Whether you’re developing your first self-storage facility or your 10th, you’ll face challenges along the way; but none will give you more stress or “character” than getting government approval to build. What’s officially known as the land-entitlement or land-use permit process is long and complex. Worse, it differs by jurisdiction as well as by parcel.

Most easy-to-approve sites have long since been built on, so it’s more difficult to find viable locations—difficult, but not impossible. There are still parcels on well-traveled roads, within retail sectors, with plenty of nearby population and no competition. The problem is the self-storage industry is now under increased scrutiny by planning departments, which tend to add additional hoops through which developers have to jump. If you do find a desirable location, chances are the zoning won’t be correct for self-storage, and you’ll have to pursue a zoning change or conditional-use permit.

Let’s take a closer look at the overall zoning process and some steps you can take to get through those hoops and win approval.

Know the Battlefield

One of your first steps is to determine which zoning types in your target area allow self-storage construction. This is easier said than done. You’ll have to look at the zoning documents for each township you’re considering and find those that include “self-storage,” “mini-warehouse” or “mini storage.” If you plan to include outdoor vehicle parking, that’s an additional site use you’ll have to research. The good news is much of this can be done online. Another option is to visit city hall and ask the planning department to identify which zoning classifications are applicable for your project.

Once you know which classifications are suitable, you’ll need to review a community zoning map to determine where these designated land areas are. You should be able see if the township has broken self-storage into multiple categories. For example, some jurisdictions, such as Topeka, Kan., specify which zoning types require special or conditional approval in addition to zones where self-storage is considered a “use by right.” The city happens to be progressive because it allows self-storage in multiple commercial zones. If you were researching, you’d see it requires conditional approval for self-storage in C-2, which is normally harder to achieve than in C-3 or C-4, which need only “S-Special” approval.

Essentially, zoning classifications provide municipalities with flexibility, allowing them to approve a site if it makes sense for the township while applying brakes on other development. It also gives them time to decide if they’ll allow a project to proceed. “Use by right” zones are almost nonexistent these days. Officials want development projects to be conditionally approved so they can assert government authority. What this means for developers is there’s a chance your project will be approved, but certainly no guarantee.

Conditional restrictions in commercial zones might mean, for example, that you can’t have any outside unit access, meaning your roll-up doors must be inside a building. Some townships won’t allow traditional, drive-up units or any outside vehicle storage. If you decide to submit a proposal, comply with the city’s restrictions in all plans, from the outset. This’ll increase your chances for approval, though you may still have to haggle.

Use a Team Effort

Don’t assume it’ll be easy to get conditional or special approvals. You have to make a game plan. Assemble and work with your project team. Many towns have folks who specialize in getting projects approved. They may be architects, land-planning lawyers or even retired city engineers. Your team should also include a mitigation specialist, if your site has wetlands, and a site engineer who’ll be responsible for complying with all grading issues and surveying needs. This person will also help hire a soil engineer and any other experts who focus on environmental-impact issues.

Finally, you may need a landscape architect. In all my dealings with townships, you’ll likely have at least one or two board members who’ll be keenly knowledgeable and interested in your landscaping plan. Some cities have approval requirements for the types and size of trees. There may also be a point system for the number of bushes and/or trees required. Never take this aspect lightly. Combined with the exterior design of your building, these requirements may be the difference between approval or rejection.

Prepare to Comply

City officials have placed an increased emphasis on ensuring all developments represent the “visual character of the community.” There are hundreds of examples of nicely designed, modern self-storage structures that look as appealing as any strip mall or other new construction. Your architect/engineer will need to work with you and the city directly to ensure your design meets its standards for aesthetics.

Most cities have a list of architectural features they want in a new project. Study these and make sure you’re hitting all the attributes. For example, if city code requires at least three different architectural features on all exterior walls, put those in your design before you ever go in front of the board.

When presenting a project, I’ve read aloud a city’s rules on building exteriors to officials and then demonstrated how I was complying with every single one. In one instance, a board member commented that no one had ever done that before, and it helped him better understand my project and what I was doing to conform.

It’s smart to put your best foot forward and not create any bad will with the planning department. Inevitably, planners will ask for more than you want to consider at first, but if these concessions ensure project approval, they might be worth considering. I’ve seen applicants become so frustrated by the process that they’ll agree to anything planners want just to move forward. This approach will result in escalating costs, so the trick is a “bend but don’t break” approach.

Another reason to understand and comply with municipal requirements early in the process is so you can base your go or no-go decision on accurate costs. Review architectural requirements with your building supplier, as this may help you to find the most cost-effective ways to comply. If you’re required to get a conditional permit for construction, understanding requirements and options up front is an absolute must.

Expect to Spend and Wait

All this costs a lot of money, with absolutely no guarantee that you’ll earn approval for your self-storage development. Most officials will want all your plans complete before they’ll render a judgment. It isn’t unusual to spend $25,000 to $150,000 just to get your project to the final approval stage. Keep in mind, this is money spent out of pocket, prior to financing. Lenders won’t typically provide support until after approvals are obtained.

The timeline will also be longer than you expect. It’s normal for conditional approvals to take a minimum of six months or as long as a couple of years, depending how quickly you’re able to get necessary items in order.

Have Answers Ready

When the time comes to present in front of the planning board, be prepared to address the typical concerns planners have around self-storage. Many of these public apprehensions are myths, but you’ll need to be ready to deflect each item as it’s raised. The short list of common municipal concerns includes:

• Self-storage design isn’t attractive.
• The business will generate high traffic counts.
• Storage facilities are magnets for crime.
• Self-storage lowers surrounding property values, so facilities shouldn’t be near residential zones.

It’s important to address these in upfront and practice your answers. I recommend preparing a PowerPoint presentation that discusses and dispels these issues. Showing photographs and drawings in a simple, visual format leads to a better understanding between you and board members. Looking at your site from the city’s perspective will improve your chances of success.

Jamie Lindau is a self-storage owner and the national sales manager at Trachte Buildings 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 presents Trachte’s free “Building Blocks of Self-Storage” seminar in more than a dozen cities throughout North America every year. For more information, call 800.356.5824; visit www.trachte.com.

