Cascade Storage Partners LLC, a Charlotte, N.C.-based self-storage developer, and Jernigan Capital Inc., a merchant bank and advisory firm serving the same industry, intend to develop an 88,838-square-foot facility in St. Paul, Minn. The five-story, climate-controlled structure is proposed for 2109 University Ave. Construction is expected to begin during the second quarter of 2018, with completion scheduled for the second quarter of 2019, according to a press release.

Jernigan has committed $12.6 million toward the project, its sixth co-investment with either Cascade or its affiliates, including Colorado-based developer Pamlico Investments Inc. Those projects include a 75,000-square-foot facility in Denver. Pamlico also has an office in Charlotte and is focused on self-storage development in the top 75 U.S. Metropolitan Statistical Areas, according to its website.

University Avenue connects downtown St. Paul with downtown Minneapolis. The University of Minnesota and its medical center are about three miles from the site, which is passed by an estimated 20,000 cars daily, the release stated. In addition, a light-metro line carries 30,000 passengers per day along the avenue’s median, connecting the Union Depot train station in St. Paul with the Target Field baseball stadium in Minneapolis.

The submarket population is about 180,000 people, with 56 percent estimated to live in multi-family housing. Jernigan estimates there is 4.5 square feet of self-storage per capita in the area, making it underserved. The market also features a wide range of dining, entertainment and retail choices, according to the release.

Jernigan Capital is a commercial real estate finance company that provides financing to private developers, operators and owners of self-storage facilities. It offers financing for acquisition, ground-up construction, major redevelopment or refinancing. Since Jan. 1, the company has closed 27 self-storage investments totaling more than $357 million. It typically holds a 49.9 percent profit interest in its joint-venture transactions, according to company officials. The firm intends to be taxed as a real estate investment trust and is externally managed by JCap Advisors LLC.

Phoenix-based U-Haul International Inc., which operates more than 1,300 self-storage locations across North America, is converting a former Kmart store to self-storage in Sioux City, Iowa. The company purchased the 45-year-old store at 5700 Gordon Drive in August. It plans to open a temporary showroom featuring moving and packing supplies, and truck and trailer rentals next month, according to the source.

The 105,000-square-foot building will be transformed into climate-controlled self-storage and a retail center. U-Haul will also construct two self-storage buildings on the northeast quadrant of the property. The full renovation is expected to be complete in spring 2019, the source reported.

Built in 1972, the store was one of the first national big-box retailers to open in the city. It closed last March. The property is on the east edge of the city, next to a Menards grocery store and near the intersection with U.S. Highways 20 and 75.

U-Haul has several conversion projects underway, including Kmart and JCPenny stores in several states.

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

Over the last decade, I’ve had the privilege of working alongside some of the most well-trained and experienced managers in the self-storage business. I’ve also had the opportunity to learn from some of the industry’s best training coaches. What’s interesting is how the tools and procedures involved in operating a storage property change over time. For example, think about technology and lien laws. However, one thing remains the same: the basic skills necessary to be a well-rounded, successful facility manager.

Today’s site manager must be able to handle a wide range of duties, from general customer service and facility maintenance, to marketing and generating leads, to closing rentals and collecting rent. In this article, I’m going to discuss the traits that are essential to excel in all aspects of the manager role and successfully operate a self-storage property. Following are the top 10.

1. Confidence

In today’s world of self-promotion, it’s critical to seize every opportunity to endorse yourself. Nobody is going to do it for you—you must be your own voice. However, the tone of voice matters, too. Are you pushy? Do you come off as snooty or, as we say in the South, “better than thou”? If you’re not sure, ask some colleagues to assess your approach so you can find out where you rank between confident and aggressive. You can then adjust to that midline accordingly.

Don’t forget how important it is to also have confidence in your business. You should know your facility inside and out, and get to know your community and competitors. Once you’ve built a good level of confidence in your product, you’ll be able to better and more effectively sell it against the competition in your market. You’ll know what differentiates you from the rest, and you’ll define the ways in which you and your facility can better serve customers’ needs.

