her company, Magen Smith CPA LLC, helps storage operators understand the financial side of their business. Services include monthly financial management, bill-pay functions, revenue management and strategy. She also offers a curb-appeal checklist available for download and has created an online revenue-management course complete with checklists, cheat sheets and guides. For more information, e-mail [email protected]; visit www.selfstoragecpa.com.

We're living in a very exciting era for the self-storage sector, and savvy investors everywhere are wasting no time in capturing attractive double-digit returns. They realize the opportunities available in the storage industry today may not be repeated for a very long while.

One challenge owners and investors may run into, however, is funding. Having liquid capital to diversify and take advantage of opportunities can be difficult. Some may be able to invest in a single deal, but then have to wait a year or more to fund their next acquisition or development. A way around this is to partner with accredited investors looking for alternative ways to grow their retirement accounts and generate passive income. These typically are individuals who are making a very nice salary or have a minimum $1 million net worth (excluding their primary residence).

Private equity presents an excellent opportunity for self-storage owners and investors whose growth is limited only by the amount of liquid capital on hand; and luring this money has never been easier. This is largely because our current investing system is heavily skewed toward stocks and bonds, even though there’s an entire world out there about which Wall Street doesn’t want Main Street to know. It’s a world that pits investing in assets like self-storage facilities against traditional vehicles such as stocks, bonds, mutual funds, etc.

Breaking Through the Noise

Not surprisingly, asset investing gets very little attention, mostly because Big Money (e.g., Wall Street) has a far easier task in marketing to the masses; it doesn’t have to worry about accredited investors. After all, popular finance magazines are sponsored by mutual-fund companies that have the products (stocks, bonds and mutual funds) to sell, so investors tend to read about only those types of investments.

Most of these products are tied up in qualified long-term accounts like traditional 401(k) plans and IRAs, which are limited, narrowly focused and not liquid. Consider, as well, the concept of beta, which measures the volatility of an investment. The higher the beta, the higher the volatility, which theoretically makes it a riskier venture. While the U.S. stock market has a beta of 1.0 and the Russian stock market may have a beta of 2.0, the beta for self-storage is 0.5!

When you factor in the historical performance of self-storage as an asset class, it’s risk-adjusted returns are far superior to stocks. Most people are unaware of this because they aren’t exposed to it from the media, their local financial planner, etc. It’s much easier to sell the masses on simple stock-and-bond portfolios and charge an asset-management fee each year than to try to characterize the advantages of the storage industry.

How Big Is Big?

So how big is the pool of private investors with whom you may be able to partner? The latest estimates indicate there’s approximately $50 trillion of capital sitting on the sidelines, being held by investors who seek a viable alternative to the stock market. Many of these folks are tired of stock volatility and want to invest in something they can see and touch, such as bricks and mortar, or in the case of self-storage, steel.

Your job is to create relationships with these private investors and show them how they can participate in your next project. Where do you find them? It’s sometimes as easy as weaving self-storage into conversations with the people you interact with daily, those with whom you’d feel comfortable partnering. It might be the owner of your local dry-cleaner, or your brother-in-law, or your dentist. You’d be surprised who has funds to invest.

Investment Options

When asked how these potential partners can invest with you, here are some options you can present:

Establish a self-directed IRA (SD-IRA). Ideally, investors will already have a traditional IRA established. If it’s all in stocks, they should see if they can allocate money from that account to a new SD-IRA. SD-IRAs are typically established by companies focused exclusively on these types of specialized accounts. It allows them to invest in a much broader array of asset classes, such as real estate, business entities, etc.

Establish a solo 401(k). If an investor has his own business and is the sole owner, he can consider establishing a solo 401(k). Similar to the SD-IRA, this allows investing in a much wider set of asset classes. The kicker here is individuals can contribute much higher amounts than with an SD-IRA. As of this writing, solo 401(k)s also have a tax advantage when it comes to leveraged real estate. The Internal Revenue Service seeks “unrealized business income tax” on the gains from the leveraged portion of real estate, which applies to SD-IRAs, but not solo 401(k)s.

Transfer money from an existing 401(k). There are several angles here, and each brings a unique set of considerations for your equity partner. One method is to borrow money from the account and pay it back over time at a low interest rate, which is essentially paying oneself back with interest. If the individual is employed and planning to quit his job, this is an ideal time to transfer money to an SD-IRA after he exits. If the investor is married, working and living in a community-property state, he may also be able to transfer some percentage of money to a spouse’s SD-IRA.

