Bringing fresh features to an aging self-storage facility or expanding an operating site can bolster your competitive advantages, increase asset value and add to the bottom line. However, no construction-related project is devoid of challenges. From permits to budgets to timelines to business disruptions, there are many factors to consider. Let us know what one project issue is most likely to keep you up at night in this new Inside Self-Storage poll:
Kangaroo Self Storage has acquired England-based operator Smart Storage Ltd. The £13 million deal triples Kangaroo’s portfolio to nine locations and expands the company’s presence below the Scottish border. The transaction boosts the Kangaroo footprint to 442,000 square feet, with 310,000 square feet currently under lease, according to the source.
In conjunction with the transaction, Kangaroo Managing Director Chris Stevens will become chief executive of the expanded company. Stevens intends to grow Kangaroo through further acquisitions as well as investing in its existing facilities. “My strategy will be to maintain, develop and invest in the caring, can-do attitude of the staff in both businesses, as we realize the substantial growth that I believe is possible," he told the source. "As awareness is raised in the self-storage market, we are well-positioned to meet this demand with high-quality stores in strong-performing local markets.”
Smart Storage operates six self-storage facilities in Northwest England—Altrincham, Liverpool, Preston, Warrington, Widnes and Wirral.
Based in Haddington, Scotland, Kangaroo operates self-storage properties in Dundee, Edinburgh and Glasgow, Scotland. It’s scheduled begin the second phase of development at the Edinburg facility “shortly,” Stevens said.
Source:
Insider, Scottish Self Storage Specialist Spreads Its Wings South of the Border
Callbox Storage LLC, a startup business specializing in valet self-storage in North Texas, intends to launch service in Phoenix next month. The company recently raised $5.25 million in seed financing following its 2016 launch in Dallas and subsequent expansion to Austin and Houston, according to the source.
“Phoenix is one of the fastest growing cities in the country,” said Kyle Bainter, who co-founded Callbox with fellow real estate veteran Dan Slaven. “We’ll be up and running in Phoenix in about a month. We’ve hired an operations manager and are putting the finishing touches on the launch.”
While many valet-storage operators concentrate on primarily by-the-bin storage and delivery services, Callbox targets residents who don’t have adequate home storage by offering specific warehouse space. The company offers eight packages ranging from “Cubby” (4 square feet) to “Full Home” (300 square feet). Pricing is based on ZIP code, with quotes provided by online-form inquiry. There is no minimum-stay requirement, according to its website.
To mitigate costs, Callbox generally locates its climate-controlled, secure warehouses on the outskirts of the markets it serves, the source reported. Its Dallas facility is in Grapevine, while the Austin warehouse is in Pflugerville.
Customers can manage their belongings and schedule return deliveries through the company website. Once per month, they can request one free pickup. They can also request one free delivery of up to five “regular-size” items. After that, the delivery charge is $7 per item. Extra charges may also apply if items or bins require more than one person to carry them, according to the website.
Callbox is eyeing a second out-of-state market and also intends to launch service soon in San Antonio. International expansion could also be on the horizon. “Houston and Austin are off to a great jump, and that’s validated to us that this is a very scalable concept,” Bainter told the source. “Beyond that, we believe this is going to grow throughout the East to West Coasts and potentially internationally.”
In addition to valet storage, the company has partnered with Kansas City, Mo.-based mattress company Prime Sleep to handle inventory management and delivery. In Dallas and Houston, it also offers installation services, such as putting together furniture for senior-living residences and for other customers who may require assistance, according to the source.
Sources:
Callbox Storage: Website
D Magazine, Startup Callbox Storage Expands to First Out-of-State Market
Update 4/26/18 – For the fourth consecutive year, Talonvest has received the “Top Corporate Fundraising Award” from the Orange County, Calif., chapter of Ronald McDonald House for its participation in the nonprofit’s “Walk for Kids” fundraiser, according to a press release.
“Talonvest raised over $38,300 this year, and is honored to help the Ronald McDonald House in its mission to support families with a child receiving treatment at local hospitals,” Snyder said. “Allowing families to focus fully on their child’s needs without worrying about food, lodging or the costs associated with those things is quite remarkable.”
