Staff from Extra Space Storage Inc., a self-storage real estate investment trust (REIT) and third-party management company, planted 25 trees last month and donated $25,000 to the Arbor Day Foundation (ADF) as part of a new collaboration to further engage in sustainability initiatives. A hundred employees from the company’s headquarters in Salt Lake City volunteered to plant the trees at Constitution Park on Sept. 18. Specialists from the nonprofit TreeUtah assisted in choosing trees best suitable for the climate, according to a press release.

“This volunteer effort is an important step in protecting the environment, which our foundation can’t do alone. We’re thrilled that partners like Extra Space Storage are committed to coming together to drive change,” said Dan Lambe, president of ADF. “With our network and ability to plant trees on public and private lands, the Arbor Day Foundation is uniquely positioned to organize these types of movements by rallying organizations and leaders around the world to join us.”

The collaboration comes on the heels of Extra Space ranking 10th in the “Solar Means Business Report” on the “Top 25 Corporate Users by Number of Solar Installations” listing by the Solar Energy Industries Association. The REIT was also named as the highest-rated self-storage company in the United States by the Global Real Estate Sustainability Benchmark, an investor-driven organization that assesses the sustainability performance of real asset sector portfolios and assets.

“Our team at Extra Space Storage is committed to making a difference in our communities through sustainability efforts like this tree-planting event and our solar program,” said Extra Space CEO Joe Margolis. “We think it’s important to give employees opportunities to volunteer in efforts they are passionate about. We’re pleased to have partnered with the Arbor Day Foundation and TreeUtah for this event, and we’re glad to see our solar efforts across the country being recognized.”

During the planting, Margolis shared statistics regarding the company’s sustainability initiatives. Over the past five years, the REIT has installed solar panels at 411 facilities, updated lighting at 351 facilities, added electric car-charging stations at multiple locations, updated equipment to include more energy-efficient HVAC and other systems, and maintained conservative indoor temperatures at its locations, including its headquarters, the release stated.

Additional green initiatives include paperless rental agreements, efficient plumbing devices, improved irrigations systems and landscaping, and employee water-filling stations and recycle bins. Extra Space also has a leadership committee focused on discovering new, innovative ways to improve its eco-friendly programs, the release stated.

Headquartered in Salt Lake City, Extra Space owns or operates 1,752 self-storage properties nationwide and in Puerto Rico. The company’s properties comprise approximately 1.2 million units and 134 million square feet of rentable space.

Founded in 1972, ADF is a nonprofit membership organization dedicated to planting trees. Since its inception, it has aided in the planting of more than 300 million trees worldwide.

Insurance Office of America (IOA) has added a self-storage tenant-protection program to its suite of insurance and risk-management solutions. The product will help self-storage renters protect their belongings, while facility owners can reduce their business-loss exposure, according to a press release. It’s intended to be offered by self-storage operators and third-party management companies.

“With the Tenant Protection Program, the facility sets the protection-plan limits and pricing based on local market conditions,” said Joseph Torrisi, self-storage specialist. “The program is streamlined, so startup can be accomplished without much friction.”

The protection program is underwritten by an unidentified “AM Best A-rated carrier,” the release stated. The insurance carrier insures the risk, and tenant claims are handled by licensed adjusters on behalf of the storage operator. IOA provides start-up training and assists with the implementation of the program, according to the company website.

The IOA Self Storage Division offers custom-tailored insurance programs that can incorporate traditional insurance coverages, alternate risk financing techniques, human-resource outsourcing, and additional combinations thereof.

Founded in 1988, IOA is an independent, full-service insurance agency. It has more than 1,000 associates in more than 50 offices, with some in London and many across the United States.

Source:
IOA Self Storage Division, Website

Guardian Self Storage, which operates 14 facilities in New York, is serving as a primary host in the annual Susan DeKeukelaere Memorial Coat Drive, which collects winter coats for those in need. It’s the 25^th consecutive year the storage operator has collected clean and gently used outwear from the public for charity purposes. Donations can be dropped off through the end of October at the company’s locations in Dutchess, Orange and Ulster Counties, where they’ll be sorted and prepared for distribution.

Guardian is working with Dutchess Outreach, Newburgh Ministry and People’s Place to distribute the coats, which will be handed out next month at eight Dutchess County locations. The drive collected more than 5,000 items last year, yet some people were turned away because supply ran out, according to a source. Adult plus-size and children’s coats are especially needed this year. Questions about the drive can be directed to [email protected].

