Lighthouse Storage, which operates three self-storage facilities in Indiana and one in Kentucky, is seeking zoning approval to build a new location in Henderson, Ky. The property along U.S. Highway 60 E. and across from the Balmoral Acres residential subdivision is owned by Dr. David and Peggy Watkins. The Henderson City-County Planning Commission will hold a public hearing Nov. 6 to discuss the proposal, according to the source.

Plans include demolishing an existing house on the 4.8-acre property to create an entryway and address at 2429 U.S. Highway 60 E. for the storage facility. The site would contain 11 buildings ranging from 2,054 square feet to 14,952 square feet, some of which will be climate-controlled.

The city’s zoning language was recently amended to allow self-storage in areas zoned for neighborhood business. However, there are strict regulations compared to development in places zoned for light or heavy industrial. “It’s a bit of a change of pace,” said Brian Bishop, planning commission executive director. “Normally, storage units are allowed in a light or heavy-industrial zone, and they are less aesthetically pleasing is the best way to describe it, where this zoning allows for more aesthetically pleasing buildings and structures and fences.”

The new regulations also place emphasis on how the business will fit with the surrounding area. “You have limitations such as hours of operation, and screening is much more heavily enforced,” Bishop said. “It’s trying to strike a delicate balance. We’re trying to find a way to address a need in the community and a way to protect the neighbors at the same time. The idea is to let someone maximize their property to the fullest extent, and then still protect the neighbors, which is the whole goal of the planning commission.”

Additional restrictions for self-storage include inward-facing unit doors and limitations on business hours. The building design, fencing, landscaping, lighting and signage are also addressed in the zoning text.

In its initial plans, Lighthouse Storage presented a “green giant arborvitae” with a mature height of 25 to 30 feet as well as boxwood bushes around the perimeter. A retention pond would be located on the site’s north end, and the monument sign wouldn’t exceed six feet tall. Outdoor storage would also be prohibited.

The open field on the site is at a lower elevation than the roadway, which could provide natural screening for the storage business, Bishop said. “The design and the exteriors of the building also have to match the surrounding areas, which is subjective and open to interpretation by the planning commission and the board of zoning adjustment,” he added.

The city codes department, attorney, planning commission and its staff worked together to amend the zoning language to allow self-storage in neighborhood business areas. “From everything that we have heard—the planning commission staff and the city codes staff—there seems to be a need for high-end storage units such as this,” Bishop said. “These are more climate-controlled, where the units we have traditionally in Henderson are more of an industrial nature. These are more likely for people who have downsizing needs.”

If the rezoning is approved by the planning commission, the project will need a conditional-use permit from the board of zoning adjustment. A detailed site plan will also need to be approved by the planning commission.

“There are numerous opportunities to grant this application while hand-crafting a development that meets the goals of the comprehensive plan,” attorney Chris Hopgood wrote in documents submitted to the planning commission on behalf of the Watkinses.

Lighthouse operates facilities in Boonville, Evansville and Tell City, Ind., and Shepherdsville, Ky.

Source:
The Gleaner, New Type of Storage Facility Proposed Near Balmoral Acres in Henderson

 

Self-storage owners Kevin and Monica Gingerich have opened Affordable Self-Storage in Woodburn, Ind. The property at 4550 N. Webster Road comprises 96 units in three storage buildings. The design includes movable partition walls to accommodate different unit sizes as needed, according to the source. The property offers traditional drive-up units with 24-hour access.

The facility is near Woodlan High School at the corner of Webster Road and Old U.S. 24. The site is in Allen County, about four miles west of Woodburn. It will also serve the communities of Harlan and New Haven, Ind., and Fort Wayne, Ohio.

The couple also owns Leo Mini Storage in Leo, Ind., which has climate-controlled unit options. The Gingeriches acquired the Leo property in 2012 and began seeking a second location after running out of expansion room, the source reported. They settled on the Woodburn site after spending several years looking to either buy an existing business or develop a new facility.

