During the current self-storage development boom, much attention has been paid to increasingly large projects in big cities and their immediate suburbs. These 1,000-plus unit facilities with all the bells and whistles are impressive. However, smaller, rural markets are attractive for many investors, as they can be more approachable.

Building in a secondary or tertiary market requires a different strategy. Here’s advice on how to locate, build and manage these properties.

Choosing a Market

One of the first questions a self-storage developer faces is whether demand exists to support a project and, if so, how much should he build? Expert analysis is standard for large facilities, but in small markets, the high cost of a professional study and lack of readily available data often lead to a do-it-yourself approach.

Ideally, you’re looking for an area in which existing facilities are at least 90 percent full. If you find a three-year-old property sitting at 60 percent occupancy, it’s likely an indication that the market is saturated. Conversely, it’s a good sign for a new development if existing sites don’t present themselves well or are slow to respond to inquiries. Rental rates for new properties can easily be 20 percent higher than those of a poorly run or neglected site.

Also, look for markets in which the properties don’t show up in a Google search or there’s a clear lack a Web presence. If these operators don’t accept credit cards or have an online reservation system, you have the opportunity provide a better rental experience.

Once you’ve identified a market with opportunity, dig deeper. Compare population against existing supply to see how they stack up to national averages. When calculating demand, there are two ways to look at it:

• What percentage of households rent a unit? (The national average is 9.5 percent.)
• How many square feet of storage per person exist in the market? (The national average is 8.32 square feet.)

Bear in mind that markets with higher amounts of boat/RV storage (e.g., vacation areas) may support more square feet per person due to the larger units.

Planning the Build

When building self-storage in small markets, phasing is key. It minimizes the risk and creates the shorter rent-up period these developers typically desire. Building in phases also allows you to finetune the unit mix as you grow. On the downside, you’ll have to go through the lending and permitting process multiple times.

Here are some other common aspects to building in secondary and tertiary markets:

• Storage facilities in small markets are less likely to be climate-controlled, though developers are building them in more suburban and rural areas.
• In rural markets, facilities are more likely to offer larger unit sizes, including boat/RV units and possibly outdoor parking.
• Basic drive-up buildings are more likely to be 40 feet wide than the 30 feet you’ll find in more densely populated areas.
• Small-market facilities are more likely to be operated without a manager. The office isn’t a necessity and may come with a later phase if at all.

Enhancing the Customer Experience

It’s extremely rare to be first in a market. Today, nearly all new self-storage facilities are going into areas with existing competitors. Yet, you can stand out and command premium rents by offering a better customer experience.

An easy feature to start with is security. Modern video cameras are reasonably priced, offer detailed resolution and an excellent value. If the budget allows, a fence and gate are next.

Adding a few architectural elements to your facility can improve the overall appearance of the property. Landscaping is another area where a small investment can make a big improvement in curb appeal.

In addition to offering a better physical product, you need to provide excellent service. Operators of existing sites, particularly ones that are nearly full, aren’t always great at responding to inquiries. About half of prospective customers simply rent from the first business they contact. Your goal is to answer promptly and rent that unit before the competition ever has a chance.

Managing to Budget

Small-market self-storage properties require a different management approach than their larger siblings. Generally, the revenue can’t support an office with a manager, at least not during the first phase. The most basic method of managing a rural site is to run it from your phone, and set appointments as needed to meet new clients. Some owners incorporate a small office or unit for rental activities, but the corresponding lavatory requirements often push a formal office out of the budget.

Most small-town storage businesses are independently owned and rarely have employees. In fact, it’s common to run the operation from a separate, existing business—either one you own or another you pay to assist you with rentals. For example, gas stations, sandwich shops and liquor stores have all served as rental offices for storage businesses.

Technology can help you add more flexible rental options. Online reservations and leases are supported by management software, which has become more affordable thanks to scaled pricing plans. Self-storage kiosks have increased in popularity as well. These machines can offer live chat support as a new tenant works through the process of choosing a unit, paying and signing an agreement. They can even dispense a lock.

