Absolute Storage Management Inc. (ASM) is acting as a collection drop-off for the U.S. Marine Corps Reserve Toys For Tots.

All of ASM's properties in the Southwest will be collecting toys for children in Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee.

Launched in 1947, the U.S. Marine Corps Reserve Toys For Tots Foundation has been successful in bringing thousands of smiles to needy children each year. Its mission is to ensure less fortunate children experience the joys of the holiday season.

Absolute Storage Management Inc. is a full-service property-management and development company.

Organizing and professionally presenting a self-storage facilitys due-diligence documents always enhances a sellers chances of consummating a sale. More than ever, lenders and appraisers are scrutinizing and analyzing all aspects of this documentation as well as the personal financial strength of the buyer.

The recent lending paralysis that virtually shut down commercial lending and investment seems to be easing. Recourse loans, which were unheard off in the past decade, are now commonplace and play a firm role in the new lending landscape. Moreover, higher loan-to-value deals are part of the transaction process. Lenders want more of the borrowers skin in the game to reduce the risk factor of the loan.

Financial records for self-storage properties must corroborate and confirm adequate cash flow, steady occupancy, comparable market strength, and historical financial stability. Without these general factors intact and certifiable, the buyers ability to secure financing is extremely limited if not impossible. Without the possibility of seller financing, accurate due-diligence documentation will help make the deal.

Required Documents

Many successful storage properties share some basic characteristics. These features include a strong retail drive-by location, a carefully planned unit mix, ease of access, ample parking, and market-focused onsite management. Astute buyers will immediately notice these traits, but be prepared to review your property with the buyer to conduct a thorough due diligence.

The creation of a document binder is a recommended step in the process. The binder should contain all the necessary documents a potential buyer and lender will need during the evaluation period. This will expedite the document-review process and flush out potential problems. If possible, the information should also be saved electronically for ease of transmission to associated parties.

A list of due-diligence information that may satisfy a prospective investors requirements should include but is not limited to:

• Bank statements (two years)
• Real property-tax invoices (two years)
• Rent roll including term and payment history
• Tax returns (three years)
• Insurance policy (including riders, risk assessments and carrier affidavit)
• Deed
• Bank statements (12 months)
• Personal property
• Utility bills
• Income statements (current yield-to-date and last two full years, both detail and summary information)
• Occupancy reports (current yield-to-date and last two full years, both detail and summary information)
• Service agreements (cancellation rights/penalties)
• Environmental reports and surveys (phase one)
• Preliminary title report and legal description
• Site plan
• Lot size and zoning information
• Architectural drawings
• Narrative sections of the most recent appraisal
• Capital expenditures (detailed of last three years, current and planned)
• Government inspection reports (description and status of any violations)
• Licenses (description and name of licensed entity)
• Lease(s), sublease(s) and/or operating agreement(s)
• Natural hazard disclosure report
• Ground lease (if applicable)
• Employment agreement

Confirmation Checklist

As with any financial transaction, unnecessary holdups with information can delay or kill the deal. The investor needs all due-diligence information within the prescribed schedule, which is normally documented in the purchase agreement. This will ensure the property doesnt remain off the market for an extended period of time in the event the investor chooses to forego the purchase.

Provide the buyer with a detailed checklist of documents and have him sign a receipt certifying and confirming acceptance. The due-diligence period will normally start at this point in the transaction. The checklist should include a short description of each document and the source of the information (i.e., public records, tax assessor, court, etc.).

Also include contact information, e-mail addresses and phone numbers as necessary. In the event a document is not included, provide an explanation for the omission. This disclosure will prevent unnecessary delays during the due-diligence review.

Remember, any inaccuracies in the information will cast doubt on the transaction and may lead to uncertainty on behalf of the buyer, which could lead to a lower sales price or cancellation of the transaction. In fact, a cautious and knowledgeable investor will be looking for document omissions or errors. If he finds them, he may find more time evaluating and analyzing the deal.

Its always a prudent for the seller to disclose all aspects of the property. Not doing so could lead to post-closing issues, which could result in legal action and monetary damage.  

I recommend the seller and buyer consult with legal and financial advisors to review all documentation and confirm that legal and financial standards have been satisfied. By following the recommendations above, youll provide a smoother transaction for you, the buyer and the lender.

