Public Storage Inc., a self-storage real estate investment trust, has opened a new facility in Gardena, Calif., a suburb in the South Bay region of Los Angeles County. The three-story property at 16100 S. Avalon Blvd. is near California State Route 91 and Carson, Calif. It contains 350 indoor, climate-controlled units, with 800 more expected to open later this month, according to a press release.

“There really wasn’t a lot of storage in the area,” said Doug Gasperik, construction-project manager. “But we’ve changed that.”

Public Storage opened another new facility in December in Richmond, Texas, a suburb of Houston. The company’s seventh location in the region, it contains more than 1,200 climate-controlled units.

Based in Glendale, Calif., Public Storage has interests in 2,374 self-storage facilities in 38 states, with approximately 156 million net rentable square feet. Operating under the Shurgard brand name, the company also has 220 facilities in seven European countries, with approximately 12 million net rentable square feet.

Source:
Public Storage, Public Storage Opens New Storage Units in Gardena, California

Janus International Group LLC, a manufacturer of self-storage roll-up doors and building components, has hired Christine DeBord as director of marketing. DeBord will be responsible for supporting the company’s Commercial, Door Security and Automation, International, New Construction and R3 (Restore, Rebuild, Replace) Divisions, according to a press release.

"We are excited to have Christine join the Janus family as we continue to execute on our strategic vision to offer turnkey solutions to our industry," said David Curtis, president and CEO. “As we continue to grow by offering new products and technology, as well as through strategic acquisitions, we believe Christine’s industry experience and knowledge of new technology make her a perfect fit to lead our marketing team.”

DeBord joins Janus after two years at PTI Security Systems, a provider of access-control and security solutions for the self-storage industry, where she “drove a number of highly successful digital and branding initiatives as well as new product launches,” the release stated.

Janus was recently acquired by private investment firm Clearlake Capital Group LP, which has interests in the energy and industrial, food and consumer services, and software and technology sectors. The move is a part of a broad strategy to infuse Janus with resources to pursue product development and company growth, including acquisitions, according to company officials.

Headquartered in Temple, Ga., and founded in 2002, Janus is a global manufacturer and supplier of roll-up and swing doors, hallway systems, and re-locatable storage units for the self-storage industry. It operates 10 U.S. locations as well as manufacturing facilities in Europe and Mexico.

Jason Mayers, owner of Great Bend, Kan.-based Superior Self Storage LLC, was named the 2017 NextGen Leader of the Year by the Great Bend Chamber of Commerce & Economic Development. The honor is given annually to an individual “creating a meaningful impact as a rising leader,” according to a source. Mayers received the award curing a ceremony on Saturday.

Superior operates four facilities in Kansas. The properties offer 24-hour access, drive-up units, online billpay and video cameras.

Mayers embarked on his first entrepreneurship as a child, mowing lawns for money. He kept the venture going until attending Kansas State University to study accounting. Upon earning his certified public accountant (CPA) designation, Mayers pursued his interest in real estate with his father by acquiring a duplex rental property. After his father was killed in an automobile accident, Mayers became owner of the family business, EQ Muffler.

Mayers was simultaneously a CPA with local accounting firm Adams Brown Beran & Ball, where he eventually became a partner. He’s been owner of commercial and residential rental companies Mpire Cos. and MGM Properties LLC since April 2004. In 2013, Mayers joined the Marmie Family as chief financial officer for its automotive interests including Marmie Ford Inc., Marmie GMC and Marmie Motors Inc., according to his LinkedIn page. He’s also listed as an owner.

“Jason has a strong desire and passion for the success of his hometown, like none other,” Nels Lindberg, a friend of Mayers who previously received a NextGen award, told the source. “Jason puts his money where his mouth is. He doesn’t just talk about ideas; he identifies a need and then gets after it. His impact on this community is almost immeasurable, but he has touched many lives and is definitely a rising leader in Great Bend.”