2. Effective Communication Skills

Managers are the front-line representatives and stewards of a multi-million-dollar business, and they need to act, speak and write as such. Do your writing skills need some polishing, or perhaps your speaking skills need clarity? Do your customers ever say “Huh?” when you’re giving your sales speech? Or worse, do their eyes glaze over, or do they lose interest? Have you ever sent an e-mail that you later cringed upon reading it? Has someone responded and pointed out grammatical and spelling errors? If so, this advice is for you!

Managers should seek and engage in activities and classes that will help them improve their speaking and writing skills. Your facility deserves to be spoken of and written about in a manner that will best showcase what you have to offer, rather than produce any embarrassing moments for you or your owner.

3. Revenue-Management Know-How

When do you raise your current customers’ rental rates? When do you raise your street rates? Do you set your pricing based on what the larger operator down the street is doing? If you’re unsure of these answers, you need to brush up on your revenue-management skills.

While the real estate investment trusts use algorithms and programming to change their rates on the fly, most storage managers rely on the old-fashioned method of competitor research, and supply and demand. If you don’t actively use proximity pricing, perceived discounts and rate-increase letters to manage your gross possible income, you have some homework to do! Reach out to the various self-storage associations and management or consulting groups to learn more about effectively managing revenue.

4. Impeccable Time-Management Skills

Think fast: You’re in the middle of signing a new lease with a customer and the phone rings. At the same moment, a tenant walks in to make a payment. What do you do? If you answer the phone, you may need to rethink your priorities and the message you’re sending to your customers.

When you’re working with a customer and the phone rings, let the answering service or machine pick up. The lease you’re writing is a legal document, and the customer in front of you is the proverbial “one in the hand.” Besides, how important does the new customer feel when you’re distracted by the phone? Definitely not like he’s important to you, that’s for sure! Let the phone ring. You can always get back to the caller later or, better yet, if you have a call-center service, it’ll be served anyway.

If a tenant walks in to make a payment while you’re signing a new rental agreement, go ahead and say “excuse me” to the lease customer and take the payment as quickly as possible. This does two things: It reinforces to the new customer that you consider all tenants valuable and worthy of attention, and it gets the rent-paying customer dealt with and out of the way so you can return to the task.

Let’s try another scenario. You’re on duty alone and need to accomplish the following: place red locks on the units of past-due tenants, process the pile of payments that arrived by mail that morning, and sweep out newly vacated spaces. If you chose to sweep units and apply red locks first, you may need to reconsider your process.

A manager with good time-management skills will know that processing all the payments first will potentially alleviate the need for some of the red locks, reducing time spent on the property. Sweeping vacated units will always be a task that can be deferred until later, unless you’re lucky enough to be full and need the space right away. If that’s the case, then sweep and re-rent the unit as soon as possible!

5. A Great Attitude

Being positive and upbeat can take you much further than simply having skills alone, most of which can be taught anyway. Strive to present yourself in a positive manner. Display that “can-do” attitude to your customers and co-workers. Tenants will appreciate your willingness to do what it takes to make them happy, and your co-workers (and boss) will welcome your disposition to do what it takes to reach success.

6. A Desire to Keep Learning

Today’s self-storage manager needs to continually improve his skill set. This includes speaking and writing, revenue management, time management, and more. These are all skills that not only require learning but continual honing to stay sharp and effective.

Don’t be afraid to continue to learn. There’s always something new and inventive on the horizon in this industry, and the threat of being left behind with antiquated procedures and technology is very real. Stay abreast of the newest innovations and you’ll be less likely to be out of touch or in the cold when the next trend comes to town.

7. Honesty and Candor

Honesty is becoming a rare trait in today’s world. We’re beset on all sides by “he said, she said” scenarios. When you come across an individual who’s not only honest and transparent but straightforward and genuine (especially in a sales situation), you know you’ve found a rare gem. People are attracted to folks who are authentic.

In self-storage, we know people tend to store their belongings with the facility at which they feel comfortable and the manager they feel they can trust. Be that person. Be impeccable with your word and honest with the things you say. I doubt you’ll ever lose a sale because you weren’t smarmy or deceitful.