Stephen I. Grossman is a senior vice president with NAI Capital Self Storage Investment Group in Newport Beach, Calif. The company specializes in self-storage brokerage in California and Hawaii. Mr. Grossman has been responsible for the sale of more than 800,000 buildable square feet of entitled self-storage land and the sale or escrow of more than 3 million square feet of existing self-storage facilities. For more information, call 949.468.2394; e-mail [email protected] .

A woman visiting a self-storage facility in Stuart, Fla., is distraught after her dog was taken by a passerby.

The woman was inside her self-storage unit at Tropical Self-Storage around 5 p.m. Wednesday, and had left her 4-year-old shih-tzu, Molly, nearby in her car. The dog jumped out of the cars open window and wandered to the front of the storage facility.

A self-storage employee told police a couple in an SUV pulled up to the facility and the passenger in the vehicle called for the dog. When the dog went to him, he scooped her up, put her in the car and the couple drove away.

Although the dog owner reported her dog stolen, she told police she understands the man may have viewed the dog as a stray and was trying to help. Anyone with information should contact the Stuart Police Department at 772.287.1122.

SMD Software Inc., provider of SiteLink self-storage management software, has added key enhancements to its revenue-management software module.

Now, Web Editions revenue management offers even more tools to fine-tune rent changes and increase revenue. Web Editions revenue management now includes tenant ZIP codes in rent-change calculations. Using the IRS published average income by ZIP code, operators can set rent raises for tenants based on their ZIP code. Graphs analyze trends in rent changes and resulting occupancy. Web Edition reports show the financial growth from revenue management and underscore its growing popularity.  

The ZIP-code analysis adds value for owners to Web Editions existing settings for revenue management, said COO Markus Hecker. Our new reports and graphs capture the tremendous revenue growth from small but steady rent changes.

The company also announced it has completed a record number of TaskMaster management software conversions to SiteLink Web Edition.

Established in 1996, SMD Software has more than 9,000 installations worldwide.

Holliday, Fenoglio, Fowler LP (HFF), a provider of commercial real estate and capital-markets services, has launched its sixth annual Giving Season Initiative to assist child-abuse victims in the Houston area.

The company is reaching out to its friends, colleagues and clients in the self-storage industry for donations to Child Advocates Inc., a local organization that guides more than 1,800 abused children annually to safe environments where they can thrive.

For the past five years, HFF has participated in the agencys Santas Wish List program, which raises funds to buy holiday gifts for kids. The team hopes to reach its donation goal by Dec. 7.

There is no limit on donation amounts. To be directed to an online secure form for credit card donations, click here.   

For the past year, Falmouth Self Storage in Fredericksburg, Va., has stored donated suitcases for foster children.

The Department of Social Services in King George County requested donations from the public, asking them to come forward with suitcases to replace the trash bags the children in the states foster-care system were currently using.

Community members donated new and gently used suitcases, plus personal hygiene items including soaps, shampoo, combs and more. The organization also received cash donations.

LifeStorage Centers LLC has opened six new self-storage facilities throughout the Chicagoland area, bringing the companys total number of stores in the region to 16. The new centers are in Algonquin, Carpentersville, Elgin, Matteson, Rogers Park (Chicago) and South Chicago Heights.

LifeStorage was founded in 2002 by owners Jean Jodoin and Christopher Barry. The company actively participates in many community events including Halloween Trunk or Treat programs and Toys for Tots. Each year during the winter holidays, several LifeStorage Centers offer free gift-wrapping services. In April 2011, when moving season is in full swing, LifeStorage plans to invite its neighbors to celebrate the official opening of its new stores by hosting a charity Clean Out for the Cause event at all store locations.

LifeStorage Centers provide indoor, climate-controlled self-storage with amenities including drive-in and drive-thru bays, office suites, records storage, document destruction, mailboxes, loading docks, digital surveillance cameras and onsite managers.

Stor-Age Gardens will soon open in Cape Town, South Africa. The self-storage facility is modeled after facilities in the United States, Australia and Europe.

The facility will feature 24-hour access year round for tenants, a business center with Internet access, fax and photocopying services, a retail store and wide drive aisles.

Faircape Construction, a property development company based in Cape Town, has been appointed to oversee progress, while 4S4 Steel Self Storage Systems will outfit the internal self-storage system.

Once completed Stor-Age Gardens will have approximately 700 units across 9,000 square meters of storage space. The facility is already receiving inquiries about rentals.

Headquartered in Cape Town, Stor-Age Self Storage is the largest self-storage company in South Africa.