By Murphy Klasing

When I defend cases in which facility operators have been accused of violating lien-sale laws, I always remind the jury that this is the self-storage business, not the self-auction business. Despite what many “Storage Wars” viewers may believe, auctions aren’t a way for operators to make money. Nevertheless, lien sales are a necessary part of the industry. When a tenant stops paying rent, an auction is recourse for the operator to remove that customer in favor of another who will pays his bills.

One of the most important things to remember when conducting an auction is the process by which a self-storage operator can foreclose on the belongings of a tenant without a judge’s order is an “extraordinary” remedy. Normal people tend to think of “extraordinary” as meaning remarkable, exceptional, amazing, sensational or phenomenal, but a lien sale is rarely any of these things.

A self-storage auction is “extraordinary” in that it’s an unusual occurrence. When it comes to lien sales, various states have given storage operators this remedy to streamline the business, but it doesn’t come without a price.

Lien-Sale Minefield

Of the lawsuits I’ve handled in which the plaintiff claimed a lien sale was conducted improperly, 100 percent have involved allegations that the operator failed to follow one or more technical aspects of the lien-sale process. Plaintiffs accuse self-storage businesses of:

• Not properly noticing the sale
• Conducting the sale on the wrong day
• Not posting the sale in the newspaper long enough
• Not conducting a proper inventory
• Failing to have a sufficient number of bidders
• Failing to have a written lease

When they’re correct on just one of these or another technical violation, the self-storage operator can be in trouble.

To understand why, put yourself in the court’s shoes. From its perspective, your state legislature went around the court to grant you authority to take someone else’s property without its assistance. Remember, we live in the United States, where your life, liberty and property can’t be taken from you without due process of law. In the context of a self-storage lien sale, the only “due process” the tenant is given is a set of specific rules the facility operator must follow rather than obtain a foreclosure order from the court. In the court’s view, if you want to act as judge and take away someone’s property, you’d better follow every rule without exception or excuse.

Thus, if you conduct auctions without a firm grasp of the rules and a solid plan to not only follow the law but maintain proof that you did, the court will administer its own due process against you. This is another reason the courts state that your holding a lien sale is “extraordinary” and not business as usual. If you want to proceed to the bonus round (the sale), you have to win the game (conduct the pre-auction process flawlessly).

Tiptoe Around the Mines

My advice is to follow the rules. Here are five key tips to help you travel safely through the minefield.

1. Create an auction checklist. Most states require that you send a notice of the lien sale to the last known address of the defaulted tenant. There are typically specific requirements regarding notice language, stating the amount due and indicating an auction is coming or will be held on a certain date. Create a checklist that includes all of the requirements you must follow before selling someone’s possessions. As each requirement is met, initial the box next to the item and date it. Keep a copy of the checklist in your files.

2. Keep copies of everything. Keep meticulous records. Copies of the default-notice letter, the publication of the auction notice, the aforementioned checklist, your inventory of the unit and anything else your state requires should all be placed in the tenant file.

3. Wear the “white hat.” Review your files with the best intentions. Ask yourself, “If I was a juror on a future lawsuit about this auction, would I believe the self-storage company did everything it could to inform the tenant about the auction in hopes of preventing it?” Did you call the tenant more than the law requires? Did you send letters? Did you document any conversations with the tenant in a ledger-note file or the tenant’s account file? Make sure you’re comfortable that you’ve done all you can to avoid selling the unit.

4. Use the alternate contact information. One of the worst things you can do in a default situation is fail to call or e-mail the alternate contact person. While most, if not all, states don’t require you to do this, why have the information if you aren’t going to use it? That’s precisely what a jury will be asking itself while deliberating on your fate. If your efforts to reach the tenant have failed, be able to show the court and jury that you also attempted to contact the alternate person in hopes of avoiding an auction.

5. Conduct the sale as the law requires. If your state doesn’t allow online auctions, don’t hold them. If your state requires the auction have a certain number of bidders present, don’t proceed until there are enough people. If your state requires you to tell the tenant the date of the auction, tell him. Don’t think that any hyper-technical requirement is silly or can be avoided. To be “extraordinary,” you must be “extra perfect.”

Keep Your Files

Now that you’ve followed all the rules, conducted a flawless auction and sold the items, what should you do with the perfect set of proof and documents you created to reflect your good work? You need to keep those files in a place where they can be accessed in the future. The length of time depends on your state, but a good rule of thumb is no less than four or five years. Some states have six-year statutes of limitations for certain causes of action, so check with your attorney and make sure those files are preserved in case a lawsuit gets filed years later.