Normally, unoccupied units should be locked to keep the facility secure and ensure clean units remain so. For unmanned sites, tamper-evident tags can be used to deter entry and make it easy to spot any issues during a drive-through inspection.

Ensuring Profit

New self-storage owners/developers often ask how small of a site can they build and still make money. This is understandable, as most are stretched financially on their first project. Indeed, a small, unmanned, owner-operated site can be profitable. However, there are some expenses (and hassles) that aren’t much different on a 50-unit facility than one with 200 units. You’ll need to consider the level of revenue you need to make the project worthwhile.

During site planning, think about your exit strategy. Larger urban and suburban sites are attractive to bigger buyers who can pay a premium. Their size helps them cover the overhead. In a rural area, you might not be able to build a single 100,000-square-foot facility, but it wouldn’t be difficult to build three 50,000-square-foot sites over several years. That portfolio can eventually be very attractive to buyers.

Smaller-market facilities are the easiest way to break into the self-storage business. The overall development cost is lower, you can retain your day job, and it can be done without bringing on employees. When it’s time to scale up, additional locations or phases can be added. You’ll eventually create a valuable group of properties that can provide significant income or command an impressive sales price.

Steve Hajewski is the marketing manager at Trachte Building Systems, which designs, manufactures and erects a full line of pre-engineered and customized steel self-storage systems, including single- and multi-story, portable storage, interior partition and corridor, and canopy boat/RV. He also owns a self-storage facility in Wisconsin and is a frequent contributor on Self-Storage Talk, the industry's largest online community. For more information, call 800.356.5824; visit www.trachte.com. 

While attending a self-storage tradeshow in 2015, I was sitting at a table with 10 other facility operators, discussing unexpected events that can take place at a property. A gentleman who was obviously involved with one of the real estate investment trusts said his company experiences a fire about every other year at one of its 300-plus-unit facilities. At the time, I thought that was pretty good odds. Little did I know I’d experience this type of disaster firsthand within just a few days.

Get to Work

It was about 6:45 a.m. when I received the call from the local fire department. In denial, I assumed the best. I thought, surely, this wasn’t a real emergency, just a faulty smoke alarm or something. Not seconds after that call, I received a text from a friend asking, “Is your facility on 35th Street on fire?” That was when I knew this wasn’t good.

On Sept. 15, 2015, my company’s 20,000-square-foot, 136-unit climate-controlled facility in Tuscaloosa, Ala., caught on fire. I lived about 10 minutes away from the property. As I approached it from the highway, I began to see black smoke billowing out of the roof. I pulled up next to the fire trucks and saw investigators everywhere. I knew I had my hands full, but I also knew I had to gather my thoughts and get to work.

Local media and customers began showing up at the facility asking questions and wanting to see the building. It was close to chaos. In that moment, I realized our primary task was to begin reaching out to tenants, informing them of what took place. I had my staff pull together all the rental agreements and create a spreadsheet listing the contact information and number for every occupied unit. We didn’t have many answers to offer at this point, but it was important to let people know we were working on a resolution. If a customer hears nothing, he assumes nothing is happening.

As each hour passed, the smoke and heat left the building. About five hours after the fire was extinguished, I was able to go inside. There were only four units that were completely burnt to ash, but every unit in the entire facility was covered in smoke and soot, and anything stacked above about six feet was melted.

Fortunately, the fire department was precise with its hoses and didn’t flood the entire building. I pointed that out to the investigator, and he told me they must be specific with how much and where they spray water in an enclosed building, as sometimes the steam can be as dangerous as the fire itself. He also pointed out that self-storage fires are particularly treacherous because the hallways are like a maze, the facility is dark, it’s hard to find the origin of the fire, and they often have to cut open unit doors to eliminate the inferno. You never know what’s behind that door.

Work With Tenants

After reaching out to our insurance company and starting the claim process, we began to schedule appointments with tenants to review their units. We asked each of them to sign a liability waiver to enter the building due to the power outage and debris in the hallways.

