California Gov. Gavin Newsom has this month reduced the statewide price-gouging order he issued in January, now limiting its application to emergency and medical supplies, and only through Sept. 4. However, the change doesn’t leave the self-storage industry in the clear regarding rental-rate adjustments.

A separate emergency order related to the 2017 California wildfires continues to restrict self-storage pricing in 32 counties through at least March 25. The only counties in which that proclamation has expired are Santa Barbara and Ventura, according to the Governor’s Office of Emergency Services.

Though state-issued price-gouging orders may have ended or are approaching expiration, some city and county restrictions could continue to impact self-storage businesses, SSA officials warned in a March 8 newsletter to members. California operators with questions about local price restrictions should consult their legal counsel, officials said. They can also network through the California Self Storage Association, which offers ongoing education and guidance through its website and events.

Sources:
SSA Magazine Weekly 3/8/21, Some California Price Restrictions Remain After Statewide Order Expires
Office of Governor Gavin Newsom, Executive Order N-81-20
Governor’s Office of Emergency Services, Price Gouging

The self-storage industry has enjoyed a wave of new technology in recent years, and facility managers are at the forefront of putting these tools to work. What do they really think about all this innovation?

We asked for their honest perspectives, including the perks they enjoy, the challenges they’ve faced, what they do and don’t like, and more. They also shared what they wish technology could do, in a perfect world, to improve the staff and customer experience.

More self-storage owners are investing in facility technology. As a manager, how do you feel about the new tools you’re being asked to use?

I enjoy the new technology. It’s exciting to operate the needs of the business with new or improved ways. It has its moments of frustration if it isn’t working properly or [there’s a] lack of knowledge of a system or program. It’s helpful when it allows you to complete a task faster and without errors.
―Brittney Accardo, Mt. Olive Storage, Duarte, Calif.

New technology is exciting! For some, I can see where it may be overwhelming. Having to learn a new system, new gadgets—many are set in their ways and find “new” to be stressful. As long as there’s good support for those who do not welcome new gadgets and technology and training that comes with it, I feel new technology is wonderful! It makes the day-to-day processes easier, more efficient, appealing and interesting.
―Jolene Acevedo, Devon Self Storage, El Paso, Texas

This is exciting! This is an ever-evolving world, and I feel that the companies/properties that keep up with the latest technology are the ones that have more success. I believe the advancements in operating software and security systems, in particular, can only improve your product and help you shine over your competitors.
―Danni Blake, Simply Self Storage, Seattle

Hands down, I feel investing in technology to a fast-growing industry is a must, and it's exciting. A management-software program really is a one-stop hub for me. Our state-of-the-art gate system has technologies to not only help customers enter and exit, it’s designed to help me manage my job better with peace of mind. Owners investing in technologies have higher revenue growth, in my opinion. Consumers want technology for its convenience and orderly fashion.
―Connie Cerda, Thunderbird Mini Storage, Peoria, Ariz.

I always find new technology to be exciting. I’m always researching on my own to see what may be coming down the pipeline for the industry and usually bringing it to owners before they’re even aware of it. The owners who don’t embrace change and adapting to the times are the ones who, in my opinion, are going to end up staying small scale or bought out by the bigger operators eventually.
―Kenneth Coker, Stockton, Calif.

My prior experience stems from retail and technology. I couldn’t be more excited that our facility owners have been investing in ways to improve the technology of many things, from our security to our everyday business operations. As soon as I heard our company was making an effort to go paperless, I could not wait to dive in and learn about the new tools at our disposal.

We started this journey in 2019, and thankfully so, due to the obstacles of the 2020 pandemic. To say that it’s been helpful is an understatement. It’s interesting because even though I’m excited, the excitement isn’t the same as [that of] our customers. They’re already used to this technology from all the other industries they involve themselves with. This is the norm now, and to have the storage industry meet our customers’ technological expectations is great!
―Ruben Elenes, Encinitas Self Storage, Encinitas, Calif.