Kevin Gingerich became interested in self-storage after spending 26 years working in the concrete business. He retired from the concrete industry in 2016 and now handles property maintenance at the storage facilities. Monica Gingerich oversees the managerial duties. The couple has two children.

Source:
West Bend News, New Self-Storage Facility Near Woodlan High School

Shurgard Self Storage Europe SARL, the European affiliate of U.S.-based real estate investment trust Public Storage Inc., has acquired London-based ABC Selfstore for $62 million. The ABC portfolio includes three freehold properties in the London boroughs of Camden, Southwark and Wandsworth, according to a press release.

“The U.K. self-storage market is currently very competitive, and the portfolio generated considerable interest, with all the major providers looking to increase market share across the capital and a number of newcomers seeking to acquire a quality London platform,” said Simon Higgins, a partner with Levy Real Estate LLP, which represented ABC in the deal.

The acquisition is part of Shurgard’s goal to expand its presence in Berlin, London and Paris, according to Marc Oursin, CEO of Shurgard.

Shurgard, which opened a new facility in Berlin earlier this month, recently completed its initial global offering on Euronext Brussels, meeting its goal of raising €575 million. The company has said it intends to use the proceeds to help fund its growth strategy and refinance a loan.

Based in Glendale, Calif., Public Storage has interests in 2,418 self-storage facilities in 38 states, with approximately 161 million net rentable square feet. Operating under the Shurgard brand name, the company also has 228 facilities in seven European countries, with approximately 12 million net rentable square feet.

As a self-storage manager, you wear many hats. You’re expected to oversee everything from tenant relationships and maintenance needs to facility marketing and sales efforts. With such a wide range of responsibilities, it can be difficult to know if you’re working to your highest potential and doing everything possible to achieve success for the business as well as yourself.

Most managers receive a basic set of guidelines to follow and goals to meet from their supervisor or owner. Of course, you’re expected to interact with tenants, generate sales leads and take payments. You have to understand and present to customers all the terms of the lease. And you’re expected to know what to do in a crisis, which could be anything from a broken elevator to a hurricane. While all self-storage managers handle issues that arise, good managers handle them efficiently, with a positive attitude.

So, what separates an excellent manager from a mediocre one? What practices will help you achieve maximum success? Here are five abilities to master.

1. Communicate Clearly and Effectively

Self-storage managers must communicate effectively with customers, co-workers, supervisors and vendors. For example, when tough situations arise, knowing how to explain them to tenants can help ease their concern or stress and provide a more positive experience. When dealing with an angry or upset customer, it’s important to set emotion aside and be aware of your own reactions. You must remain calm, cool and above the negative conversation at hand. Similarly, having the confidence to communicate with vendors when necessary will ensure any required work gets done to specifications and in a timely fashion, preserving your site’s curb appeal and functionality.

2. Be Organized and Consistent

Being organized and consistent with your day-to-day operating procedures, filing system and even office supplies will make it easier to keep up with demands and handle any unexpected situations that come your way. For example, if you systematize tenant files, you’ll find it much easier to locate paperwork when you need it and far less daunting to put things away.

Once you’ve created an operational system, adhere to it. Consistency makes it easier to handle a wide range of situations because it creates clear procedures to follow.

3. Know your Weaknesses

It’s critical to understand your weaknesses as well as your strengths. Acknowledging there are parts of the job at which you’re not the best allows for growth. Being able to put pride aside and ask for help when you need it shows a willingness to learn and improve.

A manager who refuses to see what he could do better within his role is never going to grow and reach his peak. Be humble. Ask for help when needed and learn from the experience. You’ll soon be at the top of your game.

4. Set Personal Goals

While most owners will set monthly or quarterly goals they hope managers will meet or exceed, you should also set personal goals, whether they’re daily, weekly, monthly, etc. It’s easy to coast by and hope you hit your objectives each month, but a great manager determines what needs to be focused on each day to ensure achievement.

