Public Storage Inc., a self-storage real estate investment trust, has purchased a six-property portfolio in the Dallas-Fort Worth Area. The seller was a joint venture owned by Advantage Storage and Harrison Street Real Estate Capital, according to a press release from JLL Capital Markets, the commercial real estate and finance firm that helped broker the deal.

Constructed between 2001 and 2017, the facilities total approximately 430,000 square feet of storage space in more than 3,300 units. Property features include climate control, electronic access control, perimeter fencing, video cameras and retail-oriented management offices.

JLL Managing Directors Steve Mellon and Brian Somoza led their team in the deal. “Population density, positive job growth and strong residential development are keys to a successful self-storage property,” Mellon said. “The fact that the Dallas-Fort Worth market has seen tremendous growth in all three of these areas made this offering extremely attractive to investors.”

Public Storage Inc. recently opened a new facility in Richmond, Texas, a suburb of Houston. The five-story property features more than 1,200 climate-controlled units.

Based in Glendale, Calif., Public Storage has interests in 2,358 self-storage facilities in 38 states, with approximately 156 million net rentable square feet. Operating under the Shurgard brand name, the company also has 220 facilities in seven European countries, with approximately 12 million net rentable square feet.

JLL is a full-service global provider of capital solutions for real estate investors and occupiers. The firm completed $145 billion in investment sale and debt and equity transactions globally in 2016. The firm’s Capital Markets team comprises more than 2,000 specialists globally.

 

A group of California investors led by FollettUSA, an owner of manufactured-home communities, has purchased Firehouse Self Storage in Loveland, Colo., for $22.2 million, from the Burton Family. The property at 2600 S. Lincoln Ave. sits on 24 acres and contains 1,235 storage units. It carries a firehouse theme and has seven fire trucks on the site, five of which were purchased by FollettUSA, according to the source.

FollettUSA used the entity Firehouse SS Investors LLC in the transaction. Other investment groups involved in the deal include Richmond-Firehouse No. 1 LLC and Richmond-Firehouse No. 2 LLC, based in Alamo, Calif.; and Razorback-Firehouse No. 1 and Razorback-Firehouse No. 2, of Orinda, Calif., the source reported.

Chris Burton represented the family, which includes wife Barbi and parents Jan and Don Burton, in the transaction. The facility wasn’t for sale, but the Burtons were approached by three national self-storage companies with bids, said Chris Burton, who’s managed the property for the past five years with his wife. It was recently featured in “Inside Self-Storage,” a monthly magazine for industry professionals, in an article focused on theme-based facility design.

The Burtons are developing a second self-storage facility in Longmont, Colo., near Vance Brand Municipal Airport. Situated on a 43-acre parcel at the intersection of Airport Drive and Rogers Road, it will resemble a 1900s firehouse and carry the theme throughout. The Burtons plan to donate seven acres of the property to the city for a dog park. Construction of the first phase, which will include 9 acres, begins in July. Phase two will contain 7 acres, the source reported.

Based in Sacramento, Calif., and founded in 1989, FollettUSA began purchasing and operating storage facilities in 2003. The company owns or operates 30 manufactured-home communities in 10 states and nine self-storage facilities in California and Utah.

Source:
BizWest, California Investors Pay $22.3 Million for Firehouse Self-Storage

 

 

 

According to the U.S. Census Bureau, the dollar volume invested in new self-storage development in 2017 was more than two and half times that invested during the last peak in 2007. However, unlike construction booms of the past, this new cycle isn’t fueled by lenders loosening their underwriting standards. There are simply a lot of new projects that fit within the necessary guidelines.

However, being that we’re now in the fifth year of the post-recession development cycle, we should expect lenders to evaluate proposed projects and developers with additional scrutiny. If you’re seeking a construction loan, here’s advice on formulating your financing request to ensure success.

Funding Sources

When it comes to construction financing, local and regional banks continue to be the most common sources. Local lenders are often better equipped to understand native real estate dynamics than those who aren’t as familiar with the subject market. However, because local banks can have limitations on loan size or aggregate loan limits to one borrower, regional and national banks can be great alternatives for larger or more active borrowers. Also, after building a successful relationship over several transactions, banks are often willing to follow their customer to a broader geographic footprint.

Terms to Expect

For a conventional construction loan, you can likely expect it to be structured at 65 percent to 75 percent loan-to-cost and no more than 70 percent of stabilized value. Most such loans are floating-rate and based on either a Prime or LIBOR Rate. They generally have a three-year initial term with interest-only payments, one or two 12-month extension options, and a 25- or 30-year amortization schedule.

