The Magellan Group, a Southern California real estate investment and development firm and parent company of Magellan Storage, recently acquired three properties in Baldwin Park, Duarte and Riverside, Calif., which the company plans to develop into self-storage and industrial space.

In Duarte, Magellan plans to convert a building that once served as the site for constructing Tournament of Roses parade floats. The $10.6 million project at the intersection of Buena Vista Street and Duarte Road will comprise 79,668 square feet in 728 units. The project is expected to be completed in April 2015. The facility will be managed by Magellan Storage.

“We found the storage market fundamentals on both a macro- and micro-market level highly appealing,” said Kevin Staley, principal and co-founder of The Magellan Group. “We are pursuing repositioning and development opportunities in several infill Southern California markets, and this development aligns very well with our growth strategies.”

The Riverside property is a 14-acre site at 1869-2069 Massachusetts Ave., near the intersection of the 91 and 60 freeways. Purchased for $6.5 million, the site currently has a manufacturing building and yard area, both of which are leased. Magellan plans to redevelop the property with new industrial space as these leases expire during the next five years, company officials said in a press release.

“Several components made this an attractive investment, including the low basis, current cash yield and a strong location,” Staley said. The deal was brokered by Gary Sache and Pat Scruggs of real estate services firm CBRE.

Magellan also purchased a 4.8-acre property at 5115 Azusa Canyon in Baldwin Park for $4 million. The acquisition includes three buildings totaling 70,000 square feet that are currently on short-term leases. The company will redevelop the site once the leases expire, company officials said. Dennis Sandoval, executive vice president of DAUM Commercial Real Estate, brokered the transaction.

Founded in 1990, The Magellan Group has acquired and developed more than 4.5 million square feet of industrial, self-storage and aviation properties with a total value of more than $500 million. The company also operates six self-storage facilities in Southern California branded as Magellan Storage and Magellan Aviation, a provider of hangars and services at McClellan-Palomar Airport in Carlsbad, Calif.

Safeguard Self Storage is continuing its expansion in the New York market with the purchase of land parcel on April 24 in the densely populated Bedford-Stuyvesant area of Brooklyn. The company intends to build its 68th self-storage facility on the site.

Slated to open in 2015, the facility will be about a mile north of the company’s Crown Heights facility. It will encompass 42,625 square feet of storage space with 704 storage units in a variety of sizes. Amenities will include video cameras, individual unit alarms, a drive-up loading area, keypad access and other features.

“The Bedford-Stuyvesant store, like all our New York facilities, will be designed to provide an exceptional customer experience,” said Jim Goonan, senior vice president of development. “This new facility will complement our product offering in New York and demonstrates our commitment to, and confidence in, this terrific market.”

Safeguard has 23 stores in New York, one under construction in West Farms in the Bronx, and another on Albany Avenue in Brooklyn. The company is also developing two facilities in Chicago, where it currently operates 10 stores.

"New York is a great market for Safeguard Self Storage, and the company continues to search for every possible opportunity to develop there,” said CEO Allan Sweet.

Headquartered in Atlanta, Safeguard Self Storage was founded in 1989 and currently operates more than 60 facilities in Florida, Illinois, Louisiana, New Jersey, New York and Pennsylvania. The company is owned and operated by Morgan Stanley’s Prime Property Fund.

A self-storage facility’s landscape often plays a vital role in its curb appeal. With operators facing more competition every day, an inviting design is one way to stand out. While many might think an abundance of shrubs, flowers and grassy areas are needed to create a welcoming space, landscape design can actually be subtle and still make a huge impact.

Inside Self-Storage recently talked shop with principal landscape architect Matthew R. Copp of MRC Landscape Architecture, which offers professional landscape-design services for commercial and residential applications. Copp is also a member of the American Society of Landscape Architects, a professional organization that represents the profession of landscape architecture. In this Q&A, he addresses the role of landscaping in today's self-storage facility design, offering advice on curb appeal, eco-friendly accents, trends and more.

What role does landscape design play in the design of a storage facility?

Generally, what I’ve seen is the landscape design at self-storage facilities are, first, a product of the requirements of the landscape ordinance in the municipality where the facility is located. If the owner has chosen to do additional landscaping above and beyond the requirements, it’s generally simple foundation plantings along the side of the building addressing the street or at the entrance to the facility.

Most of the larger facilities I’ve seen are in commercial or industrial areas where the buildings are utilitarian in their façade design, or the facility has been an adaptive reuse of an existing building such as an old warehouse or factory that has very limited landscaping. In other words, the owners don't seem to put much emphasis on curb appeal because of their location.

Conversely, I’ve seen smaller facilities that are more of a neighborhood business where the owner has put a nice façade on the building and installed lots of landscaping to give the facility additional curb appeal to fit within the neighborhood or business district. I’ve spoken with owners/operators and customers of self-storage facilities, and the curb appeal has never been a reason for a customer to rent or not rent at the facility.