Pay attention to your daily revenue and set a number you want to hit each day. Doing this won’t only make you more aware of the business, it’ll motivate you toward daily improvement in a manner that breeds success.

5. Set the Tone

As facility manager, you’re the face of the operation, the one people turn to for good news and bad. You set the tone for the business. If you stand up, smile and greet each customer as he enters the door, he’ll likely respond in kind. Prospects and tenants will notice how you interact with others and will judge your company based on these observations. By setting a positive, productive, efficient tone in your office, you’ll yield excellent results. Tenants will sense your upbeat energy and see your can-do attitude, which should generate positive reviews.

Becoming a top property manager is very much within your reach. Gain an understanding of what you’re doing well and where you can improve. Seek training to minimize or eliminate your weaknesses and refresh your skills in areas where you already excel. Learning and growth should be constant in any job. It’s your duty to lead in every way you can. Keep learning, keep growing, and hold yourself accountable, and success will be inevitable.

Susan Haviland is the owner of Haviland Storage Services and a partner of industry consulting and training firm Self Storage 101. She has more than 28 years of industry experience, from serving as a site manager to acting as vice president of operations at Extra Space Storage Inc. and Price Self Storage. She's a frequent speaker at industry conferences and tradeshows. For more information, call 866.360.2621; visit www.selfstorage101.com. 

While you don’t need top-of-the-line gear or the best swing to play golf, you do need some essential equipment and preparation to make your way around the course. In that way, there are parallels between golf and preparing a self-storage loan-request package.

Imagine how difficult it would be to play a good round of golf if the first time you swung a club was when you stepped onto the tee box. To be proficient, it helps to understand the proper mechanics and learn the rules. The same holds true for a well-organized loan package. Proper preparation will enable lenders to execute more quickly, which is vital in self-storage, when time is often of the essence.

Organization and attention to detail are also key to good execution. Whether golfers are trying to shave strokes off their game or simply keep score, they must be organized and focused on the end goal. When packaging a loan request, the same standard of care applies. Everything presented will be fact-checked, and errors are costly.

In addition, while golfers can get away with the bare-minimum equipment (clubs and balls), there are numerous resources to help players improve their game, from gadgets to television to videos to publications. Improving weaknesses and developing a well-rounded game improves a player’s score. The same holds true for assembling a loan request. While lenders may look at a package if it includes only the basics—property description, financials and a rent roll—it may only be a passing glance.

With that in mind, here’s a crash course in how to successfully package a self-storage loan request. While there are many ways to shoot par and people will swear by different methods, following these guidelines will yield consistent results.

Understanding Your Needs and Options

A good loan package clearly states the borrowers “ask.” Put differently, it requests the ideal loan for your situation. For example, a construction-financing request asks for a different structure than a refinance because the objectives are different. Before deciding on structure, consider your investment strategy over the near and long term. This helps ensure your loan meets your needs and increases the probability of success in execution.

Every loan structure contains certain criteria, which should be stated in the request. Examples include loan dollars requested, interest rate, term and amortization. Additionally, you may specify the structure of the personal guaranty (recourse or nonrecourse), whether the interest rate is fixed or floating, and prepayment penalties. When underwriting the economics of your loan, it should conform to generally accepted loan-to-value (LTV) and debt-service coverage ratios (DSCR). Typically loans with an 8.25 percent debt yield and at least a 1.30x DSCR align with conforming expectations.

Once you’ve pinpointed an appropriate structure, the next step is to identify lenders. Ideally, you should choose several options, but it’s critical to find lenders that understand the nuanced self-storage asset class. If you’ve borrowed commercially before, your current bank might top your list. Banks with whom you have a relationship often substantiate more aggressive quotes with positive past lending experiences. Falling back on the familiar is often the path of least resistance. However, a truly informed decision that contemplates all your options generally produces the most favorable results.