Most construction loans will require completion and personal guarantees for the repayment of principal and interest. There are few lenders that will consider waiving personal guarantees under certain circumstances (typically very-low-leverage loans in top-tier markets), but will still require a completion guarantee from the borrower. Some will allow the recourse/guarantee to “burn down” or reduce at certain occupancy or operating-performance hurdles.

It’s important that every construction budget include an interest reserve sufficient to service the loan during building. This reserve should also cover any operating shortfalls during the initial lease-up period until the property cash flow is at breakeven.

Building the Request

Whether you’re experienced or a first-time developer, when seeking a construction loan, it’s important to understand the information you’ll need to supply. A well-prepared package is important in presenting your request. It’s imperative that it answer all the lender’s questions and make his decision to approve the loan an easy one.

Initially, the lender will look at the financial and operational strength of ownership before he’ll even start evaluating the viability and strength of the project. He’ll focus on the individual(s) who’ll be responsible for project completion as well as management and repayment of the loan. Be ready to provide:

• A biography for all key individuals and principals
• The approximate net worth and liquidity of each proposed guarantor
• A summary of background and experience of key entities and vendors including sponsor/owner, management company, general contractor, architects and engineers, etc.

Next, you need to provide information about the physical aspects of the development, including:

• Survey
• Site plan
• Floor plans
• Elevations
• Renderings (pretty pictures to help tell the story)
• Municipal approvals, permits and zoning information
• Construction schedule

Finally, there are the financial components that support the construction costs and projected project lease-up. The lender will want to see:

• A schedule of total project costs, including land, soft costs, site work (and off-site work if required) and hard costs
• Land valuation
• Proposed unit mix
• Pro forma operating income and expenses, including the monthly schedule from construction start through completion and occupancy stabilization
• Annual schedule for five years of operation

Evaluating the Market

All this information is great, but doesn’t mean a thing unless the market will support the project. Given the amount of new construction in today’s real estate cycle, it’s more important than ever to understand current supply and any projects in the planning stages. You must show the lender that the local market can support and absorb new supply, and your rent projections and lease-up schedules are viable. A feasibility study from a qualified provider should include the following at a minimum:

• Zoning analysis
• Competition analysis (all competitors within a one-, three- and five-mile radius, addressing geographic and demographic patterns, their unit mixes and rental rates)
• Supply-and-demand analysis
• Absorption analysis
• Market pricing (Will the market support pro forma assumptions?)
• Construction costs (projected costs compared to industry averages or standards)

Many “experts” believe the industry’s current expansion cycle will level off this year or next. Even the real estate investment trusts have reported that in some of the Metropolitan Statistical Areas in which they operate, year-over-year revenue is shrinking. Moving forward, expect lenders to take an even closer look at competition when offering terms on new-development loans. Though the process of securing construction financing takes preparation and diligence, following the above guidelines will ensure borrower success on the right project.

Neal Gussis is a principal at CCM Commercial Mortgage, a mortgage-banking firm that secures financing for self-storage owners nationwide. With more than 25 years of experience as a national self-storage mortgage broker and adviser, Neal has secured more than $3 billion of self-storage transactions for operators. For more information, call 224.938.9419; e-mail [email protected]; visit www.ccmcommercialmortgage.com.

Update 1/22/18 – Four self-storage projects affiliated with real estate developer Johnson Development Associates Inc. (JDA) are nearing completion in the Naples area. The 776-unit development known as Rattlesnake Self Storage will be three stories and comprise 105,000 square feet. For that project, the company acquired 3.4 acres in two adjoining parcels along Rattlesnake Hammock Road last year for $1.95 million. The facility is expected to open during the third quarter this year, according to the source.

The Rattlesnake project is near apartments and a senior-living community. A gas station and retail development are also planned for the area. The entrance will be off Coyote Drive.

The facility is being built by general contractor DeAngelis Diamond Construction, which is also building JDA’s two-story, 575-unit project on Kramer Drive. The Kramer structure is expected to be complete in March, the source reported.

Last May, JDA signed DeAngelis Diamond to construct four self-storage projects in Collier, Hillsborough and Pasco Counties, Fla. Together, the developments comprise more than 335,000 square feet in 2,753 units. All of the properties are expected to be 80,000 to 100,000 square feet.