Mayers and his wife, Jayme, are active in the community, volunteering for several civic initiatives and nonprofits, according to the source. Together, the couple has three daughters between the ages of 6 and 11.

Sources:

GB Tribune, Jason Mayers Named NextGen Leader
LinkedIn, Jason Mayers

Westy Self Storage, which operates 15 properties in Connecticut, New Jersey and New York, is co-sponsoring a community art exhibition in Englewood, N.J., by The Community Chest (The Chest), a nonprofit organization that provides support to Bergen County, N.J., residents. “Stills From Life” is open through Feb. 28 at the Bergen Performing Arts Center's Sandy Bennett Art Gallery. It features the work of artists Caslon Bevington, Lindsea Bevington, Jay Gittens, Charlie Hudson, Julia Powers and Calypso Vaga. A portion of the proceeds from art sales will benefit The Chest.

More than 75 people attended the Feb. 8 opening reception, which included refreshments and allowed attendees to meet the artists. “We were delighted to welcome so many people to the Stills From Life art exhibition’s opening reception, a first for The Community Chest,” said Dr. Shelly Wimpfheimer, executive director for the nonprofit.” The public demonstrated much enthusiasm for the artists’ work. We invite visitors to support The Chest and purchase the artists’ impressive work.”

The exhibition also introduced “Art for the People,” a Chest initiative that brings art to the community in observance of the organization’s 85th anniversary. The program offers four one-hour classes taught by the exhibit’s artists to local middle and high school students. A second session will provide two one-hour classes to senior citizens.

Additional exhibit sponsors are Apostrophe NYC and the Northern New Jersey Community Foundation’s ArtsBergen initiative.

Since its founding in 1933, The Chest has raised the equivalent of $62 million when adjusted for inflation, and served 89 nonprofit organizations. It supports area nonprofits focused on mental and physical health, hunger relief, the arts and environment, and volunteerism for 50,000 people annually.

Founded in 1990 by The Arredondo Family, Westy is headquartered in Stamford, Conn. It operates four self-storage facilities in Connecticut, four in New Jersey and seven in New York.

Source:
Broadway World, The Community Chest’s 85th Anniversary Art Exhibition Reception Draws Crowd To BergenPAC

Real estate investment firm Eastland Partners Inc. plans to build a self-storage facility and office building or warehouse in Framingham, Mass. The 4-acre property at 120 Leland St. currently houses a former welding-manufacturing facility, which will be razed, according to the source. The planning board will hold a public hearing to discuss the project on March 1.

The proposal includes excavation of the existing pavement and the construction of five single-story storage buildings as well as one with two stories. A single-story office or warehouse will also be built. A drainage system to collect and treat runoff water, which flows into the nearby wetlands, will also be created. The project is expected to take three years, the source reported.

The property was purchased by 120 Leland Street LLC, an entity tied to the developer, for $1.9 million in December, the source reported. The seller was Leland Corp., which settled with the city after failing to pay more than $98,000 in taxes in 2015. The settlement was made just before foreclosure proceedings were initiated.

Founded in 1989, Eastland is a land-acquisition and development company that focuses largely on residential projects. Based in Hopedale, Mass., it has developed more than 600 homes.

Source:
Framingham, New Self-Storage Facilities Planned for Leland Street

Self-storage has become an increasingly popular investment, in great part because annual returns over the last 15 years have averaged 15.43 percent. Many people also think storage is easier to understand than other types of investments, with less moving parts. Also, with approximately 83 percent of the sector’s facilities owned by mom-and-pop operators, new inventory is constantly coming into the market.

At the same time, consolidation within the industry is also a continuing trend. The largest operators, such as Extra Space Storage Inc., Public Storage Inc. and U-Haul International Inc., own 8 percent of the market, while mid-sized operations hold 9 percent. Now’s the time to buy a facility and capitalize on low-interest-rate commercial loans, before more independently owned properties are absorbed by self-storage chains.

