Diversified real estate firm 10 Federal has acquired two self-storage facilities in Durham and Lowell, N.C. These are the third and fourth transactions completed through the company’s acquisition fund, which launched last year. The deals closed on Jan. 26, according to a press release.

The purchase includes The StoreRoom Self Storage Center at 3822 S. Alston Ave. in Durham, and Minnie's Mini Storage at 718 Robinson St. in Lowell. Both will be converted to unmanned, automated locations, per the company’s business model. The transformation will include the addition of a kiosk rental center, model unit, overlock system and call-center services, the release stated.

The company also announced that investors of 10 Federal Self Storage Acquisition Co. 1 LLC received an 8.45 percent annualized distribution during the fourth quarter of 2017. The acquisition fund admitted another $1.695 million on Jan. 1, bringing the total capital raised to $3.8 million, the release stated.

Based in Raleigh, N.C., 10 Federal acquires, develops and manages multi-family and self-storage properties in North Carolina. It now has 10 self-storage facilities in its portfolio. Integrating technology into its operation is a core tenet of the business, according to the company website.

Source:

PR Newswire, 10 Federal Closes on 4th and 5th Self-Storage Acquisitions, Announces Distribution

Self-storage operators in Asian markets with a high concentration of Chinese residents have noted a seasonal surge in business related to the Chinese New Year. Since Jan. 1, move-ins have increased an average of 10 percent, as millions of Chinese households conduct an annual spring cleaning leading up to the holiday on Feb. 16, according to the Self Storage Association Asia (SSAA), a trade association dedicated to supporting self-storage operators and suppliers in emerging markets along the Pacific Rim.

The SSAA believes the trend falls alongside a rise in consumer familiarity with self-storage, as unit rentals have become more commonplace for temporary storage in preparation for remodeling or moving residences.

“With rising consumerism and shrinking apartment sizes in major cities like Beijing, Hong Kong, Singapore and Taipei, self-storage has become a lifestyle necessity and not just an option for households,” Helen Ng, chair of the SSAA, said in a press release. “On top of these structural growth drivers are short-term, seasonal drivers such as the Chinese New Year effect. In fact, this has been the top demand driver each January, according to our poll of self-storage operators across Asia.”

Spikes in demand have been particularly high in key Chinese cities like Beijing and Shenzhen, where self-storage has become popular with middle-income households, the release stated. Beijing unit rentals nearly doubled in January for China Mini Storage Ltd. (CMS), according to Alex Tso, founder and CEO. Most CMS tenants rent for up to eight months.

My Cube Self-Storage in Beijing has also experienced an uptick in move-ins. “[Residential customers] drive an increase of between 10 to 20 percent in the demand for self-storage in the months leading up to the Chinese New Year,” said Emma Feng, CEO. “They typically store furniture, collectibles and wine for a period of about three months.”

In Shenzhen, Locker Locker has noted “a rising trend of personal storers who are either moving into a new apartment or redecorating their current apartment ahead of the Chinese New Year,” said Charlotte Sun, founder and CEO. “The typical storage period for these households is between six months to one year.”

Previously identified drivers in Asian markets have included death, divorce, relocation and urban density, the release stated. Going forward, the SSAA intends to study the Chinese New Year and other seasonal factors to gain a better understanding of short-term demand.

“The opportunities afforded by seasonal demand, coupled with structural growth drivers, especially in China, bodes well for the industry at a time when the global economy is expected to take off,” Ng said.

Launched in 2014, SSAA supports members' interests to help grow the self-storage industry in Asia.

Magenta Self Storage, which operates five facilities in England, views the opening of its £4 million facility in Banbury late last year as an investment into the city’s revitalization efforts. The five-story facility is near the M40 highway and comprises 40,000 square feet, according to the source.

“Investing in Banbury at this pivotal moment in its history is a sound business proposition,” Magenta Chairman Mark Shaw told the source. “Although plans for Banbury’s regeneration have been in the pipeline for some time, we are now really encouraged to see that they are moving forward with such momentum.”

Magenta’s presence has been embraced by the community, according to facility manager Helen Tooby. “This facility is so much more than a place to safeguard surplus belongings. It is, instead, a real hub of community activity,” she told the source. “Since opening, we have been privileged to work alongside organizations as diverse as Katherine House Hospice, Banbury Museum Trust, the 100 Coats homeless project, Care4Calais and Business Buzz.”