Two other JDA self-storage projects in the Naples market are scheduled to open in March. A three-story, 757-unit facility off Juliet Boulevard in North Naples will also be managed by Extra Space. A two-story, 662-unit project under construction in Bonita Springs, Fla., will be managed by self-storage REIT and third-party management company CubeSmart, according to the source.

Based in Spartanburg, S.C., JDA owns an investment portfolio of commercial and industrial properties including self-storage facilities, multi-family rental communities and single-tenant industrial space. It has developed more than 6,500 luxury apartments since 1996, while its industrial projects comprise 20 million square feet of commercial space.

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6/13/17 – Self-storage developers have submitted proposals for at least 10 projects in Collier County, Fla., since last year. A handful are already under construction, with others expected to break ground soon, according to the source. Three of the projects will comprise more than 278,000 square feet.

DeAngelis Diamond Construction, a Naples, Fla.-based self-storage builder, is developing a property on Kramer Drive, west of Interstate 75. The facility will comprise 79,560-square-feet in 575 units. Expected to be complete early next year, it’ll be managed by self-storage real estate investment trust (REIT) and third-party management firm Extra Space Storage Inc.

Planning Development Inc., a Naples-based self-storage developer, has received a conditional-use permit to build a facility off of U.S. Highway 41 East, between Collier Boulevard and Rattlesnake Hammock Road. The three-story Carl’s White Glove Personal Storage will comprise about 92,000 square feet, with construction scheduled to begin this year, the source reported.

Memphis, Tenn.-based self-storage real estate investment and development company Premier Storage Investors is currently building a 106,696-square-foot facility on 3.24 acres at the southwest corner of Goodlette-Frank Road and Ridge Street in Naples. The project includes a multi-story structure comprising 95,396 square feet and a single-story building comprising 11,300 square feet. The facility will be managed by self-storage REIT and third-party management company CubeSmart, according to the source.

Another project comprising 776 unit is in the contracting and pre-construction phase. Known as Rattlesnake Self Storage, the facility will be managed by Extra Space.

The projects have been earmarked despite the county’s flirtation with a one-year self-storage development ban along a seven-mile stretch of U.S. 41, near the Naples city limit. The county ultimately didn’t enact the ban, though officials did direct staff to create a plan designed to encourage other business uses, such as hotels, restaurants and retail, the source reported.

The local market is ripe for self-storage projects due to growing population and a trend toward smaller apartments and homes, which creates an increased demand for storage, according to the source. Developers consider the market undersupplied, according to Chip Campbell, chief analyst for Premier Storage Investors.

"As we consider land-use plans in the future, we might want to consider separating [self-storage] from retail uses," Michael Dalby, president of the Greater Naples Chamber of Commerce, told the source. "But I can tell you that the demand is high in any resort community. It's almost an amenity, and if we didn't have them, it would be a hassle for many residents and part-time residents."

Sources:
Naples Daily News, More Self Storage in Store, With Another Wave of Construction in Collier County
Naples Daily News, In the Know: Self-Storage Units Being Built on Rattlesnake Hammock

Update 1/22/18 – ISS announced the winners of its “Movie of Your Life” contest. The grand prize went to Anne-Marie Douglas (SST username amdoug4) for her entry “The Fight of Our Lives.” Her submission details the struggle to open and operate Lock’N’Key Storage in Newnan, Ga., which she co-owns and manages with her husband, Charles Douglas. “The ups and downs, while truly unbelievable at times, would make for a captivating drama,” Douglas wrote.

Second place was awarded to Kris Fetter (KrisinNC), manager of Outbox Self Storage in Charlotte, N.C., for the entry “You Have to Laugh.” The movie idea chronicles her life and how she “fell” into the self-storage business. The movie would include a cast of characters who became life-long friends, from the “ditzy blond” and a “gruff grandpa” to a “steady maintenance guy who can fix anything.”

Wendianne Rook (Birdie), owner of America's Best Self Storage in Leaburg, Ore., came in third place with “That Woman.” The hypothetical movie plot follows Rook from her early days as an entrepreneur through various jobs until she built her own storage business. “Sandra Bullock would play me because she is also witty, beautiful, smart, funny, classy, a bit crazy and driven,” Rook wrote.

“We’d like to congratulate all our winners and thank everyone who participated in this year’s contest. The entries were imaginative, and sometimes heartbreaking, but also inspiring,” said SST Community Manager Amy Campbell.