A good tip for where to place such files? A self-storage unit! Just don’t default on the payment.

Murphy Klasing has a wide range of appellate, arbitration and trial experience, successfully handling numerous litigation matters. With more than a decade of experience in the self-storage industry, he serves as counsel for Public Storage Inc. in Texas, and has defended matters involving allegations of breach of contract, code violations, employment issues, fraud, negligence, personal injury, premises liability and theft. To reach him, call 713.961.9045; e-mail [email protected]; visit www.wkpz.com.

A vote slated to take place this week on a proposed self-storage project in Willowbrook, Ill., has been rescheduled to give the developer time to address suggestions by village board members. ROC Willowbrook LLC had received unanimous approval from the Willowbrook Plan Commission on Dec. 2 to construct two self-storage buildings totaling more than 100,000 square feet. However, requests made by the Village Board have yet to be met, despite sending the proposal back to the planning commission in November, according to the source.

The project is proposed for a vacant 7-acre site in an industrial area just north of Village Hall, a new city-owned building that opened this year. One self-storage building would comprise 54,000 square feet of interior, climate-controlled space in 398 units. The second, designed for the storage of classic and high-end vehicles, would include about 45,500 square feet in 108 indoor parking spaces. The property would allow owners to wash their vehicles on site but prohibit any mechanical or maintenance work, the source reported. ROC Willowbrook plans to maintain ownership of the facility, but would hire a third-party management firm to oversee day-to-day operation.

Points of contention between ROC and village board members included building size and the location of refuse. Officials suggested the property should have an outdoor refuse-storage area in a masonry enclosure, while the developer preferred to store garbage inside the building and wheel it out on pickup day, the source reported.

"It would appear that the village board's concerns fell on deaf ears," said Trustee Michael Mistele. "I believe these buildings need to shrink a little, and consideration needs to be given to the inclusion of loading docks and the provision of adequate parking. We need to stitch this thing into the existing neighborhood."

While Mistele said the overall scope of the project would fit well with the area and site, he had questions about the exterior architecture and color scheme. The development would also require several special-use permits and variances in regards to lighting, parking, setbacks and signage.

"I am asking the developer to step back and rethink this project, and to shrink these buildings to the extent that we don't need all these setbacks to meet the parking needs," Mistele told the source.

Other trustees agreed with Mistele, and agreed to postpone the vote until its Jan. 11 meeting. Naperville, Ill.-based ROC acquired the site at the northeast corner of Executive Drive and Quincy Street several years ago from The Royal Bank of Scotland, which had placed it in foreclosure, the source reported.

 

Update 12/16/15 – The Chicopee City Council is considering a change to its zoning laws that would require self-storage developers to obtain a special-use permit for properties zoned as business. The permit would require approval from the council as well as the planning board, according to the source. The planning board recently voted 5-0 to recommend the zoning change.

City officials began to consider the change after Dzhenzherukha’s self-storage proposal was unanimously rejected by planners, even though the board acknowledged the real estate developer had the legal right to pursue the project. More than 20 residents protested the project because the storage facility would have been built within the residential community, the source reported. Several requested additional homes be built on the Leona Avenue property.

Brooks proposed the zoning change after he was approached by residents, according to the source. "[The permit requirement] will help to address spot zoning," he said. "It is one small step in what is a multi-step process."

Spot zoning has become common in Chicopee because businesses are frequently located next to homes, the source reported. The proposed self-storage site was on a dead-end street.

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9/9/15 – Planning-board members in Chicopee, Mass., this week rejected the preliminary site plan for a self-storage facility in a residential neighborhood after homeowners spoke against the proposal. While they agreed real estate developer Vitaly Dzhenzherukha has the legal right to build the storage property, they voted 6-0 to reject the project. Because there’s no appeal process, Dzhenzherukha will have to reapply if he decides to move forward with his development, according to the source. 

The site plan included five buildings containing 162 storage units on the 1.7-acre parcel at 133 Leona Ave. Residents voiced their concerns about the facility’s operating hours and increased traffic. "There are a lot of children on the street, and abutting that property is a city park," said Stephanie Tarrant, who lives on Leona Avenue, which is a dead end.

