A jury in Potter County, Texas, has indicted a man on aggravated robbery charges for allegedly robbing an employee at SecurCare Self Storage on Dec. 2. Eddie Flores Sapien, 53, was charged with robbing a female employee at gunpoint at the property at 4000 E. Interstate 40, according to the source.

Sapien walked into the storage facility and demanded money, then asked the employee to drive him somewhere. Once outside, the employee was able to flag down an officer who was driving by, the source reported

Police found Sapien with a gun in his jacket under a freeway underpass. He was positively identified by the storage employee. He’s being held at the Potter County Detention Center in lieu of $25,000 bond for the first-degree felony charge.

SecurCare Self Storage is a part of National Storage Affiliates (NSA), a Maryland-based real estate investment trust. The company is owned and operated by its affiliated operators, who manage and self-brand their contributed portfolios under the NSA umbrella. Lone Tree, Colo.-based SecurCare operates 131 facilities in nine states.

Simply Self Storage (SSS) has purchased a seven-property portfolio in the Memphis, Tenn., metropolitan area for $16.6 million. The seller was a private investment firm based in Austin, Texas, according to a press release. The storage facilities comprise 383,175 net rentable square feet in 2,861 units. They are:

• Collierville Mini Storage, 50,100 square feet, 348 units, Collierville, Tenn.
• Getwell & Shelby Mini Storage, 51,285 square feet, 352 units, Memphis, Tenn.
• Kirby Raines Self Storage, 49,610 square feet, 364 units, Memphis, Tenn.
• Northwest Self Storage, 50,085 square feet, 388 units, Memphis, Tenn.
• Southaven (Airways) Self Storage, 61,185 square feet, 550 units, Southaven, Miss.
• Stateline Self Storage, 61,900 square feet, 378 units, Southaven, Miss.
• Winchester Self Storage, 58,470 square feet, 481 units, Memphis, Tenn.

All of the assets were constructed between 1995 and 1999, with the greatest distance between any two properties being 25 miles. Southaven, Miss., is approximately 14 miles from Memphis.

SSS and the seller were represented in the transaction by Marcus & Millichap Real Estate Investment Services. The brokers were Michael Mele, senior vice president of investments in the company’s Tampa, Fla., office, and Anne Williams, senior associate in the firm’s Memphis office.

“Strategically located within a strong Metropolitan Statistical Area, these seven properties provide the new owner with a substantial market presence and the ability to balance risk between stabilized assets and value-add properties,” Mele said.

The acquisition was the second recent transaction SSS has made in the Tennessee market. In September, the company purchased five facilities in the greater Nashville, Tenn., area from A+ Storage of Tennessee LLC for $33.6 million.

Marcus & Millichap has more than 1,300 investment professionals in offices throughout the United States and Canada. The company closed more than 6,600 transactions last year with a value of approximately $24 billion.

Founded in 2003 and headquartered in Orlando, Fla., SSS owns or manages more than 120 self-storage facilities in 16 states.

Safe and Sound Storage in Jensen Beach, Fla., was recently sold for $8.6 million, or $135 per square foot, to a New York-based institutional investor. The property at 1400 N.E. Savannah Road encompasses 82,949 square feet of storage space in 797 units. Built in 1989 on nearly 8 acres, the facility features 10 single-story buildings, an office, climate-controlled and standard units, and covered RV parking.

The seller, a private investor, had been approached by several off-market buyers, according to a press release from Marcus & Millichap Real Estate Investment Services, the commercial property investment firm that brokered the deal. Michael Mele, senior vice president of investments, and associate Luke Elliott from the firm’s Tampa, Fla., office, represented the seller and buyer.

Marcus & Millichap has more than 1,300 investment professionals in offices throughout the United States and Canada. The company closed more than 6,600 transactions last year with a value of approximately $24 billion.

By Bill Alter

In today’s real estate market, the days of caveat emptor (buyer beware) are over. Many consider it more important to be cautious when selling a self-storage property than when buying one.

The buyer's due diligence consists of numerous inspections, audits and third-party reports to verify the property is a suitable investment and exactly what he thought it was when he wrote his offer. It begins with the verification of the financial information that was initially provided, but it doesn’t end there.

If you’re the seller, your role in selling the property is to disclose information and assist the buyer as much as possible. Here’s how to support the due-diligence effort and set yourself up for a successful sale.

Inform Your Managers

Before your property even goes on the market, you must decide whether to inform your managers of what's about to happen. Sellers are often divided on the subject. Those who choose not to inform their staff are either afraid their managers will begin looking for other employment or they don’t want to unnecessarily upset them. I come down on the side of full disclosure for several reasons.