“Forget a relationship. Make it a partnership and build an empire.” ~Unknown

Many business relationships are often superficial and short-lived. True partnerships, on the other hand, go deeper. They’re defined by the shared vision and investment of all parties.

Consider your self-storage operation, for example. If enhancing your customer experience and reducing missed sales opportunities is important to you, a call center may be the answer; but it’s essential to invest in the right partnership. A true collaboration with the right provider can make a dramatic positive impact on facility success.

Outsourcing is a common business tactic. By shifting tasks or processes to a third-party contractor, you can reduce costs, increase revenue, enhance the customer experience, reduce risk and improve efficiency. A call center can handle any number of functions for your storage operation such as:

• End-to-end execution of the customer-service process
• Full inbound/outbound call-handling
• Rollover or after-hours coverage to complement your onsite staff
• Voice messaging
• Multi-channel communication management such as chat, text and email

Some vendors also provide auxiliaries such as call-management software, automated payment tools or solutions to assist your internal call-center operations.

The benefits of a cooperative partnership with a self-storage call center have been widely explored. These solutions are flexible, with the ability to quickly scale services up and down to respond to shifting need without an upcharge or overtime pay. They also provide the technological advantages of a larger operation at greatly reduced costs—phone technology, omnichannel, integrated workforce management, etc. Quality agents are experienced professionals, extensively trained in sales and customer service.

Call-center services are also cost-effective. You generally don’t pay by the hour but based on call volume. You also slash recruitment and training expenses tied to frontline staff turnover, plus free up your manager to serve in-store customers and perform the myriad of onsite property duties. Finally, a call center can offer operational resilience. Because it likely has the resources and agility to shift quickly, your store can convert to a remote operation with little, if any, disruption to your call-based business.

Know Your Expectations

Self-storage operators who’ve successfully outsourced their calls to a third party know that choosing the right partner comes down to knowing the needs of your business. It’s essential to identify the role you want the call center to play in your overall business strategy. Consider short- and long-term goals, and determine if a third party would support or detract from your core business of renting units.

If you decide a call center is the right route, it’s important to understand your anticipations and enter the relationship with clear criteria. For example, do agents need industry-specific knowledge or training? Are native English speakers or bilingual agents pertinent to your audience? What performance metrics must they report on, and what are your expectations for those assessments?

How to Evaluate Providers

Before you engage a partner, learn as much as you can about the companies in the market and the features available. Consider these key factors:

• Cost
• Type and scope of services
• Location
• Language services
• Communication skills
• Quality
• Ability to supply timely data/results
• Track record of performance
• References
• Cultural fit

There are many strategies you can use to evaluate a provider against this list. Here are a few approaches:

Secret shop the call center. Pay attention to agents’ tone and engagement, their knowledge of the industry and facility they represent, and ability to successfully guide you through the customer journey. You need to feel confident that they can address your customer needs day after day, consistently.

Conduct site visits during peak and off hours. Don’t be afraid to pop by on short notice. You don’t want a partner that performs well during the week but struggles to maintain service levels on the weekends. Particularly in self-storage, where the value of each call can be exponential, every call is important regardless of when it occurs. Look for consistency across the board.

Ask a variety of questions. Inquire into relevant topics like hiring practices, or ask scenario-specific questions such as, “How do you handle situations in which...”

Know the company’s volume limits. And the call volume/traffic you’ll send and when. Ensure it has a robust workforce-management process and software application to meet the elastic demand changes in real time.

Ask to see reports on key performance indicators (KPIs). A quality call center will offer and value transparency. Make sure it tracks the things that are important to you.

Get references and speak with other clients. You want a partner with a proven track record in the self-storage industry. Ask a range of questions that’ll help you evaluate the provider for reliability, quality, communication and cultural fit. Avoid providers that frequently experience agent shortages, long hold times, platform outages, etc.

Consider software and system compatibility. Do the provider’s services integrate with your existing property-management system? Does the company offer an open application programming interface to easily integrate with the services you want to use?

Evaluate complementary services or integrations. These might include automated payments, call-management software, access-control support, etc.

Throughout the evaluation process, take note of the company’s openness to your questions and alignment with your objectives. Look for a sense of partnership in all your interactions, as this is one of the biggest determinants of your success. Consider if it has the capacity to represent your brand and support how you might to want to uniquely engage with customers.

Finally, consider the company’s location. In our global economy, many owners are tempted by the promise of reduced costs to partner with a nearshore or offshore call center. While cost is important, the goal should be to create the best customer experience possible. Onshore call centers mitigate language or culture barriers, ease changes and ramp-up time, and ensure agents and customers can easily relate to one another. In the self-storage industry, the expected savings from a nearshore or offshore call center won’t offset the lack of control you’d experience.

Best Practices for Success

Don’t assume the call center is going to do exactly what you want. It’s important to set clear expectations at the outset as well as what responsibilities your organization will maintain. Spell it out in as much detail as you can, so there are no surprises on either end. Clearly identify how the company’s services fit into your overall business strategy, and communicate to staff in both organizations how their roles contribute to your objectives. Ask lots of questions. Challenge what may seem like standard practice to make sure you’re getting the right service.

Don’t be afraid to continually evaluate your partner, and make a switch if things aren’t working. Just be sure to address your concerns with your provider before you jump ship, as continuous and open communication is key to ensuring a successful partnership. If it still can’t meet your expectations, find a call center that can.

It’s also important to define your call flow. A good provider should be able to offer guidance on what works for self-storage. Identify if there’s specific verbiage you want to use and develop a consistent call flow with your team. Here’s some additional guidance:

Track. Measure. Adjust. Repeat. Make sure your call center tracks and regularly reports on KPIs that are important to your operation. Metrics to evaluate include call-volume trends, hold times, average speed to answer, conversion rates and reservation volume trends. Define what success looks like and determine which metrics will be focused on by both parties. Establish a cadence of engagement, feedback and escalation rules to reduce any delays.