The paths to success in self-storage are always changing, and tapping into the trillions of dollars available in the private-equity space has quickly become a viable addition to a fruitful investing strategy. This could also become critical during a future recession, if development slows to a crawl. The merits of this strategy have proven to be profitable for many investors, who choose an alternative path to bank financing and the limited amount of capital on hand.

Scott Meyers is the founder of Self Storage Profits Inc. and has been involved in the self-storage industry as a developer, owner, syndicator and operator since 2005. He owns and operates 15 storage facilities across seven states. His website provides information, software and seminars designed to assist individuals launch and grow their self-storage businesses. For more information, e-mail [email protected]; visit www.selfstorageinvesting.com.

Update 1/26/18 – Dittmar appears to have garnered planning-commission support for a self-storage development on the west side of Hillside Road, also known as Highway C. Commissioners recently recommended approval for a conditional-use permit, as long as the developer meets several conditions. The latest proposal was Dittmar’s fourth since April, according to the source. The first phase includes two climate-controlled buildings.

The commission must approve the site plan, which requires fire-lane integration connecting to Stoney Lane. Buildings facing Hillside Road will be required to feature 30 percent masonry. Planners also stipulated additions to Dittmar’s landscape design. The Slinger Fire Department also has requested a second fire hydrant added to the site, a widening of the driveway as a first access point for fire vehicles, and the addition of a second point of fire-vehicle access.

Planners are more favorable to Dittmar’s latest proposal because it has less density than earlier versions, Marchek told the source. One solution was shortening the storage buildings to provide larger turning radiuses.

The path to approval has also been hampered by Wisconsin Act 67, a new state law regulating conditional-use permits. Dittmar’s project is the first to fall under the measure, which “makes granting conditional-use permits a very methodical, but fact-based process,” Marchek said.

Several residents still oppose the development. “Dozens” of signatures against the permit were submitted to the commission at its last meeting, and several opposition letters were read into the formal record, the source reported.

The commission is scheduled to discuss Dittmar’s revised plans on Feb. 14.

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7/24/17 – Dittmar’s pursuit of a self-storage development in Slinger could be in jeopardy now that the planning commission has rejected a second proposal from him. Dittmar didn’t seek a public hearing for his initial plan on American Eagle Drive and instead petitioned for a conditional-use permit on a 5.41-acre site on the west side of Hillside Road, according to the source. Dittmar also sought approval for related architectural, lighting and site plans, but commissioners voted 4-3 against the new application.

Though commission chair and village president Russ Brandt indicated he favored the second property, other commissioners sided with a few residents who were opposed to both projects. Resident Bob Reynolds told planners the storage facility would “affect their property value and quality of life.”

Fredericks indicated he received five letters from residents who opposed Dittmar’s original plan as well as other negative correspondence that was never entered into public record because Dittmar effectively withdrew the original plan by not pursuing the public-hearing process. Fredericks opposed the second proposal on grounds it wouldn’t attract people into the village, create jobs or diversify the tax base. He also indicated self-storage wasn’t the best use for the property, citing an economic-development study from Washington County that determined Slinger had few flat parcels left on which to build.

Another issue with the second proposal was the need to install a new fire hydrant at the site, as the city fire chief expressed concerns about the property’s proximity to existing hydrants, Marcheck told commissioners.

The first target site proposed by Dittmar also appears off the table because the property is under new ownership, Fredericks said during the meeting.

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5/2/17 – During a preliminary discussion last week, the Slinger Planning Commission didn’t appear to favor the self-storage project proposed for American Eagle Drive. Among the sticking points are that the property has access to sewer and water, which some commissioners said was unnecessary for the storage business, according to the source.

“By having a building constructed there that does not use village sewer and water takes away future funding for growth for our sewer and water utility,” Jim Haggerty, public-works director, said during the meeting.

Though Dittmar argued that once all 10 storage buildings were built the facility could add up to $2 million to the village tax base, he wasn’t sure how quickly that would occur. “We would start with probably three buildings and then let the economy dictate when the others would be built,” Dittmar said during the meeting.

The buildings would be arranged in a “courtyard concept,” Dittmar told the commission. In addition, the facility would include a resident manager, wrought-iron fencing with gated access, and video cameras, the developer said.