Although our rental agreement didn’t require us to do anything in terms of content remediation, our insurance allowed us to offer a basic cleaning from a local restoration company and move tenant belongings to a unit at one of our three other Tuscaloosa facilities. For most tenants, this was satisfactory; but we had to make it very clear that if a basic cleaning and relocation wasn’t going to satisfy them, they needed to file a claim with their own insurance company.

As you can imagine, many of these reviews turned into emotional conversations. Tenants often store memories in their unit and forget about everything they had inside. With that said, most would start out being thankful that we were taking the initiative, and then they would see their old pictures burnt up or melted and get upset. The discussion would end with another thank you and a hug after we assured them we were there to help.

It was an emotional roller-coaster. During a disaster such as a fire, most people just want to be treated with dignity. They want the business to walk in their shoes and see the situation from their perspective.

Establish a Playbook

Once we relocated our tenants, we started the clean-up. We were able to repair vs. demolish and rebuild the main structure, but this created more obstacles because it took a lot of cleaning. We essentially had to remove the entire shell, replace some steel purlins and rafters that were warped from the heat, add all new unit doors, exchange all the electrical and lighting, and pressure-wash and paint the entire building.

After 10 months and hundreds of e-mails with our insurance and construction companies, we were finally ready to move tenants back into the building. The facility was better than ever, with carpeted aisles and motion LED lights, but there was definitely a price paid by everyone involved.

Ultimately, this was a major learning experience for me, my staff and the entire company. You can never be fully prepared for a disaster like this, but it’s important to address with your team what needs to take place in any emergency. Communication is the driving force to make things right, so make sure everyone knows who to call when a crisis occurs.

It takes a “village” and a lot of moving parts to overcome an event such as a fire, but if you have a playbook on hand, you’ll be able to make it through to the other side. One of the biggest lessons I took away from this experience was that if emergencies and mistakes are handled correctly, they can turn an upset customer into a loyal one.

Chris Rhodes is the general manager for All-American Self Storage, which operates seven facilities in Alabama and Georgia. He has five years of experience in the self-storage industry. For more information, call 205.292.6989; e-mail [email protected]; visit www.all-americanonline.com. 

Bermuda Self Storage has opened in the town of St. George’s on St. George’s Island, Bermuda. Owner Kerry Davison believes the 48-unit facility on Ferry Road will appeal to homeowners who rent their properties through accommodation websites like Airbnb. Many need to temporarily store personal belongings while their homes are occupied, according to the source.

Statistics from the Bermuda Tourism Authority indicate the short-term vacation rental market is booming, growing 53 percent between 2016 and 2017. Though those figures may have been skewed by the presence of the America’s Cup, short-term rentals have grown another 11.6 percent through the first seven months this year, the source reported.

The facility is in an area known as the East End. It features climate-controlled units, gated keypad access and security cameras. “All the staff here will be alerted when someone enters the building, and we all have the cameras installed on our mobile phones,” Davison told the source.

The self-storage owner views the new venture as a natural extension of her family’s history of entrepreneurship. “My family owns the Davison’s Group of Cos., Bermuda Kitchen & Baths, Bermuda Lumber Co. and Kitchen Installations Ltd.,” she said.

Davison’s father started Davison’s of Bermuda 55 years ago. Her sister, Laura Pitt, runs part of the family business, while Davison oversees the construction and lumber businesses, in addition to the self-storage facility, according to the source.

Source:
The Royal Gazette, New Self-Storage Business Opens in East End

Madison Capital Group, which operates the Go Store It self-storage brand, has purchased The Vault on 17th in Wilmington, N.C., for $8 million in an off-market transaction. The seller was The Vault on 17th LLC, a partnership involving the principals of Crete Investments LLC and GHK Cape Fear Development, according to the source.

The property at 1113 S. 17th St. comprises 76,000 square feet of storage space in 552 units, the majority of which are climate-controlled. Madison also operates a Go Store It facility at 7135-A Market St. in Wilmington.