Other participants in the 2019 drive include Raymour & Flanigan Outlet, Red Cap Cleaners and Rhinebeck Bank.

In addition to its annual coat drive, Guardian hosts a food drive that benefits The Food Bank of the Hudson Valley. The family-owned self-storage company opened its doors in Fishkill, N.Y., more than 30 years ago.

Source:
Times-Herald Record, Guardian Self Storage Celebrates 25 Years of Collecting Coats
Hudson Valley, Guardian Self Storage Coat Drive

The Beverly Park Group, an investment platform focused on real estate assets including self-storage, has named James Hanrahan as a managing principal. In this role, he’ll focus on developing the company’s self-storage portfolio, according to a press release.

Hanrahan has more than 20 years of real estate investment experience and has participated in the acquisition and disposition of more than 250 self-storage facilities. He’s a co-founder of RHW Capital Management Group, which operates the Store Here Self Storage brand.

Hanrahan began his career with self-storage real estate investment trust Public Storage Inc. He was also a director and investor for A-American Self Storage for nine years, and then director of operations for Platinum Storage Group. While at Platinum, he was responsible for the navigation and integration of a 100-plus facility portfolio and had direct oversight of all field operations, supervisory staff and sales strategies.

Hanrahan also served five years on the board of directors for the California Self Storage Association. He earned a bachelor’s degree from Loyola Marymount University.

“This move puts me back together with my good friend and long-time business partner, William Lappas,” Hanrahan said. “Bill has been involved in almost every transaction that started and helped RHW Capital/Store Here grow as rapidly as we did. Together with Robert Lee and Greg Martinez, we plan to buy quality self-storage assets in a multitude of markets along with our private-equity and institutional-equity partners.”

Beverly Park was originally formed to manage the real estate portfolio for a West Coast-based family office and grow assets under management. Its principals have more than 20 years of commercial real estate experience including agriculture, healthcare, industrial, land development, multi-family housing, office buildings, self-storage, shopping centers and vineyards.

Source:
The Beverly Park Group, Website

During its recently concluded annual conference and tradeshow in London, Oct. 1-2, the Federation of European Self Storage Associations (FEDESSA) announced the winners of its annual awards. A commemorative dinner included performances by mind reader Matt Daniel-Barker and the London Children's Choir, according to an e-newsletter sent to members last week. This year’s recipients are:

• Facility of the Year: Less Mess Storage Inc., Warsaw, Poland
• Manager of the Year: Rudolf Feidler, ZeitLager Self Storage, Germany
• Extraordinary Achievement: Robin Greenwood, CEO, Storage King, United Kingdom
• Innovation Award: Virtual Assistant, Attic Self Storage, United Kingdom
• Charity Initiative: The Big Yellow Foundation, Big Yellow Self Storage, United Kingdom

Founded in 2004, FEDESSA consists of 14 self-storage associations across Europe and represents about 1,400 facilities. The organization host its annual conference each fall in a different European city. This year’s event attracted approximately 800 industry professionals from six continents.

Climate-controlled units are becoming increasingly popular in self-storage. They allow tenants to store environmentally sensitive items like furniture and antiques with assurance they won’t be ruined by mold, mildew and other deteriorating factors common in spaces without temperature and humidity regulation.

Climate control is made possible by your property’s HVAC (heating, ventilation and air conditioning) system, which must be in good working order at all times. Regular maintenance of this equipment is one of the many ways to ensure top performance. Let’s look at some of the benefits of regular “tune-ups” as well as some energy-saving tips and when to work with a professional.

Why Maintenance is Important

Better energy efficiency. HVAC equipment uses a lot of energy. Considering the system runs around the clock in a self-storage environment, its impact on your utility bill can be massive. It also tends to get dirty over time, which impedes airflow and reduces efficiency. Regular maintenance and cleaning ensures your system won’t have to work as hard to maintain an optimal temperature.

Lower risk of breakdown. The hardworking nature of an HVAC system makes it more susceptible to mechanical problems. Without regular maintenance, it’ll eventually malfunction, and you’ll have to call a contractor to perform costly repairs. Proper upkeep allows you to spot problems early before they have a chance to worsen. By nipping small issues in the bud, your system will continue to operate smoothly.