While you’ll ask for certain loan terms, the lender will likely respond with a different offer or “bid” that reflects its perception of deal strength and credit quality. If one lender declines to bid the deal, don’t be deterred. This could be for any number of reasons, which may or may not be linked specifically to your loan. If multiple lenders neglect to bid, however, this can signal an unreasonable request or other factors. If this occurs, it may be appropriate to revisit and adjust your request.

Request Components

Below is a rundown of the seven sections every well-prepared self-storage loan package should include.

Proposed loan summary. This abridged synopsis of the deal should introduce the property and create appeal without overloading information. It should engage the lender’s curiosity while providing:

• Property name and address
• Sources/uses description
• Brief unit and amenities overview
• Occupancy stats
• Borrower introduction
• Loan term and amortization
• Rate type
• Existing debt

Property summary. This section should tell the asset’s story. Aim to fill in the blanks about the property’s physical qualities, including:

• Full address
• Year built/renovated
• Zoning
• Amenities list
• Construction type
• Total gross and net square footage
• Unit count/type (climate-controlled/non-climate controlled, parking)
• Photos

Operating history. Property financials will be highly scrutinized. If numbers are incorrect or omitted, it can jeopardize the opportunity and loan execution. Present the following in a concise fashion:

• Occupancy reports for past 24 months
• Property financials for past 24 months
• Trailing 12-month revenue and expenses, broken out monthly
• Budget income and expense projections for the coming 12 months
• Current real estate tax bills

Highlight one-time expenses and other non-cash items (depreciation/amortization), which can be excluded from the lender’s analysis. Depending on a lender’s risk appetite, it will incorporate a minimum DSCR and maximum LTV ratio when sizing loans, both of which are impacted by operating results and history. Lenders will likely apply a conservative “haircut” to yield a stabilized cash flow.

Location and demographic breakdown. Here’s where you’ll present details about the locale and area demographics. Describe the neighborhood as you would to someone unfamiliar with the region, perhaps using maps and photos to support your narrative. Address the following:

• Who is the customer?
• What types of residences are most common?
• What is the average household income?
• Where are the local businesses, military bases, colleges, etc.?
• What is the area population? Is it growing or shrinking?

Market and competitive analysis. This section should identify proximate facilities, keeping in mind that lenders expect some detail. This is a more time-consuming task, requiring you to scan demographic websites or self-storage publications. Address the following:

• How competitive are your rates with other small, local operators, or against larger operators like the real estate investment trusts?
• How does occupancy stack up against the competition in the overall market?
• What new supply, if any, is coming to the market?

Borrower biography. This section allows you to sell yourself as a borrower. Be truthful and tactful, and list the qualifications that validate your experience. If you have partners, be advised: Lenders will examine anyone with at least a 20 percent ownership interest. Include the following:

• Principal resumes
• Principal financial statements
• Principal real estate holdings
• Past or pending credit issues

Never underestimate the importance of disclosing credit issues. No one enjoys reliving financial struggles, but honesty looks better to a lender than discovering a secret. Credit checks are a sure thing! While not irrelevant, these issues can be deemed immaterial when properly disclosed and mitigated. Moreover, a lack of disclosure can be perceived as withholding information.

Property management. To conclude your package, lay out your management experience and qualifications. You may also choose to discuss how you use software and technology to compete, as this is a growing industry trend that lenders understand. This section should include:

• Name/website of management company
• Fee breakdown
• Contact information of onsite manager
• Property website

First-time self-storage owners may want to consider contracting with a third-party management company, which boosts reputability and exhibits operational prudence. If you’re already outsourcing facility management, summarize the firm’s market and property-level experience.

Call a Professional

Sometimes going it alone seems too daunting. Just like new golfers using the expertise of a pro or caddie to help select gear or improve elements of their game, consider hiring a professional to help you identify self-storage borrowing options and package your loan request.