I personally love to get involved in technology, as I am a tech-type person. It makes it easier to stay organized and keep things uniform/automated where they should be.
―Jessica Kimball, Devon Self Storage, Greenville, Texas

Has your owner invested in tech tools for your site? If so, which ones, and how well have they worked for you thus far?

We work with computers, security cameras, gate systems, printers and more. They work great. The issues we have are usually not with the devices or tools but the programs we use—the networks or the Internet not working properly.
―Brittney Accardo, Mt. Olive Storage, Duarte, Calif.

Besides RingCentral being convenient for us to answer calls while in the field or away from the office, which I find very beneficial to us and customers, my favorite tool is having the customers sign their leases with an email link or in the office electronically. I love the idea of not needing to keep paper leases, and everything being online and in the system, right there and easy to access.
―Jolene Acevedo, Devon Self Storage, El Paso, Texas

They have. We use Sitelink, Storlogix Cloud, Insomniac Live, storEdge, SpareFoot and other industry technologies.
―Connie Cerda, Thunderbird Mini Storage, Peoria, Ariz.

With my last company, no, as they were pretty old-school and still relied on faxes for pretty much all communication. Personally, I’ve invested in a good drone, endoscope camera and a Segway, as these are just a few of the tech items that help me in my job.
―Kenneth Coker, Stockton, Calif.

One recent addition has been making a tablet available for business use. This enables us to help customers make a payment, check a due date or sign an electronic lease from anywhere on the property. Our cameras have been upgraded to HD quality, so we’re able to keep our property safe and see things with perfect clarity. Our alarm systems have been upgraded to be more autonomous so customers can enter the property earlier in the morning and stay later at night. These changes have been difficult but have helped our facility tremendously.
―Ruben Elenes, Encinitas Self Storage, Encinitas, Calif.

We use QuikStor, which is a self-storage program. It helps us in several different ways, including past dues, rent increases, access to the facility, etc.
―Kris Fetter, Newcastle Heated Storage, Newcastle, Wash.

Yes, we’ve worked with tablets to help make our rentals easier. We’ve incorporated Microsoft Teams and SiteLink Lead Alert, along with RingCentral desktop and mobile app to help us catch all incoming calls. They’ve all worked out well.
―Jessica Kimball, Devon Self Storage, Greenville, Texas

What do you find the most beneficial and the most challenging about using industry technology?

To me, it seems we all want to complete more work in a shorter amount of time. Technology allows for this to happen. However, when the devices we use give us trouble, I wish we still had a paper and pen way to get things done. It seems when in a pinch you can only get so far nowadays with old-school ways.
―Brittney Accardo, Mt. Olive Storage, Duarte, Calif.

The most beneficial thing about technology is ease and organization. Having tools ready and at your fingertips—not having to go to a different location or be unavailable. You can access customer information out of the office by using Web platforms and answer calls while away from the office. We don’t feel so chained to the office and can concentrate on the day-to-day tasks on the property, while still providing superior customer service.
―Jolene Acevedo, Devon Self Storage, El Paso, Texas

Most challenging: We’re so reliant on the technologies we have that when something goes down, we’re left scrambling to find ways to accommodate. Often, it’s in ways that we were trying to avoid in the first place and why we have these systems, such as security keypads, DVR systems, etc. Often, we can’t fix them ourselves as easily or quickly as we would like, and then our buildings are potentially left exposed for extended periods of time.

Most beneficial: It takes a fraction of the time than it used to to rent a unit or research an incident. It’s much quicker and easier to do our job in general. Efficiency is always going to be a huge benefit.
―Danni Blake, Simply Self Storage, Seattle

Everything has a smart purpose and I enjoy the features. The only downside is glitches happen, and updates have hiccups sometimes.
―Connie Cerda, Thunderbird Mini Storage, Peoria, Ariz.

When it’s good technology that has a proper purpose, it’s typically beneficial in a time-saved aspect, which allows more time to work on other items for the site. The usual challenging aspects are when a company rolls something out that isn’t properly tested and full of bugs, which causes more headaches than it’s worth.
―Kenneth Coker, Stockton, Calif.

