New investors purchased Carter Storage in Genoa City, Wis., through a  loan from the Small Business Administration.

The U.S. Small Business Administration (SBA) changed its loan guidelines in late 2010 to allow self-storage businesses to be an eligible business type. Previously, self-storage facilities were only eligible if more than 50 percent of the business revenue came from sources other than monthly rent.

Carter Storage has 52 self-storage units in a variety of sizes, totaling 9,200 rentable square feet. The property was sold at a 9.45 percent cap rate. The facility spent 92 days on the market and took 50 days to close upon acceptance. 

Chris Hitler of Investment Real Estate Specialists LLC represented the seller and buyers. Hitler is the Argus Self Storage Sales Network broker affiliate for Wisconsin.

 

The LifeStorage self-storage facility of Bridgeview, Ill., has been selected to receive a 2011 Best of Bridgeview Award by the U.S. Commerce Association (USCA).

The USCA "Best of Local Business" award program recognizes outstanding businesses throughout the country. Each year, the organization identifies companies that have achieved exceptional marketing success in their local areas and business category. These are local companies that enhance the positive image of small business through service to their customers and community. Winners are determined based on information gathered internally by the USCA and data provided by third parties.

In November, LifeStorage of Bridgeview hosted a Pet-a-Palooza adoption event to help find homes for some of the area's foster animals. Facility managers Nancy Warrer and Jeffery Helms reached out to various animal agencies to participate.

LifeStorage was founded in 2002 by owners Jean Jodoin and Christopher Barry. The company has 18 self-storage facilities in the ChicagoLand area.

Based in New York City, the USCA is funded by local businesses in towns nationwide. The organization promotes local business through public relations, marketing and advertising, advocating for small to mid-size businesses and entrepreneurs.

Like most self-storage operators, you embrace a relentless pursuit to provide tenants with exceptional service. Your challenge is to effectively communicate that commitment to others who are in the market for a storage solution, whether for commercial or personal use.

 

A way to meet this goal is to invest in and leverage the use of a rental truck as part of your service offering. Not only will it allow you to deploy a tangible example of your offerings, you can customize your truck to serve as a marketing tool using professional custom graphics.

Integrating a rental truck into your self-storage business is a powerful way to grow your operation and provide a necessary and often critically needed service for your tenants. Equally important, having a rental truck at your facility doesnt need to be a headache and should be one of the best business decisions you make.

There are four things to consider when exploring the idea of offering rental trucks, or even if you already deploy a rental truck at your facility. They are profitability, advertising, due diligence and maintenance.   

Profitability of the Service

One of the biggest advantages of adding rental trucks to your self-storage business is the profitability of the service. Here are few strategies you can take to earn even greater revenue.

• Develop a small moving business using your truck and hiring part-time movers. This can be easily done and is a great way to add profit.
• Offer up the space on the back door for advertising. You can break up the back door into 1-by-2-foot sections and charge a monthly rate. This will not only reduce your monthly costs, its a great way to get referrals for your business.
• Encourage rentals during downtime by offering mid-week specials.
• Implement a loyalty card or frequent-user program. For example, Rent this truck four times and receive 50 percent off your fifth rental!
• Set up your pricing structure based on time. Rent the truck based on the size of the unit the customer is renting. For pre-paid or one-year rental contracts, include a certain number of hours with the truck to help the client move in.
• Charge a premium rate on holidays and peak rental seasons.
• Promote truck rental to students moving to college or to delivery services. You can make the truck available at a discount to current tenants, providing a valuable add-on service and achieving valuable word-of-mouth advertising and endorsements.

 

These strategies can be used by themselves, or choose whatever works best in your market. The goal is to uncover other revenue streams for your truck-rental program without causing any financial or staff burden.  

 

 

Community Advertising

Your truck is really a moving billboard. When you use your truck to run local errands and participate in parades, festivals and charitable events, it will be seen within the community and youll receive more calls.

Mention your truck on all of your marketing materials including your website, social-media platforms, fliers, business cards and print advertisements. Your truck is a value-added service, so promote it whenever and wherever you can.