Details about the upcoming event can be found at www.issworldexpo.com.

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12/7/17 – Inside Self-Storage (ISS) has launched a contest for facility managers that will award the grand-prize winner a free trip to the ISS World Expo in Las Vegas, April 3-6. Prizes will also be awarded for second and third place. Participants must submit an answer to the question: If they made a movie of your life, what would the title be, and who would star as you? Submissions must be made through the official Self-Storage Talk (SST) contest thread by noon Pacific Time on Jan. 15.

Submissions are encouraged to be creative and witty, though must refrain from profanity and any information that would be considered a copyright infringement. The ISS editorial team will select the three best responses. Winners will be notified on Jan. 19 and announced publicly via SST on Jan. 22.

The grand-prize winner will receive roundtrip airfare to Las Vegas from any destination in the continental U.S., along with three nights at the Paris Hotel & Resort during the expo. The prize also includes an All-Access Pass to the ISS Expo, which includes admittance to all events, including in-depth workshops. The winner will also receive a “Total Self-Storage Solutions 2018 Education DVD Package” from the ISS Store.

The approximate prize value is $2,600. The contest is sponsored by Chateau Products Inc., a manufacturer of locks and latch systems specializing in self-storage.

The second-place winner will also receive a “Total Self-Storage Solutions 2018 Education DVD Package,” while the third-place winner will receive a set of ISS 2018 Guidebooks (two publications) and a one-year subscription to ISS magazine (12 issues).

Contestants must be verifiable as a self-storage facility manager and a registered member of SST, the industry’s largest online community. For complete details and rules, visit the SST contest thread.

The ISS World Expo is created for self-storage owners, managers, developers, investors and suppliers. The event is the industry’s largest conference and tradeshow, comprising four days of education, product and service exhibits, and networking opportunities. Registration is now open for the 2018 expo. The best rates expire on Jan. 30.

For more than 26 years, ISS has provided informational resources for the self-storage industry. Its educational offerings include ISS magazine, the annual ISS World Expo, an extensive website, the ISS Store, and Self-Storage Talk.

Denise Henick, director of administration for New York self-storage operator Stop & Stor, has won a Louis R. Miller Leadership Award in the “Established Businessperson” category. Named in honor of a West Brighton, N.Y., businessman and community leader, the award is presented by the Staten Island Chamber of Commerce and “Staten Island Advance” (SIA) newspaper, and sponsored by Richmond County Savings Bank, a division of New York Community Bank.

Award recipients are recognized as effective business leaders and for outstanding contributions to their communities. The honor is given in four businessperson categories: Emerging, Established, Master and Not-for-Profit. Henick and the other winners will be recognized during a Feb. 15 breakfast. They’ll also be featured in article in the SIA.

Henick oversees the Stop & Stor corporate office and manages employees at the operator’s 17 locations. She was nominated for the award by Marlene Markoe-Boyd, a past award recipient. “Denise represents all Lou Miller was—a good business person with a strong sense of community,” she said. “I think Lou Miller would have been proud to know her.”

In addition, Henick is chairwoman of the Stop & Stor Charitable Fund, which has awarded $2.8 million to more than 100 organizations since 2002. She also spearheaded the Breast Cancer Walk for Stop & Stor on Staten Island, N.Y., and hosted an annual company-wide eyeglass drive for New Eyes for the Needy. She’s a member of the Executive Women's Council for the Staten Island Economic Development Corp., and was a 2017 recipient of its “Executive Woman of the Year Award.” She’s also a member of Staten Island Chamber of Commerce.

Henick has also helped to make Stop & Stor a “second-chance employer,” Markoe-Boyd said. "If she sees that a person has made a turn for the better in their life and presents themselves with a promise to be responsible, she knows that Stop & Stor will have a grateful employee who is dedicated to their work."

A Staten Island resident, Henick enjoys “being part of a growing, successful company that cares about its customers, employees and the community,” she told the source.

Born in a village in Russia, Miller and his family immigrated to the United States in 1913. He began working in a bakery as a teenager, later entering the insurance field and moving on to banking. During his life, he supported several organizations including the Jewish Community Center, Meals on Wheels, Staten Island Institute of Arts and Sciences, and the YMCA. He died in 1994 at age 93.

Founded in 1980 by the Henick and Morty Simon families, Stop & Stor operates facilities in Bronx, Brooklyn, Queens and Staten Island, N.Y.