What are some trends in landscape design for commercial businesses like self-storage?

Again, the trend in landscape design comes down to what the owner is required to do per the local municipality's landscape ordinances. Above and beyond those requirements, owners typically request that the majority of any additional landscape plantings be limited to the side of the property that addresses the street frontage or screens any unsightly views from customers' eyes. More specifically, owners generally request the design and plant palette require minimal water consumption and maintenance long-term, and are hardy enough to withstand the conditions in which they are planted or subjected.

I’m beginning to see the incorporation of green building techniques such as native plantings and wildflower/meadow planting designs, porous pavement in lieu of nonporous pavement, and bio-swales and rain gardens into these facilities because of new ordinances requiring reduced nonporous pavement areas and storm water run-off, as well as more owners wanting to build greener buildings and sites. Self-storage facilities are excellent for incorporating some of these practices because they have large pavement and roof areas that contribute to storm water run-off. They generally have a limited number of daily visitors and are normally in locations where having a more natural and less manicured appearance would be more acceptable to the general public.

What are the benefits of xeriscape?

First, there's a reduction in water required to sustain the plants. Second, there's a reduction in the amount of maintenance required. Third, there are reduced long-term costs associated with reduced water consumption and recurring maintenance.

Are there any other “green” design trends owners can incorporate into their design?

There are many ways owners can "green" their facilities, from using geo-thermal heat sources for climate control to using porous pavement on non-driveway/loading-dock areas to using rain gardens or bio-swales to control storm-water run-off. One excellent technique owners should consider using more frequently is placing extensive green roofs on their facilities. Not only will they reduce storm-water run-off, they'll also aid in keeping the facility's interior units cooler during the summer months.

What advice can you give about creating an inviting landscape for a self-storage facility?

Designing and implementing an attractive landscape and keeping it maintained and manicured will not only help in marketing their business, it will likely attract higher-quality customers and give an appearance that the owner takes pride in the facility and values customers. Even simply designed landscapes can be inviting if correctly installed and maintained.

Owners should consult with or hire an individual or company licensed and credentialed in landscape design or landscape architecture. They should also consider someone who has a strong knowledge of plants and horticulture and can provide the design of an inviting landscape using appropriate design techniques and the correct plant materials.

By April Lee

When choosing a management-software program, self-storage owners often focus on the features, interface and growth capability of the products offered. However, they should also consider the support the vendor will provide after the purchase. Support hours, quality of support and resources will prove to be extremely important should there be any questions about how to use the system or what to do if an issue arises.

Time is money, and being able to get quick, accurate help is essential. Here are a few support questions to ask and considerations to make the next time you make a change in management software.

Training

Training for all software products should be provided at the time of installation. Consult with your vendor to find out if it offers onsite training or interactive live webinars for facility employees. Some software companies offer their customers 24/7 access to training videos so new and existing managers can review information at their leisure.

More and more companies are replacing bulky product manuals with online-digital documents that are easier to update. Training for any new software or equipment is an ongoing process. As the owner and managers continue to work with the product, their reliance on training materials should decrease.

Timeliness

Inevitably a question will be raised for which a solution is not immediately evident. Self-storage operators should rely on their vendors to provide technical support in a timely fashion. The information provided by the support team should facilitate a quick, permanent solution to the issue the user is experiencing.

The tech-support team should be able to convey what caused the problem and how to prevent and/or correct it in the future. In the event of product failure or errors, they should be willing to work with the operator to troubleshoot the issue and provide replacement parts in a timely fashion when needed.

Ask the vendor how quickly it responds to technical-support inquiries. Is support available around the clock or between certain times? If you leave a message, how long will it take before someone responds? Typically, a software problem needs to be fixed fast, so make sure your vendor offers a speedy response time.

Fees

Keep in mind that technical-support models differ from company to company. Some vendors charge a fee on a per-issue basis or offer a package for extended support. Others might include support for a specific time frame as part of the purchase. These fees should be discussed during the sales process so both sides have a clear understanding of what is and isn’t covered.

Ask your vendor if it’s possible to talk to a technician on the phone or if support is provided via the Internet. Also ask about the hours in which support is provided. If you need assistance on a weekend, will you be able to get it? Are there online resources available?

Troubleshooting

When purchasing software or hardware, self-storage operators aren't usually thinking about what they’ll do when things go wrong. They assume everything will work seamlessly. But products like these that consist of multiple components are predisposed to more user and installer error. When you need help or have a question, you'll want to assist your vendor by providing answers as quickly as possible.