First, you can’t expect to keep your managers in the dark for very long when countless buyers, brokers, lenders, appraisers, insurance representatives and engineers are visiting the property pretending to be interested in renting units and never actually doing so. The fact is your managers will figure it out sooner or later, and it’s best that the news come from you. Also, doing so at the beginning of the marketing process allows you to enlist managers’ help in accomplishing a sale by making sure the property is presented in its best possible light.

You can assure your employees that the majority of buyers typically keep the staff. Explain that if they’re not retained, you’ll provide a severance package that’ll allow them time to secure new employment. It’s much better to have your managers on your “sales team” than to keep them ignorant and run the risk they could actually harm a potential sale.

Instruct your managers to direct any and all questions from buyers concerning financial aspects of the property to you or your broker. They should be completely honest when answering questions concerning the physical aspects of the property.

Address the Property’s Physical Condition

Unless your property is new, the buyer shouldn’t expect it to be in like-new condition. Therefore, it may not be necessary to spend very much on maintenance issues and the facility’s physical condition prior to sale. Simply take the time to replace burned-out light bulbs, fix minor damage to doors and metal-building corners, replace faded or missing unit numbers, and generally clean up the property.

Here’s the general rule: If something will add to occupancy or justify a higher rent, it should’ve been addressed long ago. It probably wouldn’t be cost-effective to address those issues now because value is a function of current income, not what the income might be if you repainted all the doors or installed new landscaping. Spending a lot of money now on issues like these probably won’t translate into a substantially higher sales price because it takes time for these improvement expenses to appear as increased revenue.

The most economical way to achieve optimal value for your property is to simply ensure it’s clean. The most you should do is add a sealcoat on the asphalt. The bottom line is your property’s income is achieved either because of its appearance or in spite of it. Many buyers look specifically for properties that can be upgraded so they have a better chance of improving the income than they would if they bought a newer property in perfect condition.

Have a Contract Ready

Negotiating contracts can be time-consuming and expensive. Be prepared to respond to any offer you receive with a contract prepared in advance by your attorney or broker, one with which you are familiar. The contract should allow for minor changes to fit the particular counter offer you’re making to the buyer, and you should request that the buyer use it if negotiations are to continue.

Your contract will include a list of items to be delivered to the buyer for review during the contingency period. Those items should be gathered and prepared in advance for quick transfer to the buyer. This will minimize the length of time required for due diligence. The following are typically included:

• The previous two years and year-to-date income and expense statements
• Most recent real estate tax bill and notice of valuation
• Current rent roll
• Most recent ALTA Survey and Phase I Environmental Site Assessment
• Building plans, if available
• Service agreements and contracts including those for Yellow Pages, insurance, computer service and any other agreements with outside companies
• Preliminary title report
• Copy of loan documents for the current financing

If you don’t have the ALTA Survey and environmental report, get them done before marketing begins, with an understanding with each respective engineer that the reports will be updated for the benefit of the buyer for a nominal charge. If you have an old survey, environmental report or the title work from your acquisition of the property, it would be wise to pull them out and review them carefully. Doing this will refresh your memory and prepare you for possible questions from the buyer.

Prepare for Financing

You should know whether your sale will require the buyer to assume your current financing or secure a new loan. You may want to require your buyer to demonstrate his ability to actually obtain the funding needed to close the deal. This would allow you to accept a lower offer if it’s all-cash or the buyer can prove his ability to get a loan.

You or your broker should contact several prospective lenders so you’re prepared to provide whatever documentation a lender may require to process the buyer’s loan application as quickly as possible. The probability of a smooth and timely closing will be improved if you can provide your buyer with specific lenders’ names and phone numbers.

If there’s an existing loan that can or must be assumed, know what it takes to accomplish that and be prepared to share the information with the buyer. The process of assuming a securitized loan is very difficult these days. Find out what’s involved and make sure your buyer knows. If there’s an existing loan that must be paid off, know what it’ll cost to do that, if anything, and be prepared to deal with that as well.

If you’re thinking about selling your self-storage property, do your own due diligence first. Talk to your staff, consider maintenance and upgrades, and have a contract and financing options prepared well in advance. Taking the initiative on these matters will not only attract a higher-quality buyer, it will ensure the entire sales process is easier for everyone.

Bill Alter has been a self-storage facility sales specialist with Rein & Grossoehme Commercial Real Estate since 1986. He’s been responsible for the sale of 140 facilities totaling more than 7,500,000 square feet and $300 million. To reach him, call 602.315.0771; e-mail [email protected]. For more information, visit www.rgcre.com.

Looking for a map to self-storage success? Tired of turning down one path after another only to land in a dead end? Feeling lost in a sea of competition? Or perhaps you’re in search of that “hidden gem” that will take your business to the next level?

Whether you’re seeking nuggets of knowledge, new revenue streams or a fresh crew to help steer your business, you’ll find your treasure at the 2015 Inside Self-Storage World Expo, April 7-9, at the Paris Hotel & Resort in Las Vegas. The following guide will show you where to look.

