With the winter hunting season upon us, it’s a great time to make a trip. Before embarking, however, you’ll need to plan several arrangements, including your hunting location and where to stay, days of travel, transportation, supplies and an estimate for the gear. All these preparations will ultimately determine your success.

As in the hunt for wildlife, careful planning is an essential step in the pursuit of self-storage financing. A successful, efficient loan-request package requires groundwork, but it allows a lender to execute better, faster and with a higher degree of confidence. Organization and attention to detail are key. You must be focused throughout the entire process, and everything must be fact-checked, as one error could spoil the entire product. While time is valuable, the No. 1 priority is achieving the desired outcome.

You’ll have the most success by taking advantage of the knowledge and superior tools others can provide. Imagine how challenging—and distressing—it would be to hunt for the first time if you were out in the remote woods, miles from civilization, without any guidance or experience. It would be intimidating, right? It helps to first comprehend proper techniques, like how to shoot and stalk prey.

Sure, you can get away with using minimal resources. Your loan request may still attract a lender even if it includes only the minimum information, such as property description, financials and a rent roll. However, that might not be the best possible analysis, and there are ways to better your chances. As a “hunter,” take the opportunity to learn from more those who are more practiced.

The following is a quick overview of a strong loan-request package. There are several ways to “shoot,” and people will use different techniques; but the following steps will yield a consistent, effective result.

Identify Your Target

An effective loan package clearly states the borrower’s “ask,” requesting the ideal loan for your situation. Obviously, a construction-financing request requires a different structure than a refinance, given different objectives. Before deciding on structure, think about your present and future investment strategy. This helps ensure the loan meets your needs and betters your probability of success.

Every loan has specifics that should be addressed in the request. These include the amount, interest rate, term and amortization. In addition, you may stipulate principles such as the structure of the personal guaranty (recourse or nonrecourse), whether the interest rate is fixed or floating, and prepayment penalties. Finally, the loan should comply with generally accepted loan-to-value (LTV) and debt-service coverage (DSCR) ratios. Typically, loans with an 8.25 percent debt yield and at least a 1.30 DSCR align with conforming expectations.

You must understand that though you ask for certain terms, the lender will likely respond with a slightly different offer or “bid,” which reflects its perception of the deal strength and credit quality. If one lender dismisses the deal, don’t be discouraged. There are several reasons why this might be, and they may or may not be linked to your loan. If multiple lenders neglect to bid, this can indicate the request is unreasonable or other factors. In that case, it may be appropriate to revisit and adjust.

Track Down a Lender

After deciding on an effective loan structure, the next step is to find lenders. In a perfect world, you’ll identify many options, but it’s important to choose those who understand the 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. Reverting back to the familiar is often the path of least resistance. However, a truly informed decision that considers all your options generally results in more favorable result.

Now, on to the nitty gritty. The following breaks down a detailed loan-request package that’ll impress lenders and help you obtain financing.

Section 1: Executive Summary

This abbreviated summary of the deal introduces the property and creates intrigue for the lender, without offering too much information. This should pique interest while providing the following:

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

Section 2: Operating History

Property financials will be highly inspected, and if numbers are omitted or presented inaccurately, it can severely jeopardize the deal. Present the following in a concise fashion:

• Trailing 12-month revenue and expenses, broken out monthly
• Budget income and expense projections for the coming 12 months
• Current real estate tax bills
• Occupancy reports for the past 24 months
• Property financials for past 24 to 36 months

Identify 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 stance, it’ll incorporate a minimum DSC and maximum LTV ratio when sizing loans, both of which are impacted by history and operating results. Lenders will likely apply a conservative “haircut” to yield a stabilized cash flow.

Section 3: Location and Demographics

Describe the neighborhood as you would to someone who doesn’t know the area, perhaps using maps and photos to support your narrative. Answer the following questions:

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

Section 4: Property Summary

This section tells the property’s narrative and aims to fill in the blanks about the asset’s physical qualities including:

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

Section 5: Market and Competitive Analysis

This analysis includes nearby self-storage facilities. Lenders will expect details, such as:

• How does occupancy of the subject property stack up against the competition in the overall market?
• Is there any new supply coming to the market?
• How competitive are the property’s rates with local operators, larger regional operators or real estate investment trusts?

This is a more tedious section, requiring you to scan demographic websites or self-storage publications.

Section 6: Borrower Biography

This section allows you to sell yourself. Be honest and courteous, and list the qualifications that legitimize your experience. If you have partners, be warned: Lenders will examine anyone with at least a 20 percent ownership interest. Include the following:

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

Credit checks are a sure thing! No one enjoys reliving financial struggles, but honesty is much better than an unearthed secret. While not irrelevant, credit issues can be deemed extraneous when properly disclosed and mitigated and, moreover, absence of acknowledgement can be perceived as withholding information.

Section 7: Property Management

Finally, lay out your own management experience and the qualifications of any onsite staff. You may also talk about how the property uses software and technology to compete. This is an increasingly important industry trend that lenders understand. This section includes:

• Manager contact information
• Property website
• Name/website of management company (if applicable)
• Fee breakdown

New owners may ponder contracting a third-party management company, which boosts reputability and exhibits operational prudence. If you’re already working with a firm, summarize its market- and property-level experience.