The challenge is to show how the improved technology is more beneficial than former procedures, which have been considered by some to be tried and true. This applies to owners and coworkers alike because any change can be difficult. Once the change takes effect, the benefits are clear and lasting.

Take, for example, text messaging. It has been around for a long time, although it’s use is not yet a technology standard throughout the storage industry. Our facilities implemented a text-messaging service that has helped the business tremendously. I’ve found customers would much rather receive a text message than a phone call. Our collections with past-due customers have reduced due, in part, to improved customer communication with texting.
―Ruben Elenes, Encinitas Self Storage, Encinitas, Calif.

The most beneficial is keeping track of tenants, including their access to the facility, which helps keep our facility secure and assures that there are no issues.
―Kris Fetter, Newcastle Heated Storage, Newcastle, Wash.

The most beneficial is that it allows us to keep in closer communication with our coworkers and tenants, and keeps our day-to-day duties more organized and efficient. The most challenging would be getting everyone comfortable with tech tools, as not everyone is a tech person.
―Jessica Kimball, Devon Self Storage, Greenville, Texas

What do you wish technology could do for you at work that it doesn’t already do?

I would like technology to become more user-friendly for people like myself who are not tech-savvy. With easier understanding of operations, it would create less user error and increase productivity, while improving customer service and daily performance.
―Brittney Accardo, Mt. Olive Storage, Duarte, Calif.

I wish it was more personalized. On a security standpoint, using fingerprint technology instead of keypads would be wonderful to help maintain that only registered tenants have access to the facility. While we also use an e-sign option in the office, I do wish we could do away with the mouse and use finger signing or a tablet-and-pen concept, as many customers have issues signing with a mouse.
―Jolene Acevedo, Devon Self Storage, El Paso, Texas

The only suggestion that I can think of is to have added security measures that possibly already exist in some fashion, but may not be practical from a cost-effective standpoint.
―Danni Blake, Simply Self Storage, Seattle

Well, I’ve seen them in other industries already, but an automated cleaning robot would be nice!
―Kenneth Coker, Stockton, Calif.

Imagine being able to go on to a facility website as a prospective customer [who’s] never rented a storage unit before. It would be amazing to not only be able to start a lease online, but also be able to see what you’re about to rent. Instead of the customer needing to visit the property to visualize the space, they would be able to see a virtual tour of that specific unit from the comfort of their home.

Another opportunity could be to sell merchandise from the facility website. It could be ready for them to pick up in their own unit. Or there’s the possibility of setting up delivery for non-tenant customers seeking to buy merchandise. We could limit offering deliveries to customers who live within a certain radius from the storage property and add a small delivery fee for the convenience. I can’t count the amount of times a customer has stopped from purchasing more product because their vehicle couldn’t transport the merchandise.
―Ruben Elenes, Encinitas Self Storage, Encinitas, Calif.

I’d like to go paperless and have everything done on a tablet and email. We already can do a rental through our website and email the paperwork, but having a tablet on our counter and doing an in-person rental would save on paper. We’d no longer need folders and all the accoutrements that are included. Email their signed paperwork, keep a copy on our computer and hand over the code and keys.
―Kris Fetter, Newcastle Heated Storage, Newcastle, Wash.

It would be nice for each facility to have a real-time site map that shows the last time units were cleaned. I know we’ve discussed incorporating the tag program, which would be amazing, and managers can create their own spreadsheet if they’d like; but something automated that alerts managers when a unit has gone more than three weeks without being cleaned would be handy. My supervisors are very good about listening to our needs, and if there’s a tech tool out there that we would benefit from, they work on making it happen.
―Jessica Kimball, Devon Self Storage, Greenville, Texas

The top shareholder for self-storage real estate investment trust (REIT) Public Storage Inc. was recently named in a list of America’s 20 wealthiest women. Tamara Gustavson, 60, the daughter of company cofounder B. Wayne Hughes, has an estimated worth of $5.5 billion. She’s also the richest person in Kentucky, according to the source. The list was compiled by finance website GOBanking Rates, based on the 2020 Forbes list of richest people in the world.