Income Island: Where Operators Find Lost Profit

Start your adventure with the end goal in mind: facility profit. The expo’s combination of education, networking and exhibits provides attendees with the tools they need to unearth the hidden revenue in their business. The first place to dig is our education program, where you’ll discover money-making skills and strategies in more than 40 seminars. Spread over two days and organized in 10 unique tracks, sessions are taught by leading experts in the field.

• Development & Construction
• Investment & Finance
• Management
• Ownership
• Marketing
• Staffing
• Sales
• Add-On Profit Centers
• Risk Management
• International

Next you’ll want to dive into our social events, where you can find allies and support in the form of fellow storage professionals. Consort with like-minded explorers and get guidance from those who’ve already conquered the landscape. If you’re company needs new mates to man the ship, networking is also a great way to find potential sailors and begin recruitment.

Start on Tuesday with the Self-Storage Q&A, a lively forum where you’ll hear vital industry facts and real-life stories, then paddle on over to the evening cocktail reception for some grog and victuals. On Wednesday, get personal time with experts and peers among the “Isles of Roundtable Discussions,” and identify some wise investments for your hard-earned doubloons during the Buyers & Sellers Meeting.

The Cave of Wonders: Uncovering New Products and Services

The next stop on your journey is the ISS Exhibit Hall, where you’ll find the tools of your trade. Packed with more than 120 exhibiting vendors, this is where you get down to the nitty gritty. Fill your chests with “booty” while you parley with the industry’s leading suppliers. Whether you seek a new software or marketing partner, a real estate or finance expert, or a builder, you’ll find them here.

The exhibit hall will be open 5:30 to 7:30 p.m. on April 7 and noon to 5 p.m. on April 8. As you navigate your way through the massive venue, think about your ultimate destiny, and then board those ships that will help you get there.

The Unexplored Cove: Workshops of Knowledge

Those willing to go the extra mile should add specialty workshops to their expedition. This year’s offerings, available a la carte or as part of the ISS Expo Premium Package, provide something for everyone:

Workshop	Date	Time	Focus
Development Conference	April 6	1-5 p.m.	The self-storage development process, including feasibility, financing, new construction, conversions and more
Special Workshop: Am I Breaking the Law?	April 6	1-5 p.m.	Legal issues that commonly create problems for storage operators and tips for avoiding a lawsuit
Management Workshop	April 9	8 a.m.-Noon	Day-to-day essentials for successfully operating a self-storage facility, from open to close and everything between
Owner/Operator Executive Workshop	April 9	8 a.m.-Noon	What owners need to know to run a profitable business, from human resources and facility audits to best practices
Legal Learning Live Workshop	April 9	1-5 p.m.	Legal essentials including lien-sale best practices, rental agreements and more
Pricing Workshop	April 9	1-5 p.m.	Systematic, data-driven pricing strategies that will help operators maximize facility income

X Marks the Spot: Discover Your Treasure

The ISS Expo is always packed with hidden gems, so be on the lookout for resources, products and people that can aid you on your self-storage journey. Stop following the same old route.

It’s time to chart a new course for success. Get details and register at www.insideselfstorageworldexpo.com.

Sheriff deputies have questioned a 32-year-old woman in connection with the decomposing remains of two infants discovered last month inside a unit at Sierra Self Storage in Colfax, Calif. The remains were discovered by Regina Zimmer, who is not a suspect, after she purchased the contents of the units during a lien sale. Autopsies of the corpses are being conducted to determine if the babies were alive at birth or stillborn.

Authorities believe the woman questioned in the case is the mother. The remains had been in the unit for at least six months, officials said. “We’re trying to determine the age of the fetus, if it was a viable fetus or if it was a miscarriage,” said Lt. John Poretti, a spokesperson for the Placer County Sheriff’s Department.

If the babies were alive at birth, the person responsible could face double murder charges. If they were stillborn, misdemeanor charges of improperly disposing of human remains would likely be brought, Poretti said.

Zimmer said the remains were found inside an ottoman that had been sealed with tape. Multiple trash bags were inside the container along with food and a stuffed animal. Zimmer called authorities to report the foul odor. “As soon as we removed all the tape and got the lid off, it smelled really, really bad,” she told local news station KCRA. “It was a little skull. It looked like it was in three pieces, some hair. And you could see a jawbone.”

Sheriff deputies found the remains of one body in a trash bag while investigating at the scene. The second set of remains was discovered after the ottoman was taken to the Placer County morgue for processing and autopsy, according to the source.

Gordon Goodrich, general manager at Sierra Self Storage, told a local newspaper he was asked by investigators not to comment on the case.

The investigation is ongoing. Anyone with information connected to the case is encouraged to call Placer County Crime Stoppers at 800.923.8191.