Self-storage companies that helped the cause this year included 1784 Capital Holdings LLC, Buchanan Children’s Charities, Catalyst Partners, Clark Investment Group, Devon Self Storage, Leon Capital Group LLC, Metro Storage LLC, Newport National Corp., Urban Self Storage and The William Warren Group.
“We’re fortunate to be able to commit time, efforts and resources to such an extraordinary place,” Sherlock said. “The Ronald McDonald House has made a personal impact on members of our company, and we love being of assistance to the organization.”
4/25/17 – Talonvest Capital has received the Top Corporate Fundraising Award for the third consecutive year from the Orange County, Calif., chapter of Ronald McDonald House. In addition to a direct donation, Talonvest rallied other companies to monetarily support the cause, including Buchanan Children's Charities, Catalyst Storage Partners, Clark Investment Group, Devon Self Storage, Mesa West Capital and Wells Fargo.
"Talonvest is proud to support the Ronald McDonald House in its mission to support Orange County families during their greatest time of need,” Snyder said. "A comfortable place to sleep, a home-cooked meal, and a loving environment allows the parents to focus on one thing only: their child’s recovery.”
4/22/16 – Talonvest Capital has received the Top Corporate Fundraising Award for the second year in a row from the Orange County, Calif., chapter of Ronald McDonald House. The company made a direct annual donation to the organization in addition to rallying capital providers, clients, family and friends to donate. Self-storage companies that helped the cause included Clark Investment Group, Devon Self Storage, North American Self-Storage Group, Post Management Self-Storage, Stor-All Group and Wells Fargo.
“We are proud to be involved in a wonderful charity that makes such a meaningful impact on peoples’ lives at such a vulnerable time,” Sherlock said.
4/27/2015 – Talonvest Capital Inc., a boutique real estate adviser serving the self-storage industry, has received the 2015 Top Corporate Fundraising Award from the Orange County, Calif., chapter of Ronald McDonald House. Talonvest works locally with the charity organization as well as Ronald McDonald Family Room in an effort to support families of seriously ill children, providing homes for families while children receive hospital treatment, according to a press release.
Talonvest was recognized during a recent Walk for Kids event, the charity’s largest fundraiser. In addition to helping raise money through business partnerships and outreach, Talonvest has donated $26,500 to the Orange County chapter during the last two years, company officials said. “I know first-hand what it’s like to have a sick child. It can be devastating, and the Ronald McDonald House does an incredible job alleviating some of the pain,” said Eric Snyder, principal for Talonvest. “We are glad to be part of such a meaningful community effort.”
In addition to financial support, Talonvest employees participate each year in the Walk for Kids event and deliver meals to families staying in homes provided by the charity. The real estate adviser has sponsored one of 20 guest rooms through the charity’s “Adopt a Room” partnership program for several years, according to the release. As part of the program, companies provide financial support to each family that sleeps in the “adopted” room during the year.
“Our company was founded on the belief that we have a responsibility to give back time and resources within our community,” added Tom Sherlock, a Talonvest principal. “The Orange County Ronald McDonald House is a special place with an extraordinary staff, and helping out in our small way is an honor.”
Ronald McDonald House Charities is a global network of 300 chapters in more than 60 countries and regions. The nonprofit creates, finds and supports programs that are designed to directly improve the health and well-being of children. The group’s three core programs are the Ronald McDonald Care Mobile, the Ronald McDonald Family Room and the Ronald McDonald House.
Founded in 2010 and based in Orange County, Talonvest structures debt and equity for self-storage and commercial real estate investors and developers nationwide. The principals of the firm have more than 80 years of combined experience.
Talonvest recently participated in Walk for Kids, an annual fundraising event put on by Ronald McDonald House.
Grant Lewis, owner of Lewis J.G.L. Properties LLC and Three Springs Self Storage, received zoning approval from Warren County planning officials last week to build a self-storage facility on a portion of the former Franklin Berry Farm in Bowling Green, Ky. The city’s board of commissioners must also approve the rezoning, according to the source.