Post fliers advertising your truck and facility at local businesses. Make sure they know your truck is also available for commercial use. Businesses that cater to the general public are generally reliable when it comes to promoting your offerings through word of mouth.

Participate in the design of the graphics for your truck to achieve a great marketing message and project a positive image of your business. This is your largest advertisement. You want to make sure its eye-catching and sends a timely and compelling message.

If you dont have a great location to display your truck, consider trading limited free use of the truck with a nearby business that offers better visibility.         

Due Diligence

Before you lease or lend your facilitys truck to any person or company, you need to follow a couple of due-diligence safeguards:

• Always ascertain the customers intended use of the vehicle to ensure its acceptable.
• Verify the customers drivers license, insurance, credit card and phone number. Check restrictions on the drivers license and limitations on the credit card.
• Complete all necessary rental forms with your tenant and make sure signatures are in the correct places.
• Physically review the vehicle with the customer. Point out all features and concerns such as the height and extended ramp.
• If there is any doubt in your mind as to the customers credibility, do not rent your truck.

Routine Maintenance

Its imperative to keep your truck in perfect working condition. You can do so by adhering to the following steps:

• Follow all warranty conditions and recommend preventive maintenance as specified in the owners manual.
• Regularly check all fluid levels including brake, oil, transmission, power steering, windshield washer and coolant.
• Keep vehicle clean inside and out.
• Regularly check turn signals, headlights, brake lights and the interior cargo light. These may need to be periodically replaced.
• Check tire pressure and condition after every use.
• Test brakes daily.
• Replace damaged windshields and side glass.
• Replace damaged mirrors and lights.
• Repair all body damage.
• Check ramp and roll-up door for proper function.
• Check seatbelts to ensure they work properly.
• Keep hand truck and blankets clean. Always secure the hand truck inside of the box.

While a strong maintenance program will minimize breakdowns while the truck is in use, sometimes a breakdown does occur, so have a plan in place to assist the customer quickly and with minimal stress. If theres any doubt regarding the safe operation of the vehicle, do not rent it, and get the truck repaired quickly. Most vehicles do not come with a spare tire or jack. The last thing you want is a customer trying to change a truck tire on the side of the road.

Enhancing Your Program

There are many ways adding a rental truck to your storage facility can enhance your customer-service offerings, provide exceptional marketing and advertising opportunities, and serve as a medium for community outreach. Careful planning will maximize your opportunity for tremendous success.

As you elect to evaluate and pursue this option, seek the services of a specialist in this area. There are several from which to choose. Just as you are committed to providing your tenants an exceptional long-term storage solution, rental-truck specialists are committed to maximizing your success with this unique service offering.

C.J. Steen is the marketing director at On The Move Inc., which offers a complete truck-rental package including insurance, custom graphics and visual impressions. For more information, call 800.645.9949; visit www.onthemovetrucks.com .

Boomerang Systems Inc., a designer and manufacturer of automated robotic parking and self-storage systems, has closed an $11.6 million financing, which is expected to help accelerate the company's growth trajectory. 

"We are very pleased to complete this offering with the investment and support of a diverse group of private investors, many of whom Boomerang expects to be strategically helpful in developing relationships around the world," said CEO Mark Patterson. 

The company conducted the offering pursuant to a transaction exempt from the registration requirements of the Securities Act of 1933, as amended.  The final closing occurred on Dec. 9.  The offering of securities included approximately $6.6 million of indebtedness, which was converted into the offering securities, and additional cash of approximately $5 million received from new investors. 

In the offering, Boomerang sold 6 percent convertible promissory notes due in 2016 in the aggregate principal amount of $11,624,522 and warrants to purchase an aggregate of 2,735,192 shares of common stock.  Gilford Securities Inc. acted as the exclusive placement agent for the offering.

Headquartered in Morristown, N.J., with research, design, testing and production facilities in Logan, Utah, Boomerang Systems Inc.  is in the business of selling, designing, engineering, manufacturing, installing and supporting its own line of fully automated-parking systems and automated self-storage systems.

Reliable Storage opened its seventh self-storage facility Dec. 15 with a grand-opening ceremony, presented by the Port Orchard, Wash., Chamber of Commerce.