Hire a Guide

If you want to improve your odds, consider hiring a professional to help identify your borrowing options and package your loan request. Brokers charge for their services, but the efficiencies gained should offset the cost. They not only maintain relationships with lenders, allowing them to pinpoint those whose risk appetite matches the transaction profile, they know how to package the request and position the deal with the lending community to develop options a borrower might not consider. Ultimately, broker expertise equates to better execution and increases your free time to pursue value-add strategies.

Ready to Take Aim

Putting everything 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 property’s strengths but also identify and mitigate transaction risks. It should clearly present the financial picture, excluding one-time expenses and other non-operating items. In addition, quality pictures and data from industry providers go a long way. In today’s lending environment, it’s better to provide more information so there are no surprises.

Remember, there are millions of dollars in loan proceeds at stake here, so you want to be prepared before you aim and shoot. Do the research, be precise and follow through.

Shawn Hill is a principal at Chicago-based The BSC Group LLC, where he advises clients nationwide on debt and equity financing as well as loan-workout services for all commercial property types, with an emphasis on the self-storage asset class. To reach him, call 312.207.8237; e-mail [email protected]; visit www.thebscgroup.com.

You’ve probably heard that 5G, the fifth generation of cellular-network technology, is on its way. It’s being touted as a platform that won’t only change how we communicate but, to some extent, how we live our lives.

In 2010, most major carriers introduced 4G, which changed how we use wireless devices. It allowed more online access, increasing activity on social media and video-streaming services. In short, it made us more mobile. Building on that progress, 5G will enhance user capabilities further still. From driverless cars to new, instantaneous streaming, it’ll put more technology at our fingertips. Let’s take a closer look at what it brings to the table, and how self-storage operators who have cell-tower leases may be able to leverage this technological advancement.

How Will It Be Different?

The simplest answer is 5G provides greater speed and enhanced capabilities. It’s forecasted to be up to 100 times faster than current 4G standards. Even more impressive is it’ll allow users to instantaneously send and receive data without any sort of disruption or delay. This is expected to open emerging markets like driverless cars, remote automated equipment and real-time transaction capabilities for business owners, which could substantially lower costs.

How Do We Get There?

Before 5G can take off, equipment on existing cell towers will need to be upgraded and more infrastructure added. While 5G networks will be much faster than 4G, their signal has very limited range. As a result, it’s estimated that 100 to 300 or more small cell sites may be needed per square mile in areas that require heavy 5G services.

This has some interesting implications for landlords, including self-storage operators. New infrastructure means new cell sites, which means more opportunities for property owners to lease land to wireless carriers, who’ll need to substantially increase their number of cell towers, rooftop cell sites and other similar installations.

To be clear, 5G won’t be a replacement for existing cell towers. Instead, it’s expected to be the catalyst for the next major buildout of new cell sites across the United States.

How Can Owners Benefit?

The 5G buildout will take two paths, both of which can be beneficial for property owners. First, in many instances, current sites will need to have their antennas upgraded or swapped out entirely. As a result, it’s critical that existing cell-site landlords understand any rights under their current lease agreement that would allow them to financially benefit from a 5G upgrade. You need to know if you have the right to re-enter your cell-tower lease, which could allow you to renegotiate rent received as well as critical non-monetary terms.

Again, within the next few years, self-storage owners could see an increase in opportunities to make their property available to wireless carriers for 5G cell-site installations. To take advantage, it’s important to understand not only how to get your property in front of the right people, but how to optimize the value of the cell-site lease by correctly structuring the agreement.

How Will Cell-Tower Rent Be Affected?

One of the biggest mistakes landlords make is viewing their cell tower as leased space and not a utility. The value of a cell site to wireless carriers isn’t based on the value of the real property on which the tower is located but by the utility the property affords them. Landlords who lease the tower as a utility will unlock a treasure chest of opportunities to increase not only the rent they collect but, consequently, the overall value of their property.

Another mistake property owners make with cell-tower leases is focusing on the monthly rent and not the overall lease structure. Let’s say your lease pays $1,500 per month with an annual escalator of 3 percent. In this case, assuming inflation of roughly 3 percent per year, you’ve effectively agreed to stand still. The cell-tower company is having a laugh because you accepted a long-term agreement that fixed the company’s cost over the length of the lease. No matter how much value 5G or other upgrades may bring to the cell site, your rent is set.

This is akin to an oil company getting increasingly more oil from your property but never paying you a dollar more. Remember, rent is only a derivative of the financial structure of a cell-tower lease. The wider your focus, the bigger the reward will be for you in the short and long term.

The 5G buildout could be a self-storage operator’s chance to get either a better existing cell-tower lease or structure a new, financially beneficial agreement. No matter the situation, a cell-tower lease is a long-term commitment, so it’s crucial to understand the pros and cons.

Hugh D. Odom is president of Vertical Consultants, a telecommunications-consulting firm currently working with approximately 5,000 self-storage facilities across North America. Vertical Consultants clients more than 20 of the self-storage industry’s top 100 operators. Mr. Odom has more than 22 years of legal and telecom experience, including being an AT&T attorney for more than 10 years. For more information, call 877.456.7552; visit www.celltowerleaseexperts.com.

Update 11/27/19 – 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 November 2019.

Affordable Self Storage in Silverdale, Wash., sold to a local LLC for $4.35 million. The facility at 7979 Provost Road N.W. comprises 30,325 square feet on 1.28 acres. Secreto of M&M represented the seller, a Washington-based LLC, in the transaction and secured the buyer.