“This acquisition presented a unique opportunity for Go Store It that allowed us to expand our presence in Wilmington, which is a target market for us,” said Neil Dyer, director of acquisitions for Madison. “There's big demand for high-quality storage, and the Wilmington market has high barriers to entry as well.”

The Vault on 17th was the first self-storage development by the Crete/GHK partnership. “It was our goal to deliver an extremely high-quality, safe, secure and attractive facility to serve unmet demand within the submarket. The facility and Vault Self Storage brand were well-received by the market, and I am pleased with how the project turned out,” said Mike Brown, managing member of The Vault and a partner with GHK. “As with any long-term investment or business venture, you must be receptive and open to evolving opportunities. In this case, Madison Capital Group and Go Store It made a compelling offer, and we were further assured that our customers would be well taken care of.”

Brown noted the Wilmington area still has demand for self-storage, and new projects in the region will meet some of it. “We're still on the lookout, and if we see sites that have the right market dynamics, if we found a good site where the numbers looked good from a demand standpoint vs. supply, we would certainly be interested,” he said.

Madison is also seeking new acquisition and development opportunities in the Wilmington area, Dyer said. The firm had hoped to develop apartments and townhomes at South 17th Street but withdrew its proposal after the planning commission denied a request to rezone the properties for residential development, the source reported.  

Based in Charlotte, N.C., Madison specializes in the acquisition, development and management of self-storage assets throughout the county. It currently has more 2 million square feet of storage space under management and construction. The company has offices in Charleston, S.C., and Nashville, Tenn.

Crete was established in 2008 as a privately held entity to provide funding for projects that were stalled or in need of capital during and after the Great Recession. Headquartered in Wilmington, it primarily owns apartments, commercial-flex space and single-family homes.

GHK is a privately held company that has developed 3 million square feet of gross leasable space. It specializes in industrial, medical, multi-family, office and retail projects.

Source:
Wilmington Biz, In $8M Deal, Wilmington Self Storage Project Sold To Charlotte Company

 

Property owners Dennis and Diane Rex are seeking approval to build a self-storage facility on their 16-acre parcel in Sennett, N.Y. The husband and wife team will present their plan to the zoning board of appeals (ZBA) in November, according to the source.

The property at 3616 E. Genesee St. Road has already been subdivided to maintain the Rex’s existing residential lot as well as the 4.5-acre parcel on which they’ll build a 3,000-square-foot, 24-unit storage building. Land surveys and preliminary storm-water engineering have also been completed.

The couple has owned several properties over the years and recognized a need for more storage in the area. “There was nothing really convenient for us on this side of Auburn,” Dennis Rex said. “We've been thinking about this for four to five years [and] just decided to act on it.”

The site is also rocky, making it difficult to accommodate some types of development, Dennis Rex added. The couple determined self-storage would be a good use for the site and provide income for their retirement.

Originally, the Rexes had planned to present their plan to the ZBA last month. After a conference call with their contractors, bank and lawyers, they decided to wait. They now work to “to get our information regathered and a little more accurate,” Dennis Rex said, noting that quotes for services might’ve changed since the zoning application was submitted in February.

If the project is approved, the facility could open next summer. “It's exciting for us, but we're also learning a lot and want to do it right,” Dennis Rex told the source.

Source:
Auburn Pub, New Storage Facility Proposed in Sennett

Update 10/4/18 – A little more than a year after acquiring the former Kmart building in Muncie, Ind., U-Haul has opened a new 2,500-square-foot showroom. Once the conversion to self-storage is complete, U-Haul Moving & Storage of Morningside will also contain a covered loading area and 706 interior units, some of which will be climate-controlled.

The new facility will also remotely manage the 80-unit U-Haul Storage of Creston, which is about a half-mile away at 2211 N. Dr. Martin Luther King Jr. Blvd, according to a press release.

“We're expanding operations to be able to provide a better self-storage product and serve our customers at the level they've come to expect,” Jones said.