8. Consistency

Being consistent, but not rigid, is an asset to your self-storage facility. Lien laws and all other procedures rely on a certain level of constancy to remain intact. Having one rule for everyone is a great policy when enforcing late fees and the other regulations of your rental agreement. It’s hard for a customer who’s perpetually late in paying rent to argue against a late fee when you apply this rule to everyone. However, flexibility comes into play here, too. If a long-term customer comes upon some trouble and doesn’t pay on time, you may wish to waive his late fee this one time.

9. Sales Skills

When I speak of closing with each customer, I mean it in two different ways. The most obvious way to “close” is by converting walk-ins, phone calls and e-mail/website inquiries to leases. That’s the goal for every manager. Signing leases is our core business. Without the ability to close on leads, you can’t lease units, driving occupancy and income. Customers will inherently choose to store with a facility and manager team with which they feel a certain level of comfort and trust. Being a pushy salesperson will foster neither of those feelings. However, you can use guided discussions, advice and your local market expertise to build those feelings and close 90 percent or more of your leads.
The second way to close with each customer is to end the conversation with his confirmed satisfaction—or as close as you can get—so he feels everything has been handled or will be soon. After each interaction with a customer, check to ensure he’s satisfied with the results of the conversation before hanging up or letting him walk away.

A simple statement such as, “Thank you, Mr. Smith. Is there anything else I can do for you today?” will open the door to the phrase you want to hear, “I’m all set!” Getting the customer to that point demonstrates two very important things. First, it shows you care about getting it right. Second, it expresses that you’ll keep going until you do get it right. This should be your goal—to positively close every conversation by providing superior customer service, not simply signing a lease.

10. A Great Handshake and Warm Smile

These are essential tools that must be included in every self-storage manager’s toolkit. In today’s world of high-tech communications that keep participants hidden behind the shroud of computer screens and mobile devices, it’s a shame that these key elements of deal-making and confidence-building are lost in the tidal wave.

On the bright side, this is your opportunity to shine! Use your handshake to build confidence in your character and business, while inspiring comfort and trust with your warm smile. Using these tools from the golden age of sales and service can help wavering customers feel secure in deciding to do business with you. Plus, you’ll stand out in the sea of key-turners and gate-keepers found behind the desks of your competition.

Being a successful self-storage manager doesn’t happen overnight. Rather, it’s a continual work in progress. Savvy managers know they don’t know everything, and they never will. Successful managers are those who can take what they do know and actively apply it to boost their business. They also seek ways to create those improvements, in their facility and within themselves.

Stacie Maxwell is vice president of marketing and training for Universal Storage Group, a provider of self-storage management, education and development services. With more than 16 years of experience in the storage industry, she oversees the branding, design, marketing-program planning and implementation for the company, including all offline and online marketing. For more information, call 770.801.1888; visit www.universalstoragegroup.com.

Update 11/29/17 – East Rutherford officials have proposed new zoning regulations that would make self-storage an allowed conditional use in the borough’s I Light Industrial District. Language in the district’s current land-use code is ambiguous in relation to self-storage, so the proposal would set development conditions and design standards, according to the source.

The zoning district comprises what’s known locally as the Murray Hill Parkway Corridor, extending east of Dubois Street and north toward Manor Road. Part of the borough’s reasoning to define self-storage as a conditional use is to ease the permitting for the “re-purposing of abandoned or underutilized industrial spaces” in the district, the source reported.

New self-storage facilities in the district would have a minimum lot size of 175,000 square feet. New structures would have to be designed to look like multi-family or office buildings, with height restricted to four stories. To ensure structures blend aesthetically with nearby residences, design standards would also be established for exterior windows, façades, fencing and walls, landscaping, and other elements.

Conditions would also extend to facility operation, including a provision prohibiting units from being used for “residences, office space, workshops, studios, hobbies, retail or rehearsal areas,” according to the source. Self-storage sites would also have to be closed between midnight and 6 a.m., except for rental-truck drop-offs and “restricted, tenant-only access.”

Projects proposed with ingress or egress from a state highway would have facility access restricted to and from the highway, with traffic circulation prohibited from non-highway streets, the source reported.