Commissioner and board trustee Lee Fredericks believes self-storage isn’t the best use for the property. “There will be other better opportunities that will come forward for the property’s use,” he said. “We need to be patient, and let the economy take its course.”

The commission won’t decide on the conditional-use permit until after a public hearing, for which Dittmar has begun the formal process of scheduling, the source reported.

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4/21/17 – The Slinger, Wis., Planning Commission will consider a self-storage proposal from local real estate developer Kevin Dittmar on April 26. Dittmar, president of Dittmar Realty Inc., intends to build a 52,000-square-foot facility on 4.42 acres on the south side of American Eagle Drive. The $2 million project would include multiple structures built over several years. Though the site is zoned for commercial business, self-storage is a conditional use, according to the source.

“We’re going to build the project in phases, which will be determined by demand,” Dittmar told the source. “Right now, it’s too early in the process to say how many units we might build at the start.”

The site is near Interstate 41 and Highway 60 and would serve residents of Cedar Lake, Wis., in addition to Slinger. It would include units large enough to hold boats and RVs, according to the source.

Architectural design would include 30 percent brick on exterior walls, cedar-style shingles under gables, decorative awnings, several windows and planting beds as part of the landscaping, Carla Dunn, vice president of sales and administration for Dittmar Realty, told the source. “The buildings have been designed such that all doors face the interior of the site, and all lighting will be comprised of cut-off fixtures, which prevent illumination from extending beyond the property boundary,” she said.

The property is also in a tax-increment financing district, which means all the tax revenue from the facility will go to the village rather than shared with other taxing authorities, Dunn said.

Language in the village ordinance isn’t particularly favorable toward self-storage, citing a lack of job creation, “lower-quality buildings,” and “less desirable visual appearance than other land uses.” It also stipulates self-storage should be “located on sites which have locational characteristics which may be adverse to accommodating higher quality land uses,” the source reported.

“Section 4 also enables the planning commission to require ‘additional conditions’ related to self-storage facilities including specific security measures, such as fencing and lighting,” planner Marty Marchek wrote in a memo to other village officials.

The site has been vacant for more than 10 years. A furniture store had been planned for the property in 2005 but was never constructed, according to the source.

Founded in 1959, Dittmar Realty specializes in manufactured-home communities, multi-family property management, subdivision projects and self-storage, according to its website. It previously developed Jackson Mini Storage in Jackson, Wis.

Sources:
Dittmar Realty, Website
GM Today, New Storage Facilities Proposed in Slinger
GM Today, Proposed Slinger Self-Storage Project Granted CUP
GM Today, Slinger Panel: No Recommendation on New Self Storage Facility
GM Today, New Self-Storage Buildings in Slinger Rejected

A self-storage variance granted by the Derry, N.H., Zoning Board of Adjustments (ZBA) in May has been upheld in superior court, but the town council is appealing the decision to the state supreme court. When the board approved property owner Robert Allen’s proposal to develop a 138-unit facility on 3 acres of residential land at 343 Island Pond Road, the council asked the board to reconsider. When the ZBA reaffirmed its position, the council appealed to superior court, which upheld the approval in December. The New Hampshire Supreme Court is expected to decide whether to review the case in the next few months, according to the source.

The town council argues the self-storage project fails to meet its development criteria and contends the facility would damage the character of the neighborhood and pose a danger to pedestrians due to increased traffic. Allen’s proposal includes four storage buildings and an office structure. The Institute of Transportation Engineers estimates the facility would result in 17 visits per day.

On Dec. 22, judge Andrew R. Schulman ruled the ZBA decision was in the spirit of the ordinance, based on evidence that the facility wouldn’t significantly impact traffic, cause increased noise or spur commercial growth in the rural neighborhood, the source reported. The approved variance is neither “unreasonable nor unlawful,” Schulman wrote in his decision.

The council formally appealed Schulman’s ruling on Jan. 16 with a 5-2 vote. “Now that the town has appealed the decision to the supreme court, our appeal will be shared with opposing counsel, who will have time to review and submit their own briefs on our appeal,” town administrator David Caron told the source.

Allen has spent $200,000 to clean up environmental hazards on the property, though the New Hampshire Department of Environmental Services has indicated unknown hazards may still exist on the site. The property was previously used as an illegal junkyard where solid and hazardous wastes were dumped for about 50 years. Schulman noted in his ruling that town and state officials observed batteries, empty oil drums, piles of used tires, assorted vehicle parts and construction debris at the site. He also observed that Allen “dug up an entire airplane that had been buried on the property.”

