A garage sale at a self-storage facility in Kilauea, Hawaii, last weekend raised $11,000 for the Rotary Club of Hanaei Bay. John Gillen of Kilauea Mini Storage donated the space for the fundraiser on March 18. The money will be used to support the club’s community activities, according to the source.

Hundreds of people attended the ninth annual "Greatest Garage Sale Ever,” 8 a.m. to noon, at 4306 Aalona St. Donated items for the sale included antiques, books, clothes, fishing gear, flat-screen TVs and even an inflatable kayak. A tent set up outside the storage building included cabinets, chairs and desks.

The items were marked at 50 percent off starting at 11 a.m., and then for free at noon when the sale closed. “It [was] all put to good use,” said organizer Monica Oszust.

Rotarians dressed in bright yellow shirts assisted buyers throughout the day. Club president John Oszust called the event “phenomenal.”

The club began collecting contributions for the garage sale last year. More items were added last week when a homeowner who was moving donated a large amount of furniture. “So, we went over there yesterday with seven trucks and moved all the furniture in a three-bedroom house into this tent,” Monica Oszust said.

The South Lyon, Mich., City Council has approved rezoning of a property at 500 Stryker to allow for the development of a self-storage facility. The site, adjacent to the South Lyon Cemetery, will house a seven-building storage facility comprising more than 74,000 square feet of space, according to the source.

The planning commission recommended self-storage for the conditional rezoning, prohibiting all other uses. Residential and other types of development would be challenging because one-third of the property is part of the Yerkes Drain, a stream that flows through the area.

"It's a long, narrow property behind manufacturer-housing property and a cemetery. The property owner [looked] at residential uses and all the other uses in the light-industrial district," said Carmine Avantini, a planning consultant to the city. "Most uses would need a second means of access. After looking at all the uses, this would have low impact on the cemetery and the manufactured-housing development.”

The project will be required to meet screening guidelines, particularly on the side that faces the cemetery, Avantini said. "This will go back to the planning commission for final site-plan review. They wanted to dig into the building materials and landscaping.”

Councilman Glenn Kivell questioned whether the property would need more than just the single fire hydrant shown on the plans.

"I have not seen the plan yet. It is a very challenging site. They would have needed another access if it was residential and forced suppression. They will probably need two or three hydrants," South Lyon Fire Chief Mike Kennedy said.

Councilwoman Margaret Kurtzweil noted South Lyon is going through a rebirth and hopes the development, which is near downtown, will include an attractive structure. "My motto is if it wouldn't fit in Birmingham or Bloomfield Hills, don't put it in my town," she said.

Commercial-property consultancy Lambert Smith Hampton (LSH) has submitted plans in Glasgow, Scotland, for a mixed-use development that would include a drive-through Starbucks and a Storage Vault self-storage facility. The businesses would be built next to the M74 highway on a property at Polmadie Road. City officials will consider the project this summer, according to the source.

LSH is acting on behalf of Storage Vault and OCO Westend Ltd., which operates three Starbucks franchises in Scotland. Though there are three Starbucks locations in Glasgow, the Polmadie project would be the first drive-through Starbucks in the city, the source reported.

“Starbucks has a very ambitious growth strategy, and a great track record in using their investment to support community regeneration, so they need a planning team that can keep pace with them,” Graeme Laing, planning director at LSH, told the source. “Our experience with businesses like the co-operative, which also has large-scale expansion plans, means that we’re perfectly positioned to support them.”

LSH works with developers, investors and occupiers in the public and private sectors across Ireland and the United Kingdom, according to the company website.

Scotland-based Storage Vault has self-storage facilities in Glasgow and Paisley, with two other projects under development. The company’s principals have 15 years of experience in commercial-property ventures.

Update 3/21/16 – Synergy Self Storage has completed the second phase of its facility in Merrimack, N.H., which first opened in 2014. The company added three floors to its existing building. The climate-controlled facility is now one of the largest in the state, according to the source.

The building comprises 144,000 square feet in 918 units, some of which are exterior-facing, drive-up spaces. The sloping topography of the site allowed for ground-level entry on the first three floors, with access to the upper floors via two elevators, according to Joel Sikkila, a partner. The front of the building includes a three-story glass façade, and the roof incorporates a solar-panel system. The perimeter of the structure is insulated with high-performance, spray polyurethane-foam insulation, the source reported.