Brokers charge for their services, but the efficiencies gained should offset the cost. One advantage is brokers maintain relationships with lenders, allowing them to pinpoint those whose risk appetite matches the transaction profile. A reputable broker who understands the self-storage market will also know how to package the request and position the deal with the lending community to develop options a borrower might not consider or even know exist. Ultimately, broker expertise equates to better execution and frees up a borrower’s time to pursue value-added strategies.

The Finished Product

Bringing all these elements together into a well-thought-out, detailed loan package is the best way to tell the asset’s story and ensure a successful borrowing experience. The package needs to highlight the strengths of the property but also identify and mitigate transaction risks. A strong package clearly presents the financial picture of the asset, free of one-time expenses and other non-operating items.

In addition, incorporating quality pictures as well as real-time market data from an online provider can go a long way toward convincing a lender your project is worth the risk. In today’s lending climate, it’s best to err on the side of more information to eliminate surprises, particularly when you have loan proceeds at stake.

Adam Karnes is senior credit analyst at Chicago-based The BSC Group, which provides mortgage brokerage, financial consulting and loan-workout solutions to self-storage real estate owners nationwide. To reach him, call 312.278.7561; e-mail [email protected]; visit www.thebscgroup.com. 

The five largest publicly traded, U.S.-based self-storage real estate investment trusts (REITs)—CubeSmart, Extra Space Storage Inc., Life Storage Inc., National Storage Affiliates Trust and Public Storage Inc.—have released financial statements for the quarter that ended Sept. 30. In general, the companies showed gains in key areas, particularly funds from operations (FFO) and net operating income (NOI), while also achieving increases in occupancy.

“Third-quarter performance continues to reflect healthy demand trends and a competitive pricing environment,” said Christopher P. Marr, president and CEO of CubeSmart. “Our scalable, sophisticated operating platform and customer-service focus generated solid results across our portfolio. We remain active and disciplined in pursuing growth opportunities that deliver attractive, risk-adjusted returns to our shareholders.”

Joseph Margolis, CEO of Extra Space, expressed similar sentiments. "The year continues to progress as expected as we head down the home stretch,” he said. “Our stores have maintained very high occupancy; we continue to achieve positive rate growth; and our diversified portfolio continues to deliver solid results, despite new supply in certain markets. External growth has also been strong through consistent acquisition volume and a record year expanding our third-party management platform."

CubeSmart

CubeSmart reported FFO per share of $0.43 during the quarter, a 2.4 percent year-over-year increase. Same-store NOI at its 458 facilities grew 3.9 percent year over year. The company attributed this to a 3 percent growth in revenue and a .6 percent increase in operating expenses. Same-store locations contributed 94.7 percent of the REIT’s property NOI during the quarter.

Same-store physical occupancy was 92.7 percent as of Sept. 30, down from 93.5 percent last year. The company’s total-owned portfolio, representing 490 facilities and comprising 34.5 million square feet of rentable space, had a physical occupancy of 90.4 percent at the end of the third quarter.

CubeSmart acquired three storage properties in Nevada, North Carolina and Washington, D.C., for $59.6 million. The REIT’s joint venture, HVP IV, purchased two properties in Florida and Georgia for $20.5 million. The company opened one joint-venture property during the quarter in New York for a total cost of $91.5 million.

On Aug. 7, the company declared a dividend of 30 cents per common share, which was equal to the previous quarter. The dividend was paid on Oct. 15 to common shareholders of record on Oct. 1.

CubeSmart owns or manages 1,072 self-storage facilities across the United States. Its operating portfolio comprises 73.3 million square feet.

Extra Space Storage Inc.

Same-store revenue increased 3.2 percent and NOI rose 3.3 percent compared to the same period in 2017. Core FFO, excluding adjustments for non-cash interest and hurricane losses, was $1.20 per diluted share, resulting in 6.2 percent growth compared to the third quarter the previous year.

Same-store occupancy was 93.9 percent as of Sept. 30, which was essentially equal year over year.

During the quarter, the company acquired five operating facilities and one property at Certificate of Occupancy for about $74.3 million. In conjunction with joint-venture partners, the REIT also acquired eight operating facilities, made three Certificate-of-Occupancy purchases and completed one development project for a total cost of approximately $127.1 million, of which the company contributed $34.6 million.