“The members of the ZBA were familiar with the junkyard that Mr. Allen purchased and cleaned up,” Schulman wrote. “They were familiar with Island Pond Road and, more particularly, with the stretch of Island Pond Road that surrounds these lots. Neither the town council nor any other party in opposition to the proposed use presented any meaningful evidence tending to show that the use would depress property values.”

Self-storage properties are constantly changing hands, and Inside Self-Storage is regularly notified of these market transactions. Many are covered in detail on the ISS website and available for viewing on the “Acquisitions and Buying” topics page. Following are additional acquisitions and sales that weren’t covered.

A Low Cost Self Storage in Baytown, Texas, was sold to The Storage Space, which owns 14 facilities along the Texas Gulf Coast. The facility at 1600 Mabry St. comprises 35,214 square feet of storage space and includes 1.5 acres for expansion. The buyer and the seller, a limited-liability company (LLC), were represented in the transaction by Dave Knobler, first vice president of investments for Marcus & Millichap (M&M).

AAA Self Storage in High Point, N.C., was sold for $1.075 million to an LLC. Built in 1998, the property at 3128 E. Kivett Drive comprises 24,200 square feet of storage space in 184 units. The buyer and the seller, a private investor, were represented in the transaction by Gabriel Coe, senior associate, and Brett R. Hatcher, vice president of investments, for M&M. They were assisted by fellow broker Allen Smith.

Two Air Control Storage facilities in Fort Worth, Texas, were sold. Together, the properties at 3614 McCart Ave. and 2912 W. Pafford St. contain 532 climate-controlled units, with room for expansion. The buyer and the seller were represented in the transaction by Richard D. Minker, senior vice president, and Chad Snyder, senior associate, for Colliers International Self Storage Advisory Services Group. Both are also affiliates of the Argus Self Storage Sales Network.

American Mini Storage in Sierra Vista, Ariz., was sold for $5.45 million to an entity formed by AMERCO Real Estate Co., the real estate arm of U-Haul International Inc. The 6-acre property at 4029 E. Golden Acres Drive contains 846 units and more than 100 vehicle-parking spaces. The buyer was represented in the transaction by Jeff Gorden, vice president, and Kyle Topper, associate, for Eagle Commercial Realty Services, both Argus broker affiliates.

Bay Area Mini Storage in Corpus Christi, Texas, was sold to a private investor. The facility at 2301 Rodd Field Road was constructed in 2003 and expanded from 2006 to 2016. It comprises 95,479 rentable square feet of storage space in 635 units. The buyer and the seller, an LLC, were represented by Jon Danklefs, senior associate, and Michael A. Mele, senior vice president of investments, for M&M.

Baywood Self Storage in Mabank, Texas, was sold to a Southlake, Texas, buyer. The property at 13101 Highway 198 S. Suite comprises 66,518 rentable square feet of storage space and contains two apartments. The Kemp, Texas, seller was represented in the transaction by John Arnold, Bill Belomy and Michael Johnson of Bellomy & Co. The buyer was represented by Anne Williams, first vice president of investments for M&M.

Bethel Self Storage Park in Bethel, N.Y., was sold to private investors for $2.1 million. Opened in 2004, the property at 1998 NY-17B contains more than 200 storage units in 11 buildings, and has room to expand. It also includes outdoor parking spaces, carports, barn-storage units, a rental house, and an apartment above the 400-square-foot rental office. The sellers, Steve and Angela Daley, were represented in the transaction by George Hatchard, a brokerage advisor for Investment Real Estate (IRE) LLC.

A CubeSmart facility in Flushing, N.Y., was sold for $27 million to Whitestone Expressway Realty LLC. The 1.9-acre property at 31-40 Whitestone Expressway comprises 70,368 square feet of storage space, with room to expand. The seller was represented in the transaction by Nicholas J. Malagisi, managing director of SVN Commercial Realty. He was assisted by SVN Managing Director Hans Hardisty.

Citadel Self Storage in Colorado Springs, Colo., was sold for $3.05 million. The property at 3979 Bijou St. comprises 35,000 gross square feet of self-storage space, two 1,768-square-foot duplexes, and 81,000 square feet of land approved for expansion. The seller was represented in the transaction by Argus broker affiliate Joan Lucas of Joan Lucas Real Estate Services.

