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StorageVault Signs Agreement to Acquire Calgary, Alberta, Self-Storage Facility

Article-StorageVault Signs Agreement to Acquire Calgary, Alberta, Self-Storage Facility

StorageVault Canada has entered into an acquisition agreement of purchase and sale for a self-storage facility in Calgary, Alberta. The aggregate purchase price is about $2.96 million*.

The acquisition agreement is subject to a number of conditions, including but not limited to:

  • The completion of due diligence and environmental investigations with respect to the property that must be satisfactory to StorageVault in its sole discretion
  • Satisfactory financing
  • Approval by the board of directors of StorageVault to be given or withheld in its sole discretion
  • If applicable, approval of the shareholders of StorageVault

If all conditions under the acquisition agreement are satisfied, the acquisition is scheduled to close on Jan. 31, 2012.

The payment terms for the acquisition are an initial refundable deposit (about $49,400), a second deposit of the same amount (refundable in certain circumstances) to be paid upon removal of due diligence conditions and a final cash payment of $2.96 million at closing.

The Calgary facility has more than 400 rental units with approximately 35,000 square feet of rentable self-storage space, as well as outdoor spaces for vehicle storage. The total size of the site is approximately 1.50 acres. StorageVault intends to develop and operate a PUPS portable storage business in Calgary in conjunction with the self-storage facility.

In other news, StorageVault has terminated the acquisition agreement for a facility located in Kelowna, British Columbia, because of the inability to satisfy due diligence conditions.

StorageVault currently owns and operates Trans Can Mini-Stor in Regina, Saskatchewan; Kenaston Self Storage in Winnipeg, Manitoba; B&B Self Storage in Cambridge, Ontario; Parksville Mini Storage in the regional district of Nanaimo, British Columbia; and Canadian PUPS in Saskatoon, Saskatchewan. StorageVault also manages five self-storage facilities in southern Ontario and intends to continue to grow its business through the acquisition of additional self-storage properties and the development of Canadian PUPS portable storage facilities.

*Currencies converted to U.S. dollars

The Self Storage Company Opens in the United Kingdom

Article-The Self Storage Company Opens in the United Kingdom

Community members in Waltham Abbey, United Kingdom, hope the opening of a new self-storage facility will spur employment in the area.

While at the ribbon-cutting ceremony Eleanor Laing, a member of Parliament for Epping Forest, said the Self Storage Company on Cartersfield Road will provide space for small-business owners in the area.

The facility, one of 15 the company plans to open in the United Kingdom, includes 600 units. The building was previously occupied by OEP office furniture.

Managing Director Emil Sohrab said it took two years to open the business due to the economic climate.

Sources:

Brokers for the Argus Self Storage Sales Network Close 3 Sales in October

Article-Brokers for the Argus Self Storage Sales Network Close 3 Sales in October

Affiliates of the Argus Self Storage Network, which has 36 broker affiliates in nearly 40 markets, brokered three self-storage sales in October.

Joan Lucas of Joan Lucas Real Estate Services LLC represented the seller of Federal Heights Self Storage in Federal Heights, Colo., just outside of Denver. The property sold on Oct. 18 to a local investor at a capitalization rate of 7.8 percent. Lucas was asked by the seller to price the property so it would sell in six months, and the strategy was successful as the final contract price of $1,020,000 was well above the listed price. The property consists of 44,000 square feet plus a 1,600-square-foot managers residence. Lucas is the Argus broker affiliate representative for Colorado.

Richard Minker and Tyler Trahant of CASE Commercial Real Estate Partners represented the seller of A Plus Western Center Self Storage in Fort Worth, Texas. The 28,685-square-foot facility sold on Oct. 26 for an undisclosed price. The property also includes an additional 1.5 acres of undeveloped land on the front of the property.  Minker and Trahant are the Argus broker affiliates for North Texas.

Chris Hitler of Investment Real Estate Specialists represented the seller and the buyer of Bellevue Self Storage in Bellevue, Wis.  The property sold on Oct. 27 at an 8.4 percent cap rate.  The 51,450-square-foot property was completed in 2004 and offers conventional storage and office/warehouse space.  The buyers, Suamico Mini Warehousing LLC, operate two other facilities in the area.  Hitler is the Argus broker affiliate representative for the state of Wisconsin.