The company paid a quarterly dividend of 86 cents per common share, which was equal to the previous quarter. It was paid on Sept. 28 to common shareholders of record on Sept. 14.

Headquartered in Salt Lake City, Extra Space owns or operates 1,606 self-storage properties in 39 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 1.1 million units and 122 million square feet of rentable space.

Life Storage Inc.

Total revenue increased 4.4 percent over the previous year, while operating costs fell 3 percent, resulting in an NOI increase of 8.3 percent. Same-store revenue grew 3.6 percent, while same-store NOI increased 4.2 percent, year over year. FFO for the quarter was $1.46 per fully diluted common share, compared to $1.34 for the same period in 2017. Adjusted FFO was $1.45, a 4.3 percent increase.

Net income attributable to common shareholders for the third quarter was $41.1 million, or $0.88 per fully diluted share. For the same period in 2017, net income attributable to common shareholders was $35.5 million, or $0.76 per fully diluted common share.

Revenue for the company’s 533 wholly owned stabilized facilities increased 3.6 percent year over year, helped by a 3.9 percent growth in rental rates and partially offset by a decrease in average occupancy of 70 basis points. Average overall occupancy for the quarter was 90.9 percent, with units renting for an average of $14.12 per square foot.

During the quarter, the REIT acquired two facilities in Boston and Sacramento, Calif., for $19.5 million. The Boston property was previously under Life Storage management. The company also began operations on three development properties owned by unconsolidated joint ventures. The facilities are in Brooklyn, N.Y; Miami and Phoenix. They have a total development cost of $40.6 million, of which the REIT contributed $8.6 million.

Subsequent to the end of the quarter, the company approved a quarterly dividend of $1 per common share, which is equal to the previous quarter.

Based in Buffalo, N.Y., Life Storage operates more than 700 self-storage facilities in 28 states under the Life Storage and Uncle Bob’s brands. Its portfolio of owned and managed facilities comprises more than 51 million square feet.

National Storage Affiliates Trust (NSAT)

Core FFO per share was 0.36 during the third quarter, a 9.1 percent year-over-year increase. Its net income was $16.8 million during the quarter, a 49.9 percent increase compared to the $11.2 million it reported for the same period in 2017. The increase was primarily attributed to incremental NOI generated from properties acquired between Oct. 1, 2017, and Sept. 30. Same-store NOI was $44.4 million, up 5 percent.

Same-store revenue was $64.6 million during the quarter, a 4 percent increase from a year ago. This was driven primarily by a 3.8 percent increase in average annualized rental revenue per occupied square foot. Same-store average occupancy was 90.3 percent, essentially equal to the same period last year.

During the quarter, the company formed a joint venture with an affiliate of Heitman America Real Estate REIT LLC, which in September completed the acquisition of 112 Simply Self Storage properties across 17 states and Puerto Rico. The $1.325 billion deal comprises 8 million net rentable square feet. The joint venture subsequently sold six Puerto Rico properties and one facility in Ohio to NSAT. The REIT owns 25 percent of the remaining properties in the joint-venture portfolio and will manage those facilities.

In all, NSAT acquired 13 wholly owned properties during the quarter comprising 900,000 square feet in about 8,000 units.

On Aug. 23, the company declared a quarterly dividend of $0.29 per common share, which was equal to the previous quarter. It was paid on Sept. 28 to holders of record on Sept. 14.

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 669 storage facilities in 34 states and Puerto Rico. Its portfolio comprises approximately 42.5 million net rentable square feet. It's owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures.

Public Storage Inc.

Revenue for same-store facilities increased 1.2 percent, or $6.6 million, in the quarter, as compared to the same period in 2017, primarily because of higher realized annual rent per occupied square foot. Operations costs for same-store facilities increased 2.8 percent, or $4.1 million, during the period compared to the previous year.