Dig into your data. Consider correlations in your customer-acquisition funnel. For example, if call volume is low, review your inbound channels to see if any are having trouble feeding into the call center. Also, evaluate the quality of leads coming out of the call center. Are they becoming higher quality, or less prepared and less qualified? Try to understand why that’s happening so you can adjust or replicate success.

Consider call calibration. Regular calls with those who supervise the agents ensures that operators, managers, supervisors and quality-assurance teams can effectively evaluate agent performance and improve customer service. This ensures your service provider scores key behaviors for success. Listening to a sample of calls helps you evaluate non-quantifiable indicators of performance, such as agent tone and engagement, as well as adherence to call flow and progression of the customer journey.

Maintain an ongoing feedback and coaching loop. A good partner will communicate challenges it’s facing so you can collectively decide how issues should be addressed. Then your organization can move toward a consistent, thorough message and brand promise. It’s important to partner with a call center that’s able to quickly adjust to feedback, while seamlessly implementing new tools or strategies. Find one that’s open to your contributions and welcomes the level of involvement you want and are prepared to take. But be prepared to invest the time as well.

Your ability to find success with a third-party call center ultimately comes down to identifying the specific needs of your storage operation, in tandem with a thoughtful approach to researching and choosing your provider and dedication to an ongoing investment into the partnership. In self-storage, one thing is certain: It’s essential to answer calls quickly and consistently. If you don’t, another facility or its call center partner will!

This article was co-authored by OpenTech Alliance Inc., a Phoenix-based provider of self-storage kiosks, call-center services and other technology, and Simply Self Storage (SSS), which operates more than 100 self-storage facilities in United States and Puerto Rico. The companies have a long-standing, collaborative partnership. For more information, visit www.opentechalliance.com and www.simplyss.com.

John Hirschfeld, senior district manager for SSS, has held a management role with the company for 14 years. Kerry Richard, senior vice president of operations for SSS, has more than 25 years of experience in self-storage executive leadership roles. Kimberly Robinson is the communications manager for OpenTech. She has more than 12 years of experience in communications and has worked in the self-storage industry for nearly two years.

Despite some of the challenges social media can pose, using these platforms to improve your self-storage operation’s online presence and engage customers should be an important part of your marketing plan. Yes, prospective tenants will investigate what others have said about your company, and being under the public microscope can be worrisome. But knowing where to focus your attention when it comes to social media can lessen the intimidation. Though you need to be mindful about what you post, including wording and hashtags, understanding some of the key basics should help you get started with confidence.

The Platforms

Though there are numerous social media platforms from which to choose, self-storage operators primarily focus their attention on Facebook, Google My Business (GMB), Instagram and Twitter. If you only have the resources to concentrate on two, I’d go with Facebook and GMB. Let’s take a closer look.

Facebook. This platform can be extremely useful to businesses. Once you create and verify your business page, you’ll be able to post to your timeline, specify services, create offers, advertise jobs, post photos or videos, and even host live-streaming video sessions.

GMB. Definitely create and verify your business listing with Google. Fill out your information completely, especially the services area. Photos are advantageous, with 360-degree images being very popular. Any posts you create here will display on Google when someone conducts an online search for your facility location, services or company. Keep your content relevant and flashy.

Instagram. Pictures, videos and live streaming rule this platform. Link your Instagram profile with your Facebook account, which will allow you to manage and respond to comments or messages from both platforms. Let the images speak for themselves. Use fascinating visuals that draw in the viewer. Think circus razzle dazzle, then tone it down for normal everyday human interactions—or don’t. This is your account; do what you believe is right, but keep it professional.

Twitter. Once a platform that limited posts to 140 characters, Twitter now allows up to 280 characters to create buzz around your topic, facility or interests. This medium is perfect for sharing a new feature at your facility or promoting a special. You can also include hashtags, images and videos.  Just remember to tell short stories—no novels.

What to Post

Show your audience what your self-storage property has to offer, and entice prospects to stop by the facility and rent from you. Seasonal decorations, new installations, clean storage doors and freshly painted gates are all things to share. Brag about your features and benefits. Be proud of your facility, and let the public know you’ve got the storage space it needs.

Not every post needs to be a sales pitch, but it should be representative of your brand and company values. Self-storage tips, tricks, insights and ideas are always good to post. You should also link posts to your website or blog to emphasize offerings. Always try to post the appropriate number of words or characters for each platform.

Hashtags

Hashtags use the # symbol, commonly known as pound or the number sign, followed by a string of words with no spaces to tag your posts to a specific idea, topic or brand. If you’re planning to use a hashtag, do yourself a favor and Google it first. Phrases don’t always mean what we think they do, so do a little due diligence to avoid an embarrassing incident. Be smart and specific with your hashtags. Keep them relevant to your topic and, above all, use them wisely.

Negative Comments

Always respond to negative comments, reviews or recommendations from your social media audience. Don’t ignore them! Also, keep your responses short and be polite. If you need more information about an incident, ask the disgruntled person to reach out to you offline, so you can continue the conversation. Never argue online, as it won’t end well.

Sample Your Options

I encourage you to explore. See how other self-storage operators are leveraging social media platforms to their benefit. What can you emulate? What can you do better? Take these basics and dive deeper to see which offer the biggest payoff for your time, energy and audience. Good Luck!

Mohala Johnson is the director of Web technology for Tellus Development Ltd., a real estate and development firm that operates more than 30 self-storage facilities in the Southeast. With more than 10 years of management and customer-service experience, she handles the company’s digital and print marketing. Writing has always been a passion of hers, and she’s excited to share her knowledge with the self-storage industry. Connect with her @MohalaJohnson on Twitter or www.linkedin.com/in/mohalajohnson. For more information, visit www.tellusltd.com.

 

Update 10/29/20 – Self-storage properties are constantly changing hands, and Inside Self-Storage is regularly notified of these market transactions. Here’s an overview of additional activity happening in October 2020.

Arizona Storage Center in Goodyear, Ariz., sold to a private investor. The facility at 18211 W. McDowell Road comprises 54,976 square feet in 424 units, including 175 vehicle-storage spaces. The seller, FRC Goodyear LLC, was represented in the transaction by Paul Boyle and Rick Danis, executive directors with Cushman & Wakefield.