Byram Mini Storage in Byram, Miss., sold to an unidentified LLC. The facility at 3247 Davis Road was built in 2004 and sits on just over an acre. It comprises 28,450 net rentable square feet in 192 units. The seller, also an LLC, was represented in the transaction by Coe, Hatcher and Brian Kelly, an investment specialist with M&M. Coe and Hatcher also secured the buyer. Fellow M&M Broker Mickey Davis assisted.

Camp Verde 24 Hour Storage in Camp Verde, Ariz., sold for $2 million to out-of-state buyers for whom this was a first industry acquisition. The facility at 603 Industrial Drive was built in 1985 and sits on 2.38 acres. It comprises 176 units and a manager’s residence. The seller, 603 Industrial LLC, was represented in the transaction by Denise Nunez, senior vice president of NAI Horizon, a commercial real estate company with offices in Phoenix and Tucson, Ariz. The buyers were represented by Don Arsenault, a broker with Don Arsenault Realty LLC.

Strategic Storage Growth Trust II Inc., a private REIT sponsored by an indirect subsidiary of SmartStop Self Storage REIT Inc., acquired Clock Tower Self Storage in Mill Creek, Wash. The facility at 16618 Bothell Everett Highway was built in 2003 and sits on 7.5 acres. It comprises 65,400 net rentable square feet in 660 units and six vehicle-storage spaces.

Global Self Storage Inc., a REIT that acquires, manages and owns 13 facilities in eight states, acquired Erie Station Storage in West Henrietta, N.Y., for $6.2 million. The facility at 70 Erie Station Road features seven buildings comprising 46,850 net leasable square feet in 458 units. It also has land for expansion and an approved permit to construct 7,300 net leasable square feet of space.

Atlantic Investors Group sold its LifeStorage-branded facility in St. Augustine, Fla. to Compass Self Storage, a member of the Amsdell family of companies. Opened in 2018 on 5.2 acres, the property at 250 Sandy Creek Parkway comprises more than 86,000 net rentable square feet in four buildings. Planned enhancements include smart locks, individual-unit access control and high-definition video cameras. The location is the company’s 22nd in Florida and 91st nationwide. Headquartered in Cleveland, the Amsdell Cos. draws its roots from the family-owned construction company founded in 1928.

Safeguard Self Storage and an unidentified, adjacent storage property in Thornwood, N.Y., sold to a California-based self-storage operator for $22.3 million. The unnamed property at 401 Clairmont Ave. was converted to self-storage from a 55,000-square-foot warehouse. Combined, the two facilities comprise 773 units. The seller was a local developer. Founded in 1989, Safeguard operates more than 70 facilities across six states. The deal was brokered by Hans Hardisty and Nick Malagisi of SVN Commercial Realty.

SafeGuard Storage North in Madera, Calif., sold to an unidentified buyer for $3.9 million in a 1031 exchange. The facility at 2809 N. Schnoor St. comprises 29,550 square feet on 4.72 acres. Secreto of M&M represented the buyer and helped with the swap from apartments.

Scott Storage in North Little Rock, Ark., sold to Arkansas Storage Centers VII LLC. The facility at 8007 Counts Massie Road is near a new interchange for Interstate 40. Brokered by Argus affiliate Larry Goldman, the deal was part of an acquisition and debt consolidation with the company’s six other self-storage properties in Central Arkansas.

Self-storage REIT CubeSmart acquired Select Space Storage in Prior Lake, Minn. The facility at 4370 Fountain Hills Drive sits on 3.5 acres and comprises 70,914 square feet. The seller was represented in the transaction by Ryan Clark and Richard Riddle, brokers with SkyView Advisors, a Tampa, Fla.-based commercial real estate brokerage firm that specializes in self-storage. CubeSmart owns or manages 1,165 self-storage facilities across the United States. Its operating portfolio comprises 78.8 million square feet.

Tucker Road Storage in Liberal, Kan., sold to STL Horizon and is the company’s third self-storage acquisition in the western half of the state. The facility at 811 East Tucker Road was built in 2011 on 4.14 acres and comprises 60,010 net rentable square feet. It has been expanded three times. The transaction was brokered by Goldman of Argus.

A national REIT purchased the three-property United Stor-All Self Storage portfolio in Florida. Together, the facilities comprise 212,438 net rentable square feet in 2,008 units. The properties are at 7400 W. Colonial Drive in Orlando, 965 S. Semoran Blvd. in Winter Park, and 1007 Willa Springs Drive in Winter Springs. The seller, a Denver-based LLC, was represented in the transaction by LeClaire and Schlosser.

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11/18/19 – 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 November 2019.

Moove In Self Storage, which operates 33 locations in Connecticut, Maryland, Massachusetts, New Jersey, New York and Pennsylvania, acquired the five-property A to Z Storage portfolio in Easthampton, Northampton and Southampton, Mass. Together, they include 33 structures comprising 124,000 square feet in more than 930 units. The sites will be operated from a rental office at 165 Northampton St. and managed by Investment Real Estate Management LLC.

Advantage Storage in Fort Worth, Texas, sold to an unidentified partnership. The facility at 8065 Old Decatur Road comprises 79,525 square feet in 497 units and six climate-controlled “office warehouses.” Built on 4.9 acres, it also has 25 parking spaces. The deal was brokered by Gabriel Coe and Brett R. Hatcher, investment specialists for M&M.