Gustavson has an 11 percent stake in Public Storage, which she joined in 1983 and where she held various positions before becoming vice president. She left the company in 2003, but returned in 2008 as a board member. In 2019, she was named a chairwoman of the board of trustees for American Homes 4 Rent, a Calabasas, Calif-based REIT founded by her father that invests in single-family rental homes.

Gustavson earned a bachelor’s degree from the University of Southern California in 1983. She resides in Lexington, Ky., at Spendthrift Farm, a racehorse-breeding enterprise. One of its stallions, Cloud Computing, was the winner of the 2017 Preakness Stakes, an annual thoroughbred horse race held in Baltimore.

The GOBankingRates list also includes three women from the Cox Family, which holds a vast media, telecom and automotive empire, and five from the Walton Family, which founded Walmart.

Based in Glendale, Calif., Public Storage has interests in 2,548 self-storage facilities in 38 states, with approximately 175 million net rentable square feet. It holds a 35 percent interest in Shurgard Self Storage SA, which has 241 facilities in seven European countries, with approximately 13 million net rentable square feet.

Sources:
Yahoo Finance, 20 Richest Women in America Right Now
Wikipedia, Tamara Gustavson

Whether you’re a self-storage owner or manager, the success of your facility depends on your grasp of crucial operational strategies. From essential day-to-day tasks to long-term planning, knowledge is key to navigating unexpected obstacles, combating increased competition and gaining a market edge. The Inside Self-Storage 2021 Facility-Operation Guidebook contains nearly 150 articles providing expert advice to maximize the performance of your asset with respect to occupancy, revenue, curb appeal, sales, customer service, marketing, staffing, security and much more.

Available in digital and softcover formats, this 220-page book can be purchased individually or as part of a discounted bundle that includes the 2021 Building/Investing Guidebook. Both are tremendous educational resources that will help you create, establish and grow a self-storage business.

Visit the ISS Store for full product details and topics of coverage. Take charge of your operational efficiency and productivity now!

Our self-storage facility in Augsburg, Germany, is called RatzFatzPlatz!, which always makes people laugh. Of course, non-German speakers may not get it. The words “ratz fatz” are a German synonym for “sudden” or “fast,” while “platz” means “space.” So, you could translate our name as “sudden space” or “get more space really fast.” It’s the perfect message for our industry!

This was very important back in 2011 when we started our business. Awareness of self-storage in Germany was extremely low, and hardly anyone knew about the service and its benefits. Being a veterinarian in my first life, I wouldn’t have known about it either if not for an American friend who informed me about it. He’d been operating a couple of self-storage facilities in Boulder, Colo., for many years and wondered why the business scarcely existed in Deutschland. The discussion led to a new venture!

Getting Started

Due to a change in my personal circumstances in 2010, I suddenly had the time and opportunity to learn more about self-storage. I teamed up with four partners and founded RatzFatzPlatz! GmbH. We started by renting a 5,250-square-foot building in Augsburg, which is the third-largest city in the state of Bavaria, with 250,000 inhabitants. Ours was the first storage facility in the city.

This buildout was really exciting and felt like pioneering—which it was! We had knowledge from our American associates and investors, but we had to adapt it to the local market, learning about permits, fire-protection regulations, unit mix, management software, security and more.

Most important, we wondered if people would even like this new idea and rent our units. Fortunately, they did. It took a while to become known, but within the last few years, we’ve expanded several times. We’re now developing an additional 5,900-squre-foot facility in the same city.

Connecting With Customers

Today, we’re no longer the only self-storage business in town. Quite a few competitors have joined us, and awareness of the product in the country has increased. Even so, when speaking with new tenants, we still hear surprise that the service exists.