Carbondale Self Storage in Carbondale, Ill., sold. The facility at 707 E. College St. comprises 10,036 rentable square feet. The deal included a 1.5-acre lot next to the facility on which the buyer intends to expand. Recent renovations include new roofs and doors, security lighting, and updates to the office and manager residence. The seller was represented in the transaction by Marla Čolić and Williams-Blackwell of M&M.

Clarksville Self Storage in Clarksville, Tenn., sold to National Storage Operations LLC, a Chicago-based owner-operator. Opened in 2018, the facility at 2732 Trenton Road comprises 52,200 rentable square feet in 424 units. It also contains a 2,220-square-foot rental home on more than an acre. The seller, a local partnership, was represented in the transaction by Luke and Williams-Blackwell.

Greens Global, an investment firm based in Southern California, acquired a CubeSmart-branded property in Austin, Texas, from CSW Development, a real estate developer and owner. Built in 2019, the five-story facility at 8023 W. Parmer Lane comprises 110,505 square feet in 1,152 units.

A Sanford, Fla., facility managed by Extra Space and owned by Preferred Realty & Development sold to All Board Storage as part of a 1031-exchange option. The property at 2728 W. 25th St. comprises 70,883 square feet in 770 climate-controlled units, 15 drive-up units and 13 boat/RV spaces. All Aboard operates 21 self-storage facilities in Florida. The seller, a privately owned development company, was represented in the transaction by Elliott and Mele of Cushman & Wakefield.

A 10.8-acre property managed by Extra Space in Snellville, Ga., sold. The facility at 3220 Centerville Highway comprises 94,954 net rentable square feet in 823 units. The site includes 14 storage buildings and an additional 50,000 square feet of uncovered parking in 110 spaces. The deal was negotiated by David Spencer, vice president and senior advisor, and Cowles M. “Monty” Spencer Jr., CEO and president, for The Storage Acquisition Group, a division of Mid-Atlantic Commercial Real Estate.

Hawthorne Mini Storage in Salem, Ore., sold for $8.3 million to Trojan Storage, which operates 23 facilities in California and Oregon. The property at 1241 Hawthorne Ave. N.E. contains 14 single- and two-story buildings comprising 99,435 square feet in 654 units. It also offers covered vehicle storage. The seller, a private investor, was represented in the transaction by Roberts, Walker and Morgan Windbiel of CBRE Group. Trojan was self-represented.

Hayes Self Storage in Shelby Charter Township, Mich., sold. The facility at 51985 Hayes Road comprises 49,110 net rentable square feet in 303 units. Built in 2004, the site was expanded in 2006. The deal was brokered by The Hatcher Group of M&M.

Judy’s Mini Storage in Frazier Park, Calif., sold. The facility at 3100 Mt. Pinos Way comprises 4,625 net rentable square feet in 74 units. The deal was brokered by The Hatcher Group of M&M.

Mini U Storage in Athens, Ga., sold to Devon Self Storage. Built in 2006 on 8.44 acres, the facility at 2375 Lexington Road comprises 103,475 square feet in 707 units and six boat/RV spaces. Headquartered in Emeryville, Calif., Devon operates 38 facilities across 22 states. Its portfolio comprises more than 2.7 million net rentable square feet. The seller, an affiliate of Dahn Corp., was represented in the transaction by The LeClaire-Schlosser Group of M&M. Dahn operates more than 40 Mini U locations across 11 states.

North Star Storage in Hermiston, Ore., sold for $4.2 million to a private investor based in Portland, Ore. The facility at 30979 Joy Lane comprises 30,000 square feet in 397 units. Built in 2018, it sits on 5.6 acres and includes a cell tower. The seller, a private investor, was represented in the transaction by Joel Crosby of Coldwell Banker Commercial Tomlinson, a local affiliate of Coldwell Banker Commercial. The buyer was represented by Kris Boehmer of Pacific Coast Commercial Realty.

A joint venture between Merchants Retail Partners and a private investor purchased Safe & Sound Palm City in Palm City, Fla., for $13.95 million. The 3.1-acre property at 3501 S.W. Martin Downs Blvd. contains five buildings comprising 78,521 rentable square feet in 868 units. The seller was represented in the transaction by Elliott and Mele. Merchants Retail is a development and acquisition investment platform owned by Protective Life Insurance Corp.

The seven-property Storage Max portfolio in Minnesota and North Dakota sold. Combined, the properties sit on 9 acres and comprise more than 49,710 square feet in 382 units. The seller, a local LLC, was represented in the transaction by Kampmeyer and Schlosser.

The Vault Self Storage in Rock Hill, S.C., sold. Built in 2018, the facility at 144 Rawlinson Road comprises 70,275 net rentable square feet in 520 units. The property has room for a 10,000-square-foot expansion. The deal was brokered by The Hatcher Group of M&M.

InSite Property Group, which operates the SecureSpace Self Storage brand, acquired Whitney 19 Self Storage in Clearwater, Fla. The facility at 16809 U.S. Highway 19 comprises 70,000 square feet of traditional and vehicle storage. Insite was represented in the transaction by Elliott and Mele. Based in Redondo Beach, Calif., InSite has 25 facilities operating or under construction.

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10/16/20 – Self-storage properties are constantly changing hands, and Inside Self-Storage is regularly notified of these market transactions. Here’s an overview of additional activity happening in October 2020.

Big Rock Properties LLC, an affiliate of Spensa Management LLC, acquired the two-property American Self Storage portfolio in Raymore, Mo. Together, the facilities at 103 Evans Ave. and 308 E. Walnut St. comprise 223,660 square feet. The seller, a private investor, was represented in the transaction by Adam Alexander, Matt Bukhshtaber, Trevor Roberts and Nick Walker, brokers with CBRE Group Inc., a commercial real estate services and investment firm.

