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.

265 Super Storage in Springdale, Ark., was sold as the second leg of a 1031 exchange. Built in 1995, the property at 1507 S. Old Missouri Road comprises 58,665 square feet of storage space in 375 storage units and 75 outdoor parking spaces. The property will be managed by Absolute Storage Management (ASM), which owns and manages self-storage facilities throughout the Southeast. The seller was represented in the transaction by Larry Goldman, an associate with RE/MAX Commercial, who is the Argus Self Storage Sales Network broker affiliate for Arkansas, Kansas, Missouri and Southern Illinois.

Adams Storage Systems in Farmington, Mo., was sold. The first phase of the 5.5-acre property at 2079 Highway D opened in September with 236 units, 35 outdoor parking spaces and a 1,260-square-foot office and apartment. The buyer plans to start the second phase soon, according to an Argus press release. Goldman represented both buyer and seller in the transaction.

Anytime Storage - Commerce Park in Sellersburg, Ind., was sold to a limited-liability company (LLC). The 40,700-square-foot property at 8511 Commerce Park Drive was a Certificate-of-Occupancy deal, according to a press release from The Mele Storage Group of Marcus & Millichap, the real estate firm that represented the buyer, also an LLC, and the seller in the transaction. The brokers were Michael A. Mele, Mickey Hurley and Sean M. Delaney.

Bargain Storage, which owns 32 facilities in four states, purchased Memorial Mini Storage in Houston. The property at 1101 Tully Road contains 519 units. The buyer and the seller, a private investor, were represented in the transaction by Dave Knobler, senior associate, in the Marcus & Millichap Houston office, and Charles "Chico" LeClaire, senior vice president of investments, in the firm’s Denver office.

Brazos Moving and Storage in College Station, Texas, was sold to a foreign investor. The property at 17535 Highway 6 S. includes 477 units. The facility is new and not fully stabilized, according to a press release from Marcus & Millichap, which brokered the transaction. The buyer, a storage developer, and the seller, a storage owner owner, were represented by Knobler and Logan Miller, an associate, both from the firm’s Houston office.

Carefree Storage in Carthage, N.Y., was sold to a private investor. Built in 1986, the property at 10889 State Route 26 comprises 53,952 of net rentable square feet of storage space in 443 units and outdoor parking spaces. The seller, also a private investor, was represented in the transaction by Mele, Luke Elliott and Kevin Menendez of Marcus & Millichap. Mele and Elliott also represented the buyer.

Crestline Storage in Lansing, Kan., was sold. The transaction was driven by a series of 1031 exchanges from Nebraska farmland. The property at 13621 Gilman Road comprises 65,116 square feet of storage space in 123 units, three office/warehouse units, and a 1,500-square-foot office and apartment. The buyer plans to expand the facility soon, according to an Argus press release. Goldman represented the seller in the transaction.

Gateway Mini-Storage LLC in Gilbert, Ariz., was sold for nearly $14 million to a self-storage real estate investment trust. The property at 5750 S. Power Road, which formerly operated as Uncle Bob’s Self Storage, comprises 92,855 net rentable square feet of storage space in 669 units. A phase-three expansion is under construction and will add 21,575 net rentable square feet to the property. The addition will be completed in early 2017, according to a press release from NAI Horizon, the real estate firm that brokered the transaction. The buyer and the seller, Circle G Property Development, were represented by Denise Nunez, senior vice president of NAI.

High Security Self Storage in Goodyear, Ariz., was sold to River Crossing Goodyear LLC for $2 million. The 3.4-acre property at 13360 W. Van Buren St. comprises 34,093 square feet of storage space. The buyer and the seller, Bar-K Development II LLC, were represented in the transaction by Nunez. River Crossing, which owns another storage facility in the market, plans to increase the net rentable square footage on the site, Nunez said.

Kwik Storage in Rock Hill, S.C., was sold to a regional buyer for approximately $77 per rentable square foot. The property at 1409 Albright Road comprises 21,200 square feet of storage space in 187 units, some of which are climate-controlled. The 2.7-acre site also contains an office, laundromat and free-standing pharmacy. The seller was represented in the transaction by Dale C. Eisenman, president of Midcoast Properties Inc.

Lake Road Self Storage in Sheffield Lake, Ohio, was sold. The property at 5360 Lake Road comprises 57,000 net rentable square feet in 418 units. Built in 2004, the 8.6-acre site also contains 41 parking spaces. It includes 1.25 acres of land zoned for office and retail as well as 32,800 square feet to expand the storage space. The seller was represented in the transaction by Ryan Clark, senior vice president of SkyView Advisors.