FFO was $2.66 per diluted common share, compared to $2.35 for the same period the previous year, marking a 13.2 percent increase. NOI increased $10.1 million compared to the same period in 2017, including $2.5 million for same-store facilities.

The company acquired 11 self-storage facilities comprising 700,000 square feet during the quarter for $73.8 million. Six of the properties are in Minnesota, with two in Texas and one each in Ohio, South Carolina and Tennessee. It also completed five new development and various expansion projects that added 700,000 net rentable square feet to its portfolio for $83 million.

The company reported a regular common quarterly dividend of $2 per common share, which was equal to the previous quarter. It also declared dividends with respect to various series of preferred shares. All the dividends are payable on Dec. 27 to shareholders of record as of Dec. 12.

Based in Glendale, Calif., Public Storage has interests in 2,418 self-storage facilities in 38 states, with approximately 161 million net rentable square feet. Operating under the Shurgard brand name, the company also has 228 facilities in seven European countries, with approximately 12 million net rentable square feet.

Sources:
CubeSmart, CubeSmart Reports Third Quarter 2018 Results
Extra Space, Extra Space Storage Inc. Reports 2018 Third Quarter Results
Life Storage, Life Storage Inc. Reports Third Quarter 2018 Results; Increases FFO Guidance
National Storage Affiliates Trust, National Storage Affiliates Trust Reports Third Quarter 2018 Results
Public Storage, Public Storage Reports Results for the Three and Nine Months Ended September 30, 2018

Real estate developer Ziff Properties Inc. has acquired the former Golden Burley Tobacco Warehouse in downtown Lexington, Ky., which it intends to convert to self-storage. The 3.5-acre property at 574 Angliana Ave. is just over a mile from the University of Kentucky, according to a press release.

Once the renovation is complete, the facility will comprise 103,500 square feet of storage space. It’ll be managed by self-storage real estate investment trust CubeSmart and branded under its name.

“With the nearby residential growth, we believe this storage facility will be well received, and we look forward to fulfilling the storage needs of the Lexington community,” said Christian Chamblee, chief operating officer and director of acquisitions for Ziff.

The transaction was facilitated by Fred Pfister, senior vice president of brokerage firm Silvestri Craig Realtors.

Ziff also has a conversion project underway in Knoxville, Tenn. The company purchased the former US Golf & Sports Centers Inc. retail store in April. The facility will comprise 65,000 square feet of storage space.

Based in Mount Pleasant, S.C., Ziff specializes in the acquisition, development and management of commercial properties in the Southeast. Founded in 1992 by Stephen Ziff, the company owns a portfolio including 3 million square feet of self-storage, shopping centers and office buildings.

Source:

The Lane Report, Ziff Properties Acquires Lexington Warehouses for Storage Conversion

Metro Storage LLC, which operates more than 135 self-storage properties in 14 states, has purchased land in South Brunswick, N.J., on which it plans to build a self-storage facility. Once complete, it’ll be the company’s 10th location in the state, according to a press release.

Plans for the property at 3963 U.S. Route 1 include constructing one multi-story building comprising 75,000 rentable square feet in 668 climate-controlled units as well as three single-story structures containing 15,000 rentable square feet of drive-up storage. Additional features will include interior, drive-in loading bays, security measures and a retail office. The facility is expected to open in the third quarter of 2019, the release stated.

“The exceptional location of this property sets Metro up for success. We are excited to get started on construction of this facility and add to the thriving business community along the Route 1 corridor,” said Marty Gallagher, president. “This site, with over 500 feet of frontage, provides us the strong retail visibility that we strive for in our developments. The mix of interior climate-controlled and traditional drive-up access units will provide options to meet all of the storage needs of the surrounding community.”