Security features include computer-controlled access, motion-sensor lighting and video cameras. The site also contains 23 outdoor vehicle-storage spaces and a retail store that sells moving and packing supplies.

Synergy is one of several storage facilities that has recently opened in Southern New Hampshire following several years of pent-up demand. "Right now, the state is saturated," owner Chris Ross told the source.

Bluebird Self Storage opened a new property last month in Manchester, N.H. It’s the first of three projects the company expects to build in the region this year. Another facility, by real estate investment trust Life Storage Inc., recently opened at 6 Smith Lane in Londonderry, N.H. Real estate developer Montello St. LLC received approval last year to convert the former Nashua Athletic Club in Nashua, N.H., to storage. Also, a proposal for two self-storage buildings on residential property in Bedford, N.H., has been introduced, but town planners have concerns about the project, the source reported.

"I would say New Hampshire is pretty much in equilibrium," Joe Mendola, senior vice president of NAI Norwood Group, a Bedford-based real estate firm, told the source. "I don't think we need any new development. I think we have supplied the New Hampshire market fully."

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4/16/14 – Synergy Self Storage, a two-story facility in Merrimack, N.H., opened the first of two phases on April 1 with nearly 400 climate-controlled units. The second phase, slated to be built next year, will add another 800 units and three more stories. Once completed, the facility will encompass 140,000 square feet of storage space and include a three-story glass façade.

The property at 403 Daniel Webster Highway features all climate-controlled units, some of which are exterior-facing, drive-up spaces. The site’s unique topography made it possible to add ground-level access on three separate floors. Facility amenities include moving and packing supplies, video cameras, motion detectors and electronic gate access.

Although self-storage isn’t new to the area, owner Chris Ross said the facility fills a niche for an unmet need, in particular by providing better climate-controlled spaces. “Our HVAC and dehumidification systems address the three major factors of material degradation to stored items—excessive humidity, airborne pollutants and extreme temperature swings,” he said. “It became apparent to us that while many facilities offered temperature control, the additional investment in dehumidifiers and proper air exchangers was not commonplace. We designed this facility to be able to store our customer’s belongings as we would want our own stored.”

In addition, the perimeter of the building is insulated with high-performance, spray polyurethane-foam insulation, Ross said. Due to the large scope of work and unique nature of the project, information about the use of spray-foam insulation will be included in an article in an upcoming issue of “Spray Foam Insulation & Roofing Magazine,” a trade publication for spray-foam insulation professionals, Ross added.

The self-storage business is the culmination of a decades-long dream for Ross. The project took three years to plan, design, achieve permit approvals and build, he said. “We believe we fill the niche of an unmet need, that of a secure storage location for temperature- and humidity-sensitive items, such as furniture, collectible items and paper-based products.”

 

Storage Quarters Records Management Inc., a New York-based self-storage operator specializing in records-management services, has launched Box&Co as its valet-storage division. The company uses an online platform that allows customers to schedule item pickup, maintain a visual catalog of stored items, and schedule delivery of items to their home. It recently expanded its service area from New York City to Long Island, according to a press release.

Similar to other valet-style storage operators, Box&Co offers by-the-bin storage targeted at residents who don’t have adequate home storage. Items are stored at Storage Quarters self-storage facility in Garden City, N.Y., according to the company website. Pricing starts at $3.50 per medium-sized bin per month or $5.50 per large bin per month. File boxes and wardrobes are also available. Bulky items, such as bicycles, golf clubs and suitcases, may be stored for $12 per month per item. The company also offers three packages with a mixture of bins and bulky items ranging from $30 to $75 per month. The minimum duration of stay is three months. Special pricing plans for students are available.

Return deliveries cost $19.95 and are typically fulfilled within 24 to 48 hours of the request, according to the company website. Customers can use the company’s online dashboard to manage their belongings and schedule home delivery. They can also pickup items directly from the self-storage facility but must make arrangements at least 36 hours in advance.

New York City has seen the rise of several valet-storage businesses over the last four years. There are at least six other operators with service in the metropolitan area including BearaBins.com, Box Butler, Clutter, Handy, MakeSpace Labs Inc. and RedBin.

In addition to traditional self-storage, Storage Quarters offers records-management services including storage, document scanning and shredding. It also has a mobile-shredding service.

By Colleen Wood

Those of us who have been in the self-storage industry for any length of time have no doubt read numerous articles about tenant insurance, sat through multiple insurance-sales presentations, and probably dealt with more than a few distressed customers wanting to file a claim. Despite all that overexposure, most facility managers would probably still agree with an industry standard to require tenant-insurance coverage.