A two-property portfolio comprising Cordelia Self Storage in Fairfield, Calif., and Vacaville Self Storage in Vacaville, Calif., sold to a private affiliate of Storage Star Self-Storage for $21.65 million. The Cordelia facility at 301 Lopes Road comprises nearly 70,000 square feet, while the Vacaville property at 170 Bella Vista Road encompasses more than 72,600 net rentable square feet. Both sites will be rebranded under the Storage Star name. The deal was brokered by Dean Keller, president of Bancap Self Storage Group Inc., a real estate firm with more than $1.4 billion in storage sales. Storage Star operates 21 facilities in California, Colorado, Texas, Utah, Washington and Wyoming.

Eastside Self Storage in North Bend, Wash., sold to Merit Hill Capital LP for $12.7 million. The property at 1410 Boalch Ave. N.W. comprises 361 units. The seller was GDB Development LLC. Based in Brooklyn, N.Y., Merit Hill acquires, develops and manages self-storage facilities nationwide.

Hansen Storage in Logan, Utah, was sold. The facility at 1115 W. 200 N. sits on 2.3 acres and comprises 37,988 square feet in 242 units and 20 outdoor vehicle-parking spaces. The seller, the Hansen Family Trust, was represented in the transaction by Jordan Farrer, investment associate, and Adam Schlosser, senior vice president of investments, for M&M.

Shurgard Self Storage Europe SARL, the European affiliate of U.S.-based real estate investment trust Public Storage Inc., purchased Inbox Storage in Randstad, The Netherlands, for €6.7 million. The three-story facility comprises nearly 38,000 square feet in 575 units. Shurgard operates 236 self-storage facilities comprising 1.2 million net rentable square meters in Belgium, Denmark, France, Germany, The Netherlands, Sweden and the United Kingdom.

Kane Properties Corp. sold one of its Kane Self Storage properties in Marlborough, Mass., to MHC 75 Marlborough MA LLC, an affiliate of Merit Hill Capital, for $7 million. The facility at 800 Bolton St. comprises 55,000 square feet across a dozen buildings. It was built on six acres in 1986. Based in Hudson, Mass., Kane still operates three other self-storage locations in the city.

Kite Ranch RV Storage in Lemoyne, N.E., sold to a first-time self-storage buyer. The facility at 299 NE-92 is near the entrance to Arthur Bay-Lake McConaughy and includes land for expansion. Acquisition financing was provided by Western States Bank. The seller was represented in the transaction by Mark Billingsley, an agent of Hike Real Estate, and Joan Lucas, owner of Joan Lucas Real Estate Services, an Argus broker affiliate.

Platinum Storage Group purchased two facilities in Spring Hill, Tenn. Port Royal Storage at 3797 Old Port Royal Road contains 105,515 square feet of rentable space in 697 units. Spring Hill Mini Warehouses at 1212 School St. comprises 43,400 square feet of rentable space in 336 units. Platinum was represented in the transaction by Ty Hasty, owner of Great South Real Estate and Development LLC. Founded in 1999 and headquartered in Newport Beach, Calif., Platinum is a privately held commercial real estate company specializing in self-storage development, acquisitions and management. Its portfolio comprises 2.5 million square feet.

The Storage Company in Nampa, Idaho, sold to Watchman Properties, a Utah-based real estate investment and development firm. The facility at 820 7th St. N. contains 963 units and 147 outdoor vehicle-parking spaces. It also contains 4.5 acres of undeveloped land. The seller, a local family, was represented in the transaction by Farrer and Schlosser. Fellow M&M Broker Andrew Helm procured the buyer.

Luke Gomez, CEO of Gable Construction LLC, purchased a Baton Rouge, La., self-storage facility for $260,000. The 70-unit property on Dallas Drive includes office and warehouse space. The seller was represented in the transaction by brokerage firm Elifin Realty. The buyer was represented by Brent Struthers, a broker with Beau Box Commercial Real Estate.

Strategic Storage Trust IV Inc. (SST IV), a public, non-traded REIT sponsored by SmartStop Self Storage REIT Inc., acquired four newly constructed facilities in the Southeast. The portfolio includes 9800 Ardrey Kell Road and 7307 University City Blvd. in Charlotte, N.C.; 2307 Hydraulic Road in Charlottesville, Va.; and 1071 Marshall Farms Road in Ocoee, Fla. Together, they comprise 326,000 square feet in 3,500 units. The acquisition marks the company’s entry into the North Carolina and Virginia markets. SST IV owns 21 self-storage facilities comprising 1.8 million net rentable square feet. SmartStop owns or manages 138 self-storage facilities in Toronto and the United States. Its portfolio comprises about 10.4 million net rentable square feet.

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11/6/19 – 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 November 2019.

A two-property 24/7 Public Storage portfolio in Rockford, Ill., sold to a private investor. Together, the facilities at 3231 and 4850 N. Main St. comprise 100,623 square feet. The properties are 1.5 miles from each other. The deal was brokered by Sean M. Delaney, senior vice president of investments, and Jeffrey L. Herrmann, investment associate, for Marcus & Millichap (M&M), a commercial real estate investment services firm with offices throughout Canada and the United States.