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

Source:
PR Web, Metro Storage LLC to Develop New Store in South Brunswick, New Jersey

Jernigan Capital Inc., a merchant bank and advisory firm serving the self-storage industry, has promoted John A. Good to CEO and Jonathan Perry to president and chief investment officer (CIO). The moves conclude two years of succession planning by company founder Dean Jernigan, who will step down as CEO but continue to serve as executive chairman. He’ll also remain with Good and Perry on the three-member investment committee. The changes are effective immediately, according to a press release.

“We are very fortunate to be able to execute a senior-executive succession plan with two people who have the self-storage knowledge, experience, wisdom and judgment that John and Jonathan have,” Jernigan said. “After working together for many years on other ventures, John and I have been partners building Jernigan Capital from an idea in early 2014 to what it is today. I have thoroughly enjoyed working with John to build our world-class team that continues to serve our shareholders exceptionally well.

“I have worked with Jonathan since 1998 in many capacities in the self-storage business and know him as one of our industry’s best minds, as well as like-minded with John and me on how to create shareholder value,” he continued. “We are very fortunate to have brought him onto the Jernigan Capital team earlier this year. John and Jonathan have worked together extensively in the past and over the past five months at Jernigan Capital and complement each other wonderfully. We remain well-positioned to continue our growth and delivery of strong shareholder returns into the future.”

Good joined the company in June 2015 as president and chief operating officer, playing a key role in investment decisions and assimilating the firm’s team. He previously was co-chair of the real estate investment trust (REIT) practice group at law firm Morrison & Foerster LLP and counseled Jernigan Capital during its 2015 initial public offering. He has more than 25 years of experience working with REIT senior management teams and boards of directors.

Perry was hired by Jernigan Capital in June as executive vice president and CIO. He previously held several positions at CubeSmart, a self-storage REIT and third-party management firm. From 2008, he held several positions at CubeSmart, most recently serving as senior vice president and CIO. Perry began his career at Storage USA in 1998 and served in multiple capacities until the company was acquired by GE Capital in 2002. He previously teamed with Dean Jernigan in a private investment partnership that owned and operated self-storage facilities.

Jernigan Capital is a REIT listed on the New York Stock Exchange. The company provides financing to private developers, operators and owners of self-storage facilities. It offers financing for acquisition, ground-up construction, major redevelopment or refinancing. The firm is externally managed by JCap Advisors LLC.

Source:
Stockhouse, Jernigan Capital Announces Promotions of John Good to Chief Executive Officer and Jonathan Perry to President and Chief Investment Officer

Pennsylvania established a provision for self-storage limited-lines insurance on Oct. 24 when Gov. Tom Wolf signed House Bill 504 (HB 504) into law. Under the measure, self-storage owners as well as their employees and other company representatives can get a limited license authorizing them to sell tenant insurance. The law goes into effect on Dec. 24.

A self-storage owner only needs one license to sell insurance in the state, though he must include a list of all facilities he operates on the application. He must also notify the insurance commissioner within 30 days of any new Pennsylvania locations or facility closures.

In addition, the law requires that storage owners maintain a registry of employees who have been certified to sell insurance and are eligible to act as agents. The list must be submitted to the commissioner upon request. Certification is achieved by completing a commissioner-approved training program.

The law is similar to other self-storage tenant-insurance bills adopted across the nation, though the measure’s language explicitly deleted “stored” from the text and allow operators to sell insurance that would apply to the “loss or damage to personal property that occurs at that facility or while the personal property is in transit during the rental agreement.”

The bill was supported by the Pennsylvania Self Storage Association (PASSA) and national Self Storage Association (SSA). SSA officials credited PASSA president and SSA board member Alyssa Quill and former PASSA board member Mike Rhoads as being “instrumental in securing passage of the bill,” in an Oct. 29 newsletter to association members.

HB 504 was introduced in February 2017. It passed the house unanimously in April before moving to the senate, where it passed 49-0 on Oct. 17.

Sources:
Pennsylvania General Assembly, House Bill 504
The Monday Morning Globe 10/29/18, Pennsylvania Governor Tom Wolf Signs Tenant Insurance Bill