One of the secrets to our success—and the fun part—is we spend a lot of time on personal interaction with renters. This is especially true when they’re determining the right unit size for their needs. After all, for 99 percent of them, it's their first time storing stuff somewhere outside their home or business. It also takes time to explain and show the benefits of storage. It isn’t a product you can sell by price alone. Rather, we need to really listen to our prospects and explain how we can solve their storage problems.

Of course, we also help with everything else the customer might need—even if it’s a recommendation for a nice restaurant in the area! People appreciate this personal contact. I also love the variety of people who show up at our counter every day with different stories and reasons for renting. About one-quarter of our tenants are commercial, mostly craftsmen and salespeople storing merchandise that’s been shipped directly to our facility. They appreciate this service. Our residential customers come from all spectrums, from younger to older tenants, who still pay in cash and love coming into the office for a chat.

Self-storage is a young industry in Germany with a lot of growth potential. New developers and operators still have a “pioneer feeling.”

Michaela Gerst is co-founder and co-owner of RatzFatzPlatz!, a self-storage facility in Augsburg, Germany. The business also offers moving services, parcel acceptance, packing supplies and tenant insurance. To reach her, email [email protected].

Three publicly traded self-storage real estate investment trusts (REITs) were named on the 2021 list of “America's Best Midsize Employers” by “Forbes” magazine and data-research firm Statista. CubeSmart and Extra Space Storage Inc. were named in the “Business Services & Supplies” category, while Life Storage Inc. was placed in the “Transportation and Logistics” category.

“Forbes” partnered with Statista to identify companies liked best by employees for its annual ranking, which is divided into two lists. One highlights the top 500 large companies with more than 5,000 U.S. employees, while the other showcases the top 500 midsize companies with 1,000 to 5,000 workers. More than 50,000 Americans were surveyed. Participants were asked to give their opinions on topics including work conditions, pay, professional development and company image.

CubeSmart ranked the highest at No. 112. It employs 1,200 people. Based in Malvern, Pa., the REIT owns or manages 1,266 self-storage facilities across the United States. Its operating portfolio comprises 87 million square feet.

“We are proud to be recognized by ‘Forbes’ as a top employer,” said Christopher P. Marr, president and CEO of CubeSmart. “We’re even more proud that teammates’ feedback is what earned us this honor. It shows the value of the culture we’ve built together.”

Extra Space came in at No. 227. It has 2,180 employees. Headquartered in Salt Lake City, the company owns or operates 1,921 self-storage properties in 40 states; Washington, D.C.; and Puerto Rico. Its properties comprise approximately 1.4 million units and 149.2 million square feet of rentable space.

Life Storage ranked No. 390. It employs about 2,000 people. Based in Buffalo, N.Y., Life Storage operates more than 900 self-storage facilities in 31 states and Ontario, Canada. Its portfolio of owned and managed facilities comprises more than 67.7 million square feet.

The top-ranking midsize company on the list was analytics software company Fair Isaac. The California Institute of Technology, Bowling Green State University (main campus), Build-A-Bear Workshop and Gentex rounded out the top five.

Sources:
CubeSmart, CubeSmart Recognized as One of America’s Best Employers by Forbes
Forbes, Amercia’s Best Mid-Sized Employers

The Jenkins Organization Inc. (TJO), a real estate investment and development firm specializing in self-storage and RV parks, has promoted Amanda Dickson to district manager and Jeremy Rollwitz to regional manager. Dickson will oversee properties in North Texas and Oklahoma, while Rollwitz will cover 45-plus locations in Louisiana, Oklahoma and Texas, according to a press release.

Dickson has served in various roles at TJO for more than six years. Rollwitz has worked in several positions over his seven-year tenure with the company. Most recently, he was district manager.

“Dickson has proven to be an invaluable asset to all of our property managers out in the field as well as at the corporate headquarters,” said Dwight Broering, vice president of operations. “Rollwitz is viewed as a leader and mentor within our leadership group based on his broad knowledge and impeccable track record, as well as his many achievements throughout his storage career.”