The storage facility will be built on a 5.87-acre parcel on Nashville Road, across from Fern Runners Garden Center. It’ll be designed similar to Lewis’ other storage site, which is also in Bowling Green, at 1210 Three Springs Road. In addition to storage units, the new property will feature outdoor vehicle parking.
“This property could be more convenient for some people who are coming to Three Springs Storage now,” said Lewis, who purchased the farm tract during an auction last year. “As the economy does better, more people are buying boats and RVs and will need to store them.”
The commission approved additional requests from Lewis during the April 19 meeting for the remaining 33.06-acre parcel. Commissioners approved amending the binding elements on the larger parcel to remove the minimum lot-size requirement, create a billboard lot and make an additional parcel for future commercial use.
Source:
Bowling Green Daily News, Planning Commission Approves Storage Building Development
Update 4/26/18 – The female employee who was found unresponsive following a fire at Safeguard Self Storage has died, according to fire officials. Her name hasn’t been released, and the investigation into the cause of the fire is ongoing.
The woman’s organs were donated, officials reported this morning.
4/25/18 – A person believed to be the complex manager at Safeguard Self Storage in Baton Rouge, La., is in critical condition after a fire started earlier today inside the facility residence. Upon arrival at about 1:15 a.m., firefighters saw smoke coming from the second floor and forced entry into the building at 10811 Coursey Blvd., according to the source. Once inside, they found the unnamed victim unresponsive near the second-floor stairs. They performed CPR on the person, who was later taken to a local hospital.
Although the fire is still under investigation, officials believe it may have been caused by a cooking accident, the source reported.
Founded in 1989 and headquartered in Atlanta, Safeguard operates more than 70 facilities in Florida, Illinois, Louisiana, New Jersey, New York and Pennsylvania. The company is owned and operated by Morgan Stanley’s Prime Property Fund.
Source:
KSLA, Employee Dies From Injuries Suffered in Fire at Self Storage Facility
WBRZ, One in Critical Condition After 'Accidental' Cooking Fire at Self Storage Facility
Nebraska became the 29th state to either establish a self-storage limited-lines insurance license or provide a statutory exemption from licensing on April 17 when Gov. Pete Ricketts signed Legislative Bill 1012 (LB 1012) into law. The measure allows limited licenses to be issued to storage facility owners, with employees and other company representatives also authorized to operate under the document. The law goes into effect on Oct. 1.
Application for a limited license must include a list of all self-storage facilities the applicant operates within the state, a list of employees who may act as an agent (if requested), a training program that meets state requirements and a confirmation certificate from the insurer.
Under the law, operators are prohibited from paying employees “any additional compensation, fee or commission dependent on the placement of insurance under the limited license.” They also can’t require purchase of tenant insurance through the facility as a condition to rent a unit.
The bill was supported by the Nebraska Self Storage Owners Association (NSSOA) and the national Self Storage Association (SSA). Bill Lange, president of the NSSOA, testified before lawmakers, according to an April 23 SSA e-mail newsletter to its members.
LB 1012 was introduced in January and passed through the legislature 45-0 on April 11.
The SSA is also pressing for tenant-insurance bills in Delaware and Pennsylvania.
Sources:
Nebraska Legislature, Legislative Bill 1012
The Monday Morning Globe 4/23/18, Wisconsin and Nebraska Score Big Legislative Storage Victories
Angel Oak Cos. LLC has launched an affiliate company to provide commercial real estate financing to owners, developers and investors of self-storage facilities and other targeted business sectors. Specializing in residential, non-qualified mortgages (QMs), the firm intends to apply the same strategy through Angel Oak Commercial Lending LLC, providing access to debt markets for “value-add transitional and stabilized projects,” according to a press release. It offers bridge, mezzanine and senior mortgage loans nationwide.
“There is a lending void in specific segments of commercial real estate, especially those under $5 million in size,” said Ben Easterlin, senior vice president of commercial lending. “In many cases, banks may be constrained in their ability to make commercial real estate loans due to government regulations or corporate limitations on the types and amounts of loans they can issue.”