Cañon Personal Warehouses and Orchard Personal Warehouses in Cañon City, Colo., sold. The facilities at 220 Field Ave. and Orchard at 100 N. Orchard Ave., respectively, comprise a total of 16,960 rentable square feet in 21 large units. The seller was represented in the transaction by Ben Vestal, president, and Cole Caroella, broker, for Argus, and Joan Lucas, president of Joan Lucas Real Estate Services, an Argus affiliate.

Abacus Property Group, an Australia-based, publicly traded REIT, purchased Cockburn Central Self Storage in Cockburn Central, a suburb of Perth, Western Australia, for $8.6 million. The 4.2-acre property at 854 N. Lake Road comprises four buildings containing 500 units. It also includes a vacant 2.4-acre parcel at the rear and a development pad fronting North Lake Road. The seller was represented in the transaction by Sean Flynn, director of sales and investments, and Nigel Freshwater, head of sales and investments, for JLL (Jones Lang LaSalle), an investment-management firm specializing in real estate services for global property investors and occupiers.

Country Place Mini Storage in Bridgeport, Texas, sold. The facility at 261 Private Road 3333 comprises 18,000 square feet and sits on 2 acres. The seller was represented in the transaction by Chad Snyder and Tyler Trahant of Dominus Commercial, an Argus affiliate.

Enon Mini Warehouses in Enon, Ohio, sold to first-time self-storage buyers based in California. The 1.72-acre property at 368 Enon Road comprises 27,204 rentable square feet in 229 units. The seller was represented in the transaction by Anne Williams-Blackwell of the Williams Storage Group of M&M, and Jesse Luke, managing partner of EquiCap Commercial, a Saint Charles, Ill.-based brokerage specializing in self-storage.

Self-storage REIT Public Storage acquired Inver Grove Storage in Inver Grove Heights, Minn. The facility at 10125 Courthouse Blvd. comprises 54,250 square feet. The seller, a local LLC, was represented in the transaction by Schlosser and Chris Kampmeyer, an investment associate with M&M.   

Reliant Real Estate Management LLC, which operates 53 facilities in eight states, acquired Midgard Self Storage in Wilmington, N.C. The 7-acre property at 7275 Carolina Beach Road contains three buildings comprising 63,550 square feet in 438 units. The seller, Inlet Watch Development LLC, was represented in the transaction by Luke Elliott, executive managing director, and Michael Mele, vice chairman, for Cushman & Wakefield, a provider of real estate services including consulting and appraisal, debt and equity financing, and sales and acquisitions.

Andover Properties LLC, which operates the Storage King USA self-storage brand, acquired Olive Road Mini Storage in Pensacola, Fla. The transaction is the latest under a partnership with Angelo, Gordon & Co., a privately held investment adviser dedicated to alternative investing. The facility at 2640 E. Olive Road comprises 46,715 square feet. Founded in 2003 and based in New York City, Andover owns and operates 38 self-storage facilities in 12 states, totaling more than 2.7 million rentable square feet.

Best Self Storage acquired StorageMax in Yuma, Ariz., for $4.5 million. The single-story building at 2251 W. 24th St. comprises 48,425 square feet. The seller, a private investor, was represented in the transaction by Walter Brauer, vice president for CBRE.

The two-property Southland Storage Centers portfolio in Baton Rouge, La., sold. Together, the facilities at 11520 Richcroft Ave. and 9190 Parkway Drive comprise 103,850 square feet in 948 units. The buyer, a partnership, and the seller, an LLC, were represented in the transaction by The Hatcher Group.

Storage One on Sunset in Renton, Wash., sold for $12.2 million. The facility at 1105 SunsetBlvd. N.E. was sold by Spencer Renton LLC, which acquired the property in 2004 for $4.6 million.

The Storage Investment Group (TSIG) acquired Storage Sense in North Fort Meyers, Fla. The facility at 15801 Hart Road comprises 47,450 square feet in 448 units. TSIG is managed by business partners Chris Corr and Chris Knauer.

Self-storage REIT Extra Space purchased a newly built property in Coon Rapids, Minn., for $7.8 million from the builder, Ebert Construction. The facility at 202 101st Ave. N.W. comprises 100,266 square feet in 726 units. It’s the third development this year by Ebert, which provides commercial general contracting, construction management and real estate development services.

Pogoda Cos., which operates the National Storage Centers brand in Michigan and Ohio, acquired a six-property portfolio in Grand Rapids, Mich., and Detroit. Built within the last five years, the properties total 240,757 square feet in 2,114 units. The locations are in the communities of Byron Center, Georgetown, Grand Rapids-North, Jenison-Port Sheldon, Livonia and Walker. Based in Farmington Hills, Mich., Pogoda operates 51 facilities comprising 3.5 million square feet.

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10/1/20 – Self-storage properties are constantly changing hands, and Inside Self-Storage is regularly notified of these market transactions. Here’s an overview of activity happening in October 2020.

A limited liability company (LLC) led by investor Steve Juiris of North Carolina acquired 71 Storage Mart in Rogers, Ark., and two Aspen Mini Storage facilities in Centerton and Farmington, Ark. The Rogers property at 2600 S. Eighth St. was purchased from an LLC led by Graham Smith for $5.52 million. The properties at 901 E. Centerton Blvd. in Centerton and 267 N. Broyles Court in Farmington, purchased in a separate deal for $7.7 million and $6.7 million, respectively, comprise a total of 235,000 square feet in 1,347 units. They were bought from LLCs owned by Alex Baumeister and Patrick Byrd.

222 Central Storage in Saugus, Mass., sold to MHC 95 LLC, an affiliate of Merit Hill Capital LP. The deal included two other parcels on Central Street. Owners Janet and Joseph Boccelli had operated 222 Central since 2001 but decided to sell when a mixed-use project they proposed for 218 and 228 Central St. was rejected. The self-storage location is now being managed by real estate investment trust (REIT) Extra Space Storage Inc. Based in Brooklyn, N.Y., Merit Hill acquires, develops and manages self-storage facilities nationwide.