A Storage Place in Savannah, Ga., sold to a national private-equity group. It’ll be rebranded as Storage Sense. The facility at 111 Tibet Ave. contains 10 storage buildings, four retail spaces, seven warehouses, a rental office and a manager’s residence. The buyer and the seller were represented in the transaction by Dale C. Eisenman, president of Midcoast Properties Inc., a commercial real estate brokerage focused on self-storage in Alabama, the Carolinas and Georgia.

All Safe Storage in Seneca, S.C., sold to a local corporation that intends to rebrand it as Greenleaf Self Storage. The facility at 600 Shiloh Road comprises eight single-story buildings. It’s near the Oconee County Airport and several apartment complexes. The buyer was represented in the transaction by Michael Morrison, associate broker with Midcoast.

American Self Storage in Harlingen, Texas, was sold. The facility at 2426 E. Tyler Ave. B sits on 6.49 acres, with 3 acres for expansion. Constructed in 2004, it contains six single-story buildings comprising 49,588 net rentable square feet. The seller, a Houston-based partnership, was represented in the transaction by Dave Knobler, first vice president of investments, and Charles "Chico" LeClaire, executive managing director of investments, for M&M. Jon Danklefs, senior associate for M&M, represented the buyer.

Common Street Self Storage in Lake Charles, La., sold to a partnership organized and managed by Austin, Texas-based SynerMark Properties Inc. The facility at 2215 Common St. comprises 62,190 square feet in 585 units. The new owners plan extensive renovations and upgrades. A $2.5 million acquisition loan was arranged by Chase Johnson, vice president for NorthMarq Capital LLC, which offers services to commercial real estate investors. SynerMark operates a privately owned investment portfolio comprising industrial, mixed-use, multi-family, office, retail and self-storage properties.

In a partnership with international real estate firm Hines, Trez Capital Corp., a diversified real estate investment firm and provider of commercial real estate debt-financing solutions, acquired a four-building CubeSmart location in Plano, Texas. The seller was Southern Star Capital LLC & Platinum Storage 190 LLC. The facility at 525 N. Ave. comprises 235,400 square feet in 1,603 units and 124 vehicle-parking spaces. The transaction was brokered by Craig Rice, principal of real estate firm CSD Realty Co. Trez has more than $3.5 billion in assets under management, and has provided more than $2.5 billion for the purchase and development of various real estate projects. Founded in 1957, Hines has $124.3 billion in assets under management, and 148 developments underway around the world.

Eastside Self Storage in North Bend, Wash., sold for $12.7 million to an out-of-state institutional buyer. The facility at 1410 Boalch Ave. N.W. comprises 50,055 square feet in 361 units. Built in 2005, it sits on 6.11 acres. The buyer and the seller, a limited-liability company (LLC), were represented in the transaction by Christopher R. Secreto, senior managing director of investments for M&M.

Fortress Self Storage in Bakersfield, Calif., sold to Westport Properties Inc. (WPI), which operates the US Storage Centers brand. The facility at 3813 Mesa Grande St. comprises 118,595 square feet in 649 units and is adjacent to California State Route 99. It’s the second Bakersfield location for WPI, which operates more than 120 self-storage facilities nationwide.

More Space Storage Center in Odessa, Texas, sold to an unidentified LLC. The facility at 6501 Interstate 20 Business E./W. State Highway 80 E. comprises 92,562 square feet in 611 units. The facility sits on 4.95 acres. The seller was listed as Denver-based MCR Real Estate LLC. The deal was brokered by Brandon Karr, senior vice president of the Karr Self Storage Group, an M&M affiliate.

Pan Am Mini Storage in Atlantic Beach, Fla., was sold. The facility at 2383 Mayport Road sits on 4.43 acres and comprises 66,400 rentable square feet in 552 units. The seller was represented in the transaction by Josh Koerner and Frost Weaver, brokers with Weaver Realty, an affiliate of the Argus Self Storage Network, a Denver-based network of real estate brokers who specialize in storage properties.

Savoie Self Serve Storage in Clarkston, Mich., sold to an unidentified LLC. Built in 1988, the facility at 9650 Dixie Highway comprises 38,580 square feet on 9 acres. It’s situated on a corner lot across from a retail center. The buyer and seller were represented by Thomas Berlin and Zachary Munce of M&M.

Shallotte Secure Storage and Shallotte Storage Space in Shallotte, N.C., sold to Valley Storage Co. Together, the properties at 230 Mulberry St. and 220 S. Willis Drive comprise 99,600 net rentable square feet. They’ll be rebranded under the Valley Storage name and managed by Storage Asset Management Inc., a property-management and consulting firm. Based in Hagerstown, Md., Valley owns 30 self-storage facilities in Maryland, North Carolina, Ohio, Pennsylvania, Virginia and West Virginia.

Phoenix-based U-Haul International Inc. acquired StorGard Self Storage in Buford, Ga. The facility at 3556 Buford Drive contains 703 indoor units. Established in 1945, U-Haul owns and manages more than 62.5 million square feet of storage space nationwide.

Storage Zone Self Storage and Business Centers acquired Tifton Mini Storage in Tifton, Ga. The facility at 806 Avondale Ave. sits on 6 acres and comprises 76,800 net rentable square feet. The seller was represented in the transaction by Commercial Realty Services of West Georgia, an Argus affiliate. Florida-based Storage Zone operates 31 facilities in Florida, Georgia and South Carolina.