 

Moove In Self Storage, which operates 21 locations in Maryland, New Jersey and Pennsylvania, has acquired two existing facilities and a conversion-development site from B&S Self Storage in Douglassville and Pottstown, Pa. Moove In will expand a 14,100-square-foot storage facility in Douglassville and convert a former car dealership in Pottstown. The projects are expected to add 140,000 rentable square feet to the company’s portfolio, according to a press release. The third property is a B&S facility, also in Pottstown.

Built in 1988, the Douglassville facility comprises four single-story buildings offering 132 units and 70 outdoor parking spaces. The property on Benjamin Franklin Highway has keypad access, perimeter fencing and security cameras.

The storage facility in Pottstown was built in 1974 on Pleasantview Road. It comprises three single-story buildings and 38 outdoor parking spaces. Features include keypad access, perimeter fencing, a rental office and security cameras.

Company affiliate Moove In Partners-Pottstown LLC paid $2.4 million for the 6.39-acre dealership site at 2148 E. High St. The deal closed on Dec. 21, according to the source.

“Both existing storage properties are in great physical condition and ready for expansions to better serve the needs of the market,” said Jason Carl, director of operations for Investment Real Estate Management LLC (IREM), which oversees the Moove In portfolio. “Plus, the build-out of the dealership is going to add a whole new dimension and options for our customers.”

Founded in 1997, Moove In operates facilities in Baltimore County in Maryland; Berks, Huntingdon, Lancaster, Montgomery and York Counties in Pennsylvania; and Sussex County in New Jersey.

IREM is a branch of York, Pa.-based Investment Real Estate LLC, a property-management and consulting firm specializing in the self-storage industry. Since its inception in 1998, the company has provided brokerage, construction, development and management services to facility owners and investors.

Source:
The Post, Storage Firm Pays $2.4M For Sanatoga Showroom

I have a rule I try to live by: No surprises. This doesn’t mean I’m against happy surprises like gifts or parties. I enjoy those. What shouldn’t be a surprise, though, is employee performance at the self-storage facilities I oversee. The groundwork for avoiding unpleasant surprises in this area doesn’t begin at the first point of discipline; rather, it starts much earlier, even prior to hiring.

The time spent preparing to hire your self-storage staff is invaluable. This is when you evaluate what your needs are and create a solid job description that will lay a perfect foundation of expectations on which to build. This is also a good time to review your company culture and the demographics of the market your facility serves. There are many types of managers and storage properties. Your goal is to find the perfect match.

To help weed out applicants and minimize surprises after hiring, look at each candidate’s resume for basic identifiers that could be red flags. Is the person’s e-mail address offensive? How is his spelling, grammar and word usage? Does he speak in “txt-ease”? Conducting an Internet search of the person’s name or checking his social media sites can reveal very telling signs of what type of person you may be dealing with and can help save you from significant headaches in the long run.

Having an employee handbook that outlines policies related to dress code, hours of operation, Internet use, animals in the office, handling cash and so on helps set expectations right from the start. If you don’t already have a policies and procedures manual, industry-related guidelines and handbooks are readily available online. These are well worth the investment to help prevent shocks. Share your expectations clearly and make sure employees understand them by signing an acknowledgement to that effect.

When Something Goes Wrong

Once you’ve laid the foundation, done your homework and hired the best candidate for the position, you’re ready to entrust your new manager with your multi-million-dollar business. Things go well at first. Occupancy is up; customers are happy; the facility is clean … And then, BAM! You stop by the facility on your way home from a meeting and it’s closed. It’s 2 p.m., and the sign on the door says the manager will return at 1 p.m. What? Why? Do you panic? Call the local hospitals? What course of action do you take?

Or, let’s say the manager fails to get the bank-deposit slips to you on time, or you discover garbage strewn about the property. What action is appropriate? In other words, what do you do when situations occur that aren’t in line with established policies and expectations?

First, look at the situation without emotion. Next, determine if the incident violates a rule that was clearly communicated and understood. If so, disciplinary action may be warranted.

3 Types of Discipline

There are some employee actions that are so egregious that immediate termination is appropriate. These include:

• Theft of company property or funds
• Coming to work under the influence of alcohol or another substance
• Violent actions toward co-workers or customers

In these instances, you must immediately remove the employee from the property. In other cases, taking a measured approach can help correct the misstep and re-establish the foundation you set prior to employment. Here are three basic types of disciplinary procedures:

1. Verbal warning. When you become aware of a problem, speak immediately with the employee. Specify the actions you want to see corrected and how you’d like to see that done. This is more of an “advise and council” tactic than a formal reprimand. Nevertheless, it’s important to log the event.