Managers know first-hand that if items are important enough to store, they’re important enough to insure. It makes no sense (or cents) for tenants to pay monthly storage fees for goods they aren’t willing to protect. Below are some strategies to help you get customers on board you’re your tenant-insurance program, which safeguards both their interests and your business.

A Common Tale

At some point in their careers, most self-storage managers will encounter a residential customer who says, “I already have more homeowners/renters insurance than I need; I certainly don’t need or want any more.” This position is often echoed by commercial-account representatives as well: “My company insures all of our products. We have much better companywide coverage than you can offer.”

That “coverage” satisfies the insurance requirement from move-in day all the way to when the “thousand-year flood” (South Carolina), wildfires (Arizona and California) or tornadoes (Oklahoma) hit. Once an incident occurs, the residential customer with the $2,500 deductible on his homeowners’ policy—the same policy that’s supposed to cover the $1,000 worth of household goods in his storage unit—finally does the math and realizes the limitations of his policy.

When he contacts his insurance agent, he may also find that his policy doesn’t cover items located anywhere other than the primary property listed on the policy, despite the verbal assurances he received from the agent prior to moving belongings into the unit. In this example, the tenant will probably be instructed to file a claim against the storage facility where his goods are located.

Your reminder that he made a conscious choice not to purchase tenant insurance at move-in isn’t going to appease him. He’ll still expect your facility’s insurance to pay for damages to his items—now “heirlooms”—caused by the flood, smoke, breakage or what have you. He won’t want to hear your reminder that the lease stipulates that it is the tenant’s responsibility to provide adequate insurance coverage on stored belongings. He certainly won’t want to be reminded of the liability limitations spelled out in the lease (the ones advising him the facility doesn’t cover his stored property). In the blink of a hurricane’s eye, you have a very dissatisfied customer standing in front of you, more often than not threatening to post unfavorable remarks about your lousy customer service on social media.

Being “proactive” to prevent incidents like these isn’t just a buzz word; it’s the best way to handle insurance situations before they become a problem. Make tenant insurance a requirement. While this sounds simple, how do you handle customers like the above, who thinks he already has the problem covered?

Warn of Policy Shortcomings

Remind customers who deflect the requirement with their own homeowners or renters insurance policy that natural disasters do occur, and cite examples from your state or region. Explain that many of these homeowners and renters policies don’t cover items located anywhere other than the primary insured residence. Even a rider that accommodates items stored off site still requires the policy holder to meet the primary deductible requirements.

You can also point out that the deductible on homeowners or renters insurance is often higher than the value of the stored items, making the policy worthless for the items that will be stored at your facility. Note as well that claims on homeowners or renters insurance frequently result in premium rate increases.

Make Insurance Non-Negotiable

Make the purchase of tenant insurance a non-negotiable part of the lease. How? Include it in the price quote for the unit. Some operators already do this with cylinder locks and other items. For example, “That size unit costs $100 per month and comes with …” You fill in the blank with whatever amenities apply: free use of the moving truck, a unit alarm, unit lights, a lock, $2,000 worth of insurance, etc.

The follow-up question from the customer is usually, “Well, what if I have my own lock and insurance? How much is it then?” The answer is $100 per month. The cost of the unit is $100 per month, with or without the extras you include for the convenience of your customers.

If the customer wants to argue the point, use the analogy of buying a shirt. The shirt comes with buttons and sleeves. If you want that particular shirt, then you buy it with buttons and sleeves. Even if you have a whole jar full of buttons at home, and you’re perfectly OK with sleeveless garments, the shirt still costs the same price, and it comes with buttons and sleeves. The same applies to the unit. It costs $100 whether or not the customer wants the unit light, lock, use of the truck or insurance.

Allow a Caveat/Addendum

If a mandatory tenant-insurance requirement doesn’t appeal to you or you think your customer base won’t respond well, then allow tenants to use their homeowners or renters insurance, but include a caveat or addendum to the lease agreement. When offering the option to use homeowners or renters insurance, require customers provide you with proof of insurance. What you want is a copy of the declarations page, which generally stipulates what is and isn’t covered under the policy.

In addition, require customers sign a separate statement declining the facility-sponsored tenant insurance. The form should include the insurance offer and a place for the customer to select or decline the proffered insurance. It should also include a section where the customer further notes that he understands his refusal to purchase additional insurance means he agrees to assume all liability for any and all damages to his property.

