StorQuest Self Storage is offering two months of free storage to victims of mud slides in the Los Angeles County communities of La Canada Flintridge, La Crescenta and Tujunga Canyon. As mud levels rise in the area and local residents are forced to evacuate, StorQuest is offering them a safe place to store their belongings.
 
More than 500 homes have been evacuated as mud and debris flow down the mountain, overflowing basins and flooding the local region. The La Canada Flintridge area witnessed the devastation of 43 homes by the occurrence of mudslides during the past week.
 
"Rocks and boulders have covered the streets. Mud has been flooding into homes and burying individuals’ belongings. Nobody in the community was really prepared for this sort of destruction," said Brianne Llewellyn, a Sunland, Calif., resident.
 
The area is expecting heavy rain again this evening, with rivers of mud coming off the mountain.
 
StorQuest is the operating brand name of self-storage facilities developed and operated by The William Warren Group Inc. The company maintains 10 facilities throughout Los Angeles County and 47 nationwide.

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On Feb. 24, the Arizona Self Storage Association (AZSA) will host a seminar regarding self-storage lien sales for facility owners and managers. Presented by Richard Marmor, chairman of AZSA Legal and Legislative Committee, “Arizona Lien Sales, the New A to Z” will take place from 6 to 9 p.m. at the Black Canyon Conference Center in Phoenix.
 
Attendees will learn a step-by-step process for conducting self-storage lien sales in the state of Arizona. Marmor will present a review of recent changes to the state lien law, solutions for handling complex and unusual auctions, pointers for avoiding mistakes and legal pitfalls, and advice for what to do when a unit doesn’t sell. He’ll also provide verbiage no auction notice should be without, tips for bringing in buyers, critical lien-sale timelines and more.
 
The event is the first-ever seminar on Arizona self-storage lien-sale and auction procedures. Registration is $49.95 for AZSA members and $74.95 for non-members. A meal is included in the fee. For more information, e-mail [email protected]or visit www.azselfstorage.com.

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Denise Nunez has joined the Arizona Self Storage Specialist Team, part of Self Storage Group at Rein & Grossoehme Commercial Real Estate LLC, as a sales agent. She will work with Bill Alter, managing director. 

Nunez has more than 20 years of executive-level experience, most recently serving as a division president of MiniCo Inc., an international self-storage service provider. In addition to being the executive director of the Arizona Self Storage Association, she is the founder and CEO of a strategic marketing firm that has helped privately held companies with the launch of new product offerings. Prior positions include asset management, fundraising, strategic planning and new-product development for mid-size companies including Friess Associates, Petros Capital and VPI Cos.                     
  
Rein & Grossoehme specializes in the sale of self-storage facilities, shopping centers, office and industrial buildings, and single-tenant leased properties and commercial land. The company also markets shopping centers, office buildings and industrial buildings for lease and represents tenants in site selection.

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Legislative Victory for Arizona Self-Storage Operators!

There are various reasons to build a multi-story self-storage project, including a lack of available land or the high price of land in a particular area. If you’re considering the development of a multi-story facility, there are pros and cons to be considered. Every project must be carefully evaluated for its individual circumstances, and the factors involved can be complex.
 
Examining Costs

A multi-story building may cost more per square foot to construct than a single-story. On average, 25 percent of the building’s square footage will be non-rentable space, taken up by corridors, entry ways, staging areas, elevator shafts and stairwells. It’s important to compare the construction costs and lost floor area to those of a single-story facility, which will likely not have the same issues. If a single-story facility incorporates climate control, there will be loss of floor space to corridors, but not normally on the same scale as with multi-story.

It’s generally anticipated that because a multi-story project can be located in a more desirable area, it should be able to demand higher rents. Multi-story facilities usually offer climate control as well, which also translates to a better bottom line. Though multi-story has a potentially higher investment, the higher income may provide a better return when compared to a typical drive-up, single-story project.

Many developers appreciate multi-story building because it offers a higher barrier to entry as well as the opportunity to have a larger investment in a single property. Because the amount of time and effort involved is roughly the same as for a simple single-story project, a multi-story facility seems to maximize that input.
 
Assessing the Location
Once you’ve determined you have a good market for self-storage, you need to evaluate site factors such as visibility, accessibility and constructability.