Based in Denver, the Argus Self Storage Sales Network was formed in 1994 to assist owners and investors of self-storage.  

Free Webinar Helps Self-Storage Operators Minimize Expenses, Maximize Profitability Through Tenant Insurance

Article-Free Webinar Helps Self-Storage Operators Minimize Expenses, Maximize Profitability Through Tenant Insurance

Most self-storage facilities have a risk-management plan that includes insurance, but some operators and managers may not realize how they can use insurance to save and even make money. On Dec. 8, 2011, Inside Self-Storage (ISS) and Bader Co. will present a free webinar titled Risk Management in Self-Storage: Using Insurance to Minimize Expenses and Maximize Profitability. The online seminar will teach attendees how to combine the appropriate commercial coverages and a tenant-insurance program to protect their business and add to their bottom line.

The one-hour event will take place at 11 a.m. ET and will include time for Q&A. Open to all self-storage professionals, the webinar is presented by Christy Lewis, senior account manager, and Chuck Dodge, account executive for Bader. Details about the event and the fast, free registration process can be found at www.insideselfstorage.com/webinars .

Bader is a fully licensed provider of tenant insurance, offering point-of-sale, point-of-lease niche insurance products to self-storage and multi-family facilities nationwide. The company has been in business for more than 35 years. In January 2008, it became 100 percent employee owned through an ESOP (employee stock ownership plan) transaction.

For more than 20 years, ISS has provided informational resources to self-storage owners, managers, developers and investors. Its educational offerings include a monthly magazine, annual conferences and tradeshows, an extensive website, an education institute and Self-Storage Talk, the industrys largest online community.

Self-Storage Door and Hallway Manufacturer Janus International Acquires U.S. Door & Building Components

Article-Self-Storage Door and Hallway Manufacturer Janus International Acquires U.S. Door & Building Components

Janus International, a manufacturer of self-storage doors and hallway systems, has acquired certain assets of Orlando, Fla.-based U.S. Door & Building Components, a manufacturer of self-storage building components including rolling doors, corridors, partition panels and more.

Janus President David Curtis expressed his optimism regarding the strategic acquisition. In a joint comment, Curtis and U.S. Door President John McLane said, By combining the various strengths of our two companies, Janus will be able to serve its domestic and international markets more efficiently. We have high expectations for Janus future opportunities in the self-storage and industrial door industries.

McLane will assume the position of vice president at Janus and will continue to work out of the Orlando facility, which will become Janus fifth U.S. operational location.

Janus manufactures rolling steel doors and coiling sheet doors for the industrial, commercial and self-storage markets. Headquartered in Temple, Ga., the company has four other U.S. locations as well as joint ventures in the United Kingdom and Mexico.

S.C. Self-Storage Facility Uses Sign to Support States Football Team, Attract Tenants

Article-S.C. Self-Storage Facility Uses Sign to Support States Football Team, Attract Tenants

A self-storage facility in Fort Mills, S.C., is using its facility sign to cheer on its state football teams season and attract notice.

A Lock-It Self Storage, which has locations in Pineville also, regularly posts comments from the facility owner, tenants and other community members regarding the Carolina Panthers football team.

Short quips such as They might come marching in but they will limp back when the team played New Orleans, reference team players, wins and upcoming games. Another retort, One is a lonely number, referred to the Panthers lone win in the beginning of the season.

Facility owner Mitch Clark and his father Joe began adding the humorous one-liners to their facility signs about 13 years ago. While the facility has received some criticism for its wisecracks, the majority of community members are supportive. In addition to supporting his football team, Clark said the sign has also attracted prospective tenants.

Sources:

Stor-Age Self Storage Develops New Facility in Kempton Park, South Africa

Article-Stor-Age Self Storage Develops New Facility in Kempton Park, South Africa

Stor-Age Self Storage recently began development on a new self-storage facility in Kempton Park, South Africa. Once completed, the facility will feature nearly 700 self-storage units ranging in size from 3 square meters to 60 square meters. In total, the facility will offer 9,500 square meters of storage space on two floors.