2. Written warning. If another incident occurs or there’s no improvement within a reasonable timeframe (30 to 90 days and no more than two or three verbal discussions), you’ll need to document, in writing, the reasons you believe the manager or staff member isn’t conducting himself in accordance with your policies and expectations. Refer to the prior event and any related conversations, and create an action plan to improve performance. This can be a 30-day action plan or a personal-improvement plan (PIP).

Be specific about expectations and steps that will lead to success. For example, if a manager is chronically late to work, you can stipulate that he must arrive no later than 8:30 a.m. to ensure the facility is ready to open at 9 a.m. Whatever the corrective action is, include this statement: “Any further instances could result in further disciplinary actions up to and including termination.”

3. Final written warning. If you’ve issued a written action plan or PIP and the manager or staff member continues to make the same mistakes or fails to take corrective action, it’s time to be very candid with him. Don’t be afraid to ask the employee if he really wants to make this work. There’s no set timeframe on this. The written warning means one more disciplinary event will terminate his employment. He’ll either resolve ongoing issues or be let go. It’s natural to want the employee to turn things around, but if all else fails, the only remaining course of action is termination.

Termination

Employment separations are difficult no matter how prepared everyone involved may be. There are times when it simply must be done. You do yourself and your business a great disservice by putting off the inevitable. If you’ve followed the guidelines above and termination is the necessary course of action, then it won’t be a surprise to either of you.

When you’re ready to terminate employment, you need to pick the time. Letting someone go is preferable first thing in the morning during the middle of the week. You don’t want to send someone home to stew on it all weekend. Even though the firing may not come as a surprise, many in today’s culture want to point blame at others.

Make sure you understand your state labor laws. Some will require you to pay unused vacation time. Some states require you to pay the employee at the time of termination, while others allow you to wait until the next regularly scheduled pay date.

Prior to meeting with the employee, draft a termination document that outlines the work issues along with attempts at coaching and all oral and written warnings. Include specific dates. Make the document as short as possible and conclude it with language to the effect, “We have worked with you for some time to resolve this issue. To this date, you have been unwilling to correct the issue. For this reason, the decision has been made to terminate your employment immediately. There is no appeal. Our decision is final.”

Sign and date the document before the meeting and read it aloud to the employee when he’s present. After you read the document, it’s natural to want to say something. The truth is, the less said the better. If you’re compelled to comment, make it very generic. For example, “I wish things had worked out differently. Do you have any questions?”

Next, have the employee sign the document, and then stand up to indicate the meeting is over. Allow him to collect his personal belongings, and show him to the door. Have the locks changed and move on. Don’t share specifics with coworkers or customers. It’s safest to say something like, “He’s moved on, and I wish him well in his future endeavors.”

If the employee occupied a manager’s residence on the property, you’ll need to refer to your housing agreement for the move-out timeframe originally set in the event of separation. Allowing someone more time than what’s outlined is up to you and should depend on the reason for the termination. Put in place the following precautions:

• Make sure there’s no access to the manager’s office from the apartment or vice versa.
• Make sure the agreement indicates that any activity resulting in the disruption of normal daily business will require the former employee to vacate immediately.
• Complete a walk-through of the residence on the day of termination as well as the day he vacates.

Now it’s time to move forward and find someone who wants to work toward success!

Cindy Ashby is vice president of operation for Prime Storage Group, where she’s responsible for overseeing the firm’s 8-million-square-foot self-storage portfolio. She has more than 20 years of industry experience, including asset-management roles at Storage USA, two real estate investment trusts and three property-management companies. She’s written operational guidelines and developed training programs for numerous storage companies. For more information, call 518.792.1586; e-mail, [email protected]; visit www.primestoragegroup.com.

Update 1/19/18 – Blue Wing Development has opened its multi-story self-storage facility in Arvada, Colo., according to a press release.

“The city responded to market demand in a thoughtful process that included input from the developer community. The resulting design standards require attractive multi-story buildings, rather than the ugly, industrial-garage projects of the past,” Shaw said. “I am proud of the building we designed for a difficult lot. Our architectural team knocked the ball out of the park.”