Others pointed out the business would also back up to the single-family homes on Champagne Avenue and Daniel Drive. "This is not the appropriate place for this facility. This is a quiet neighborhood. We want it to stay that way,” said Mark Hammon, who lives on Daniel Drive. Community members said they’d rather see more single-family homes built on the empty parcel.

Although the property is zoned for business, city councilor Shane D. Brooks, who represents the ward where the land is located, asked if it’s zoned appropriately for this particular type of business. "This is the exact definition of spot zoning,” he said.

The parcel was zoned for business in 1952, enabling the owner of the land to build a storage facility by right, according to James Dawson, the city’s assistant planner. During the planning-board discussion, member Elin Gaynor questioned whether there was a legal reason to defeat the plan.

Prior to submitting the self-storage proposal, Dzhenzherukha suggested building a condominium complex. However, he would’ve needed 20 waivers from the city, so he abandoned the idea, Dawson said.

Dzhenzherukha, a real estate broker with Grimaldi & Burzdak Realtors Inc., didn’t attend the meeting, but a representative was there on his behalf, the source reported.

The bodies of two young children were found stuffed into plastic tote containers inside a self-storage unit at Enterprise Stor-All in Redding, Calif. Police uncovered the bodies of a 3-year-old girl and 6-year-old boy on Dec. 13. Investigators learned of the missing children after arresting 39-year-old Tami Joy Huntsman and her 17-year-old boyfriend, Gonzalo Curiel, on Dec. 11, in a related child-welfare case, according to the “Plumas County News.”

The welfare check in East Quincy, Calif., led authorities to a 9-year-old girl, who was injured and locked inside a vehicle. Investigators described the girl as “starving,” with broken fingers, broken bones in her shoulder and a dislocated jaw, the newspaper reported. She weighed 40 pounds and had teeth that were missing or loose. The girl was transported to Plumas District Hospital.

"This has shaken my staff to the core," Plumas County Sheriff Greg Hagwood told the source. "That little girl had been subjected to the most unspeakable measure of torture for an extended period of time. This is child abuse, the likes of which we haven't experienced here.”

Two older children, 12-year-old male and female twins, were present at the East Quincy residence where Curiel and Huntsman were staying with a friend. They were placed in foster care. Huntsman is reportedly the biological mother of the twins and aunt to the 9-year-old girl. She became her legal guardian after the girl’s mother died two years ago, the source reported.

When contacted by police, family members of Huntsman told investigators two younger children appeared to be missing. Huntsman was uncooperative with police, but Curiel reportedly told authorities where the children were located. His information led Redding police to the self-storage unit Huntsman rented on Dec. 4, according to the source. It’s unclear if the children found at the storage facility are related to Huntsman. Their causes of death haven't been reported.

Curiel and Huntsman are expected to face murder charges in Shasta County, Calif. They were arraigned on felony charges of torture, child abuse and mayhem in Plumas County Superior Court on Dec. 14. Curiel was charged as an adult. They are being held on a $1 million bond, the source reported. Investigators from Plumas County, Monterey County, Calif., and Redding are working on the case.

Redding self-storage operators reached by KRCR News were shaken by the discovery of the bodies. "Horrified. I'm horrified!" Susan Bruno, facility manager at AAA Mini & RV Storage told the news station. "If it happened here, I would be horrified."

Realty Mogul, an online marketplace that allows accredited investors to pool their money and buy shares of pre-vetted investment properties, including self-storage, recently completed its first full-cycle equity transaction. The platform partnered with Platinum Storage Group in the sale of American Mini Storage in Tucson, Ariz., to an undisclosed buyer for $2.5 million in November. The transaction provided investors a 16.8 percent return in 18 months, according to a press release.

The property was acquired in May 2014 for $1.725 million. Built in 1998 and renovated in 2005, it comprises 53,401 square feet in 458 storage units and about 60 stalls for long-term boat and RV storage.

“We have been excited about self-storage facilities as one of our investment thesis for some time, as self-storage facilities have become big business. Last year, storage rentals generated more than $22 billion in annual revenue,” said Jilliene Helman, CEO and founder of RealtyMogul.com. “To be able to provide this rate of return in a relatively short amount of time is a great accomplishment to have achieved with our partners, Platinum Storage Group.”