Offer Special Deals

Unless you’ve had a prior conversation with your prospective tenant and advised him to bring a copy of his insurance policy with him, he likely won’t have it on his person when he comes to sign the lease. To alleviate customer frustration and give him time to provide the necessary document, offer to “comp” the first month’s insurance premium so he’s immediately covered. In short, you’ll give him a “free” month of insurance by deducting the amount of the insurance premium from his first month’s rent. Not only does this give the customer time to speak to his insurance agent about his policy coverage and provide you with proof, it creates goodwill.

Please note: You can’t “waive” the cost of insurance by crediting the insurance premium itself. You deduct the amount of the insurance from the first month’s rent. Explain the mechanics of the credit to rent vs. premium to the customer. Remind him the cost will be added to his second month’s rent unless he produces the required declarations page from his personal policy.

In many cases, the customer will simply elect to continue with the facility’s tenant insurance because it’s easier. If he doesn’t, then you’ll still have a copy of his insurance policy for your files, along with the addendum declining the insurance you offered. Either way, your self-storage facility is “covered.”

Colleen Wood has 15 years of experience in self-storage management. She’s currently an administrative assistant for Columbia, S.C.-based Southeast Management Co., which offers full-service management and consulting services to self-storage operators. For more information, visit www.southeastmanagementcompany.com.

A man died last week from injuries he sustained in a fire at Jack Rabbit Self Storage in Virginia Beach, Va. The victim, whose name hasn’t been released, was found by firefighters inside a unit at 5929 Providence Road on March 16, according to the source.

Investigators believe the fire began just after 7 p.m. inside an older-model Ford Escort station wagon parked in front of the units, and then quickly spread. Firefighters found the man unresponsive inside one of the units. He had severe burns on the lower half of his body.

The victim was taken to Sentara Norfolk General Hospital, but died the next day.

Fire officials said it was difficult to get to the man due to the “extreme amount of debris and clutter in the unit,” the source reported. Although he has been identified, investigators haven’t released his name until his family has been notified, the source reported.

Fire crews were able to get the blaze under control within 30 minutes. Two storage units were damaged by fire, and two others suffered minor water damage. No else was injured. The cause of the fire is under investigation.

Jack Rabbit Self Storage operates eight facilities in Virginia Beach, and one each in Chesapeake, Norfolk and Williamsburg, Va.

Strategic Storage Trust IV Inc. (SST IV), which intends to invest in self-storage and qualify as a real estate investment trust (REIT), has launched an initial public offering (IPO) of approximately $1.095 billion in common stock, according to a press release. Its registration statement regarding the IPO was declared effective on March 17 by the U.S. Securities and Exchange Commission.

SST IV will focus on the acquisition of stabilized and growth self-storage properties in Canada and the United States, the release stated. Its primary offer of $1 billion in shares comprises three classes. Class-A shares are available for $25 per share, up to $450 million, while Class T is priced at $24.21 per share up to $450 million. Class-W shares are priced at $22.75 per share, up to $100 million. Any investor may purchase Class-A or -T shares, but Class-W shares are available only to “investors purchasing through certain fee-based programs or registered investment advisors,” the release stated.

SST IV is also offering up to $95 million in common stock pursuant to its distribution reinvestment plan at $23.75 per share for Class A, $23 per share for Class T and $22.75 per share for Class W. The company earlier commenced operation through a private offering of $7.5 million in Class-A shares.

Though there is no minimum number of shares the REIT must sell before accepting subscriptions in its offering, residents of Pennsylvania and Washington won’t be admitted until aggregate subscriptions exceed $50 million and $10 million, respectively, in gross offering proceeds, according to the release. The company may use proceeds from initial subscriptions to acquire real estate assets and other purposes, officials said.

SST IV appointed Michael S. McClure as its new president last month. McClure was also appointed president of Strategic Storage Trust II Inc. (SST II), a public, non-traded, self-storage REIT sponsored by SmartStop Asset Management LLC. In addition, McClure was named president of SmartStop and its various affiliates, including Strategic Storage Growth Trust Inc. and Strategic Student Senior and Storage Trust Inc.

SST IV is based in Maryland. The SST II portfolio includes approximately 51,500 self-storage units and about 5.9 million rentable square feet of storage space. SmartStop is the asset manager for 103 facilities in Toronto and the United States. Its portfolio comprises approximately 7.5 million rentable square feet.