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8/15/17 – U-Haul is also converting a former Kmart in Baltimore. U-Haul Moving & Storage of Eastpoint at 222 N. Point Blvd. has opened a temporary showroom offering truck and trailer rentals, moving supplies, and portable-storage containers. Hitch installation and propane sales will be available soon. The 11.25-acre property is near Dundalk, an unincorporated community of Baltimore County, Md.

Renovations for the 95,810-square-foot building are underway to add 60,000 square feet of indoor self-storage and 15,000 square feet of outdoor vehicle-storage parking. The storage units are expected to be available early next year, according to a source.

"I'm excited to bring top-of-the-line moving and self-storage services to this part of Baltimore," said Mike Finkelstein, president of the U-Haul Co. of Baltimore. "Dundalk was one of the first inner-ring suburbs of Baltimore, and this facility will finally service that community.”

The property is part of North Point Mall, which was purchased last year for $3.3 million by Carl Verstandig, CEO of real estate firm America's Realty LLC. Kmart vacated the property in late 2016.

"U-Haul is pleased to reuse older buildings because it benefits the community in so many ways," Finkelstein said. "This building was originally built in 1974. It was renovated in 1997, so it's in really good shape. We're going to make it even better."

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8/10/17 – U-Haul completed its acquisition of the former Kmart in Muncie on Aug. 2. U-Haul Moving & Storage of Morningside has opened a temporary showroom while it builds out approximately 40,000 square feet of self-storage. The property at 1501 E. McGalliard Road also offers moving and packing supplies, towing equipment, trailer and truck rentals, and U-Box portable storage. The self-storage component will offer indoor climate-controlled and traditional drive-up units, with “high-tech” security features, according to a press release.

"This deteriorating building had been sitting empty for three years," said Anthony Jones, president of U-Haul Co. of Central Indiana. "People were using it as a dump site, so there were old tires and furniture everywhere. U-Haul is excited to take this neglected property and turn it into an attractive moving and self-storage facility."

The facility will also eventually offer propane tanks and refills and professional-hitch installation on the 9.89-acre lot.

"Mayor [Dennis] Tyler is happy to have us in there, bringing this building up to 2017 standards," Jones said. "It is important to U-Haul that we renovate these large existing buildings rather than start anew. We want to make sure we do things in a sustainable manner."

Once fully operational, U-Haul expects to employ a staff of at least 10 to run the facility.

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7/31/17 – A U-Haul affiliate acquired a former Kmart store last month in Erie, Pa., which the self-storage operator plans to add to its portfolio of moving and storage centers. The company paid $2.225 million for the former retail outlet, which is one of two anchors in the East Grandview Plaza at 1320 E. Grandview Blvd. U-Haul has set up a temporary showroom offering moving supplies and equipment rentals, while construction on the storage conversion is on pace for completion in about two months, company spokesperson Andrea Batchelor told the source.

The Kmart closed in March. Get Air, an indoor trampoline park, is developing the other empty anchor space and will lease from Brooklyn, N.Y.-based J & D Acquisition LLC, which owns all the retail spaces within the plaza except for the U-Haul site, according to the source. The shopping center was built in the 1970s.

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7/11/17 – Phoenix-based U-Haul International Inc., which operates more than 1,300 self-storage locations across North America, is converting a JCPenney and two Kmart stores. The facilities are in Indiana, Washington and Wisconsin.

In Spokane Valley, Wash., the former JCPenney store at 10412 E. Sprague Ave. was turned into U-Haul Moving & Storage of U-City, which opened in June to offer moving and packing supplies, trailer and truck rentals, and U-Box portable-storage containers. Renovations are underway to add 835 climate-controlled units to the 108,766-square-foot building. Until they’re available next year, U-Haul plans to use its U-Box containers as temporary rentals. Professional hitch installation and propane sales will also be offered soon, according to a press release.

"This acquisition is all about customer convenience," said Manny Mendez, president of the U-Haul Co. of Inland Northwest. "Spokane Valley is a growing community. There aren't very many state-of-the-art self-storage facilities here. Our other [self-storage] facilities in the area are nearing [full] capacity, so we are happy to serve more customers."