Concho Mini Storage in Concho, Ariz., was sold for $225,000 to a local buyer. The 2-acre property at 24 CR 5064 Concho Drive contains 117 units. The seller was represented in the transaction by Gorden and Topper.

Eagle Canyon Storage in Phoenix was sold for $17.5 million to a local buyer. The 4.5-acre property at 3050 W. Camelback Road contains 754 units, some of which are climate-controlled. The buyer and the local seller were represented in the transaction by Gorden and Topper.

Encanto & 83rd Self Storage in Phoenix was sold for $3.85 million to a company formed by Wentworth Property Co. LLC. The 2-acre property at 8225 W. Encanto Blvd. contains 375 units. The seller was represented in the transaction by Gorden and Topper.

Handy Storage in Thornton, Colo., was sold for $3.2 million to a local storage operator. The property at 2045 Coronado Parkway comprises 32,464 rentable square feet in 215 units. The seller was represented in the transaction by Lucas.

Hawthorne Self-Storage in Hawthorne, N.Y., was sold for $14.1 million to US Storage Centers Inc. The 1.5-acre property at 130 Brady Ave. comprises 40,452 square feet of storage space, with room for expansion. The seller, Goodfriend Self-Storage, was represented in the transaction by Malagisi, again assisted by Hardisty.

Judson Self Storage in San Antonio was purchased by Store It All Self Storage of Rockville, Md. The property at 14989 Judson Road comprises 129,573 net rentable square feet of storage in 606 units and parking spaces. The buyer was represented in the transaction by Arnold, Belomy and Johnson. The local seller was represented by Harry Botkin, managing partner of HLB Investments LLC.

Keep It Here Storage in Effort, Pa., was sold for $2.6 million to a private investment group. Built in 2002, the 1.6-acre property at 3211 PA-115 comprises five buildings containing nearly 300 units and a 400-square-foot rental office. The seller, Al Natale, was represented in the transaction by Hatchard.

Mini Storage Depot in Wyoming, Mich., was sold to an out-of-state LLC. The property at 4975 Clyde Park Ave. S.W. comprises 63,150 rentable square feet of storage space in 530 units, with room for expansion. The buyer and the seller, an LLC, were represented in the transaction by Coe and Hatcher. Fellow M&M broker Steven Chaben assisted.

Right Move Storage in Houston was sold to a local buyer. The 7.98-acre property at 12310 Perry Road comprises 99,455 net rentable square feet of storage in 742 units and vehicle-parking spaces, with room for expansion. The buyer and the seller, Storage Solutions Perry Road LP of Pasadena, Calif., were represented in the transaction by Arnold, Belomy and Johnson.

Storage Solutions of Frisco in Frisco, Texas, was sold to a corporation. The property at 6707 Eldorado Parkway contains 492 units, some of which are climate-controlled. The buyer and the seller, an LLC, were represented in the transaction by Brandon Karr, senior associate for M&M.

TD Storage of Greenville, S.C., purchased 1.3 acres of land in Austin, Texas, on which it plans to build a self-storage facility. The property is at the corner of Interstate 35 and Teri Road. The buyer and the seller, Liberty Storage Austin South LLC of Orlando, Fla., were represented by Arnold, Belomy and Johnson.

Wasatch Storage Partners acquired a 4.49-acre property in Minneapolis for $1.56 million on which it plans to build self-storage. The Inver Grove Heights City Council recently approved the plans for the 83,000-square-foot facility, which will contain 754 units. The seller, a local partnership, was represented in the transaction by Tom Flannigan of KW Commercial, an Argus broker affiliate.

A private investor purchased 3.7 acres of land in the Oklahoma City suburb of Edmond on which it plans to build a self-storage facility. The seller, B&G Capital LLC, was represented in the transaction by Jared Jones, an Argus broker affiliate.

A three-property portfolio in Western Michigan was sold. It included Felch Street Self Storage at 12285 Felch St. and Lakewood Self Storage at 257 W. Lakewood Blvd., in Holland, Mich., and Georgetown Self Storage at 7062 12th Ave. in Jenison, Mich. Together, the sites comprise 213,793 rentable square feet of storage space in 1,361 units. The seller was represented in the transaction by Mark Floria, an advisor with Pogoda Cos.

Argus is a Denver-based network of real estate brokers who specialize in storage properties. Formed in 1994, the company has 36 broker affiliates covering nearly 40 markets.