SG Realty, a real estate holding and service company, has acquired B&B Storage and Top Storage in Edgerton, Wis. The properties at 100 U.S. Highway 51 and 541 Lake Drive Road have been rebranded as Badger Storage and will be managed by Josh Eastman and Justin Spaulding. The brokers in the transaction were Paula Carrier, owner of Best Realty of Edgerton, and Melanie Simmons of Brayson Realty LLC.

South Oldham Self Storage in Crestwood, Ky., was sold for $1.7 million to a national self-storage operator. Built in 2001, the property at 6440 W Highway 146 comprises 26,175 square feet of storage space. The buyer and the seller, a local developer, were represented in the transaction by Paul Grisanti, owner and principal broker, and Nick Grisanti, sales and leasing associate, for the Grisanti Group Commercial Real Estate, an Argus broker affiliate for Kentucky, Southern Indiana and Tennessee.

Storage Concepts in Hamburg, N.J., was sold as part of a three-property portfolio for $5.9 million to a private investment group. The property at 3490 State Route 94 comprise three single-story buildings containing more 320 units, which includes outdoor parking spaces. Opened in 2002 and expanded in 2005, it sits on more than 7 acres. The other two properties in the portfolio are in New York and Pennsylvania. The buyer and the seller were represented in all three transactions by Investment Real Estate LLC (IRE), a self-storage real estate firm.

The eight-property Storage Pros portfolio in Knoxville, Tenn., was sold. The portfolio comprises 415,616 square feet of storage space as well as 23,500 square feet of parking space. The properties are within 20 miles of each other. The seller, Storage Pros Management LLC, was represented in the transaction by Aaron Swerdlin, executive managing director, and Kenneth Cox, senior managing director, of NGKF Self Storage Group, a division within commercial real estate advisory firm Newmark Grubb Knight Frank (NGKF).

The three-property Sunset Storage portfolio in Jesup, Ga., was sold to a regional buyer. Sitting on more than 5 acres, the facilities comprise 48,000 rentable square feet of storage space in 430 units, a rental office and an apartment. The seller was represented in the transaction by Eisenman.

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.

Founded in 2002, ASM operates more than 96 properties in 13 states. Headquartered in Memphis, Tenn., it has regional offices in Atlanta; Charlotte, N.C.; Jackson, Miss.; and Nashville, Tenn.

Based in Portland, Ore., Bargain Storage operates facilities in Arizona, Colorado, Oregon and Texas.

Since its inception in 1998, IRE has provided brokerage, construction, development and management services to self-storage owners and investors.

Midcoast Properties offers brokerage services to self-storage owners and investors in the Carolinas and Georgia.

Established in 1992, NAI Horizon is a commercial real estate brokerage and management firm serving Arizona through offices in Phoenix and Tucson. It’s a member of NAI Global, a managed network of independently owned commercial real estate brokerage firms.

NGKF offers appraisal and valuation advisory services, debt placement, investment sales, proprietary lending, and transaction management. Together with its affiliates and London-based partner Knight Frank, the company employs more than 14,000 professionals, operating from 400 offices on five continents.

Founded in 1971, Marcus & Millichap is a commercial-property investment firm with more than 1,500 investment professionals in offices throughout Canada and the United States. The firm closed more than 8,700 transactions in 2015 with a value of approximately $37.8 billion.

SkyView is a boutique firm specializing in self-storage acquisition, development, facility expansion and renovation, refinancing, and sales. Based in Tampa, Fla., the firm also has offices in Cleveland and Milwaukee.

Just before takeoff on an airplane, passengers hear a presentation about their seatbelts, oxygen masks and how to exit in an emergency. This message is repeated before every flight, regardless if the travelers have heard it before. There’s a reason for this. Systems and routines are efficient and effective. They’re teachable, and involve actions that can be tracked and analyzed. Systems can be monitored and maximized.

Systems aren’t just for safety procedures. Building one to sell products and services can have a similar affect. Done correctly, a selling system can become second-nature and help self-storage operators close more sales.

Frame of Mind

Selling systems are simple. A good rule of thumb is to make one that has no more than five steps, as most people can remember and recall a short list. Here’s the system:

• Make a friend.
• Make a connection.
• Make a recommendation.
• Start the rental.
• Prepare for the next steps.

Now that you know the steps, you’ll need the correct frame of mind. Think like a fast-food drive-up. Everyone who drives up to the window is a buyer. Similarly, everyone who calls your property or parks in your driveway is a buyer. People don’t contact a self-storage facility because they don’t need a storage solution. They come to storage because they have an immediate or upcoming need.