TJO recently hired Cherolyn Johnson Chiang as director of marketing. She’ll oversee marketing and advertising for the company’s portfolio.

Founded in 1989 and based in Houston, Jenkins owns and manages a portfolio of more than 70 self-storage properties comprising 4.5 million square feet in five states. It provides expertise in facility acquisition and disposition, development, management, and ownership.

Do you ever find yourself going to your self-storage facility’s social media pages knowing you need to post something, but are at a loss for what to say or the “right” thing to do? Does managing your platforms feel like “one more thing to get done”?

Like other marketing tactics, social media may take a little planning and intention; but it isn't something you can afford to skip. Due to all the limitations placed on people around the coronavirus pandemic, social media usage is up, keeping us connected even when we don’t see one another in person.

Here are seven social media tips that will help you increase engagement on your social media channels, build brand awareness and get your self-storage name out in your community.

Put Emphasis on the Social Aspect

COVID has changed the way we interact, but sometimes we forget that social media has, too. It isn’t just another avenue to distribute clever content, but a place to create conversations with your audience.

Let’s think of social media as a big networking event. Would you arrive with a stack of self-storage leasing forms and start handing them to everyone in the room without saying a word? #Awkward. You’d probably ask questions, laugh at the funny thing someone else said, and actively listen and participate in the conversation. You’d likely engage more than you share, and the same goes for social media.

It isn’t enough to simply post content from your self-storage company’s channels and then walk away with the social media box checked. To increase interaction and build relationships, you can like, comment, share, save and engage with your followers and peers. If you’re curious about the things they share and are an excellent online conversationalist, chances are your followers will be interested in what you have to say.

Build a Structure

It can be challenging to know what to say on social media, so you need to build a loose framework for the various kinds of posts you want to create. One idea is to align your content with the days of the week to provide an adaptable structure you can use repeatedly. If you need inspiration, consider something like this:

• Monday Motivation: Share something upbeat and inspirational to encourage your followers for the week ahead.
• “Tip of the Week” Tuesday: Share tips for moving and packing anything from family heirlooms to patio furniture to sporting equipment to lawnmowers or cases of wine.
• “We’ve Got You” Wednesday: Introduce your team and property and how you’re there to support tenants. These could be quick profiles on different staff members with a Q&A-style interview, or different facility amenities that create a better renter experience.
• Thoughtful Thursday: Moving is stressful, and a little support can go a long way. Team up with community businesses to offer discounts on the best burger in town; or give coffee-shop gift cards to the first five people who comment on your post; or share wellness-based activities to support your renters’ health. This thoughtful approach will help you support your local businesses and your renters. It’s a win-win.
• Friday Facts: Share tips, tricks and interesting facts about moving, self-storage and packing. Which items store well? What are the perks of storing in a climate-controlled environment? How should renters organize and label belongings so they’re easy to find?

Keep it Conversational

Social media is often fun, upbeat and playful. Don’t be afraid to show off your business personality. The tone and voice you set for your facility on these platforms should be a natural extension of the one you use for your broader brand.

Share Fun Facts

Pique interest by sharing an interesting statistic about your self-storage property, a quote from a tenant, a motivational excerpt tied to larger world events, or fun “holidays.” Even if you don’t observe certain annual traditions, you can still celebrate them on social media. For example, there’s Get Organized Day (April 26), World Simplicity Day (June 12) and International Fanny-Pack Day (March 12). We could all use a little more optimism right now, so consider celebrating Positive-Thinking Day (Sept. 13).

Worried your messages might not be that interesting? Think of it this way: If you find something motivational, humorous or helpful, chances are folks in your audience will, too.

Be Clear

Call out to the people you’re trying to reach. This simple and clear action will help you connect with your audience. Consider something like: “Calling all movers and shakers who are moving to ‘city name,’” or send a shout out to all the parents juggling childcare with working from home. Tag businesses or groups you partner with in your community. These signals help start the right conversations. Keep the ball rolling by continuing with a tailored message letting your audience know why they should pay attention to what you have to say.