With offices in Atlanta as well as Austin and Houston, Texas, Bellomy & Co. focuses on the sale of self-storage, industrial, office and retail properties nationwide.

Colliers is a global commercial real estate services firm employing more than 16,000 professionals who operate out of 554 offices in 66 countries. The company offers a variety of services for investors, business owners and developers.

Founded in 1994 and based in Texas, HLB Investments is involved with the brokerage and management of self-storage and multi-family properties.

Since its inception in 1998, IRE has provided brokerage, construction, development and management services to self-storage owners and investors.

Founded in 1971, M&M is a commercial-property investment firm with more than 1,500 investment professionals in offices throughout Canada and the United States.

Based in Farmington Hills, Mich., Pogoda is a self-storage operator with approximately 2 million square feet of self-storage space in Michigan and Ohio. The firm also provides brokerage, consulting, investment and management services to the self-storage industry through Pogoda Group Inc. and Pogoda Management Co.

SVN has broker representation in more than 100 markets across the United States. Its team specializes in the marketing, sale and disposition of self-storage properties nationwide.

Update 1/25/18 – SmartStop has expanded its student-housing footprint, acquiring three properties between June 2017 and January 2018. It also has an agreement to purchase three senior-housing facilities in Utah for $78.5 million. The assisted-living properties and two of the student-housing transactions are tied to the Strategic Student & Senior Housing Trust Inc. (SSSHT), a non-traded REIT sponsored by SmartStop.

SSSHT filed a $1.1 billion offering of common stock in September, following a $75.6 million private fundraising effort, according to the source. Last June, the REIT acquired The District, a 198-unit, 592-bed student-housing property adjacent to the University of Arkansas in Fayetteville for $57 million. It purchased The Domain At Tallahassee, a 125-unit, 434-bed student-housing center near Florida State University in September for about $47.5 million.

Earlier this month, SmartStop affiliates acquired 411 Lofts, a 90-unit, 345-bed student-housing community near the University of Michigan in Ann Arbor for $43.8 million.

In November, SSSHT entered an agreement to purchase The Charleston, Cottonwood Creek and The Wellington senior-living centers in the Salt Lake City market. Together, the properties comprise 294 units. The transaction is expected to close this month, the source reported.

SSSHT was launched as a Maryland corporation that intends to qualify as a REIT for federal income tax purposes. It focuses on the acquisition of class-A, student- and senior-housing communities.

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12/21/16 – SmartStop Asset Management LLC, a diversified real estate company that manages 89 self-storage facilities in Canada and the United States, is expanding its commercial portfolio by moving into the student-housing sector. SmartStop recently facilitated the $70 million acquisition of The Summit, a student-housing community adjacent to the University of Nevada campus in Reno, Nev., on behalf of an affiliate company, according to a press release.

"We are pleased to have acquired our first student-housing property, with the goal of expanding our commercial real estate portfolio to include not only high-quality self-storage assets, but also student- and senior-housing investment opportunities," said H. Michael Schwartz, chairman and CEO of SmartStop.

The Reno property at 2780 Enterprise Road is one block from the university. Built on 8.95 acres, it comprises 237,547 rentable square feet in 186 housing units. The units are fully furnished. The complex offers amenities such as a two-story clubhouse, fitness center, game lounge and private study rooms. It is Silver-Certified through the Leadership in Energy and Environmental Design program of the U.S. Green Building Council, the release stated.

"The state-of-the-art architectural design offer students a sense of community and connectedness that will make this property attractive to student/residents for many years to come," said John Strockis, senior vice president of acquisitions for SmartStop. "In addition, this newly constructed property is currently benefiting from the strong economic expansion in greater Reno."

SmartStop is also the sponsor of Strategic Storage Growth Trust Inc., a public, non-traded REIT focused on self-storage acquisition and development, and Strategic Storage Trust II Inc., a public non-traded REIT that focuses on stabilized self-storage properties.

Sources:
Blue Vault, SmartStop Files $1 Billion Student and Senior Housing Nontraded REIT Offering
CoStar, Self-Storage Operator SmartStop Getting into Multifamily
Digital Journal, SmartStop Asset Management, LLC Acquires First Student Housing Property Totaling $70 Million in Nevada
Law Insider, Purchase Agreement and Escrow Instructions
SmartStop Asset Management, Website
U.S. Securities and Exchange Commission, Form S-11 Registration Statement