Now, there are reasons people don’t rent a unit even after seeking information about one. But just because some won’t rent from you doesn’t mean you should treat them as anything but a new customer. How would you like it if you walked into a store and the salesperson said, “You know, not everyone buys from us after they walk in the door. Are you one of those people? Because if you are, I don’t really feel like using any energy to deal with you.” That’s the message we often put out to people who call us for rates and information.

The main reasons people don’t rent a unit are:

• The need changes.
• You don’t follow the system, and they feel awkward and go away.
• They don’t have the money to rent the unit on the day they contact you.
• No one made them feel like self-storage was the best solution.

Three out of the four of these are in your control. If you follow the five-step system, you’ll have a new customer.

A sales system must be structured so everyone can keep it straight in their heads when learning it. But it should also be flexible enough so it doesn’t sound too scripted or stilted.

What does that mean? It means you should talk to people in your own style, tailoring the conversation to the person’s style of talking and his needs and situation. However, you can and should use specific scripting for small pieces of the system to keep your language effective and consistent. The verbiage needs to be collected, shared and frequently reviewed so it becomes internalized and comes out of people’s mouths without thought.

The Sales Manager and Coach

You’ll also need a driver for your selling system. This person will manage, push and tweak it, and then push it some more. Who’s best suited for this responsibility? In a small organization, it might be the owner or a manager who’s particularly interested in sales and can take on an expanded role. In larger companies, this is a sales manager. Your business might not be big enough to justify a full-time position, but you may be able to have an employee work part time as a sales manager and part time in another role.

You also need a coach who’ll support and mentor staff as they learn and perfect the system. Sometimes a single person can be both sales manager and coach; but these are different functions that require a unique approach. Your sales manager will track system statistics, adherence and performance to reward those who do well. He’ll also order retraining or reassignment those who have trouble. The coach, on the other hand, is the staff trainer, mentor and cheerleader. This person must master the system and demonstrate good teaching skills. He’ll instruct and correct behavior so employees can thrive in the system.

You need to be careful to ensure you have the right person in your mentor position. You can’t just take someone with has a knack for selling, or a “people person,” and name him coach. Learning to teach and manage are very different from knowing how to sell or relate to people, so choose this person wisely.

What to Invest?

A selling system isn’t about giving staff a few cheat sheets and a checklist and then turning them loose. It takes an investment in time, people, development, consulting, training and so on. But an improvement of only a few points in the conversion of inquiries to rentals is worth thousands of dollars in revenue and hundreds of thousands of dollars in asset value.

To determine the amount you can afford to invest in a selling system, look at your numbers. If you could rent units to 10 percent more customers, what would that bring in for revenue? If an average rental is worth $600 to your business, and you have a smaller operation where a 10 percent increase means one additional rental per month, you can spend $500 a month on developing your sales system and still be ahead. If you have several properties and you’re in an area with decent rate structures, a 10 percent bump might easily be worth $10,000 per month in additional revenue. That gives you a lot of room for investing in a selling system.

Here’s your homework: Use the 10 percent rule to determine what you can invest in a new system. Think about who you have in your business with sales-management or coaching skills. Can this person be further developed? If not, how will you fill the void?

Next, think about how simple this system really is: Make a friend. Make a connection. Make a recommendation. Start the rental, and prepare for the next steps. Then do what you need to make that process simple in practice.

This article is part of an ongoing series on self-storage sales. The author will present a four-hour workshop on sales skills at the Inside Self-Storage World Expo, April 10-13, in Las Vegas. For details, watch www.insideselfstorageworldexpo.com.

Tron Jordheim is business-development manager for the Store Here Self Storage third-party management platform. He’s consulted for many self-storage companies and spoken at industry events in Canada, Mexico, Spain, the United Kingdom and the United States. Prior to joining Store Here, he spent 15 years as director of the PhoneSmart call center and chief marketing officer of StorageMart. For more information, visit www.storehere.com or www.selfstorage.management.

StorageVault Canada Inc. has acquired three self-storage facilities in Canada for approximately $6.7 million. Two of the properties are in Moose Jaw, Saskatchewan, while the third is in Midland, Ontario. The combined Moose Jaw transaction totaled $4.4 million and was paid for with the issuance of 162,602 common shares of stock valued at $200,000, along with cash. The Midland deal was paid with $2.3 million in cash, according to a press release.

During the last quarter of 2016, StorageVault has closed on nearly $81 million in acquisitions. In October, the company completed its $48 million acquisition of four assets in Ontario and Quebec, which was followed by a $22 million deal for a facility in Calgary, Alberta. In November, it closed on a $4.1 million deal to buy a location in Ottawa, Ontario.