While satisfying pent-up residential demand, the facility will also support small businesses and entrepreneurship in the area, the release stated. “Research shows that 25-plus percent of all self-storage demand comes from small business,” said Ryan Stachelski, director of the Arvada Economic Development Association. “Congratulations to Blue Wing Development for being first to market with a stunning new facility. We look forward to them supporting small business throughout the Arvada municipality.”

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12/9/16 – Arvada officials have approved a site development plan that will allow Blue Wing to move forward with its $7 million Ralston Valley Self Storage project on 69th Ave. Designed by Golden, Colo.-based Studio DH Architecture, the 89,539-square-foot facility will feature keypad entry and video surveillance. Blue Wing expects to begin construction in February. The new facility will be managed by real estate investment (REIT) firm Life Storage Inc. and carry the REIT’s branding, according to the source.

“This area of Arvada is experiencing explosive growth, and up until this year, there were no parcels in the area that offered storage as a use by right,” Shaw told the source. “It’s going to be a high-quality product, and we’re excited to offer it to the community.”

A zoning change was approved by the city prior to Blue Wing closing on the parcel in August, Shaw said.

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8/11/16 – Blue Wing Development LLC, a boutique real estate development firm specializing in self-storage, has purchased a 2.88-acre parcel at 14872 W. 69th Ave. in Arvada, Colo., on which to build a new facility. A preliminary development plan for the three-story, 89,710-square-foot, climate-controlled building is under review by the city, with construction expected to begin in early December. A grand opening is scheduled for September 2017.

“We are excited to bring our 645-unit, class-A facility into the capacity-constrained Arvada market,” said Peter Shaw, managing member. “Residential growth in the area is explosive, local facilities are all full, and high barriers to entry still exist on that side of town. We will satisfy the enormous pent-up demand for quality self-storage operations in the area.”

This is Blue Wing’s second self-storage development in the metro Denver market, according to a company press release. Ownership has taken under a special-purpose entity, Blue Wing Storage Partners II L.P.

In addition to self-storage, Blue Wing develops specialty projects targeting the fitness and healthcare industries.

Source:
Colorado Real Estate Journal, Self-Storage Facility Planned in ‘Underserved’ Area of Arvada

Personal Mini Storage, a Florida self-storage operator with 43 locations, has purchased a Devon Self Storage facility in Gainesville, Fla. The property at 8825 N.W. 13th St. is a few miles north of the University of Florida. It comprises 90,000 rentable square feet of storage space in 897 units, some of which are climate-controlled. It also contains outdoor vehicle parking and offers U-Haul truck rentals, according to a press release.

Personal Mini Storage now operates six sites in Gainesville. Last year, the company became the eighth participating regional operator for National Storage Affiliates Trust (NSAT), a Maryland real estate investment trust (REIT) specializing in self-storage.

"We're incredibly excited to add our sixth store in Gainesville, and coincidentally our sixth store with National Storage Affiliates, our joint-venture partner. We're confident that our ‘new’ customers will notice the personal difference offered by our capable staff, and will soon become raving fans and customer evangelists," said Marc Smith, president of Personal Mini.

The buyer and the seller were represented in the transaction by Charles “Chico” LeClaire, executive managing director of investments, and Adam Schlosser, first vice president of investments, for Marcus & Millichap. Fellow broker Kirk A. Felici assisted.

“The seller purchased this facility out of foreclosure during the recession and realized excellent returns as a result of this transaction,” LeClaire said. “The buyer will continue to benefit from the strong local market, and by reducing seasonal vacancies due to the large percentage of student renters that is typically found in college markets.”

Founded in 1982 by brothers Stan and Ron Shader, Personal Mini has remained a family-owned and -operated business for more than 30 years. The company is currently managed by Smith and his wife, Laurie, who have more than 20 years of self-storage industry experience. The operator’s portfolio comprises 2.7 million rentable square feet of storage space.

Headquartered in Greenwood, Colo., NSAT is a self-administered and -managed REIT focused on the acquisition, operation and ownership of self-storage properties within the top 100 U.S. Metropolitan Statistical Areas throughout the United States. The company has ownership interest in 483 storage facilities in 28 states. Its portfolio comprises approximately 30 million net rentable square feet. It's owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures.

California-based Devon Self Storage has maintained a dedicated self-storage operating platform since 1993. The company currently owns or manages 46 facilities nationwide. It has been involved with the acquisition, development, disposition and management of approximately $1 billion in self-storage assets.