"We are always pleased to deliver significant returns to our investors," added Skip Elefante, CEO of Platinum Storage. "Our management team was able to execute the business plan while refining it in the face of changing market conditions, which resulted in achieving such extraordinary results within a short time. RealtyMogul.com was a strong partner for us, as we worked together to realize our vision for this property and its enhanced market value."

Realty Mogul completed the first crowdfunded self-storage transaction in December 2013. In that deal, the platform helped raise $1 million to convert an existing self-storage property in Fayetteville, N.C., to a StoreSmart Self-Storage facility.

Platinum Storage Group operates more than 50 self-storage facilities in six states. Its owned portfolio, operated primarily under the Storage Direct brand name, comprises more than 4 million square feet.

Realty Mogul gives investors tools to browse investments, conduct due diligence and invest online. Buyers have 24/7 access to an investor dashboard that allows them to see how their investments are performing.

A man who died of a gunshot wound to the head in an apparent suicide earlier this month at Milpitas RV & Self Storage in Milpitas, Calif., was identified by the Santa Clara County, Calif., Coroner's Office last week as Jack Ward. The 66-year-old man had been in contact with local police for more than a day prior to his death but refused to leave his RV parked on the storage property at 420 Railroad Court, according to the source.

Police first received a call about Ward on the evening of Nov. 29, describing him as possibly despondent and armed with a handgun. Officers went to the self-storage facility to conduct a welfare check and spoke to Ward by phone, but he refused to leave the RV or meet with officers in person, the source reported.

Officers conducted surveillance of the area for more than 24 hours and had intermittent conversations with Ward before he stopped answering his phone on Dec. 1. Armed police entered the RV that afternoon and found Ward dead, Lt. Kevin Moscuzza told the source. No one else was present inside the RV, and Ward hadn’t barricaded himself inside the vehicle, he said.

While in contact with Ward, officers restricted access to the area to employees of adjacent businesses, according to the source. The man wasn’t well known to police, Moscuzza said.

Update 12/15/15 – Here are additional real estate transactions that have taken place in December.

Storage Express, which operates self-storage properties in five states, acquired By-Pas Storage in Muncie, Ind. The 25,000-square-foot facility at 4440 E. Centennial Ave. is just off the Muncie Bypass at Indiana State Road 67. Storage Express plans to upgrade the property with new access control, lighting and other amenities common to its portfolio.

Longtown Self Storage, a 60,250-square-foot self-storage facility in Columbia, S.C., sold for more than $67 per rentable square foot to an investment firm based in New York. Opened in 2004, the property at 405 Longtown Road sits on more than 5 acres and features nine buildings offering 440 storage units.

Dale C. Eisenman, president of Hilton Head Island, S.C.-based Midcoast Properties Inc., represented the seller.

ABM Self Storage, a 59,562-square-foot self-storage facility in Asbury, N.J., sold for $4.6 million to a limited-liability company. Situated on 5.8 acres, the four-building property at 190 New Jersey Highway features 400 storage units.

Anthony Asencio, Alan Cafiero, Michael Mele and Ben Sgambati in Marcus & Millichap’s New Jersey office represented the buyer and seller, a developer, in the transaction.

Extra Space Storage Inc., a publicly traded, U.S.-based self-storage real estate investment trust and third-party management firm, purchased Del Sol Self Storage in San Diego for $9.5 million. The seller was M4 Management Inc., a property-management company based in Beverly Hills, Calif. The two-story property at 3055 Del Street has nearly 60,000 net rentable square feet of storage space as well as 73 RV- and boat-storage spaces.

Stephen Grossman, senior vice president of NAI Capital Self Storage Investment Group, represented the buyer and seller in the transaction.

Stow-A-Way Mini Storage in San Rafael, Calif., sold for $1.6 million to The Hines Family, a local self-storage operator. The two-story property at 616 Canal St. is on the San Rafael Creek, an inlet that leads to the San Francisco Bay. It comprises 12,984 rentable square feet of storage space in 166 units. The facility also has six boat-parking spaces, a boat dock with two slips and a one-bedroom residence.

The seller was represented by Tom De Jong, vice president of commercial real estate firm Colliers International and a broker affiliate of the Argus Self Storage Sales Network.

Bline Investments purchased two self-storage properties in Cortez, Colo. The acquisition included High Country Storage at 27518 E. Highway 160 and Triple Six Storage at 12450 Highway 491. Combined, the properties comprise 74,050 square feet of storage space on 18.85 acres.