In addition to the recent Banbury opening, Magenta is pursuing two self-storage projects in London. It has secured funding for an underground facility on Errol Street and is seeking approvals for a development in West London, according to the source.

“Our expansion into Banbury is part of our strategy to double our current holding by 2022,” Shaw said. “It showcases our commitment to offer our customers the very best the industry has to offer, including around-the-clock security, 24/7 access and the latest technology. Our Banbury operation will act as the benchmark for future facilities, as we continue to expand throughout the Southeast.”

Magenta operates facilities in the Acton area of West London, Banbury, Nottingham, Oxford and St. Albans, England.

Source:
Banbury Guardian, Storage Firm Backing Banbury’s Regeneration With £4M Investment

Compass Self Storage, a member of the Amsdell family of companies, is seeking zoning approval to build a new facility in Jupiter, Fla. The proposal is for a 7-acre vacant property on the southeast corner of Frederick Small Road and Sweet Bay Circle, in the Abacoa neighborhood. The planning and zoning commission will consider the plans on Feb. 13, according to the source.

The facility would contain several buildings, including a three-story structure. They would comprise 150,000 square feet of storage space in 800 units, some of which will be climate-controlled. The site would also include 14 parking spaces. The L-shaped property is owned by Workplace Florida Ltd., the source reported.

The town council turned down a similar plan for the same parcel two years ago, the source reported. It’ll consider the Compass proposal on April 17.

In January, the council approved a similar project from Pinnacle Storage LLC. The company plans to build a three-story property comprising 98,000 square feet of space in 700 units.

Compass completed 13 acquisitions and developments last year, according to company officials. Most recently, it purchased McDonough-Henry Self-Storage in McDonough, Ga.

Headquartered in Cleveland, the Amsdell Cos. draws its roots from the family-owned construction company founded in 1928. Since its inception, the company has been active in several billions of dollars of real estate ventures, with a primary focus on self-storage. It has owned and operated more than 500 storage centers under various trade names in more than 27 states. It currently owns and operates properties in Florida, Georgia, Kentucky, Michigan, Mississippi, New Jersey, Ohio, Pennsylvania, Tennessee and Texas.      

Source:

Palm Beach Post: Self-Storage Facility Proposed in Jupiter’s Abacoa Area

Tenant insurance has been a much-debated topic in the self-storage industry. However, the recent upsurge in class-action lawsuits filed against facility operators has driven many to offer the product, to help reduce their liability. In fact, many are making it a requirement of rental; and customers who don’t show proof of some type of coverage for the belongings they want to store could be turned away.

The reality is many tenants don’t view this type of insurance as a value-added option, which is partly due to the following misconceptions:

• Many see tenant insurance as just one more “add-on” that increases their monthly storage fee. This is often the prevailing mindset when an operator doesn’t take time to discuss the benefits of the product and the risks of failing to insure stored belongings.
• Tenants believe their goods will be covered by their existing homeowner’s or renter’s insurance policy. However, these policies might not even extend to their storage unit. In fact, the deductible on these types of insurance is often higher than the value of the items in storage.
• Many customers think the storage business will cover them if the unexpected happens. Sometimes, a facility’s branding and marketing can compound the belief that a tenant’s belongings are 100 percent safe in the event of a loss. For example, the website might state the property offers 24-hour video surveillance, outdoor lighting, key-card entry and an onsite manager. And while all these amenities certainly contribute to security, facility owners can’t protect against every conceivable loss.

Thankfully, these misconceptions can be debunked. When personnel are educated in the ways tenant insurance provides true value to renters, they’ll be better able to illustrate the significance of the product in their interactions with customers.

Maximizing Program Benefits

The fact is self-storage operators can’t protect against events like natural disasters. Furthermore, they don’t take care, custody or control of tenants’ belongings. Many offer tenant insurance so they can identify and transfer that risk, better protecting their customers and business.

In addition, renters appreciate having direct access to a licensed insurance agent to answer questions about coverage and handle a reported loss. It’s far better for everyone involved when a loss can be turned into a claim and handled by a professional insurance company.

However, reduced liability isn’t the only benefit tenant insurance offers. Are there any self-storage operators who wouldn’t appreciate the following perks?

Reassurance. Tenant insurance can deliver peace of mind for the owner and tenant. Knowing both parties are protected in the event of a loss lets everyone worry a little less and sleep a little more.