Stowaway Mini Storage in Lacey, Wash., sold to an unidentified buyer for $2.6 million in a 1031-exchange transaction. The 91,100-square-foot facility encompasses two non-contiguous parcels at 927 Bowker St. S.E. and 5235 Lacey Blvd. It’s about a half-mile from St. Martin’s University. The seller was represented in the deal by Secreto. Matt Gardner, a multi-family brokerage specialist for M&M, secured the buyer and helped with the 1031 exchange from apartments.

U-Lock-It Mini Storage in Bloomington, Ill., sold to an LLC. The facility at 2427 S. Main St. sits on 6.35 acres and comprises 69,110 net rentable square feet in 553 units. The buyer and the seller, a private investor, were represented in the transaction by Delaney.

United Storage in Pinehurst, Texas, sold to an unidentified buyer. The facility at 35615 FM 149 Road comprises 20,960 square feet. The seller, a private investor, was represented in the deal by Knobler and Casey Kral, an associate with M&M.

West Thunderbird Mini Storage in El Mirage, Ariz., sold for $4.1 million. Built in 2002, the facility at 12500 W. Thunderbird Road comprises 45,230 square feet in 400 units. The buyer and the seller were represented in the transaction by Paul Boyle and Rick Danis, brokers with Cushman & Wakefield, a provider of real estate services including consulting and appraisal, debt and equity financing, and sales and acquisitions.

The two-property Whirlwind Storage portfolio in Charleston and Hurricane, W.V., sold to a private-equity group. Together, the facilities on Hansford Street and Self Storage Drive, respectively, total more than 84,000 net rentable square feet in 790 units. Opened in 2017, the Charleston facility sits on 1 acre and includes five buildings. The Hurricane location, opened in 2012, sits on 11 acres and contains 12 storage buildings. The seller, Tom Good, was represented in the transaction by Yevgeni Kaniayev, brokerage advisor for Investment Real Estate LLC, a provider of brokerage, construction, development and management services to self-storage owners and investors since 1998.

New Sources:
Commercial Property Executive, Compass Self Storage Grows Florida Portfolio
KHQ, Strategic Storage Growth Trust II, Inc. Acquires 660-Unit Self Storage Facility in Seattle, Washington Suburb
PR Newswire, Compass Self Storage Acquires State-of-the-Art Storage Center in Jacksonville, FL
REBusiness Online, SkyView Advisors Brokers Sale of 70,914 SF Self-Storage Facility in Metro Minneapolis
REBusiness Online, SVN Commercial Arranges Sale of Two Self-Storage Facilities Totaling 773 Units in Thornwood, New York
Yahoo Finance, Global Self Storage Completes Acquisition of 458-unit Property in West Henrietta, New York

Previous Sources:
Business Report, Roundup: Garden District Barbeque / Testronic Facility /Storage Facility Bought
Commercial Real Estate Direct, Self-Storage Property in North Bend, Wash., Sold for $12.7Mln
CoStar, GDB Development Sells Eastside Self Storage in North Bend
PR.com, Solano County Self Storage Portfolio Sold
PR Newswire, Strategic Storage Trust IV Acquires Four-Facility Self Storage Portfolio in North Carolina, Virginia and Florida
Worcester Business Journal, Kane Family Sells Marlborough Self-Storage Facility for $7M
Benzinga, Self Storage in Savannah, GA Sold by Midcoast Properties, Inc.
REBusiness, Marcus & Millichap Brokers $12.7M Sale of Self-Storage Facility in Washington
REBusiness Online, Cushman & Wakefield Arranges $4.1M Sale of West Thunderbird Mini Storage in El Mirage, Arizona
Dallas News Morning News, Plano Warehouse Campus Sells to Investors
Connect Texas, Trez Capital-Hines Partnership Acquires 235K-SF Self-Storage Facility
New Kerala, U-Haul Acquires Former StorGard Self-Storage Facility in Buford
RE Journals, Marcus & Millichap Arranges Sale of Bloomington, IL Self-Storage Facility
Benzinga, US Storage Centers Acquires Self Storage Facility in Bakersfield, California
Connect Texas, 611-Unit More Space Storage Center Changes Hands

In the United States, our annual celebration of Thanksgiving this week will bring families and friends to together to feast, drink and socialize. We’ll enjoy football, parades, movie-watching and, of course, the biggest shopping days of the year. But more important, Thanksgiving is the perfect time to think about and honor the people and events that have a meaningful, positive impact in our lives. It’s a time to rejoice in our good fortune and health, and express gratitude to our loved ones.

In this thread on Self-Storage Talk, the industry’s largest online community, members are sharing the many reasons they’re thankful this year. See what tops their list and add your own reasons to be appreciative.

StorTrack, a provider of competitor-pricing data, market-analysis tools and first-stage due diligence for the self-storage industry, has hired RK Kliebenstein as a product consultant. In this role, he’ll be responsible for advising on the development of products for the self-storage investor and developer community. He’ll also assess new opportunities and develop business relationships for the firm.

“RK is a well-known and respected leader in the self-storage industry,” said CEO John Tilly. “His years of experience and authority in the industry will be a major asset to the StorTrack team as we continue to develop innovative products for the developers and investors of self-storage.”