The seller was represented by Joan Lucas of Joan Lucas Real Estate Services and an Argus broker affiliate in Colorado.

Iron Guard Storage LLC, which operates 22 self-storage facilities in seven states, has purchased an iStorage property in Montgomery, Ala. The facility at 4176 Troy Highway comprises 135,800 rentable square feet of storage space in 949 storage units spread over two locations, according to an Argus press release.

The seller was represented by Bill Barnhill and Stuart P. LaGroue Sr. of Omega Properties Inc., and broker affiliates for Argus in Alabama, Louisiana and Mississippi.

Killeen Self Storage in Killeen, Texas, sold to a private investor. The property at 5400 E. Central Texas Expressway comprises 84,588 square feet of storage space.

The seller was represented by Steve Mellon and Brian Somoza, managing directors of the National Self Storage Team for JLL (Jones Lang LaSalle) Capital Markets.

Self-storage REIT Public Storage purchased Pearland Storage @ Southfork in Marvel, Texas, from Excel Commercial. The property at 2930 Country Road 59 comprises 71,715 square feet of storage space.

The seller was represented by Mellon and Somoza.

Self-storage REIT CubeSmart acquired Eagle Rock Self Storage in Roseland, N.J. The property at 465 Eagle Rock Ave. comprises 51,891 square feet of storage space.

The seller was represented by Mellon and Somoza. Tom DiMicelli, executive vice president in JLL’s Melville, N.Y., office assisted.

Argus is a Denver-based network of real estate brokers who specialize in storage properties. Formed in 1994, the company has 36 broker affiliates covering nearly 40 markets.

CubeSmart owns or manages 629 self-storage facilities across the United States. Its operating portfolio comprises 42 million square feet.

Headquartered in Salt Lake City, Extra Space owns or operates 1,335 self-storage properties in 36 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 885,000 units and 99.8 million square feet of rentable space.

Based in Winter Garden, Fla., and founded by CEO Chris Miller in 2010, iStorage operates more than 60 self-storage facilities 11 states.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s Capital Markets team comprises more than 1,700 specialists worldwide.

Midcoast Properties offers brokerage services to self-storage owners and investors in Georgia, North Carolina and South Carolina.

Based in Irvine, Calif., NAI Capital specializes in the acquisition, development and sale of self-storage properties in California and Hawaii.

Based in Glendale, Calif., Public Storage has interests in 2,266 self-storage facilities in 38 states, with approximately 147 million net rentable square feet.

Founded in 1992, Storage Express owns and operates self-storage properties in Illinois, Indiana, Kentucky, Ohio and Tennessee. 

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12/3/15 – Self-storage properties are constantly changing hands, and Inside Self-Storage is regularly notified of these market transactions. Many are covered in detail on the ISS website and available for viewing on the “Real Estate” topics page. Following are additional acquisitions and sales that weren’t covered independently due to missing information such as buyer, seller, sale price or other relevant details.

Southern Self Storage purchased Cocoa Beach Self Storage in Cocoa Beach, Fla., for $3.3 million. The property at 14 S. 20th St. comprises 28,730 square feet of storage space in 318 units. Built in 2009, the three-story building also has 5,000 square feet of solar panels. It’s less than a mile from Patrick Air Force Base and 200 yards from the Atlantic Ocean. Plans are underway to add building improvements including a covered drive-up area, according to a press release.

The buyer and seller, a financial institution, were represented in the transaction by Michael A. Mele, senior vice president investments in the Marcus & Millichap Tampa, Fla., office and senior director of the firm’s National Self Storage Group, as well as Luke Elliott, an associate, also in the Tampa office.

Out-Back Self Storage, a 23,750-square-foot facility in Dunnellon, Fla., sold for $1.5 million to a private investor. The property at 19545 W. Highway 40 sits on approximately 3.32 acres. Constructed in 2006 and expanded in 2009, it has 219 units, perimeter fencing and gated access. It’s less than a quarter mile east of U.S. Route 41.

The buyer and seller, also a private investor, were represented by Elliott, Mele and Brian Baldwin, an associate in the Marcus & Millichap Tampa office.

Value Self Storage in Port Charlotte, Fla., sold to a private investor for $1.9 million. The property at 23227 Freedom Ave. comprises 35,758 square feet of storage space in 687 units, which includes parking for boats and RVs. Constructed in 1984 and expanded in 1997, the facility sits on 2.8 acres.