The new self-storage facility is one of several the company plans to open next year. The development is part of Stor-Age's strategy to establish its brand in high-profile locations in South Africa's Gauteng province, company officials said. The Kempton Park facility is near a mall and has prime visibility on a corner lot.

Stor-Age is the largest self-storage company in South Africa with a portfolio of facilities in operation and under development.

Talonvest Capital Negotiates $12.4M in Self-Storage Loans for 3 Facilities

Article-Talonvest Capital Negotiates $12.4M in Self-Storage Loans for 3 Facilities

Talonvest Capital Inc., a boutique real estate adviser serving clients throughout the United States, successfully negotiated and closed $12.4 million in  fixed- and floating-rate, nonrecourse loans secured by self-storage properties in Southern California, Chicago and Philadelphia.

Talonvest procured $4 million of permanent debt for Enterprise Self Storage on an approximate 53,000-square-foot facility in Glendale, Calif. The volatile lending market made this assignment challenging as some lenders have been changing loan terms or backing out of loans because of the turbulence in the capital market. Brandon Varone of Enterprise Self Storage said, When one lender backed out of my loan at the last minute, Talonvest put their capital market relationships and knowledge to work and found a lender that would close.

In another assignment, Talonvest arranged a $5.5 million floating-rate loan secured by Devon Belmont Self Storage, a 103,000-square-foot self-storage property in Philadelphia. Talonvest was able to deliver a non-recourse loan with interest-only payments and prepayment flexibility even though the property is in lease up. Ken Nitzberg, president of Devon Self Storage, said, Even in this volatile market, Talonvest delivered on an interest only, non recourse loan at 4.75 percent."

Most recently, Talonvest negotiated a $2.85 million loan secured by an 110,000-square-foot self-storage facility in the south suburbs of Chicago. Brian Shniderson of RTI Properties said the new loan resulted in a large decrease in their loan rate and Talonvest provided a very creative solution for their financing need.
Eric Snyder and Jim Davies, principals of Talonvest Capital, structured and negotiated all of these financings. Talonvest is based Costa Mesa, Calif.

Storage Post Self Storage Wins Design Award for Brochure

Article-Storage Post Self Storage Wins Design Award for Brochure

Storage Post Self Storage was presented a Silver Flame Award from the International Association of Business Communicators (IABC). The company's 2010 Operational Excellence Corporate Identity Brochure was recognized for its design at the silver level. Susie O'Connell, Storage Post's vice president of communications, accepted the award at the Oct. 27 Golden Flame Awards Gala at the Fox Theatre in Atlanta.

"It's an honor to receive an IABC Flame Award, particularly considering the talented communications market within metro Atlanta and the southeast. We look forward to additional success in our approach to branding self storage," O'Connell said.

The Golden Flame Awards Program is an annual contest open to professional communicators in Atlanta, Macon, Birmingham, Charlotte and other southeastern areas in Georgia. The program seeks to distinguish excellence in communications in businesses ranging from non-profit to Fortune 500 companies. Entrants submit materials in specific categories, such as print, electronic media and graphic communications, which are then judged on a point system.

The objective of Storage Posts brochure was to familiarize the industry with the changes to Storage Post's brand and corporate strategies, as well as publicize the company's operations and marketing philosophies.

The identity brochure helped define the parameters of Storage Post's emerging business model and expanding executive team. The strengths of Storage Post's new leadership were distilled into a targeted and carefully-designed piece that has continued to positively affect the brand.

Headquartered in Atlanta, Storage Post has locations throughout the East Coast and is actively pursuing self storage acquisitions. 

ISS Blog

Moving Forward in Idaho: Self-Storage Operators Should Support Legislation Reversing the State's Purchase of a Facility

Article-Moving Forward in Idaho: Self-Storage Operators Should Support Legislation Reversing the State's Purchase of a Facility

By Matthew Van Horn

Within the last year, I've written a few blogs in reference to a decision by the state of Idaho to purchase a self-storage facility and operate that facility as an entity of the state. Here's a review of the seven reasons why this is a bad idea for our industry.