Whether you’re buying your first facility or your 10th, you need to assemble a team of professionals who’ll ensure you make a smart acquisition. When you make a purchase offer, time is of the essence, particularly with so many eager buyers in the market. Having your team in place before you buy enables you to quickly and professionally close on your chosen property.

Here’s a breakdown of the team you’ll need before you begin to look at properties.

Real Estate Broker

The right self-storage broker may be the most important part your team, as he’ll bring you deals on which to bid, give you recommendations for your offers, and negotiate with the seller on your behalf. An industry-experienced broker can offer valuable insight to maximizing your investment. Because self-storage can be a more complicated business than some types of commercial real estate (i.e., a triple net lease on an office building), it makes sense to align with a broker who understands the business and won’t steer you toward an investment without upside.

Bankers/Loan Brokers

Depending on the amount of financing you’ll need, there are several loan markets you can investigate. For most initial acquisitions, the first stop will be your local bank. If you have a long-term relationship, your local lender may be willing to finance your investment. In most cases, though, you’ll want to line up several bankers in case a loan falls through.

Ask your real estate broker for recommendations. An experienced broker will have been involved in many transactions and know about specific institutions that are issuing loans for self-storage. It also never hurts to look through industry trade publications for lenders. The benefit of financing through an institution that focuses on the storage industry is you won’t have to explain your business model, unlike the conversation you’re likely to have with your local bank.

Feasibility Firm

If you’re looking at a property with high vacancy rates, the elephant in the room is whether the low occupancy is the result of poor management, not enough lease-up time (with new developments) or a deficiency in demand. If there isn’t enough demand for self-storage in the market, raising occupancy is going to be an uphill battle, with marketing costs eating into your profit margin.

On the other hand, if the property owner has artificially inflated demand for the facility—for example, through an intensive and expensive marketing campaign that isn’t reflected in his net operating income—then conducting a feasibility study can help you dodge a bullet. Keep in mind that certain seasons of the year will yield higher occupancy than others. If the asset is near a college campus, for example, you can reasonably expect an influx of students during the summer. In a market that’s undersupplied and showing demand for more storage space, a feasibility study may also reveal opportunities to expand the target asset of which the current owner isn’t aware.

Attorney

A significant amount of money is made or lost in the negotiating process. For example, prorations are the funds paid by the seller or buyer for a period in which the other party owns the property. If the seller pays the real estate tax bill for the first six months of the year and then sells the property at the end of the third month, it’s fair for the buyer to pay the remaining three months within the tax-free period. Though prorationing is typical in the sale of self-storage facilities, it’s something you can easily overlook unless you have an experienced attorney reading every single line in the purchase agreement.

CPA or Tax Attorney

If you have an intimate understanding of taxes, there are a lot of opportunities to minimize your tax bill. One great example would be the classic 1031 Exchange. Under this provision, if you’re buying Property B with the capital gains from the sale of Property A, you can defer capital-gains taxes from the sale of Property A until after the purchase of Property B. Many investors love this concept because the deferral translates to a larger down payment, which enables them to buy a property that’s 10 percent to 25 percent more valuable than what they could afford without the deferral.

Although this exchange seems simple, it can be complicated and increase risk if handled incorrectly. The Internal Revenue Service can later hit you with a tax bill for capital gains on Property A, if the 1031 Exchange isn’t carried out properly. If this isn’t your area of expertise, it’s important to find a qualified certified public accountant (CPA) or tax attorney to advise you through the buying process.

Tax Adviser

In many states, real estate taxes are assessed upon the sale of each individual property. If this is the case, your pro forma can be significantly impacted by an increase in your tax bill. One way to mitigate risk in this area is to have a tax adviser complete an estimate for an automatically triggered real estate tax increase.

Assembling a qualified team of professionals will help you find potential properties to buy and evaluate them quickly. Collecting the team before you begin your acquisition journey will make the buying process an efficient one and put you a step ahead of those unprepared to navigate a crowded investment market.