Visibility. First, you must evaluate how prospects will see the building. Based on this, the building orientation and presentation become more obvious. A multi-story project can serve as its own signage thanks to its height. It can sometimes be seen over other buildings, and you can consider adding signage to the building itself. Many projects have large windows showing storage-unit doors. When lit at night, this area becomes great signage and immediately helps people identify with your project.

Accessibility. The need for accessibility is no different for a multi-story project than any storage development. Once customers know the facility is there, they need to be able to get to it easily. Make sure there is no property in a more desirable location in that area or en route to your facility, as this can effectively cut you off from the customer.

Constructability. The last basic issue is constructability, which relates to several factors: where you place the building on the site, building orientation, the slope of the property, issues of access, etc. These issues will be unique for each property. 
 
Construction Factors

The property’s visibility, size and required square footage will help you determine how tall the building should be. Keep in mind that with each story you add, the project’s overall cost per square foot increases.

The combined weight of the structure and stored items accrues with each level and transfers to the floors beneath. The lower floors must be made stronger to support those above. There are additional factors to consider such as wind load (the force of wind acting on the building) and seismic loads for earthquake zones. In addition, it’s more expensive to work in the air than on the ground, and each ensuing level compounds this issue.

If you have a site with a large slope, it’s possible to use it to your benefit. For example, if you have enough room to create a driveway all the way around the building, you could construct a two-story, split-level building. This means you can enter the lower level of the building on one side and the upper level from the other, possibly eliminating the need and cost of elevators, elevator shafts and stairs. Though this design will require retaining walls and water proofing, it can still result in an overall cost savings.

The tallest facility you can build practically for self-storage is four stories above ground. Based on the occupancy classification for self-storage, anything higher than four stories has to be a fire-rated structure. Therefore, if you want to build a six-story building, the two first floors have to be a different type of construction, with a horizontal, fire-rated floor system separating the second floor from the ones above it. The other option is to fire rate the entire structure.

You’ll also be required to install fire sprinklers in any multi-story building of this type. The city may also have certain restrictions on height, and this must be evaluated.

A typical multi-story facility is constructed so the core of the building is self-sustained, meaning the outer walls can be built of almost any material you desire. Some exteriors are less expensive, such as metal wall sheeting; others, like stucco, are much more expensive. There are many other options for the exterior: concrete masonry unit, brick, exterior insulation finish system, glass curtain wall, or a combination of these products.

The sky is the limit when it comes to design, thanks to all of these options. In many instances, the design can help you get approval from an architectural review board, local homeowners, the city or another governing body.

The design and construction of multi-story storage has come a long way in the last few years. The creativity expressed by many projects is nothing short of spectacular. From projects that look like high-end office buildings to others that look like residential apartments, the opportunities are limited only by imagination.

Before you build, consider all of the factors involved in an important development of this nature. This is best achieved by working with a team that fully understands these issues.
 
Charles Plunkett is president of Artistic Builders Inc. and CEO of Capco Steel Inc. He has presented numerous construction-related seminars and been featured in several self-storage publications. His experience includes welding, fabrication, steel erection and general contracting as well as the design, development and construction of commercial projects including self-storage. To reach him, call 210.493.9992; visit www.capcosteel.com.

To learn about self-storage construction and development, take advantage of the comprehensive education program at the Inside Self-Storage World Expo. Click here for show details.

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After decades of working separately in self-storage insurance and marketing, Harry Sleighel creates a new insurance offering for the market: Storage Property Protection, with a focus on marketing, training and advertising. 

Harry Sleighel's self-storage career began when he was hired by MiniCo Inc. in 1985 to manage the company’s Customer Storage Insurance (CSI) program. His primary responsibility was to revitalize the program that, though an industry leader, was faltering. He conducted focus groups and face-to-face meetings with hundreds of self-storage managers and owners in Arizona, and hundreds more nationwide by phone.

Once the data was collected and analyzed, it became apparent that marketing would be invaluable, and new brochures and posters were devised. To recognize the managers on the front lines, MiniCo instituted the “Be a Star” program. These changes led to immediate and long-term success, resulting in Sleighel’s promotion to vice president of marketing, a position in which he continued to market and promote CSI. Before leaving MiniCo, he was promoted to executive vice president, responsible for day-to-day operation, which included the insurance division.