You can get the best results from the tech-support team when you supply accurate, detailed information about the problem or question. Information such as your facility name, the date and time the issue started, and a brief description of the problem are just a starting point. When reporting trouble or asking questions, provide as much information as possible, such as what changed, what tenant or unit was involved, what you believe the software/hardware should be doing and what it’s not, and what you’ve done to try and fix the issue. Providing these details allows your technical-support team to quickly ascertain the problem and get working toward a solution.

Most operators will need technical assistance with their facility’s software at one time or another. Don’t get caught without the support you need. Ask your vendor about the support it provides before making the investment.

April Lee has more than 11 years of technical-support and customer-service experience, including five years as technical-support manager with QuikStor Security & Software, which has provided software and security products since 1987 . Her unique blend of customer service, technical expertise and self-storage experience allow her to provide the support the company's customers have come to expect. For more information, call 800.321.1987; e-mail [email protected]; visit www.quikstor.com.

Pegasus Group, a real estate investment and management company that owns and operates approximately 60 self-storage facilities nationwide under the Central Self-Storage brand, has acquired two properties from Safe Place Storage in San Jose, Calif. The purchase doubles the company’s San Jose footprint to four locations.

One property is at 900 Lonus St., a downtown location near the Willow Glenn District. The self-storage facility is comprised of 91,092 net rentable square feet in 998 units. The second property is at 6880 Santa Teresa Blvd. in the Santa Teresa Park neighborhood. The facility is comprised of 57,409 net rentable square feet in 610 units.

Pegasus has been actively pursuing expansion opportunities, acquiring seven self-storage facilities in Minnesota and one in Portland, Ore., earlier this year. All eight properties were rebranded as Central Self-Storage.

The company also recently partnered with the Arizona State Retirement System (ASRS), a state agency with approximately $30 billion in assets. Pegasus officials have said the financial strength of ASRS will allow Pegasus to compete aggressively and close quickly on individual self-storage assets and portfolios throughout the United States.

Based in Walnut Creek, Calif., and founded in 1988, Pegasus specializes in self-storage investments. Its portfolio is primarily comprised of facilities operated and managed under the Central Self-Storage brand name.

Public Storage Inc., a self-storage real estate investment trust (REIT), made its first acquisition of the year with the purchase of Spare Space Storage in Austin, Texas, from Platinum Storage Group. The facility will be rebranded as Public Storage.

The property at 9420 Spectrum Drive is on 3.8 acres and encompasses 86,000 square feet of storage space and 661 units on three floors. It also includes 21 uncovered boat- and RV-parking spaces. Amenities include two gated entrances with keypad access, video cameras, a package-delivery service, and a large conference center.

The facility was built in 2004 by MST Constructors Inc. for $3.7 million, according to the source. Platinum purchased the property in 2008 for about $6.5 million. Public Storage assumed the property's mortgage of $4.8 million on April 3, but the total cost of the acquisition has not been confirmed. In its 2013 annual financial report, released on Feb. 20, Public Storage said it had a facility in Austin under contract for $10.8 million. It is unclear if Spare Space is the same property.

In a recent call with Wall Street analysts, Public Storage Chairman and CEO Ron Havner recently said he expects the company to acquire several facilities this year, but it will depend on the availability of quality sites, according to “The Sparefoot Storage Beat.”

In its year-end report, Public storage revealed it had acquired 121 facilities in 2013 for about $1 billion. In December, the REIT purchased the national portfolio of Stor-All Storage for $430 million. It also recently purchased land in Georgetown, Texas, according to sources.

Based in Glendale, Calif., Public Storage has interests in 2,200 self-storage facilities in 38 states, with approximately 141 million net rentable square feet. Operating under the Shurgard brand name, the company also has 188 facilities in seven European countries, with approximately 10 million net rentable square feet.

Headquartered in Irvine, Calif., Platinum Storage Group owns and manages 50 self-storage facilities nationwide, many of which operate under the Storage Direct Self Storage brand name.

Established in 1999 by Skip Elefante, a 28-year veteran of the industry, Platinum offers property-management solutions and investment opportunities to its equity partners.

 

The former Illinois Harley-Davidson store in Berwyn, Ill., is being converted into Berwyn Self Storage. The property at 1301 Harlem Ave. has been vacant since April 2012 when the motorcycle business relocated to 9950 Joliet Road in Countryside, Ill.

Berwyn Mayor Robert Lovero told the source self-storage is a “perfect” fit due to its low traffic count. Accessing and exiting the property has long been an issue due to the heavy traffic off Harlem Avenue, he said. Although there was interest from additional developers about other retail uses for the site, the property’s egress and ingress were always a drawback, Lovero told the source.

The property was purchased in January, and construction began on March 6. Water service to the building is being upgraded to meet a city code that requires fire sprinklers to be installed, according to the source. Berwyn Self Storage is expected to open this fall.