Kliebenstein has more than 20 years of self-storage experience in acquisitions, development, strategic planning, operations, disposition and financing. He’s president of Coast-To-Coast Realty Advisors LLC, an industry consulting firm he launched in 2000. Most recently, he served as vice president of acquisitions for Metro Storage LLC, a privately owned real estate company specializing in the acquisition, development and management of self-storage facilities. He’s held similar roles for self-storage real estate investment trusts CubeSmart and Extra Space Storage Inc. He was also vice president of operations for StorageOne.

“Sourcing sites is a long, tedious, time-consuming process. I’m excited at the opportunity to work with StorTrack to develop products that will greatly increase the efficiency and accuracy of qualifying development sites and analysis of acquisition markets,” Kliebenstein said.

Kliebenstein is also the author of “How to Make Money in Self-Storage” and “How to Make MORE Money in Self-Storage,” both available through the Inside Self-Storage Store. He’ll be presenting a seminar at the 2020 ISS World Expo in Las Vegas, April 14-17, titled “Make an Impact! Essential Traits of a True Self-Storage Leader.” Registration for that event, the self-storage industry’s largest conference and tradeshow, will open in mid-December.

Launched in 2014, StorTrack serves more than 2,000 self-storage facilities in North America with dynamic pricing data, local market intelligence, market-valuation insights, reports and market-analysis tools. The company tracks more than 30,000 facilities worldwide with daily pricing data. It’s owned by Detroit-based Aggregate Intelligence Inc., a global company specializing in data on air travel, e-commerce, events, hospitality, rental cars, retail and self-storage.

Source: PR Web, StorTrack Welcomes RK Kliebenstein as Product Consultant

PS Orangeco Inc., an affiliate name of self-storage real estate investment trust (REIT) and third-party management firm Public Storage Inc., has agreed to pay $140,000 in penalties and costs for violating California’s price-gouging restrictions in the aftermath of the October 2017 Northern California wildfires. The judgment ordered by Sonoma County Superior Court Judge Patrick Broderick included an injunction to prohibit future violations, according to a press release.

The complaint filed against PS Orangeco was a joint action between the district attorneys’ offices in Napa, Solano and Sonoma Counties. The ruling determined the self-storage operator raised prices by more than 10 percent during a declared state of emergency. The statewide restriction was enacted on Oct. 9, 2017, by former Gov. Jerry Brown in response to the wildfires, which hit the North Bay Area particularly hard, the source reported. The measure has been extended multiple times and remains in effect through Dec. 31.

Public Storage agreed to the judgment and cooperated in the investigation, according to Sonoma County District Attorney Jill Ravitch. The company has issued full refunds, along with a $10 courtesy credit, to all customers affected in the three counties, the release stated.

Based in Glendale, Calif., Public Storage has interests in 2,468 self-storage facilities in 38 states, with approximately 167 million net rentable square feet. It holds a 35 percent interest in Shurgard Self Storage SA, which has 231 facilities in seven European countries, with approximately 13 million net rentable square feet.

Sources:
The Press Democrat, Owner of Public Storage Facility to Pay $140,000 for Price Gouging Violations
County of Sonoma, PS Orangeco Inc., Owner and Operator of Public Storage

Australian entrepreneurs Tim Manson and Byron Smith are set to build their first XSpace self-storage facility in Austin, Texas, featuring customizable condominium units and high-end amenities, including a 3,000-square-foot owner’s lounge. The four-story, 90,000-square-foot building will offer 106 units, which start at 300 square feet. The $20 million project at 4229 N FM 620 is scheduled to break ground by yearend, according to a press release.

The project will include a floor for reserved for customizable space. General features will include:

• Single- and three-phase power available
• Wiring for high-speed Internet access, phones and lighting
• Height clearance up to 17.5 feet
• Remote-controlled, pressure-sensitive unit doors
• Windows and natural light in most units
• Drive-aisle width of more than 25 feet
• Showers on two levels and a kitchenette on each floor

The owner’s lounge, envisioned as an event and meeting space, will be fully furnished and include high-end electronics, a commercial-grade kitchen and panoramic views of Lake Travis and the Texas Hill Country, the release stated. The business will target homeowners buying property in the area who may also want to acquire high-end storage space for cars, boats, RVs, artwork and other collectibles.

Manson will serve as managing director and Smith as director. The Australian partners were inspired by Smith’s passion for racing and Manson’s family self-storage business back home in Sydney, according to the release.

Kingham Dalton Wilson Ltd. (KDW), a Houston-based, full-service design/build firm, has been hired to design and construct the facility. "XSpace will certainly be one of the most innovative projects in our portfolio," said Keith Dalton, president of KDW. "We're looking forward to taking it from concept to reality."

Sources:
XSpace, Website
PR Newswire, XSpace Announces KDW Will Serve as Contractor for $20 Million Storage Condominium Development Near Lake Travis

Online video has quickly become a key component to online content strategy for businesses, and the trend is expected to continue. By 2021, videos are expected to comprise 82 percent of all Internet traffic, according to Cisco’s Visual Networking Index forecast.

With the prevalence of video content poised to increase, it makes sense for self-storage operators to leverage this content to connect with customers and promote their facilities. Let’s discuss the value of using video as part of your marketing strategy and how to make the most of it.