In 1989, Sleighel and a partner, Michael Zervas, started a new ad agency, American Ad Management, specializing in Yellow Pages advertising. As the company grew, so did the need for new, relevant products. Recruitment advertising and interactive divisions were soon added, and the company’s name changed to Michaels Wilder.
In 2001, the buyout of Sleighel’s partner opened the doors for even more growth opportunity. Four years of grooming allowed Sleighel to hand over the keys to CEO Shelly Little, leaving him with some extra time on his hands—and a new business venture.

A consulting experience in 2008 re-sparked Sleighel’s interest in tenant insurance. Was there a niche for a better product in the marketplace that would be superior for customers, managers and owners? It was déjà vu.

Sleighel hired David Rose, a program manager at U-Haul International Inc., where his responsibilities included working with thousands of self-storage facilities. His understanding of the operational side and his keen insight into the manager's world were a perfect fit for Sleighel’s new venture, Storage Property Protection (SPP). Rose was named executive director, responsible for day-to-day operation.

“David brings 17 years experience with a self-storage giant and unique self-storage operational viewpoint to our new operation,” Sleighel says.

SPP’s objective is to partner with self-storage owners, operators and managers to provide a win-win environment for them and their customers. Focus will be placed on marketing, training and advertising.

“We want to be the best, not the biggest,” Sleighel says. “That’s our mission statement and, by following it, growth will follow.” The new focus has already produced a unique actuarial component to the self-storage mix, Storage Property Protection’s Rate Optimizer. 
 
On March 2, Storage Property Protection will conduct a seminar titled “Creating Profit and Peace of Mind With Self-Storage Tenant Insurance” as part of the Inside Self-Storage World Expo in Las Vegas. Visit www.insideselfstorageworldexpo.com  for details.

Marcus & Millichap Real Estate Investment Services named Charles “Chico” LeClaire the top producing self-storage broker for 2009. 

He ranked in the Top 30 brokers nationally for the 1,300 broker real estate investment firm and was ranked No.1 in his home office of Denver. He closed 10 self-storage transactions for the year, from Florida to California. 

“Finding motivated sellers was the key,” LeClaire said. “There are still self-storage buyers out there but their expectations have changed. They will no longer buy on ‘going forward’ numbers.  Stabilized, cash flowing properties are what the market is looking for.”

LeClaire has been with Marcus & Millichap for nearly 20 years and has always specialized in self-storage.

Encino, Calif.-based Marcus & Millichap has more than 1,300 investment professionals in offices nationwide.

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Homestead US 1 Self Storage celebrated its grand opening last weekend with a barbeque and a crowd of customers, local dignitaries, the property owners and guests.

The 460-unit storage facility was purchased by a consortium of investors active in the South Miami-Dade, Fla., market. South Investment Property LLC handled the purchase on behalf of the investors.

The property was formerly known as American National Self Storage. Occupancy at the time of purchase was approximately 50 percent. The current ownership group hired experienced self-storage professionals and recently completed significant renovations to the property, including rebranding the exterior in new corporate colors, designing a new logo and signage package, and implementing a Web-based property management and accounting system.

“This property needed quite a bit of effort from our staff to address deferred maintenance left by the former owners,” said Matt Rotolante, partner in the ownership group and owner of South Investment Property. “Occupancy has increased by approximately 10 percent since we purchased the property in September 2009. The entire ownership group has been pleased with property’s performance so far and we are looking forward to an excellent 2010.”

South Investment Property LLC is a boutique commercial real estate brokerage firm specializing in site acquisition analysis and disposition solutions. Located in Miami-Dade County, Fla., the firm is actively working with banks to reposition and dispose of non-performing assets, and has many opportunities in retail, office, industrial and land.    

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PhoneSmart Director Tron Jordheim recently completed a poll on the professional social network LinkedIn to help determine why professional people choose self-storage facilities. The poll asked, “If you are using or have used self-storage, why did you choose one facility over another?” Following are the poll responses, collected from 517 LinkedIn members: 

• Convenient location: 50 percent
• Lowest price: 13 percent
• Features and amenities: 12 percent
• Neat and tidy: 12 percent
• Recommended by someone else: 11 percent 

“This poll should help calm some fears that price is the only consideration when people are looking for storage units,” Jordheim said. “It should also tell storage owners that lowering prices is not the solution for slower business. The solution for slower business is to have people with improved sales skills talking to potential customers ... Price concessions kill businesses.”
  
PhoneSmart is an off-site sales force and marketing company serving the self-storage industry. The company serves clients across North America in English and Spanish.

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