The Fountain Hills, Ariz., Planning and Zoning Commission voted 5-0 at its Dec. 11 meeting to recommend the town council approve a special-use permit that will allow a faux palm-tree cell tower to be installed at Fountain Hills Mini-Storage. If approved, a 72-foot cell tower will be constructed inside the property at 12031 E. Colony Drive. The commission is also requiring that three real palm trees be planted near the cell tower. Coal Creek Consulting, a provider of wireless development and site-modification services, would build the tower for T-Mobile.

Because the cell tower is within 300 feet of a condominium complex, a special-use permit is required, according to the source. The town has a similar cell tower in a business plaza on Saguaro Boulevard, however, it’s slightly shorter than the one proposed for the storage facility, the source reported. Another cell tower, on a light pole at Desert Vista Park, is 85 feet in height, Bob Rodgers, a senior planner with the commission, said during the meeting.

Before voting, commission members discussed damage that might be caused should the cell tower fall during a storm. Declan Murphy of Coal Creek Consulting told members the tower is designed to withstand a 92-mile-per-hour wind gust sustained for 30 seconds. If the tower were to fall, commission members determined it would likely drop on the storage property or within an adjacent alley, limiting collateral damage, the source reported.

Jim Klungness, owner Fountain Hills Mini-Storage, attended the meeting and requested members approve the special-use permit. The source didn’t say when the town’s council would review the plan.

SMD Software Inc., provider of SiteLink property-management software for self-storage and portable-storage operations, has received the Payment Card Industry (PCI) Data Security Standard (DSS) Level 1 Service Provider Certificate of Compliance, an information-security standard defined by the PCI Security Standards Council. The standards cover all aspects of cardholder data in a system, including card-data entry, processing and secure payment applications. The PCI-DSS Level 1 Certification is the highest level of certification in the payment-card industry, according to an SMD press release.

“This level of certification represents a major commitment and investment by SiteLink,” said Markus Hecker, chief operating officer. “We manage our customers’ data in accordance with the highest security standards.”

The achievement follows the recent launch of SiteLink Merchant Services, which allows direct-payment processing for SiteLink users without a third-party vendor. The PCI DSS Level 1 Certification is a critical component of SiteLink’s effort to protect businesses, the release stated.

“We have always held security certifications as a priority to demonstrate how we keep customers’ best interests above all else,” said Luke Lenzen, chief technology officer. “Undergoing this type of certification is not a small feat. Data encryption and quarterly penetration testing are focal points of our security strategy.”

Founded in Raleigh, N.C., in 1996, SiteLink has more than 11,000 installations worldwide. The software integrates with more than 30 technology partners’ services including kiosks, mobile devices, websites, insurance, call centers and other platforms.

Provision Self-Storage has won approval from commissioners in Baldwin County, Ala., on a zoning change that will allow the company to pursue a retail development on 4 acres of vacant land along Rebel Road. The company’s proposal includes a lawnmower-sales and -repair shop in addition to self-storage, according to the source.

The commission unanimously agreed to change the zoning from that of a professional business district to a neighborhood district, despite a petition submitted by residents who oppose the project. Residents in nearby Belforest, an unincorporated community outside of Daphne, Ala., cited concerns over the look of the self-storage facility, increased traffic from moving trailers along Rebel Road, and stormwater-runoff issues associated with the development, the source reported.

Commissioner Chris Elliott called the project appropriate for the land and downplayed the impact of potential traffic increases.

The proposed project includes a 4,000-square-foot showroom for lawnmower sales. The project is similar to a Provision Self-Storage facility along Alabama Route 181, according to the source.

A portion of Route 181 was widened in 2011, prompting an increase in residential development and traffic volume in this particular area of the county, the source reported. The county’s master plan includes the area for future development.

The Storage Business Owners Alliance LLC (SBOA), a buying group for the U.S. self-storage industry, has partnered with human resources (HR) firm AlphaStaff to launch a specialized HR-services program specific to the self-storage industry. The program is designed to improve efficiencies for businesses of all sizes, according to an SBOA press release.

“We are proud to announce the formation of a full-service team at AlphaStaff focused solely on the various human resources and outsourcing needs of self-storage facilities nationally,” said Jeniece Henson, vice president of business development for AlphaStaff. “We now provide services for five of the top 25 operators in this space as well as operators with a handful of facilities.”

The program will continue to expand with new benefits as more self-storage operators sign up, creating greater scale, according to the release.

SBOA members can take advantage of pre-negotiated discounts on goods and services from more than 30 preferred vendors, including SBOA Merchant Services and SBOA Tenant Insurance. The company has nearly 5,000 member facilities.

Founded in 1997, AlphaStaff is a professional-employer organization that offers a customizable suite of solutions for HR, employee benefits and administration. Services include workforce management, benchmarking data, HR information systems and insurance. The company has supported more than 100,000 worksite employees in 49 states.