A public hearing on the zoning proposal is scheduled for Dec. 19.

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11/30/15 – A new ordinance introduced Nov. 16 by the mayor and city council in East Rutherford, N.J., adds several regulations to self-storage developments and restricts facilities to state highways, according to the source. A site-plan review is now required for new construction and expansion projects. Restrictions include the prohibition of electrical outlets inside units and a ban on operating hours between midnight and 6 a.m. The ordinance also limits building height to “60 feet from Route 17 elevation” and five stories. One parking space will be required per 17,000 square feet.

The new rules also impose restrictions on construction materials and design. The ordinance prohibits prefabricated buildings, unfaced concrete block, tilt-up and precast concrete panels, and painted masonry, according to the source. Barbed-wire and chain-link fences are also banned, along with walls constructed of recast concrete blocks.

Facilities must use design features common to commercial and/or multi-family developments. The ordinance cites examples for exterior building materials and detailing, façade modulation, fenestration, massing, pedestrian scale, proportion, repetition and varied roof lines, the source reported.

Sources:
NorthJersey.com, East Rutherford Updates Self-Storage Code, Hearing New Proposal for Route 17 Site
NorthJersey.com, East Rutherford Amending Regulations for Self-Storage Facilities

Self-storage properties are constantly changing hands, and Inside Self-Storage is regularly notified of these market transactions. Many are covered in detail on the ISS website and available for viewing on the “Acquisitions and Buying” topics page. Following are additional acquisitions and sales that weren’t covered.

A Plus Mini Storage in Navarre, Fla., was sold to National Storage Affiliates Trust (NSAT), a real estate investment trust (REIT). The facility at 7030 Navarre Parkway comprises 91,825 rentable square feet in 751 units. The buyer and the seller, W.M. Bell & Co. of Santa Rosa County LLC, were represented in the transaction by Bill Barnhill and Shannon Barnhill Barnes, both broker affiliates for the Argus Self Storage Sales Network.

Alcom Mini Storage in Cherryville, N.C., was sold to an out-of-state buyer. The 4-acre property at 243 Dick Beam Road comprises more than 20,000 rentable square feet of space in 123 traditional and vehicle-storage units. It also contains a rental office and a 5,000-square-foot warehouse. The facility opened in 2007, with the latest expansion in 2010, and has room for more growth. The seller was represented in the transaction by Michael Morrison, an associate broker with real estate firm Midcoast Properties Inc.

Barracuda Boat & RV Storage in Gainesville, Fla., was sold for $2.3 million. The 36,720-square-foot facility at 6401 N.W. 120th Lane was renovated in 2007 and includes a mix of traditional storage units, covered vehicle spaces and outdoor parking. The seller was represented in the transaction by Gabriel Coe, Nathan Coe and Brett R. Hatcher, investment specialists with Marcus & Millichap (M&M). They were assisted by M&M broker Kirk Felici.

EZ Storage in Eastpointe, Mich., was sold to an out-of-state limited liability company (LLC). The property at 21500 Gratiot Ave. comprises 65,810 square feet. The buyer and the seller, also an LLC, were represented in the transaction by Hatcher. Fellow broker Steven Chaben assisted.

Franz Road Self Storage in Katy, Texas, was sold to a Houston-based LLC. The property at 23012 Franz Road contains 274 units. The buyer and the seller, a personal trust, were represented in the transaction by Dave Knobler, first vice president of investments for M&M.

Ivy Ridge Self Storage in Fisherville, Va., was sold for $1.4 million to a private investor. Built in 2007, the 2.3-acre property at 68 Ivy Ridge Lane is comprised of six metal buildings consisting of more than 190 units, including 31 that are temperature-controlled. The property also includes a 475-square-foot rental office and some additional office space for lease. The seller was represented in the transaction by Investment Real Estate LLC (IRE).

King Arthur Self Storage in Draper, Utah, was sold. The facility at 14039 Minuteman Drive comprises 118,500 square feet of storage space in more than 1,000 units. The seller was represented in the transaction by Jonathan Cutler, an affiliate agent for The Storage Acquisition Group (TSAG).