“Self-storage fundamentals look solid in the near term, and StorageVault should be the beneficiary of strong internal growth and ample consolidation,” Johann Rodrigues, an analyst with financial firm Raymond James, told the source.

StorageVault operates several self-storage facilities and more than 3,200 portable-storage units in Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec and Saskatchewan.

Update 12/19/16 – After a five-month study to learn how neighboring municipalities handle zoning for self-storage, Lincolnwood officials have passed a zoning change that bans new self-storage and warehouse developments from opening within its commercial zoning districts. The village board unanimously passed the measure, which removes self-storage as an allowable use within areas zoned for manufacturing/business and office uses, according to the source.

Lincolnwood officials studied how self-storage is zoned in eight nearby communities. "In most of the communities, [storage facilities] are in industrial hubs, in areas that are completely disconnected from the major commercial corridor or commercial downtown; but that's a different story in Lincolnwood where the [manufacturing] districts are adjacent to the commercial areas," McNellis told the source.

As a result of the zoning configuration, self-storage had been permitted in the middle of commercial zones, but Lincolnwood wants to reserve its main arterial streets for other types of businesses that generate more sales-tax revenue for the city, McNellis said.

---

6/13/16 – Officials in Lincolnwood, Ill., have enacted a one-year, temporary ban on self-storage development in the village’s commercial areas to preserve space for businesses that generate more tax revenue, according to the source. Recent interest from self-storage developers prompted the decision, which was made last week during a Committee of the Whole meeting. The moratorium will prevent self-storage from being built in districts zoned for manufacturing/business and office use.

The restrictions apply primarily to open commercial land along North Ciero, North Lincoln, West Devon and West Touhy Avenues. At least one self-storage developer had been looking at a property on one of those streets for a possible project, according to community-development director Steve McNellis. The village currently has three self-storage facilities within its boundaries.

During the ban, village officials will examine how other municipalities regulate self-storage and could decide to make permanent changes to the zoning code. "No one is saying at this point that self-storage facilities shouldn't be permitted," McNellis told the source. "The point is maybe they shouldn't be permitted on major commercial corridors."

In April, the village considered levying a self-storage tax as a way to generate additional local tax revenue and help offset a $260,000 shortfall from the state this year. Although officials postponed a decision, they estimated a tax on rental facilities could generate up to $235,000 in annual tax revenue, the source reported.

Although the three self-storage facilities currently operating in the village paid a combined $267,680 in property taxes in 2014, just 10 percent of that amount went to Lincolnwood, according to the Cook County, Ill., tax assessor.

Several years ago, Lincolnwood officials imposed a similar ban on bank development along Lincoln Avenue until zoning changes were implemented, the source reported.

Self-storage owner Chad Keller is converting a former Piggly Wiggly grocery store in Athens, Ga., to a two-story self-storage facility. Construction on Lexington Road Self-Storage at 4025 Cherokee Road will begin in early 2017, with the business slated to open in June, according to the source.

In addition to renovating the original structure, Keller will build six storage buildings arranged in four rows facing Cherokee Road. The 5-acre property will comprise 82,000 square feet of storage space, some of which will be climate-controlled, the source reported.

Keller, who also owns Elbow Room Self-Storage at 925 Danielsville Road in Athens, will invest about $5 million on the project, the source reported. The facility will be designed to blend in with the surrounding area, with some buildings containing architectural elements such as brickwork and windows, according to the source. The property will also feature a landscaped plaza with seating and a pathway to the sidewalk on Lexington Road.

The Piggly Wiggly closed soon after it was rebranded in 2007 by owner C&S Wholesale Grocers. The Keen, N.H.-based company changed the name of its Southern Family Market to Piggly Wiggly that year because it was considered a more recognizable brand, the source reported.

StorageMart, which operates more than 190 self-storage properties in Canada, the United Kingdom and the United States, has purchased Midway Storage in Chicago. It’s the company’s 10th property in the metropolitan area.

The five-story facility at 4906 W. Madison St. comprises 30,000 square feet of storage space in 462 units. It contains a 5,300-square-foot drive-in loading bay, which is large enough to accommodate 15 cars, according to a company press release. Plans to restore and update the property include preserving the historic tiles on the building’s exterior, adding efficient lighting, renovating the loading bay, repairing the roof, and updating the ventilation system.

“It’s a beautiful building, and we have plans to blend our interior renovations to complement this historic building, which was built in 1926,” said Tim Burnam, vice president of development and construction.

The property is among several reclaimed and renovated buildings within the StorageMart portfolio. The company also converted an abandoned grocery store in Overland Park, Kan., to self-storage in 2015.