The community was invited to take part in the festivities, in which Reliable Storage donated $500 to South Kitsap Helpline Food Bank. We are excited to be part of the Port Orchard community," said site manager Dennis Cornelius. Community participants who signed up for a unit during the event received their third month free, Cornelius said.

The Port Orchard self-storage facility features a state-of-the-art security system, climate-controlled units and RV and boat storage.

South Kitsap Helpline Food Bank provides food and other necessities to approximately 3,600 children, adults and senior citizens in Port Orchard every month. The food bank goes through more than 900,000 pounds of food each year.

Self-storage operators around the nation are getting into the holiday spirit by kicking off various charity drives.

LifeStorage is continuing its seasonal events this December with most Chicagoland locations transforming LifeStorage lobbies into Santa's Workshops. Nine locations offered pictures with Santa on Dec. 10. The Santa's Workshops, which run through Dec. 23, include gift-wrapping stations with free gift wrap, hot cider and cookies.

In addition, employees from the companys Elgin location visited Sherman Hospital on Dec. 9 to deliver gifts. The LifeStorage team, organized by store manager Paul Menzel and led by Santa, visited the pediatric unit and emergency room, providing sick and injured children some holiday cheer with newly purchased toys from the LifeStorage coffers.

Uncle Bob's Self Storage is collecting toys for the  U.S. Marine Corps Reserve Toys for Tots Annual Holiday Toy Drive. Uncle Bobs is owned by Sovran Self Storage Inc., a real estate investment trust.

To complement their collection efforts, Uncle Bob's will donate $1 for every new Facebook "Like" it receives through Dec. 26, up to $5,000. The company has nearly 200 Uncle Bob's Self Storage locations registered as collection points. Uncle Bobs will also help the Toys for Tots foundation deliver the donated toys.

In an effort to help collect 100,000 winter coats for the New York Cares 23rd Annual Coat Drive, Storage Deluxe is setting up collection bins at its 10 locations in Brooklyn, the Bronx and Queens for donations of new or gently used coats now through Dec. 31. Last year, New York Cares provided winter coats to 58,000 low-income men, women and children.   

Barbie Sansom, the onsite manager for Sunset Self Storage in Winton, Calif., is spearheading a holiday food drive. Her goal is to fill a 14-by-7-foot rental truck, 669 square feet in all, with non-perishable food for the Emergency Food Pantry in the North Merced area. U-Haul International donated the use of the truck through Dec. 21.

Adams Park Storage LLC is hosting a food drive and raffle to help support York County Shelter Programs. Food donations will be collected at Adams Park Storage, 23 Smada Drive in Sanford, Me., through 22. For every donation, the person donating will receive a raffle ticket for a chance at winning a 32-inch flat-screen TV. There is no limit on the number of raffle tickets per person. The facility will hold a drawing at noon on Dec. 22.

The Illinois Self Storage Association will hold an "Owners Summit" for self-storage operators on June 28, 2012, at the Conrad Chicago Hotel in downtown Chicago. This event replaces the Great Lakes Self Storage Expo held by the association in previous years.

Event Chairman David Kohn, vice president of MJ Partners Self Storage Services Group, is coordinating the program for self-storage owners and key management personnel. The one-day program will feature top-level presenters covering topics such as the capital markets, investing and the state of the self-storage industry. Sponsors will provide displays of their products and services.

More information about the Illinois association can be found at www.ilministorage.org.

A self-storage manager in Mesquite, Nev., has created an elaborate Christmas display inside the facilitys office.

Brian Rammage, manager of Mesquite Self-Storage, started the elaborate Christmas Town five years ago to add some holiday cheer to the business. What began as a small village and an electric train has blossomed into a sparkly Christmas display with more than 100 buildings, a train and station, a hillside, trolley and skaters on a pond. Christmas Town also features a sleigh, slow-covered streets and Christmas decorations through out.

Having maxed out the space of the facilitys office, Rammage says next years display will include more aerial elements. The display is open to the public Monday through Friday from 9 a.m. to 4 p.m.