The four-property Max Value Self Storage portfolio in Atlanta was sold to an out-of-state buyer. The facilities sit on more than 15 acres of land and contain more than 79,000 rentable square feet of space in 571 traditional and climate-controlled units. The portfolio also includes a rental office, retail space, an apartment and two development sites. The seller was represented in the transaction by Morrison.

Maximum Security Self Storage in Waymart, Pa., was sold for $957,500 to a private investor. Opened in 1986, the 4.4-acre property at 582 Roosevelt Highway comprises five buildings containing more than 170 climate-controlled and drive-up units. It also includes outdoor vehicle parking, two retail areas and a rental office with a kiosk. The property was most recently enlarged in 2010, and can be expanded by another 10,000 net rentable square feet of space. The seller was represented by George Hatchard, a brokerage advisor for IRE.

Ranch Self Storage in Mesa, Ariz., was sold for $2.8 million to Wentworth Property Co. LLC. Built in 1979, the 2.3-acre property at 1930 S. Pennington St. includes seven buildings containing 41,700 square feet of space in 367 units. The buyer and the seller, an LLC controlled by four local investors, were represented in the transaction by Bill Alter, managing director of Rein & Grossoehme.

Storage Depot in College Station, Texas, was sold to an LLC. The 4.56-acre property at 11990 Old Wellborn Road was built in 1993 and renovated in 2014. The property comprises 37,260 rentable square feet of space in 272 units. The buyer was represented in the transaction by Knobler. The seller, an LLC, was represented by M&M Senior Associate Nicholas Ling.

A two-property U-Stor-It Self Storage portfolio in Mobile, Ala., was sold. Located within 3 miles of one another, the facilities total 80,800 net rentable square feet of space in 526 drive-up units. The buyer and the seller, an out-of-state investor, were represented in the transaction by Nick Walker, executive vice president and managing member of the Self Storage Advisory Group for CBRE Group.

Argus is a Denver-based network of real estate brokers who specialize in storage properties. Formed in 1994, the company has 36 broker affiliates covering nearly 40 markets.

CBRE Group, a Fortune 500 and S&P 500 company headquartered in Los Angeles, employs approximately 70,000 employees, excluding affiliates, and serves real estate investors, occupiers and owners through more than 400 offices worldwide.

Since its inception in 1998, IRE has provided brokerage, construction, development and management services to self-storage owners and investors.

Founded in 1971, M&M is a commercial-property investment firm with more than 1,500 investment professionals in offices throughout Canada and the United States.

Midcoast Properties offers brokerage services to self-storage owners and investors in the Carolinas and Georgia.

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 512 storage facilities in 29 states.

Founded in 1993, Rein & Grossoehme specializes in the sale of investment properties and retail as well as office and industrial leasing.

Based in Yorktown, Va., TSAG represents a private real estate investment fund that's solely focused on acquiring self-storage facilities. Sellers deal directly with the purchaser with no intermediaries and pay no sales commission.

Phoenix-based Wentworth Property has developed more than 7 million square feet of commercial office and industrial space. Its portfolio includes build-to-suit, conversions and ground-up developments.

Westport Properties Inc. (WPI), which operates 122 self-storage facilities under the US Storage Centers brand, will develop a new facility in Compton, Calif., as well as provide beautification and infrastructure support within the community. The storage structure at 1901 W. El Segundo Blvd. will comprise 186,000 square feet in 1,390 units. The project, which includes upgrades to Parmelee Pocket Park and its sports fields, is expected to begin during the first quarter of 2018, with completion expected during the first quarter of 2019, according to a press release.

The facility will feature climate control, drive-up access, elevators, gated access, video cameras and units with individual alarms. It’ll also offer moving carts and a retail center selling boxes and moving supplies.

WPI worked closely with councilmember Janna Zurita on its proposal. In addition to the storage facility, the company will provide several park upgrades, including new landscaping, equestrian-style fencing, an irrigation system, lighting and seating areas. WPI also committed to making a donation to the Compton Little League and working with the city to hire local labor for the project, the release stated.