Longer lifespan. No business operator wants his HVAC to fail after only a few years of service, but machines aren’t designed to run forever. Your system works hard and will wear out over time. Regular tune-ups can help it run for the 10 to 15 years it was engineered to last. As long as it gets the regular attention it needs, your system should function at its peak.

Energy Conservation

Though the energy costs associated with HVAC systems tend to be high, there are strategies self-storage operators can deploy to keep their utility bills from going supernova.

Saving money begins with your building insulation. Determining how much your self-storage units need depends on several variables, including ceiling height, cubic area and amount of lighting. You may need to work with an electrical or mechanical engineer or an architect to determine your requirements. An excellent option is to use approximately six inches of fiberglass insulation for roofs and walls. You can also slow the loss of cooled or heated air by using plastic door curtains on your units.

Airflow is another essential factor in efficient HVAC operation. System components such as ductwork, filters and vents accumulate debris over time, which restricts flow. When air flows smoothly, the system needs less energy to move it where it needs to go. To maximize airflow, regularly clean filters, ducts and vents. These are tasks self-storage managers can do themselves, or you can have a contractor perform these duties.

Plan to Prevent

A system failure is the surest sign you’re going to have to call an professional, but waiting for something bad to happen isn’t a smart strategy. Repairs can be costly, and by the time a major issue is identified, the damage could be considerable enough to warrant an HVAC unit replacement.

The perfect time to call a technician is once per year, even if your system seems to be running perfectly. Annual tune-ups are vital to performance, so have a preventive-maintenance agreement with a qualified HVAC contractor. Service contracts are typically inexpensive and certainly cheaper over time than paying for one-off site visits. They're also a steal compared to having your system repair when it eventually breaks down.

Rebecca Anderson is the content-marketing strategist for FH Air Conditioning, a heating and AC service and repair company that’s served the Phoenix area since 1974. In her spare time, Rebecca enjoys reading books and mountaineering with family and friends. For more information, visit www.fountainhillsair.com.

1-800-Self-Storage.com will be selling bouquets of flowers at its Plymouth, Mich., location on Oct. 19 in commemoration of Sweetest Day. The facility at 42360 Ann Arbor Road will have small bouquets available for $1.99 on a first-come, first-served basis, according to a press release.

Sweetest Day is observed on the third Saturday in October. Originating in Cleveland in 1922, it’s primarily celebrated in the Great Lakes region and parts of the Northeast.

“In the busyness of a fall Saturday, it’s easy to forget that it’s Sweetest Day. Whether someone is already at 1-800-Self-Storage.com in Plymouth checking on their storage unit, or a local resident driving by, we’ve got them covered with affordable, fresh flowers for the holiday,” said Wendy Carter, operations manager.

Sweetest Day was launched by Herbert Birch Kingston, a philanthropist and candy-company employee who wanted to “bring happiness into the lives of orphans, shut-ins and others who were forgotten,” according to TheRomantic.com. “With the help of friends, he began to distribute candy and small gifts to the underprivileged.” Since 1922, the special day has evolved to for participants to express romantic love and show appreciation to their friends.

1-800-Self-Storage.com’s involvement in Sweetest Day festivities is part of its Heart for the Community outreach initiative. The company also serves as a year-round drop-off location for organizations that repair and distribute used bikes to needy children. It operates 13 self-storage facilities in Michigan.

How hard is it to determine the value of your own self-storage asset? What about someone else’s facility you’ve never visited or seen from the inside? Well, each year, county appraisers are assigned the difficult task of determining the value of every property within a municipality. Then the owners are assessed a property tax based on what the appraiser believes your site is worth.

Real estate tax payments are among the biggest areas of exposure for commercial-property owners, and they significantly impact the bottom line. Most self-storage owners pay their property taxes thinking they have no choice but to forfeit the amount assessed. However, due to the relative newness and uniqueness of our industry, you should fight to reduce your valuation. Here’s why.

Assessed Value

To determine a value for a recently purchased property, the county appraiser may rely solely on the purchase price recorded in the public record. This is improper. In self-storage, that price generally reflects more than just the value of the building, including intangibles like the ongoing cash flow.

Intangibles are an integral part of a self-storage acquisition and have always been difficult for appraisers to account for within their analyses. Buyers can reduce their tax bill by structuring their acquisition in ways that limit their liability.

That said, the time to act isn’t when you receive your tax bill; it’s long before you ever see the appraiser’s notice. Since taxes are often paid through mortgage escrow accounts, many owners don’t realize the amount they’re actually paying.