  • Tax-free operation : No property taxes will be paid by this state-owned facility, period.
  • Experience : The state has no experience in the self-storage industry.
  • Lack of accountability : The rest of us have to be accountable on an individual basis to investors or financial institutions. Who is held accountable for this facility and to whom?
  • Competition: What will hold the state back from limiting competition from its new self-storage facility?
  • Bail out: With the government as an investor, a bailout is always possible. No fear of the facility being disposed of through the market if it fails financially.
  • Consumer backlash: How many people do you know that will not buy a GM vehicle because of government ownership?
  • Innovation: The government has a horrible record when it comes to innovation.

When this story first came to light, the national Self Storage Association (SSA), along with the Idaho Self Storage Association (IDSSA), obviously had some issues with this purchase. In addition to the seven issues outlined above, George Beacon, the head of the Idaho Department of Lands, was quoted by the Associated Press as saying, We dont have a whole lot of commercial property ... We see that as an area to build diversity in our land portfolio."

This should send a chill down the back of every self-storage operator in the United States. So does this mean the state has identified other commercial properties for acquisition? On my next trip Idaho should I expect to stay in the Idaho State Marriot? The government has to own some land. No one expects the Pentagon to move every 10 years because it cant negotiate a lease.

Where my understanding stops is when the entity that makes the rules starts competing with the people that have to follow the rules. There's so much room for this to be abused its insane. Governments are not perfect entities. They're managed by people that have the same fears and insecurities and make the same errors as we all do.

The problem is, in this situation, instead of making mistakes and having to pay for them, the state could just as easily adjust laws, ordinances and taxes to make up for the fact that they're not experienced operators. Honestly, how many of you would love to operate your self-storage facility without having to pay property taxes? Well, your local Idaho state-owned self-storage facility doesnt have to pay them. Not a bad perk.

In February, House Bill 188 was introduced into the Idaho State House. The bill states,

PUBLIC LANDS - Amends existing law relating to public lands to revise the powers and duties of the State Board of Land Commissioners to provide that, except where land is used by a public entity for a public purpose, all nonagricultural improvements shall be leased to private persons and all business operations shall be sold to private persons; to revise provisions relating to the deposit of proceeds from the sale of state endowment lands; to provide for the allocation and deposit of such proceeds and earnings thereon in specified permanent endowment funds and to remove provisions relating to authorization for the State Board of Land Commissioners to hold proceeds from the sale of land for a specified time."  

Should it pass, this bill will curtail any more self-storage purchases by the State of Idaho and, hopefully, send a strong message to other states contemplating this type of endeavor.

Unfortunately HB 188 has languished in the House since February. The SSA and the IDSSA are making a push to have this legislation passed. We should all work together to help them on this issue. Please contact either of these entities to see how you can help.

You might think, I dont live in Idaho," but this could just as easily happen in Arizona, Florida or any state. When one state gets an idea like this and pushes forward, it encourages other states to use the same bad idea. As hard working self-storage operators and investors, we cannot allow that to happen.  

Support Your State Association

One of the themes this story highlights is the importance of your state self-storage association. A majority of these types of issues happen on a state level. The national SSA is a wonderful support structure, working directly on issues that deal with the federal government and help support the state associations. But when it comes to individual state laws, your state association is the first line of defense.

State and local municipalities are typically the entities that adjust sales taxes, property taxes, lien-sale laws, occupational licenses and building codes. These are all items that affect you, the independent operator, on a regular basis. Your state must have a strong self-storage association to help in the fight against unfavorable legislation. I'm a member of the Florida Self Storage Association (FSSA). Over the past year, the FSSA has pushed for changes in Floridas lien-law structure and helped independent operators with property tax issues.

We're all in the process of finalizing our budgets for 2012. Take a look at your projections and budget a small amount of money to join your state association. The cost is typically $200-$400 per year depending on your state. The membership fee is so small when compared to a 1 percent increase your states sales tax or unwelcome changes to your states lien laws. The more proactive we are as a group, the less likely unfavorable legislation will affect our industry.   

Matthew Van Horn is vice president of Cutting Edge Self-Storage Management , a full-service management company specializing in management, feasibility studies, consulting and joint ventures within the self-storage industry. For more information, visit  www.cuttingedgeselfstorage.com. 

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