Isaac Rothermel is a broker advisor at Investment Real Estate LLC, which has provided brokerage, construction, management and development services to self-storage owners and investors since 1998. For more information, call 717.779.0804; e-mail [email protected]; visit www.irellc.com. 

Phoenix-based U-Haul International Inc., which operates more than 1,300 self-storage locations across North America, is converting a former Kmart store in Lancaster, Calif., and a factory in Erie, Pa., to self-storage. Both projects are a part of the company’s corporate sustainability initiatives, which support infill development to help local communities lower their carbon footprint.

U-Haul purchased the shuttered Kmart at 1810 W. Avenue J for $5.2 million. It’ll be the company’s second location in the Antelope Valley community. The plans include transforming the existing 110,000-square-foot building to 80,000 square feet of storage space. U-Haul will also use a portion of the 9.28-acre site for truck rentals.

The transaction was brokered by John Battle, principal with Lee & Associates, a commercial real estate brokerage and advisory firm. “We had a lot of inquiries for this property, but the highest and best use was self-storage and we proceeded with that strategy,” he said, noting the property had been on the market for two years and wasn’t priced correctly. “Once we dropped the listing price, we received inquiries from healthcare users, retail developers and automotive users.”

The seller, a family trust, had owned the building since 1970. Kmart closed the location about five years ago.

U-Haul recently opened another conversion project in the former Skinner Engine factory at 337 W. 12th St. U-Haul Moving & Storage of Downtown Erie offers truck and trailer rentals, towing equipment, and moving and packing supplies. U-Haul plans to construct more than 600 self-storage units inside the building over the next year. Hitch installation, propane sales and U-Box portable storage will also be added.

“This building is a piece of Erie history,” Ean Livingood, president of the U-Haul Co. of Northwestern PA, said of the 1930s building. “I'm excited to be part of this downtown revitalization. The Skinner Engine factory has been a symbol for generations and to tear it down would have been a shame. We want to maintain the character of the building and merge it with the U-Haul services that our neighbors need.”

Earlier this month, U-Haul also acquired the former Boeing airline customer-support offices in Tukwila, Wash., which it plans to convert to self-storage. The 12.89-acre property at 2925 S. 112th St. features a pair of five-story towers. U-Haul Moving & Storage of Duwamish is currently operating out of a temporary showroom, offering truck and trailer rentals, moving and packing supplies, towing equipment, and more.

Once the 323,758-square-foot space is renovated, it’ll contain 3,800 storage units, some of which will be climate-controlled. Additional services will include U-Box portable-storage containers and a U-Haul Re-Use Center for gently used household goods and materials.

“This location will help us bring truck-sharing and self-storage to the community of Tukwila and nearby SeaTac, Burien, South Park, Allentown, Glendale and Riverton-Boulevard Park,” said Kim Merow, president of the U-Haul Co. of South Seattle. “We are excited to be in this area and serve our customers more effectively and sustainably.”

Established in 1945, U-Haul owns more than 51 million square feet of storage space at owned and managed facilities in North America.

Sources:
PR Newswire, Adaptive Reuse: U-Haul Reveals Plans for Erie's Skinner Engine Factory
PR Newswire, U-Haul to Offer 3,800 Self-Storage Rooms at Former Boeing Offices

Storage Werks received zoning approval this week from the village board to build a new self-storage facility in Mukwonago, Wis. The property will be on the east side of Mukwonago Drive, north of Bay View Road, according to the source.

The plans include the construction of nine buildings comprising 52,868 square feet of storage space. The tan structures will have pitched, asphalt-shingled roofs and white-trimmed faux windows on those that face the facility’s exterior. The site will also include a gate with key-code access, a self-serve kiosk, videos cameras, and landscaping to match the architecture in the area, according to Andy Reahm, owner.