“The Compton community has been a great partner to our company in bringing this development to life. We want to thank councilwoman Zurita and the residents of Compton for their meaningful feedback through the approval process," said Charles Byerly, president and CEO of WPI. “We are committed to the city and its people, partnering with the community to make a difference in creating something for all to enjoy.”

The Compton facility will be WPI’s 25th owned location in the Greater Los Angeles area.

Founded in 1985 and based in Irvine, Calif., WPI is a real estate investment company that acquires, develops and operates self-storage facilities as well as provides third-party management services. Its portfolio comprises 8 million rentable square feet in 15 states.

ezStorage Corp., which operates 52 self-storage facilities in Maryland, Virginia and Washington, D.C., has opened a new facility in Alexandria, Va., it’s first location in the city. The property at 3640 Wheeler Ave. features interior, climate-controlled units in a range of sizes, and a retail office that sells moving and packing supplies. Security measures include controlled access, individually alarmed units and video cameras.

The site offers extended gate hours, 6 a.m. to 9 p.m., every day. Units are also accessible after hours via an individual code, according to a press release.

Earlier this year, ezStorage opened a newly constructed facility in Columbia, Md., its second in the city. The property at 9002 Red Branch Road contains climate-controlled units ranging in size from 25 to 300 square feet. Security features include computer-controlled gate access, unit-specific pass codes and video cameras.

Based in Columbia, ezStorage was founded in 1987. The company’s portfolio comprises more than 41,000 units.

Update 3/19/18 – Safeguard Self Storage has opened its new facility in the village of Miami Shores. The site is about six miles north of the company’s Design District location in Miami. The new site is managed by Arnoldo Montenegro and Brian Rangel, according to a press release.

“The location of this facility, immediately adjacent to [Interstate] 95, trumpets the Safeguard brand and is impossible to miss. This facility will help Safeguard attain critical mass in this important market,” said CEO Mark Degner.

Safeguard has been in the Florida market since opening its first facility on West Hillsboro Boulevard in Coconut Creek in 2002. “These 13 facilities, located in the Miami/Dade and Broward Counties, provide great name and brand recognition and a critical mass for the company,” said Ken Finlay, executive vice president of operations.

The company has five additional properties in various stages of development in the state as well as 13 other projects underway in Illinois, Louisiana, New York, New Jersey and Pennsylvania, according to Goonan.

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4/13/2016 – Safeguard Self Storage, which operates facilities throughout the eastern states, has purchased 1.75 acres of land in Miami on which it plans to build a new facility. Once complete, it will be the company’s 15th self-storage facility in South Florida and 75th nationwide.

The parcel at 11459 N.W. 7th Ave. is just west of Interstate 95 in the village of Miami Shores. The three-story facility will comprise 74,875 square feet of storage space in 948 units, which includes three buildings encompassing 14,100 rentable square feet of drive-up storage. It will feature 12 parking spaces, climate control, computer-controlled building access, a drive-up loading area and video cameras.

Safeguard acquired the land from Donald Kressly and Gary Sisler of I 95 Frontage LLC. The facility will be designed by Sullivan Goulette & Wilson Ltd. Alberto J. Torres, an attorney with Holland & Knight, represented Safeguard during the application process.

“The Florida market is important for Safeguard, and this purchase will build on the company’s efforts to develop real critical mass there. We have been building in Florida for well over a decade,” said Jim Goonan, senior vice president of development.

Safeguard has another property under construction just south of Miami Shores in the community of Allapattah. It’s expected to open next year. The company also opened another Florida facility in 2015 and expanded two others in Miami.

Founded in 1989 and headquartered in Atlanta, Safeguard operates facilities in Florida, Illinois, Louisiana, New Jersey, New York and Pennsylvania. The company is owned and operated by Morgan Stanley’s Prime Property Fund.

Sources:
OpenPR: Safeguard Self Storage Purchases Land for New Facility in Miami Shores, Florida
South Florida Business Journal: Safeguard Storage Plans Facility Off Interstate 95 in Miami-Dade
Chicago Evening Post, Safeguard Self Storage Expands in Florida