The seller, a private investor, and the buyer were represented by Mele. Baldwin also represented the buyer in the transaction.

Gap View Storage in Wind Gap, Pa., sold for $2.2 million to a local investor. The property at 455 Kromer Road features 13 single-story buildings comprising 57,220 square feet of storage space on 6 acres. It also has available land for future expansion. Opened in 1987, the facility offers drive-up and climate-controlled units as well as outside vehicle parking. Recent site improvements include a new gate controller, video cameras and vertical gate. The property is near Pennsylvania Route 33, the main artery connecting Allentown, Pa., and the Poconos Mountains.

“The sellers built, owned and operated Gap View Storage from the inception of the business. The facility is in exceptional condition, and pride of ownership is evident throughout the site,” said Kevin Bledsoe, brokerage advisor for Investment Real Estate LLC (IRE), which represented the seller in the transaction. “The sellers had been contemplating retirement within a few years, but they understood that the value of their asset is at its peak today and wanted to take advantage of positive market conditions. The buyer has facilities in the vicinity of this site, and they were happy to have a great property that fits nicely into their existing portfolio.”

Harrisburg Self Storage in Harrisburg, Pa., sold for $140,000 to an international private-investment group. The property at 22 Kline Plaza is in the lower level of Kline Village Shopping Plaza and across from Harrisburg High School. It’s in a leasehold interest in the shopping center, with a lease in place through June 2025, according to an IRE press release.

The facility encompasses 11,667 square feet of interior climate-controlled space. The office, elevator and loading area are on the first floor of the retail plaza. Customers can access the property through a keypad entrance or the rental office six days a week.

“The minimal down payment, seller financing and leased real estate format were all selling points for the international buyer, who specializes in non-traditional transaction structures. The investment group was happy to acquire a property that fits their unique business model as they continue to grow their portfolio of self-storage properties,” said John H. Gilliland, CEO and president of IRE.

Cool Springs Storage in Franklin, Tenn., was purchased by an affiliate of The Natchez Group, a local firm, and Memphis, Tenn.-based Absolute Storage Management (ASM). The 55,000-square-foot property at 258 Mallory Station will undergo upgrades to its gate system, office and security, according to an ASM press release. The acquisition was financed by Memphis-based Jernigan Capital, a merchant bank and advisory firm serving the self-storage industry.

“This is a great location with below-market rents and occupancy, badly in need of some TLC. It also has a potential expansion component that we will explore,” said ASM President Michael Haugh.

Phoenix-based U-Haul International Inc. acquired Commerce Park Storage in Hidalgo, Texas. The property at 1124 N. International Blvd. comprises 45,424 net rentable square feet of storage space in 270 units, outdoor parking and warehouse space.

John Arnold, Bill Bellomy and Michael Johnson of Texas-based Bellomy & Co. represented U-Haul and the seller, an Austin, Texas-based company.

Affordable Self Storage Fall Creek in Humble, Texas, sold to a Dallas-based self-storage investor. The property at 8569 E. North Belt Drive is about 20 minutes from downtown Houston. Built in 2005, it comprises 39,875 net rentable square feet of storage space in 319 units and has 3 acres for future expansion.

The buyer and seller were represented by Arnold, Bellomy and Johnson.

National Storage Affiliates Trust (NSAT), a Maryland-based real estate investment trust (REIT) specializing in self-storage, purchased I-20 Self Storage in Forney, Texas. The property at 9600 Helms Trail encompasses 52,600 net rentable square feet of storage space in 484 units.

Arnold, Bellomy and Johnson represented NSAT and the seller, a Dallas-based company.

Founded in 2002, ASM owns and manages 85 self-storage facilities throughout the Southeast. The company is actively seeking to expand its portfolio through traditional third-party management relationships and acquisition/joint-venture opportunities. It has regional offices in Atlanta; Charlotte, N.C.; and Jackson, Miss.

Bellomy & Co. is a commercial real estate brokerage company focusing on the sale of self-storage, industrial, office and retail properties nationwide. It has offices in Austin, Houston and Lubbock, Texas.

Since its inception in 1998, IRE has provided brokerage, construction, development and management services to self-storage owners and investors. Its construction arm was founded in 2000 and has built more than 2 million square feet of self-storage space in eight states.

Marcus & Millichap is a commercial-property investment firm with more than 1,500 investment professionals in offices throughout the United States and Canada. The company closed more than 7,600 transactions in 2014 with a value of approximately $33.1 billion.