AAA Mini Storage in Big Spring, Texas, sold to an unidentified fund manager with facilities in 12 states. Built on 6.25 acres, the facility at 3301 E. FM 700 comprises 73,116 square feet in 365 units. The seller, a Chicago-based private investor, was represented in the transaction by Sean M. Delaney, senior vice president; Danny Cunningham, first vice president; and Brandon Karr, senior vice president, for Marcus & Millichap (M&M), a commercial real estate investment services firm with offices throughout Canada and the United States. The brokers also secured the buyer.

All Storage Enterprise in Lindenhurst, N.Y., sold to Hildreth Real Estate Advisors, which intends to renovate the property and rebrand it as Storage Sense. The three-story facility at 180 S. Travis S., owned for 22 years by Bob Laforscia, comprises 11,000 square feet. It’ll be managed by Storage Asset Management (SAM), a property-management and consulting firm. Based in New York City, Hildreth is a real estate investment and management firm. Founded in 2010 and based in York, Pa., SAM oversees more than 220 storage facilities operating under 60-plus brands.

A facility managed by self-storage REIT CubeSmart in Worcester, Mass., sold. The property at 3 Chestnut St. comprises 19,776 square feet in 301 units. The deal was brokered by The Hatcher Group for M&M.

Utah-based Wasatch Storage Partners sold a two-property portfolio in Murfreesboro, Tenn., to Reliant Real Estate Management LLC. Together, the facilities comprise 1,200 units. One property, at 1932 Cason Lane, was branded and managed by CubeSmart. Built in 2005 and expanded in 2017, it has 538 units. Salem Glen Self Storage at 3450 Glenside Court comprises 662 units. It was built in 2017 and expanded this year to add 57 RV-parking spaces. The seller was represented in the transaction by Bo Fulk, Steve Mellon and Brian Somoza of JLL Capital Markets, a full-service global provider of capital solutions for real estate investors and occupiers. Reliant operates storage properties under various names, including StoreSmart Self Storage. Its operating portfolio of 53 owned and managed facilities comprises more than 4.7 million square feet.

Dad’s Self Storage in Arkansas City, Kan., sold to INOSTF LLC of Wichita, Kan. The facility at 3015 N. 2nd St. sits on 3.5 acres and comprises 15,268 rentable square feet. The seller was represented in the transaction by Larry Goldman, of Goldman Investment Advisors, an affiliate of the Argus Self Storage Advisors, a Denver-based network of real estate brokers who specialize in storage properties.

Elk Grove Mini Storage in Elk Grove, Calif., sold. The facility at 8585 Elk Ridge Way sits on nearly 2 acres and comprises 27,550 in 246 units. The deal was brokered by The Hatcher Group.

Commercial real estate firm Wentworth Property Co. LLC purchased Noah’s Ark Self Storage in Dallas. Built last year on 1.56 acres, the facility at 7557 Greenville Ave. comprises 85,644 square feet in 767 units, and contains 2,100 square feet of retail space. The site will be managed by self-storage REIT CubeSmart and branded under its name. The seller was represented in the transaction by Dave Knobler, first vice president of investments, and Charles "Chico" LeClaire, executive managing director of investments, for The LeClaire-Schlosser Group of M&M. Wentworth represented itself in the deal.

Old Hickory Self Storage in Old Hickory, Tenn., sold. The facility at 101 Matterhorn Drive comprises 28,489 net rentable square feet in 243 units. Built in 1978 on 2.54 acres, it was most recently expanded in 2002. The deal was brokered by The Hatcher Group.

Olive Drive Self Storage in Bakersfield, Calif., sold for $11.5 million. A private investor traded it to an individual buyer based near San Francisco, according to Yardi Matrix data. The 8-acre property at 5250 Knudsen Drive features 14 single-story buildings comprising 106,041 square feet in drive-up self-storage and outdoor vehicle storage.

Self-storage REIT Public Storage purchased Reliable Mini Storage in Lakeville, Minn., for $4.1 million. The facility at 8252 210th St. W. comprises 41,000 rentable square feet. It’s adjacent to an existing Public Storage. The seller was represented in the transaction by Tom Flannigan, director of investment services, and Alex Ihrke, investment specialist, for KW Commercial Minneapolis, an Argus affiliate.

Copper Safe Storage purchased Spain Inc. in Boyle, Miss. The self-storage facility at 470 Gaines Highway comprises 34,300 square feet in 278 units. The 6-acre property also includes an occupied duplex. The seller was represented in the transaction by Matt Porter, an associate for The Williams Storage Group of M&M. Copper operates five facilities in Alabama, one in Georgia and three in Tennessee.

Trojan Storage, which operates 22 facilities in California, purchased Sentry Self-Storage in San Diego for $6 million from Eastgate Development. Built in 1985 on 9.2 acres, the facility at 8440 Eastgate Court comprises 42,00 square feet.

Tuck-It-Away Self Storage in the Bronx, N.Y., sold to Prime Group Holdings LLC for $26 million. The eight-story building at 950 University Ave. comprises 105,877 square feet. Built in 1929, the site originally served as headquarters for the H.W. Wilson publishing house. Tuck-It-Away converted the structure in 2012 to self-storage and office space, using the location as its headquarters. The site is within a Qualified Opportunity Zone. New York-based Prime Group operates the Prime Self Storage brand. Its 250-facility portfolio comprises more than 17.7 million net rentable square feet.

Strategic Storage Growth Trust II Inc. (SSGT II), a private REIT sponsored by an affiliate of SmartStop Self Storage REIT, acquired two recently constructed facilities in Lutz and St. Petersburg, Fla. Together, the properties comprise approximately 150,000 square feet in about 1,580 units. The facility at 16900 State Road 54 in Lutz offers 750 climate-controlled units as well as 50 outdoor spots for boats and RVs. The location at 289 34th St. in St. Petersburg comprises about 790 climate-controlled units. SSGT II owns six facilities comprising 480,000 net rentable square feet in 5,500 units, and a Toronto facility in a joint venture with SmartCentres REIT.