The units will have movable, lockable pins, so they can be expanded to accommodate the needs of clients. The company is also looking to add climate control, the source reported. The property will have a small office that sells moving and packing supplies. “What we’re trying to provide is more of a retail type of experience,” Reahm said.

The developer plans to break ground this spring and open in the fall. Storage Werks has two additional locations under development in Cedarburg and Lisbon, Wis., according to its Facebook page.

Source:
GM Today, Board Gives Green Light for New Storage Facilities in Mukwonago

Real estate developer Fuqua Development LP intends to build an 800-unit self-storage facility at the northwestern corner of its Glenwood Place mixed-use project in the Grant Park residential district of Atlanta. The company will seek a zoning change for the site after failing to qualify for low-income tax credits as part of its original plan to develop affordable senior housing, according to the source.

Fuqua representatives presented their plan to the Grant Park Neighborhood Association this week. Though the company touted high property-tax income and limited traffic congestion as benefits to the community, the change to storage was met with strong opposition from residents, some of whom called it a bait-and-switch tactic, the source reported.

Completed in 2016, the Glenwood Place project includes 175,000 square feet of retail fronting Bill Kennedy Way and Glenwood Avenue. It serves Grant Park, a historic area noted for its craftsman and Victorian homes, Zoo Atlanta, and the cemetery where “Gone With the Wind” author Margaret Mitchell is buried. The surrounding population totals more than 65,000, according to the Fuqua website. The developer has been working on plans for adjacent parcels, including the self-storage site, the source reported.

Johnson Development Associates Inc., a real estate developer with interests in self-storage, is building a five-story facility at 1299 Northside Drive near Atlantic Station, which is part of another Fuqua-led mixed-use project in Atlanta’s West Midtown area. The storage facility is expected to comprise 112,448 square feet in 875 units.

Fuqua Development was founded in 2012 by Jeff Fuqua. It specializes in shopping centers and mixed-use projects, featuring residential and retail space, in the Southeast. Among its largest developments is The Battery Atlanta at SunTrust Park, a $400 million mixed-use project on 74 acres that is connected to where the Atlanta Braves play, according to the company website.

Sources:
Curbed Atlanta, In Grant Park, Fuqua Wants to Build Self-Storage Instead of Senior Housing
Fuqua Development, Website

StorageMart, which operates more than 190 self-storage properties across Canada, the United Kingdom and the United States, has acquired Afford It Storage and Country Club Mini Storage in the Des Moines, Iowa, metropolitan market. Together, the facilities in Grimes and Waukee comprise 58,350 square feet in 450 units, according to a source.

The Grimes location is on 2.5 acres at 775 S.W. 37th St., with room for expansion opportunities, a source reported. The seven-building property comprises 280 units. It features climate-controlled units and keypad entry. The site is about 15 miles from downtown Des Moines.

The Waukee property at 16175 S.E. Laurel St. is 5.6 miles from the Grimes site and a 20-minute drive from downtown Des Moines. It comprises 170 units and features single-story buildings with drive-up access, according to a press release. StorageMart already has a presence in both cities.

"We're bringing even more easy, clean service to Waukee and Grimes in the greater Des Moines area," said Cris Burnam, president of StorageMart. "We're committed to providing everyone with clean and well-lit units and excellent customer service, and look forward to providing storage solutions to the residents of Waukee and Grimes, Iowa."

Bellomy & Co. brokers John Arnold, Bill Bellomy and Michael Johnson represented the local seller of both properties and procured the buyer. With offices in Atlanta, Houston, and Austin, Texas, Bellomy & Co. focuses on the sale of self-storage, industrial, office and retail properties nationwide.

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. Its portfolio consists of more than 12 million square feet of storage. It serves more than 75,000 self-storage customers, and operates in Chinese, English, Punjabi, Quebecois French and Spanish.

Source:
PR Newswire, StorageMart Expands into Waukee and Grimes with Self Storage
Commercial Property Executive, StorageMart Expands Iowa Footprint