By Aaron Hutton  

On the heels of several security breaches for a number of retailers comes a new threat to anyone who accesses the Internet. Self-storage operators who haven’t heard about the encryption flaw in the Heartbleed bug need to be informed and take action. Here’s a summary of how it works and why it should matter to you.

What Is Heartbleed?

Heartbleed is a common name for a recently discovered vulnerability that exists in OpenSSL, a widely utilized cryptographic system designed to encrypt data traveling across the Internet. When you see https:// at front of your Internet address bar, you’re using some form of SSL. The system is designed so two parties can communicate without fear of being overheard by a third party.

In most cases, you’re one party and the other party is the website in which you’re communicating. It accomplishes this through use of an SSL/TLS “certificate,” which positively identifies the website you’re communicating with and provides the “key” to encrypting and decrypting the communications between you and that website.

The Heartbleed bug “leaks” pieces of memory from affected servers. Given time, an attacker can gather sensitive copies of information, including the certificate mentioned above, as well as usernames, passwords and other sensitive data. The reason Heartbleed is so serious is because it has existed for quite some time (about two years), it’s relatively easy to exploit, and attackers leave no trace when they take advantage of a server.

What Should You Do?

Several sources out there are advising folks to change their passwords on various websites. However, you should check a couple things. First, did the website in question update its servers to patch the Heartbleed vulnerability? Second, did it replace its SSL/TLS certificate?

If the website hasn’t yet patched its servers and is still vulnerable, changing your password does no good since your new password can be leaked as easily as your old one through the Heartbleed bug. However, most administrators have now patched their systems so they’re no longer vulnerable.

Because Heartbleed can expose a website’s security certificate, end-to-end communications between a vulnerable server and you are insecure. If a website patches the bug but does not change its certificate, an attacker with a copy of the old certificate could decrypt your communications and read sensitive data, such as your new password. This situation is less common, unless you frequently use networks like public Wi-Fi or other insecure networks. I recommend you wait until the website replaces its certificate before changing your password.

If you use the same password on several different sites, you should end that practice and use different ones for each system. Leaked or compromised passwords often end up on password lists, which are traded between hackers. For example, if you use the password “Roscoe1” on yahoo.com and also for your bank, your bank is vulnerable even if it was not affected by Heartbleed. Because your password could have been stolen from Yahoo, it can no longer be trusted. Any password leaked once should be considered “burned” and not used again, anywhere. Change your password on any site you used a compromised or burned password. Lastly, if in doubt, you can always change your password to be safe.

Check Your Vendors and Computer-Based Systems

The Heartbleed vulnerability has wide-ranging reach in computerized systems that one wouldn’t always expect. Business owners and IT staff need to check with their vendors to get an official statement regarding Heartbleed. Any system or program that’s designed to transmit data securely over a computer network could be vulnerable, if that system used the vulnerable version of OpenSSL.

Stakeholders should think beyond the examples that are being commonly discussed because Heartbleed can affect much more than you or your customers logging onto your websites. For example, a point-of-sale program that aggregates sales information from satellite locations might secure that data with OpenSSL, or a security system that allows remote operation over the Internet could be vulnerable.

To ensure your systems are secure, make a list of the technology systems that communicate any data (or have the potential to, even if you’re not using it) over the Internet or any computer network. Then confirm with each vendor if its system was impacted by the Heartbleed vulnerability. If it was, make sure you patch the system or take necessary steps to secure it.

The following prominent sites and services were formerly vulnerable to Heartbleed. If you use one of these sites, you should change your password ASAP.

• Blogger/Blogspot
• Dropbox
• Facebook
• Electronic Frontier Foundation
• Etsy
• Google
• Imgur
• Instagram
• Netflix
• OKCupid
• Pinterest
• Stack Overflow
• Wikipedia
• Woot
• Wordpress.com/Wordpress.org
• Yahoo
• YouTube

For more sites and suggestions, read this article. Most major sites affected by Heartbleed have since been patched. You can check to see if a website may have been vulnerable as well as when it replaced its certificate on this site.

Aaron Hutton is the technology support manager for VIRGO. An IT professional with more than 20 years of experience, he has supported everything from small and medium businesses to Fortune 500 companies. After learning the ropes providing basic technical support for a $5 billion computer-hardware reseller, he leveraged that experience into more challenging positions ranging from the “one-man IT shop” to executive-level support with Intel Corp.

Sources and additional information:

• Heartbleed.com
• Tom's Guide, Heartbleed: Who was Affected, What to do Now
• LastPass and the Heartbleed Bug
• Thread Post, OpenSSL Fixes Serious TLS Vulnerability
• SalesForce, OpenSSL Project “Heartbleed" Vulnerability Does *Not* Affect Salesforce