Founded in 1999 and based in Columbia, Mo., StorageMart is privately owned and operated by the Burnam family, which has been in the storage industry for three generations. It serves more than 75,000 self-storage customers, and operates in Chinese, English, Punjabi, Quebecois French and Spanish.

Midway Storage operates a second facility in Chicago as well as one in Blue Island, Ill.

Registration is now open for the 2017 Inside Self-Storage World Expo, the industry’s largest conference and tradeshow. The event will take place April 10-13 at the Paris Hotel & Resort in Las Vegas. Created for self-storage developers, investors, managers, owners and suppliers, the annual expo comprises four days of education, exhibits and networking opportunities.

Early-bird registration rates, which provide a discount of more than 25 percent on onsite prices for the show’s three packages, are available until Feb. 6. Discounted room rates are available through the Paris Hotel and subject to availability. Attendees are encouraged to make reservations early.

The 2017 event will include seven education tracks, seven workshops, several networking events, and two days of product and service exhibits. The concurrent education program includes 45 seminars covering industry construction, development, finance, investing, management, marketing, ownership, risk management, sales, staffing and more. It will also feature an International Program focusing on self-storage across the globe. The full-day agenda will include seminars, panel discussions and roundtables on investing and operating in emerging industry markets.

Attendees can also choose from several immersive workshops, including an all new Sales-Skills Workshop that focuses on converting leads and generating revenue. Annual favorites include the Development Workshop, two Legal Workshops, Management Workshop, Marketing Workshop and Owner/Operator Executive Workshop. Participants can purchase workshops individually or be eligible to attend all of them by purchasing the All-Access Pass Package.

Scheduled networking opportunities include the new-attendee welcome and orientation, Self-Storage Q&A, an evening cocktail reception, roundtable discussions, Self-Storage Legal Q&A, and the Buyers & Sellers Meeting. These events are included with all registrations.

The exhibit hall will feature nearly 200 suppliers representing all segments of the industry. The expo floor will be open 4:30 to 7:30 p.m. on April 11 and 1 to 5 p.m. on April 12.

For more than 25 years, ISS has provided informational resources for the self-storage industry. In addition to the ISS World Expo, its educational offerings include ISS magazine, an extensive website, the ISS Store, and Self-Storage Talk, the industry’s largest online community.

Jernigan Capital Inc., a merchant bank and advisory firm serving the self-storage industry, has developed a new storage facility in North Haven, Conn., which opened on Dec. 17. The company holds a $6.9 million investment in the property and owns 49.9 percent interest, according to a press release. The multi-story facility at 453 Washington Ave. comprises 649 units ranging from 25 to 300 square feet.

The asset will be managed by self-storage real estate investment trust (REIT) CubeSmart and branded under its name. The REIT operates a handful of other storage facilities in the vicinity.

Jernigan Capital has been active on the investment front in recent weeks. The company invested $12.6 million in two Florida self-storage development projects in November, and co-invested with Hallmark Self Storage in October on a $9.2 million project in the downtown area of Columbia, S.C.

Jernigan Capital is a commercial real estate finance company that provides financing to private developers, operators and owners of self-storage facilities. It offers financing for acquisition, ground-up construction, major redevelopment or refinancing. The firm intends to be taxed as a REIT and is externally managed by JCap Advisors LLC.

CubeSmart owns or manages 762 self-storage facilities across the United States. Its operating portfolio comprises 50.6 million square feet.

Viking Self Storage of Bedford, England, turned six of its storage units into gallery space last week, showcasing local artists for a charity event designed to raise money for the local YMCA. Artists as well as individuals who have been helped by YMCA Bedfordshire submitted pieces for display. Attendees could browse and buy the artwork while enjoying food and beverages. Purchases tallied £317 during the one-day event, with a minimum of 10 percent from each purchase donated to the YMCA, according to the source.

“YMCA Bedfordshire play a key role in providing support to those who need it most, and we're very proud to continue raising awareness of the fantastic work they do,” Charlie Schneider, sales and marketing manager for Viking, told the source. “The event was a great success, raising funds for the charity whilst also supporting up-and-coming Bedford artists. We look forward to continuing these community events into 2017.”

“We're really pleased with the result of this event and grateful to Viking for hosting it,” added Paul Kellett, marketing and fundraising officer for YMCA Bedfordshire. “For many of our service users and residents, art is a way to express aspects of their journey and life experiences in a meaningful way. To be able to showcase their creative talents alongside local artists is a highlight, and we are thrilled that they were given this opportunity.”

Viking Self Storage has 800 units and offers household, business and student storage as well as a box shop. The business is headquartered in the Elms Farm Industrial Estate, on the eastern side of Bedford Town Centre.