Consistency and the 80/20 Rule

No one likes a braggy, spammy social media account. Even people who think you provide top-notch insights are likely to unfollow or mute you if you don’t provide valuable content. So, keep the conversation helpful, relevant and consistent. Don’t go on weekly posting sprees and post all your content for the week on Monday morning at 8 a.m. Instead, slowly trickle out a consistent message over the course of several days.

While it’s OK to brag about things your property is doing well, follow the 80/20 rule for social media. Eighty percent of the time, provide relevant, helpful tips and tricks. Then, for the other 20 percent, you can confidently share exceptional things about your business. Did you recently win a “Best of” award for your area? Share it. Did you upgrade your site’s lighting, locks or entry points? Tell followers about it. We all love a winner, but nobody likes a showoff.

Hashtags and Industry Experts

Adding paragraph of irrelevant, generic hashtags to your social media posts dilutes the conversation. It’s like the early days of search engine optimization when people used “keyword stuffing”—and not in a good way. Hashtags are the social media equivalent of keywords you target through digital advertising.

As such, they need to be tailored for your self-storage business. Use them to add context to your content and connect with audiences interested in that subject. To bring industry voices to the table, I recommend using #SelfStorage, #Storage and perhaps an area-specific hashtag for your city. Connect with industry experts through hashtags or by following them directly. It’s a great way to learn from others as well as gain inspiration for your own pages and posts.

Social media isn’t a one-size-fits-all approach. I hope these suggestions give you inspiration to tailor strategies to your self-storage business and level up your online presence.

With nearly eight years of experience in the areas of account management and customer success, Adam Mackie has helped organizations improve their cross-departmental alignment to create a more customer-centric approach. As the senior director of the self-storage vertical at G5, he drives the operational efficiency and effectiveness of the sales and account-management organization to ensure self-storage operators use the full potential of the company’s products and services to meet their business objectives. For more information, call 800.554.1965.

Investment-management firm Twain Financial Partners LLC has entered the self-storage industry behind three ground-lease capital transactions in partnership with developer Mequity Cos. and privately held financier Stonebriar Commercial Finance LLC. Under the agreement, Twain contributed $23.5 million and Stonebriar $15.5 million toward Mequity ground-up construction projects in Framingham, Mass.; Port Jefferson, N.Y.; and Port St. Lucie, Fla., according to a press release.

A ground lease allows the property owner to finance development projects or reposition assets by entering sale and leaseback agreements with repurchase options. The deal structure enables it to receive a lump-sum payment for a portion of the property value as well as current or future improvements. The owner also retains ownership and operational rights while making ground-lease payments to Twain, the release stated.

“Ground-lease capital is an excellent cost-effective option for Mequity as part of the capital stack in our self-storage development projects,” said Bill Marsh, CEO of Mequity. “Twain has been great to work with in providing this capital and has become a valued programmatic partner for Mequity.”

“Only a year after launching, we have found our ground-lease capital program to be a great fit for self-storage developers,” said Jon Kelly, business development officer for Twain. “Through our successful partnership with Mequity and Stonebriar, we hope to spread the word and do many more projects in this asset class.”

Based in St. Louis, Twain has more than $4 billion in assets under management within the public-private partnership sector. The firm works with several investment types but specializes in tax credit, structured debt and real estate transactions. It works closely with financial institutions and corporations to structure and manage investments.

Atlanta-based Mequity is an investment firm focused on self-storage development and operation. Its primary markets include the Atlanta, Boston, Miami, New York and Philadelphia metropolitan areas as well as Northern New Jersey. Its strategy is to develop self-storage in undersupplied submarkets nationwide.

Founded in 2015 and based in Plano, Texas, Stonebriar offers financing solutions to several business types in Canada, the United States and select foreign jurisdictions, with a goal of building a multi-billion platform of commercial loans and leases.

Source:
PR Newswire, Twain Financial Partners Delivers Ground Lease Capital to Self-Storage Development