New Sources: 
Connect Florida, CushWake Brokers Sale of 770-Unit Self-Storage Facility in Sanford
CP Executive, Southeast Florida Storage Asset Trades for $14M
PR Newswire, InSite Property Group Acquires Whitney 19 Self Storage in Clearwater, Florida
REBusiness Online, Cushman & Wakefield Arranges $14M Sale of Self-Storage Facility in Palm City, Florida
REBusiness Online, Greens Global Acquires 1,152-Unit CubeSmart Self-Storage Facility in Austin
REBusiness Online, Marcus & Millichap Brokers Sale of Seven-Property Self-Storage Portfolio in Minnesota, North Dakota

Previous Sources:
Kansas City Business Journal, Big Rock Properties Buys Two Raymore Self-Storage Facilities
Real Estate Source, Abacus Spends $8.6m on Cockburn Central Self Storage Investment and Development Site
Daily Journal of Commerce, Renton Self-Storage Goes for $12M
RE Journals, EquiCap, Marcus & Millichap Sell 229-Unit Self-Storage Property in Ohio
RE Journals, CBRE Sells Two Self-Storage Centers in Missouri
Finance & Commerce, Just Sold: Extra Space Buys Coon Rapids Storage Center
REBusiness Online, Inlet Watch Development Sells 438-Unit Self-Storage Facility in Wilmington, North Carolina
Connect Atlanta, Reliant Real Estate Snags 438-Unit Self-Storage Facility in North Carolina
Commercial Observer, Alliant Credit Union Lends $18M on Self Storage Portfolio Buy
Commercial Property Executive, Central California Storage Facility Trades for $12M
CoStar, Sentry Self-Storage Facility Trades for $6 Million
Commercial Property Executive, Bronx Storage Asset Trades for $26M
MarketScreener, Jones Lang LaSalle Incorporated: 1,200-Unit Self-Storage Portfolio Trades in Suburban Nashville
NYREJ, Hildreth Real Estate Advisors Acquires 11,000 S/F Self-Storage Property and Business on Long Island
PR Newswire, Strategic Storage Growth Trust II, Inc. Acquires Two Self Storage Facilities Near Tampa, Florida
REBusiness Online, Marcus & Millichap Brokers Sale of 365-Unit Self-Storage Facility in Big Spring, Texas
TB&P, Real Deals: Trio of Self-Storage Properties Sells for Nearly $20 Million
Wicked Local, Family Sells 222 Central Storage, Other Parcels in Saugus

 

The Inside Self-Storage (ISS) Store has just released 28 new education videos on a wide range of high-demand, industry-relevant topics. Available in on-demand and DVD formats, the sessions feature industry experts addressing all segments of the business. Covered categories include:

• Building: Design/build construction, energy codes, design for challenging parcels, mixed-use development, renovations
• Investing: Acquisition strategies, advice for new investors, due diligence, legacy and succession planning, lending platforms and programs
• Marketing: Core strategies, PWAs and SEO, website design and success
• Operations: Competitive analysis, difficult situations, facility-launch strategies, financial forecasting, lien sales
• Sales & Service: Community outreach, customer-experience essentials, customer-relationship management, service-approach balance
• Staffing: Company culture, discipline, leadership traits, training programs
• Technology: Access-control data and metrics, integration

Individual DVDs are priced at $25, while on-demand video is $20 per session.

Last month, the ISS Store released an additional 12 education videos that were recorded as part of the 2020 ISS Virtual Event. Also obtainable in multiple formats, those seminars come as singles or as part of three discount packages: Building and Investing, CX and Innovation and Operations and Leadership. A complete set of all 12 ISS videos is also available.

For more than 29 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, the industry’s largest online community.

 

Update 10/28/20 – Extra Space has partnered with solar-power company Pivot Energy to add 5.5 megawatts of capacity at 65 of the REIT’s locations in Alabama, Colorado, Florida, Georgia, Illinois, Indiana, Michigan and Tennessee. The will offset 80 percent to 100 percent of each facility’s energy demand, while the systems will collectively produce enough electricity to power nearly 1,000 homes for a year, according to a press release. They’re are expected to be complete by the second quarter of 2021.

Extra Space estimates its savings on energy costs will be $600,000 in the first year and $15 million during the 25-year lifespan of the systems. “At Extra Space, we believe in running a company that is built to last. By investing in solar and other sustainability initiatives, we are committed to making a positive impact on the environment, which benefits our employees, customers, shareholders and communities,” said Matt Herrington, chief operations officer for Extra Space. “Solar produces a great return on investment and helps drive down our electrical expense.”

“Extra Space Storage has once again proven that good environmental decisions make for good business decisions,” said Mat Elmore, vice president of business development for Pivot Energy. “Self-storage facilities present a tremendous opportunity to reduce carbon emissions from the commercial-building sector and reduce operating expenses for facility owners during a time where businesses are seeking to save money and serve as good environmental stewards.”

Extra Space and Pivot partnered in 2018 to add 2.7 megawatts of capacity at 23 self-storage locations in Colorado and Illinois.

Based in Denver, Pivot Energy offers a range of services and software aimed at serving the full commercial solar ecosystem, including retail customers, project developers, system operators, utilities and financiers, according to the release. The company develops, finances, builds and manages community and commercial solar projects nationwide.

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5/5/20 – Extra Space Storage Inc., a publicly traded self-storage real estate investment trust (REIT) and third-party management firm, has partnered with solar-power company Pivot Energy to add 2.7 megawatts of capacity at 23 of the REIT’s locations in Colorado and Illinois. The environmental impact of the solar projects will be the equivalent of taking more than 600 cars off the road each year, according to a press release.

“Solar is now a big part of our corporate sustainability program, and part of our ongoing effort to be good corporate citizens,” said Joe Margolis, CEO of Extra Space. “Generating rooftop solar-energy production in lieu of using energy from carbon-emitting sources furthers this commitment and leverages a previously unused asset within our portfolio—our rooftops—and provides cost savings from reduced utility expense.”

The REIT began installing solar panels at its facilities in 2010. In 2011, Extra Space became a partner of the Environmental Protection Agency’s Energy Star program, with a goal of improving energy efficiency and fighting climate change through a strategic, corporate energy-management program. It installed solar panels on 21 of its New Jersey facilities that summer as part of a nationwide agreement with 1st Light Energy, a company that specializes in commercial and residential solar-energy systems.