A former Kmart store in Superior, Wis., is also being converted, while negotiations are underway to purchase a second Kmart big box in Muncie, Ind. U-Haul Moving & Storage of Superior recently opened a temporary showroom on the 6.22-acre property at 3015 Tower Ave. It currently offers truck and trailer rentals, moving and packing supplies, and U-Box portable-storage containers. Once the renovations are complete this fall, the 88,914-square-foot building will contain 737 climate-controlled units. Professional hitch installation will also be available.

"This building was sitting vacant, and we were able to step in to bring it back to life," said Bill Piette, president of the U-Haul Co. of Northern Minnesota. "By reusing the building, we save materials and can offer a fresh look to a deteriorating property from the 1980s. Our U-Haul adaptive reuse program enhances the entire community."

The Muncie site includes an 86,000-square-foot building. Although the property is listed for $1.1 million, the purchase price won’t be disclosed until the sale is final, according to Ed Conatser, the broker’s who’s overseeing the transaction.

Finding a new occupant for the property, which closed in 2014, has been challenging due to its inclusion on federal flood-plain maps, a source reported. It's not clear if the designation has been changed or if it’s been figured into U-Haul's plans.

Established in 1945, U-Haul owns more than 44 million square feet of storage space. The company’s corporate sustainability initiatives, which support infill development to help local communities lower their carbon footprint, has led to dozens of conversion projects in recent years.

Sources:

PR Newswire, U-Haul Moving & Storage of Morningside Opens New Showroom
PR Newswire, U-Haul of U-City Reveals Plans for Vacant Building in Spokane Valley
PR Newswire, Moving Makeover: U-Haul of Superior Fills Vacant Building
GoErie.com, U-Haul Opening at Erie's East Grandview Plaza
PR Newswire, U-Haul Reusing Former Kmart for New Store in Muncie
PR Newswire, U-Haul Reveals Plans to Expand Self-Storage Footprint in Baltimore
The Baltimore Sun, Dundalk Kmart to Close
The Star Press, Muncie's Former Kmart Might Have New Use

 

Metro Storage LLC, which operates more than 130 self-storage properties in 14 states, has promoted Kevin Friedman to the newly created position of director of acquisitions. Friedman will focus on acquisition and development opportunities in Illinois, Minnesota and Wisconsin. His duties will include site identification, underwriting, and contract negotiations with property owners and brokers, according to a press release.

Friedman has been with Metro since July 2014, previously serving as a financial and senior financial analyst. "Kevin has demonstrated strong growth in his role within the acquisition and finance department since joining Metro and is a valuable member of our team,” said Blair Nagel, CEO. “Kevin provides meaningful and strategic insights to the group in evaluating acquisition and development opportunities, and this is a natural progression in his career with Metro Storage."

Friedman holds a bachelor’s degree in business administration and finance, with a concentration in real estate and construction management, from the University of Denver. He’s also a Certified Commercial Investment Member.

Headquartered in Lake Forest, Ill., Metro Storage operates the Metro Self Storage brand. The privately owned, fully integrated real estate company specializes in the acquisition, development and management of self-storage facilities in Brazil, Central America and the United States. Its facilities comprise about 8.7 million square feet of storage space.

Source:
Markets Insider, Friedman Promoted to Director of Acquisitions for Metro Storage LLC

Update 10/4/18 – Generation4 has begun construction on its SpareSpace self-storage project on N.W. 30th Street. The facility is now expected to be complete next summer.

The company acquired the site last year for $2 million. It secured a $9.8 million mortgage loan from Branch Banking &Trust Co., according to the source.

Generation4 believes residential development east of Interstate 95 in Miami’s Wynwood area will drive storage demand west of the freeway in Allapattah, the source reported.

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11/30/17 – Commercial real estate developer Generation4 Partners LLC has acquired two parcels in Miami comprising .56 acres on which it intends to build a seven-story self-storage facility. The structure at 644 N.W. 30th St. in the Allapattah neighborhood will comprise 143,080 square feet of climate-controlled storage, including wine storage, according to a press release. The project is expected to break ground early in 2018, with an opening anticipated in early 2019.