An untarnished reputation. Tenant insurance can help protect your business reputation. If tenants need to file a claim, they want a fast and easy resolution. If that doesn’t happen, many will turn to social media and share a less-than-stellar review of your company, hurting your standing and, ultimately, the success of your operation. A tenant-insurance program can help ensure the claims process goes smoothly and satisfies your customer.

Additional revenue and increased asset value. Another benefit of self-storage tenant insurance is it can be an added revenue stream. As competition increases and facilities look for new ways to maximize profit, more operators are considering add-on services. Industry data shows that income from an established tenant-insurance program can amount to thousands of dollars per year for some facilities. This ongoing revenue also increases the value of the property.

Must-Haves

Self-storage operators must have confidence in the tenant-insurance program they’re administering at their facilities. They need to do their homework before signing with a provider and ensure the program meets the following key criteria:

• Keeps pace with the highly regulated state-insurance environment. Failure to comply with regulations can result in serious criminal and civil penalties.
• Offers comprehensive training support for facilities and employees. This is critical since training is required and regulated in many states.
• Has a robust marketing program and materials to assist with promotion.
• Offers expert, in-house customer service and state-licensed insurance adjusters who handle all claims.
• Is proactive with reviewing claims and other program performance data with clients.

Now’s the perfect time to consider a tenant-insurance program for your self-storage business. Adding this tool to your risk-management plan could make 2018 one of your most successful, stress-free years yet.

Mario J. Macaluso is senior vice president for SBOA Tenant Insurance (SBOATI), which offers a tenant-insurance program created by and for self-storage owners. The company’s products are compliant with state laws and administered by Cornerstone Insurance Producers. SBOATI has won the “Best Tenant Insurance” category in the annual Inside Self-Storage “Best of Business” reader-choice poll for five consecutive years. For more information, call 800.792.0345; visit www.sboati.com. 

Update 1/31/18 – Early-bird registration discounts for the 2018 Inside Self-Storage World Expo have been extended and will now expire on Feb. 13. This will be attendees' final opportunity to take advantage of the early-bird rates, according to expo officials.  

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1/24/18 –  Early-bird registration discounts for the 2018 Inside Self-Storage World Expo will expire on Jan. 30. The event, April 3-6, will be held at the Paris Hotel & Resort in Las Vegas. Early-bird rates allow attendees to save $345 on the All-Access Pass, $170 on the Seminar-Track Package and $50 on the Expo-Only Package. Buyers can also save $185 on each of eight add-on workshops.

The Expo-Only Package includes access to the:

• Buyers & Sellers Meeting
• Cocktail reception
• Expo hall, featuring nearly 200 exhibits
• International Program
• Nevada Self Storage Association meeting
• Opening session
• Roundtable discussions
• Self-Storage Legal Q&A
• Self-Storage Q&A
• Sessions in Spanish
• Vendor presentations

The Seminar-Track Package includes everything in the Expo-Only Package as well as access to all six education tracks, which offer 45 seminars. The All-Access Pass provides access to all show offerings, including add-on workshops. This year's workshop options are:

• Advanced Legal Workshop
• Development Workshop: Planning Phase
• Development Workshop: Building Phase
• Legal Learning Live Workshop
• Management Workshop
• Online-Marketing Workshop
• Owner/Operator Executive Workshop
• Sales-Skills Workshop

To take advantage of early-bird pricing, attendees must register by 11:59 p.m. on Tuesday, Jan. 30. Registration can be completed at www.issworldexpo.com.

Now in its 27th year, the ISS Expo is created for self-storage owners, managers, developers, investors and suppliers. The event is the industry’s largest conference and tradeshow, comprising four days of education, product and service exhibits, and networking opportunities.

Property owner Daniel Carmichael intends to build a self-storage facility at 25330 Five Points Road in DeKalb County, Ill., but will need officials to rezone the property from an agriculture district to planned-development commercial. If approved, the facility would comprise two buildings and 104 storage units. It would also feature two electric-vehicle charging stations, according to the source.

The submitted plan doesn’t indicate the presence of an onsite management office but does include 24-hour video monitoring. Carmichael could also potentially pursue installing solar panels, depending on the county’s final decisions on a solar-power ordinance under consideration, the source reported.

In his application, Carmichael notes the land is unfit for agricultural production. Self-storage is a desirable use because commercial development has increased along the Route 64 corridor during the last 10 years, he wrote.

Carmichael purchased the property last March. It previously had been proposed as a propane-distribution center but became entangled in a 2016 lawsuit filed by the previous owner after the county denied a special-use permit. The case was settled out of court for $70,000, according to the source.