Intangible Assets

In most jurisdictions, intangible assets aren’t taxable—at least not as part of the real estate assessment. The International Association of Assessing Officers instructs appraisers to ensure their real estate assessments are free of any intangibles. Assessors assume their presence, but must ensure they’re excluded from the assessed value. If a business-enterprise component, such as an assembled workforce, working capital, licensing rights, signage, parking-space rental, pylon signs, packaging material, etc., are included, they should be extracted and not taxed.

Self-storage facilities are typically purchased as a business rather than only real estate. Though it’s part of purchase price, there shouldn’t be any ad-valorem tax assessed toward items like furniture, fixtures and equipment, commonly referred to as FF&E. Other items to be excluded from the assessment are:

• The value of intangible assets owned by others, such as a franchisor or third-party management company
• The extra income generated from vehicle storage, moving and packing supplies, truck rentals and similar ancillary profit centers

If intangible assets are necessary to the beneficial and productive use of the taxable property, the appraiser isn’t the one who should make the ultimate decision on their value. Instead, the value should be determined by a special magistrate during your requested hearing to lower your tax assessment. The appraiser’s job is to collect taxes using the mass-appraisal method. If you never question the appraisal assigned to your property, your local government will be happy to take your money.

Appealing an Assessment

If you wish to appeal your tax assessment, you can request an informal meeting or hearing with your local authority. This can usually result in a determination as to whether any intangible assets were improperly included in your valuation.

Intangibles complicate the estimate of value. Assessors generally prefer not to use a cost approach because it reflects only the value of real property and not the going concern. However, in situations where intangibles should be excluded, it can be an effective method to lower your property-tax assessment. A breakdown related to land and improvements is usually easy to obtain by estimating construction costs, using actual costs or using data provided by cost services.

When challenging an assessment, always attempt to inflate the value of your brand, especially if you have more than one facility under the same name. Though a well-recognized brand can sometimes lead to a premium, it’s a real estate intangible that should be isolated from the purchase price. By inflating its value, you can consequently reduce the value of your real property. Creativity can bring significant assessment reductions, but success depends on your efforts.

Opinion of Value

Be aware that there’s a disconnect between how buyers and sellers perceive the value of intangible assets, how accountants report them, and how assessors, taxpayers and property-tax professionals measure them. Often, the methods used by accountants and other financial professionals are different and may not be appropriate for property-tax assessments.

Keep in mind, too, that when you submit an appeal, you’re not directly challenging your tax bill. Instead, you’re appealing the assessor’s “opinion of the value.” If it includes components that aren’t considered taxable real estate items, this can indirectly lower your tax bill and enable a refund for previously overpaid taxes.

Brian Sharpe is past president of Miami Commercial/Miami Realtors Association in South Florida. He’s a building contractor and a principal at REtag (Real Estate Tax Appeal Group), which owns a portfolio of industrial and commercial real estate assets, and provides construction, property-management, lease-negotiation and tax-appeal services. To reach him, call 305.693.3500; e-mail [email protected]; visit www.sharpeproperties.com.

National Storage Affiliates Trust (NSAT), a Maryland real estate investment trust (REIT) specializing in self-storage, has hired Russell Brown as senior vice president of acquisitions. Brown will join the REIT’s acquisition platform, which has already purchased more than $400 million of self-storage this year, according to Tamara Fischer, president and chief financial officer.

“Russell has been active in real estate acquisitions for the past several years, during which time he’s developed key relationships with various real estate industry constituents that will benefit [NSAT],” said Arlen Nordhagen, company chair and CEO.

Brown was most recently senior vice president of investments and capital markets with Flagship Healthcare Properties LLC, where he was responsible for executing the acquisition and investment strategy, risk management, portfolio optimization, financing, and structuring of the firm’s affiliate REIT, Flagship Healthcare Trust Inc. Flagship holds interest in more than 45 healthcare properties valued at more than $350 million, according to the company website. Its portfolio includes more than 1.3 million square feet of medical office space.

Brown holds a Master of Business Administration from Duke University and a bachelor’s degree in finance from the University of North Carolina at Charlotte.

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 more than 700 storage facilities in 35 states and Puerto Rico. Its portfolio comprises approximately 46 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.

Source:
Yahoo Finance, National Storage Affiliates Trust Announces the Addition of Russell Brown as Senior Vice President of Acquisitions