In 2014, Extra Space partnered with Locus Energy, a provider of solar-panel monitoring and data analytics, to help manage the 150 solar-panel systems installed at its properties at the time. Twelve of its facilities in Maryland earned LEED (Leadership in Energy & Environmental Design) Gold Certification in 2015.

Earlier this year, Extra Space surpassed 6.7 megawatts of capacity at 58 properties across nine states, with the help of solar-power partner Safari Energy.

“Extra Space is a demonstrated leader not only in the self-storage market but also in environmental stewardship,” said Rick Hunter, CEO of Pivot Energy. “They are also a leader in the U.S. commercial solar rooftop space. In 2017, alone, they generated over 16.8 megawatt hours through onsite solar panels.”

“Extra Space is a demonstrated leader not only in the self-storage market but also in environmental stewardship,” said Rick Hunter, CEO of Pivot Energy. “They are also a leader in the U.S. commercial solar rooftop space. In 2017, alone, they generated over 16.8 megawatt hours through on-site solar panels.”

Headquartered in Salt Lake City, Extra Space owns or operates 1,568 self-storage properties in 39 states; Washington, D.C.; and Puerto Rico. Its properties comprise approximately 1.09 million units and 119 million square feet of rentable space.

Based in Denver, Pivot Energy offers a range of services and software aimed at serving the full commercial solar ecosystem, including retail customers, project developers, system operators, utilities and financiers, according to its website. The company develops, finances, builds and manages community and commercial solar projects nationwide.

Sources:
PR Newswire, Extra Space Storage Continues Clean Energy Leadership with 65 More Solar Installations From Pivot Energy
Solar Power World, Pivot Energy Bringing 2.7 MW of Solar to Self-Storage Units in Colorado, Illinois

Update 10/28/20 – After eluding police for nearly three months, Molinari was taken into custody on Oct. 23 by U.S. Marshals Service in St. Louis County, Mo. A warrant for his arrest was issued on July 28, according to sources. He's being held at the St. Louis County Jail.

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7/31/20 – New information has been released surrounding the death of Cameron Gray, whose body was found inside a unit at Love's Storage Solutions last week. Three security cameras from the facility captured video and two picked up audio of the shooting, according to police.

Gray and Molinari, who were acquaintances, were inside the unit for about four hours on July 24 while Gray installed vinyl flooring. Footage shows Molinari picking up a handgun, racking it twice and then firing one shot at Gray. He then yelled an insult at him, grabbed a box from the unit and left, investigators said.

Police are still searching for Molinari, who faces charges of first-degree murder, first-degree robbery and two counts of armed criminal action. At one point, he agreed to meet with officers at a fast-food restaurant but failed to show. Molinari has a pending charge for possession of a controlled substance, and prior convictions for theft and the sale of a controlled substance, authorities reported.

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7/28/20 – Police are searching for a suspect after the body of a 28-year-old man who had been shot was discovered inside a unit at Love's Storage Solutions in Bridgeton, Mo., early Friday. Surveillance video shows the driver of a gray Dodge Ram pickup truck plowing through the security gate at 13945 Missouri Bottom Road to exit the facility, according to several sources.

Authorities responded at 4:30 a.m. to investigate the gate breach, then returned two hours later after a facility employee discovered the body. The victim was identified as Cameron Gray of St. Ann, Mo.

Police later recovered the truck, which belonged to Gray. Investigators are still searching for the suspect, Michael Molinari, 27, whose last known address was on Tennyson Avenue in Overland, Mo., sources reported.

Anyone with information about the incident should contact the Bridgeton Police Department at 314.739.7557 or [email protected].

In addition to its Missouri location, Love’s operates one facility in California, one in Las Vegas, and two in Texas. It’s owned by a privately owned company that also operates the Love's Travel Stops & Country Stores chain of more than 500 truck stops and convenience stores in 41 states.

Sources:
KMOV, Police Looking for Overland Man After Finding Body Inside Bridgeton Storage Unit
St. Louis Dispatch, Police Identify Body Found Inside Bridgeton Storage Locker, Still Looking for Suspect
St. Louis Dispatch, Man Found Dead in Bridgeton Storage Locker Was Installing Flooring When He Was Shot by an Acquaintance, Police Say
AP News, Man Charged in Shooting Death at Missouri Storage Unit
Fox2News, Man Wanted for Murder at Bridgeton Storage Locker Taken Into Custody After Evading Police for Three Months
St. Louis Post-Dispatch, Man Wanted for Killing Acquaintance in Bridgeton Storage Locker in July Taken Into Custody

 

 

Jim Bacon, owner of Bacon Self Storage in St. Augustine, Fla., is seeking zoning approval to build a hotel in the wooded area behind his recently opened facility. Plans for Air Tree Inn at 1700 Wildwood Drive include 30 treehouse units connected by an elevated boardwalk. The project would also contain a pool, plus a 5,700-square-foot bar and restaurant that would be open to the public. The rooms would cost $180 per night, with a three-night minimum, according to the source.

Bacon, 55, who opened his storage facility last summer, said he was inspired by the Treehouse Villas at Walt Disney World’s Saratoga Springs Resort. Each of his treehouses would contain a bathroom, bedroom, kitchen and living space, plus a wraparound porch and hot tub.

Because Moultrie Creek flows through the 9.7-acre parcel property, the treehouses and boardwalk would be built on pilings to reduce the impact on the wetlands, according to the developer’s application with the St. Johns County Growth Management Department. The project would be constructed in phases, with rooms opening as they’re complete.

Bacon also owns Bacon Marine Construction LLC, which builds boathouses, boat lifts, bulkheads, docks and seawalls. He’s assisted in the construction of self-storage facilities in Northeast Florida, as well as pedestrian paths, bike paths and bridges in Michigan.

Bacon Self Storage offers climate-controlled and drive-up units, vehicle-storage spaces, and parking spaces that can be rented for the day. Customer amenities include 24-hour access, a dump station and valet services.

Sources:
Jacksonville Daily Record, Treehouse Hotel Project Planned for St. Augustine