A public hearing on the rezoning application is scheduled for Feb. 8.

Source:
Daily Chronicle: Self-Storage Facility Proposed for Five Points Road

Private real estate firm Gateway Multifamily Group has acquired a mixed-use property in O’Fallon, Ill., that includes self-storage and retail. The Centre-Point Storage and Retail Center at 701-721 W. Highway 50 includes eight buildings comprising 43,000 square feet. It has nine retail spaces and 264 storage units. The self-storage component will be rebranded as Stuff Self Storage, while the retail portion of the property will be called Patriot Plaza, according to a press release.

The transaction is the first self-storage acquisition for Gateway, which specializes in multi-family properties. “The multi-family market, both nationwide and locally, is very competitive at the moment,” said Raj Tut, company principal. “I felt that diversifying into self-storage and retail with this acquisition was the perfect move for us, as it is a great fit for our value-add strategy."

O’Fallon is growing quickly and has several healthcare and military employers, the release stated. It’s a submarket of St. Louis, which is an area of high concentration for Gateway. Gateway has purchased five properties in the metropolitan area in the last four years.

Tut and Tut Properties, an affiliate of Gateway, will serve as property manager.

Gateway acquires, repositions, and manages multi-family assets in select markets across the American Midwest. It focuses on underperforming and underutilized properties that are too small for institutional capital, but too large for individual investors.

Self-storage developer The Natchez Group received preliminary approval in late December to build a new facility in Hendersonville, Tenn. The company is working with the city’s planning department to finalize the project design and hopes to break ground in the spring, according to a press release.

The property at 281 E. Main St. will comprise 70,000 square feet of storage space. Features will include climate control, keypad entry and video cameras.

“This site is an infill location and in an area with solid incomes. The surrounding competitors offer older, first generation, non-climate-controlled product,” said Beau Fowler, managing partner. “We believe this new project will lease up at a rapid pace with very strong rent rates.”

Natchez has yet to secure financing for the development, but anticipates working with a local or regional bank, the release stated.

The developer has several projects underway in the state, including a three-story facility in Spring Hill. Its two other projects, in Franklin and Nashville, are being developed in a joint venture with Atlas Real Estate Partners, a New York-based private investment firm.

The Natchez Group focuses on self-storage development and investments in Central Tennessee and the Southeast. In the past four years, the company has been involved in more than 500,000 square feet of self-storage projects.

 

First Neck Self-Storage Group LLC, a joint venture between asset-management and investment-advisory firm CSM Capital Corp. and real estate investment and management company Self-Storage Capital Partners (SSCP), has raised $50 million with the intent to acquire storage properties in primary and secondary markets. The funding round will be used to buy up to $160 million in assets, according to the source.

“Our investors are very well-heeled, wealthy individuals who have worked with us for a long time,” Christopher Moore, founder and president of CSM Capital, told the source. “We’re going to spend this right now, and get back in the market probably when we’re within two-thirds of being done. The next round could be well north of $100 million.”

First Neck is examining opportunities in the top 100 Metropolitan Statistical Areas, though its primary focus will be in secondary markets. “We saw a good opportunity to acquire stabilized facilities in primary and secondary markets, and to acquire relatively sophisticated operators and achieve management upsides through the management expertise of SSCP,” said John Blizzard, an analyst at CSM Capital.

The joint venture believes secondary markets are attractive due to the potential for higher yields. “You get rewarded much better in the secondary market than in the top 10 major markets, but your operational risk is slightly more,” Jake Ramage, CEO of SSCP, told the source. “Maybe the rental growth is not as strong, but your reward is a higher yield.”

While First Neck could decide to sell its assets quickly, it could also pursue status as a real estate investment trust (REIT). “We’ll happily entertain an industry sale to a third party, public or private. And we’ll be happy to look at becoming a REIT ourselves,” Moore said. “There’s no shortage of people looking at the opportunity. At some point, everything’s for sale. But we’re happy to hold it.”

Based in New York City, CSM Capital works with high-net-worth families and individuals. It has $1.1 billion in accounts under management. The firm’s partners have completed more than $150 million worth of direct-equity investments in multi-family properties, according to the source.

Philadelphia-based SSCP is focused exclusively on the self-storage market. Founded in 2013, it operates the Snapbox Self Storage brand name. Its portfolio comprises 26 facilities in nine states. Its executives have more than 35 years of collective experience in acquiring, operating, repositioning and underwriting self-storage properties, according to its website.