Update 3/20/17 – The East Rutherford Zoning Board has rejected plans for the proposed Extra Space self-storage facility. Though the Hampshire Cos. application received a 4-3 vote in favor of the project, approval required five “yes” votes because it asked for egress from the facility onto Paterson Avenue instead of Route 17, according to the source. Board members who voted against the project were wary of the potential for increased traffic on Paterson.

The egress deviation was problematic because the borough council last year approved a self-storage ordinance requiring facilities to be built on Route 17, with all customer traffic entering and exiting off the highway. However, the developer was told the state department of transportation wouldn’t allow vehicles to exit onto Route 17, requiring the use of Paterson, the source reported.

Many local residents opposed the plan due to the facility’s proximity to the neighborhood. Some board members also indicated they didn’t believe the facility would blend in with its surroundings.

Board engineer Arthur Senor spoke in favor of the project, telling board members the Hampshire Cos. had done everything asked of it, including improving traffic in the area and mitigating flooding. "I don't think we can ask more of them," Senor said during the meeting. "They diligently improved the site, and there are a lot of attributes they are bringing to the table."

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2/21/17 – The zoning board continued to debate the proposed Extra Space self-storage facility along Route 17 and Paterson Plank Road last week, with much of the discussion focused on storm-water management at the site. Civil engineer Brett Skapinetz indicated he designed the basin and pipes in accordance with existing department of transportation drainage pipes and 100-year storm requirements from the New Jersey Department of Environmental Protection, according to the source.

The piping will drain storm water from the self-storage site into Berry’s Creek across Route 17. Skapinetz’s design “significantly reduced the amount of impervious coverage of the site,” the source reported. The result is an “overdesigned catch basin,” which Skapinetz believes will benefit the site, even with the prospect of future development on nearby properties.

The applicant is listed as Hampshire Cos. LLC.

The length of the meeting prohibited the public from commenting, but the application is scheduled to be heard again on March 2.

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2/7/17 – Extra Space Storage Inc., a publicly traded self-storage real estate investment trust (REIT), is facing opposition to a project it has proposed for East Rutherford, N.J. The operator presented an amended site plan to the zoning board and local residents on Feb. 2 for the five-story development that would be built along State Route 17 and Paterson Plank Road.

The project’s representatives spoke with officials and community members for three hours about the 96,569-square-foot project. The meeting included William Quintanilla, an associate with Frank G. Relf Architect P.C.; Brett Skapinetz, principal of Dynamic Engineering; and Thomas Bruinooge, principal of Bruinooge & Associates, the attorney representing the REIT, according to the source.

One the biggest changes to the site plan was the elimination of a Wawa fast-food restaurant and a gas station. The businesses were pulled because they required an egress onto Route 17. The New Jersey Department of Transportation stated in November it wouldn’t permit the exit, the source reported.

Additional changes included those to the building’s color, which was a major point of contention among residents. The Extra Space signature green was changed to a neutral grey in many places, including the roll-up doors on the bottom floor. The green would now only be used to highlight the facility’s office on the southeast corner facing Route 17, Quintanilla stated.

A city ordinance requires storage facilities to emulate office or residential structures. Quintanilla presented photos he found online of modern office buildings that incorporated materials similar to those planned for the self-storage facility. "Our goals with the redesign was to make it look more like a modern office building to keep up with the ordinance. The design does accomplish that goal,” Quintanilla said.

Robert Inglima, a lawyer representing a neighboring gas station, and resident Antonio Segalini claimed the facility’s design doesn’t imitate an office building. Inglima asked the architect if he knew whether the buildings in the photos contained offices, while Segalini asked if the buildings even existed. Zoning board chairman Phil Alberta said Quintanilla was only using the photos as a reference.

The new site plan also included a reduction of the building’s height. The stairs that would lead to the roof were changed, eliminating a 9.5-foot structure. A roof hatch and railing were added in its place, Quintanilla said.

The building will also meet Federal Aviation Administration (FAA) obstruction standards, said Skapinetz, who spoke with FAA officials about the flight paths from nearby Teterboro Airport. No special lighting would be required on the roof, the source reported.

Resident Sergio Segalini expressed concern the storage facility would block the sun at the high school located 100 feet away.

The zoning board voted to hold another meeting on Feb. 16 to continue the discussion.

Headquartered in Salt Lake City, Extra Space owns or operates 1,427 self-storage properties in 38 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 960,000 units and 107 million square feet of rentable space.