Video Value

Studies have shown the average Internet surfer spends 88 percent more time on websites that contain video, which is probably why 51 percent of marketing professionals identify it as providing the best return on investment of all content types. Furthermore, Millennials—an ever-growing segment of the self-storage customer base—watch the most video. What facility operator wouldn’t want prospective tenants to spend more time on their website as they decide on a provider?

My company has witnessed firsthand the value video can provide. Since posting about 10 videos promoting our self-storage facilities in August 2018, we’ve received more than 2,000 views from Web visitors, some of whom have walked into our stores and mentioned that they watched the content online.

Deciding on Content

Before you start a video project, decide on your content goals. Think about your target audience and what action you want them to take after watching. There’s no limit to the types of video you can create to promote your self-storage facility, but most industry video falls into one of three categories:

• Educational: The goal here is to teach the viewer about aspects of your operation. Common examples include guidance on unit sizes or specialty services such as wine storage. Educational video should be directed toward potential customers who are just beginning their search for storage and may not yet be ready to rent.
• Facility tours: Discuss your facility’s features and benefits. These videos commonly include drone shots or a combination of drone and walking footage. A virtual tour really gives you the opportunity to show off what’s unique about your property. It should be aimed at potential customers who want to see your site before renting.
• Customer testimonials: Arrange to film current or former tenants discussing why they recommend your business. These videos help create trust with the viewer, so they should be directed toward prospects who may be on the fence about renting from you.

Each of these video types can help drive more tenants to your facility. They reach prospective customers at different stages in their decision-making.

Video Creation

When it comes time to make a video, you can either pay a company or freelancer to shoot and produce it for you, or you can film it yourself. There are plenty of local production companies or professionals willing to come up with a concept, write the script, bring in their equipment and do the editing. Just bear in mind this comes at a price. The cost to have someone produce a video can run from $300 to more than $5,000, depending on the complexity and services required.

While producing video yourself is cheaper, the finished product likely won’t be as polished than it would if you outsourced. It takes time to learn how to make a quality product, but you can purchase basic camera equipment and a consumer drone for about $500 to $1,000. Once you own the gear, the videos will just cost your time to produce them. This savings can make doing it yourself an appealing option.

Where to Post

Once a video is created, you need it to be visible. Post it on your facility website, social media accounts, etc. If you have a Web page that discusses drive-up access to units, an educational video illustrating this feature would make a great fit. Facility tours and customer testimonials make great additions to any Web page.

Watching videos online is continuing to grow in popularity, especially among Millennial shoppers. It makes sense to up your ante in trying to attract their attention, so have some fun and get visual with your online content. Follow these tips to take advantage of the opportunities video provides to promote your self-storage operation.

Matt Casady is the marketing manager at Stor-N-Lock Self Storage, which operates more than 20 locations in California, Colorado, Idaho and Utah. He's a "do it all" marketing guy with experience in search engine optimization, website design, paid search, video creation and promotion, and more. 

Inside Self-Storage (ISS) has released a new gallery that explores the issue of internal company theft and how to avoid this devastating misconduct. “Battling the Enemy Within: Detecting and Preventing Self-Storage Employee Theft” explains why self-storage businesses are vulnerable to embezzlement, plus warning signs it could be happening. Owners and supervisors will learn steps to prevent it.

The gallery can be viewed under “Galleries” in the ISS Resource Center. Past galleries on other storage-related topics can be viewed through the same page.

Content for this resource was provided by Carol Mixon-Krendl, owner of SkilCheck Services Inc., a provider of self-storage auditing, development and operations consulting, mystery shopping, and sales training. She’s managed more than 30 storage facilities in the West and has served on state and national self-storage association boards. She’s a frequent speaker at industry shows and has written more than 100 articles for various publications.

Mixon-Krendl will be a featured speaker at the upcoming ISS Self-Storage World Expo, April 14-17, at the Mirage Hotel & Casino in Las Vegas. She’ll present the seminar “Checks and Balances: Site Auditing for Self-Storage Success,” 1-1:50 p.m. on April 15.

For more than 28 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.

Patterson Plus Self Storage, one of two Santa Barbara, Calif., facilities owned and managed by real estate development firm The Carey Group Inc. (TCG), has installed a smart, electronic locker system from Parcel Pending Inc. The self-serve system allows customers to have packages delivered directly to their locker at the storage facility. The lockers will accept packages from any courier service, according to the source.

Once a package is delivered, the customer receives a text or e-mail notification. Packages can be picked up 24 hours per day, the source reported.

“It is our understanding we are the first in our area to install Parcel Pending lockers," said facility owner Trudi Carey. “This is a great addition to our neighborhood, particularly with holiday package theft on the rise.” Customers can drive right up to the locker system, which is well-lit and equipped with digital cameras, Carey added.

As part of the new installation, Patterson Plus is offering free use of the lockers through Jan. 31 for residents who live within a 5-mile radius of the self-storage facility at 5325 Calle Real. The normal fee for using the package-delivery lockers is $10 per month.

Founded in 1979, TCG specializes in designing and building new homes and self-storage properties. It also operates Patterson 101 Storage.

Based in Irvine, Calif., Parcel Pending offers smart-locker solutions designed for commercial, residential, retail and university applications. Its systems allow customers to manage deliveries with a mobile application.

Sources:
Noozhawk, BizHawk: The Daisy Opens to Brighten State Street in Downtown Santa Barbara
Parcel Pending, Website
The Carey Group, Website