Headquartered in Greenwood Village, Colo., NSAT is a self-administered, self-managed REIT that operates nearly 400 self-storage facilities comprising 21 million net rentable square feet. The company is owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures.

Florida-based Southern Self Storage was founded in 1985 by owners Peter Cowie and Robert McIntosh. The business partners also operate three Northern Self-Storage facilities in the Ontario, Canada, market.

Established in 1945, U-Haul has more than 44 million square feet of storage space at more than 1,200 owned facilities throughout North America.

Two separate raids by government officials in the United Kingdom uncovered illegal alcohol and tobacco at several properties, including a self-storage facility in South Derbyshire, England. Police and trading-standards officers uncovered illegal goods worth £1 million inside six units at the South Derbyshire storage facility. The haul included 31,000 Viagra-type tablets, nearly 2 million illegal cigarettes, counterfeit clothing and boxes of illegally stored display fireworks, according to one source.

The raid was part of a “concerted campaign” by officers over two years, according to Dave Allen, a cabinet member for health and communities for the Derbyshire County Council.

“This is one of the biggest single seizures of fake and illicit tobacco by trading standards officers in the U.K.," he said. "It's an extremely important result, which has kept 92,000 packets of illegal cigarettes and 11,000 packs of hand-rolling tobacco off the streets of Derbyshire."

Officers also raided stores in Ilkeston, Long Eaton, Newhall and Ripley, England, seizing an additional 10,000 cigarettes and 33 pounds of hand-rolling tobacco, which were hidden in concealed panels.

A Derby, England, man has been questioned in connection with the seizure and released on bail, a source reported. The investigation is ongoing.

Another raid took place on Dec. 9 and 10 at 19 properties in Wales. Officers from Her Majesty’s Revenue and Customs (HMRC), with support from the Tobacco Detection Dog Team, seized 49,200 illegal cigarettes, 60 kilos of hand-rolling tobacco and 7.3 liters of illicit alcohol from storage units, retail shops and a pub, according to one source. The seizures represented more than £30,000 in lost duty, HMRC said.

The raid included properties in Ammanford, Bridgend, Carmarthen, Lampeter, Llanelli, Neath and Swansea, Wales. Illegal goods were found at three properties, two of which were in Swansea and the other in Lampeter.

“In the run up to Christmas, people may well be tempted to buy cheap tobacco and alcohol, but the illicit alcohol and tobacco market costs the U.K. around £3.3 billion a year. This is theft from the taxpayer and undermines legitimate traders,” Colin Spinks, assistant director of the Fraud Investigation Service at HMRC, told a source. “I would urge people to be mindful of this and encourage anyone with information about the illegal sale of tobacco or alcohol to contact the Customs Hotline.”

The Clayton, N.C., Town Council recently approved the rezoning of a 45.75-acre property along North Carolina Highway 42 that will enable a mixed-use development. The project will include a self-storage facility, 240 apartments, a large retail anchor and other storefronts at 1430 N.C. Highway 42. The self-storage component will be built on 4.49 acres and comprise about 67,600 square feet, according to city documents. Each of the developments will be subject to Major Site Plan approval.

The property is owned by former Gov. James B. Hunt and his brother Robert, according to the source. The densely forested area is near East Clayton Community Park and two subdivisions. It’s also about 1.5 miles from a 64,000-square-foot Flowers Plantation Self Storage facility being developed by Super Storage Self Storage Group at 65 Plantation Drive.

The rezoning faced little opposition during the Dec. 7 council meeting, although some residents lamented the loss of trees and raised concerns about increased noise and traffic, the source reported. The mixed-use project will be built to reflect future standards for the highway, which is expected to widen to four lanes in 2018. The development will have three entrances including an intersection with a traffic light.

Plans for the self-storage facility and The Pines apartment complex have already been submitted and will be reviewed by the planning board on Dec. 28, according to the source. The project calls for 180,000 square feet of commercial space, which will be used for retail. Plans for that portion of the project will be turned in at a later date, according to Garry Walston, a representative of Bass, Nixon & Kennedy, a Raleigh, N.C.-based consulting-engineering firm.

“There’s a great benefit in the additional retail,” Mayor Jody McLeod said during the meeting. “There’s a huge need for commercial development in the town and a demand for more space for small businesses.”