“This location has all of the components of a retail self-storage location that represents today’s institutional-quality self-storage development criteria,” said Howard Pryor, co-founder.

“The density of existing and under-construction residential units, coupled with high barriers to entry for new storage developments and a location that will have very significant visibility to more than 350,000 cars per day on [Interstate 95], is a combination that is rare to find in today’s competitive market,” added Travis Prince, co-founder.

The company expects to close on a construction loan in January, Pryor said.

Based in Ft. Lauderdale, Fla., Generation4 specializes in commercial development in Florida’s largest markets. It has additional sites under contract on which it expects to close in early 2018. The company is seeking sites suitable for self-storage alone or mixed-use projects, with a goal of building a portfolio of 1 million net rentable square feet, according to its website.

Sources:
The Real Deal, Construction Starts on 7-Story Self-Storage Building in Allapattah
Generation4 Partners, Website

Update 10/4/18 – Construction is underway on the Northwest self-storage project at 62939 N. U.S. Highway 97, previously referred to as the development planned for N.E. Third St. The three-story, $6 million project will comprise 80,000 square feet in 584 units, larger than the 58,000 square feet initially reported. The facility will offer heated units and two freight elevators. It’s expected to be complete by the end of November, according to the source.

The concrete and metal structure will be metal-sided, with windows and awnings for visual interest on long wall, said Steven Boothroyd, site superintendent for builder Able General Contracting LLC, which is overseeing the project.

Though the availability of steel could affect the timeline of the project, at least 30 truckloads of steel have already been delivered to the site, according to Boothroyd. “Steel is getting harder and harder to get,” he told the source. “The West Coast is booming right now.”

Able also served as general contractor for the recently completed expansion of the Old Mill location, and will oversee the planned expansion next year of another Northwest facility in Terrebonne, Ore., the source reported.

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6/6/17 – A pair of three-story self-storage facilities is being planned for Bend, Ore. Seattle-based investment firm Columbia Pacific Advisors LLC expects to begin construction during the third quarter on a 107,000-square-foot facility at 2705 N.E. Fourth St., and Northwest Self Storage is in preliminary discussions to develop a 58,000-square-foot location on the west side of N.E. Third St., according to the source.

The Columbia Pacific facility will include 820 climate-controlled units on 1.7 acres. The company acquired the property last year for $1.2 million through its affiliate OR Bend Self Storage LLC. The project is part of a plan to build about 6,000 storage units in Colorado and the Pacific Northwest, company spokesperson Ashley Bach told the source.

Northwest Self Storage paid more than $1 million in December for its 1-acre parcel on Third Street. In addition, the company intends to expand its Old Mill Self Storage location on S.W. Industrial Way, according to Leonard Waggoner, a site consultant for the company. “We’re building what we think the market needs and can absorb,” added Nate Schwalbach, vice president of operations.

Population growth in Bend has spurred interest from several self-storage developers. Investor Scott Cassidy earlier received city approval to build about 150,000 square feet of storage on N.E. Fourth Street but halted the project when Columbia Pacific moved forward with its plan, he told the source. “We’re going to see the performance of those that go in and go from there,” Cassidy said.

An unidentified developer has also submitted plans to build a storage facility with 11 buildings at the southeast corner of Cooley Road and N. Highway 97. The project is under administrative review, the source reported.

Columbia Pacific maintains a diversified portfolio across multiple sectors. Its real estate interests include hospitality, industrial, multi-family, office, retail, self-storage and senior-housing properties.

Based in Clackamas, Ore., Northwest operates 78 self-storage facilities in Oregon and Washington. Along with sister company Kevin Howard Real Estate, the firms specialize in self-storage services in the Pacific Northwest. The family-owned and -operated Northwest was founded by Kevin Howard more than 30 years ago. It specializes in self-storage consultation, brokerage, design and development, operation, and property management.

Sources:
The Bulletin, Northwest Self Storage Builds 584 Units in Bend
The Bulletin, Bend Draws Multistory Self-Storage Projects