In addition to self-storage, Angel Oak will offer its new products to the industrial, mixed-use, multi-family, office, retail and other sectors, the release stated.
In 2017, the company’s lending affiliates issued more than $1.1 billion in non-QM loans. “Angel Oak has an established track record of providing financing in constrained and dislocated markets, and sees commercial lending as the next extension of this line of thinking,” Easterlin added.
Angel Oak Cos. offers mortgage-credit solutions through an integrated credit and investment platform, across asset management, lending and capital markets.
Source:
Watertown Public Opinion, Angel Oak Companies Expands Into Commercial Lending
You see it all the time—a sign on the door of a business that reads, “Closed for Renovation.” When your favorite restaurant, coffee shop or retail store is shut for remodeling, you might roll your eyes and walk away a little annoyed. Then, a few weeks later, voila! The property is back up and running, and in no time, you’ve forgotten it ever happened.
We all know how renovations work, but have you stopped to think about why large corporations such as McDonald’s and Target spend millions of dollars to revamp their stores? The answer is simple: They understand the positive impact it can have on the bottom line. They have dedicated teams who research the return on investment of proper maintenance, building expansions and replacements.
Luckily for smaller companies, it doesn’t require a lot of time or a huge investment of capital to transform and modernize a business, increasing revenue and remaining competitive. In fact, many self-storage investors are deliberately and meticulously acquiring outdated facilities, upgrading them to overhaul the customer experience at a minimal cost.
Why is it important to invest in facility renovation? There are many reasons, but they all culminate at one overarching point: to stay competitive in today’s market. Time isn’t on the side of older facilities. Doors break down and paint fades; break-ins can occur because of outdated security. It’s critical to stay relevant in your area. If your competition is offering new doors and buildings, advanced security, and other upgrades, you need to rise to the occasion!
Your customers aren’t just shopping for space, they’re looking for an all-around pleasant experience that caters to their needs with convenient elements, such as 24-hour access. The average consumer is now younger, and this new demographic carries higher expectations for businesses. They want to know they’re valued. What’s more, they want to know a business values itself. Is this the image you’re projecting?
There are a few actions you can take to keep your storage facility competitive in a tough marketplace. Following are some common renovations that could help you turn a challenge into an opportunity.
Let’s say a new self-storage competitor moves in across the street. Its exterior is top-notch in every sense. To passers-by it appears as upscale, secure and clean. How do you compete? What steps can you take to improve the exterior of your own site?
First, start at the ground level—literally! Invest in some easy-to-apply sod or grass seed to provide a lush, inviting, fresh appearance. Flowers and shrubs don’t hurt, either.
Installing faux storage doors on an exterior wall can be a great way to catch the eye of potential customers as they drive by. Having a brightly colored door peeking from behind a window on the outside of your building helps you stand out from competitors.
As an easy aesthetic and functional upgrade, consider new roll-up or swing doors for your facility. Replacing aged and damaged doors isn’t only a worthwhile investment for your bank account, it’s a great way to help your tenants. New doors open and close without much effort and are far safer than outdated models. The visual appeal will also help tenants feel more valued. An upgraded facility is just a more enjoyable place to visit!
Another option you could pursue is a door reskin in which only the exterior is replaced. During this process, doors often don’t even have to be opened. This is an affordable option to a full replacement that’s more sensible than just slapping on another layer of paint. An entire hallway can be reskinned in just 24 hours. If you really think about it, can you afford not to consider a reskin project for your facility?
If your facility layout hasn’t been strategically analyzed, you’re probably not getting the most from your investment. Every nook and cranny needs to be used to optimize your space and maximize your return.
If you have some extra parking space, for example, consider adding some portable units for drive-up storage. Are there any oddly shaped corners or awkward areas in your interior hallways? Think about adding some small storage lockers in those places. Younger clientele living in small apartments often don’t have space to store things like seasonal clothing and camping equipment. Smaller locker-style units are a perfect solution for them and will bring new revenue to your business.
Does your facility struggle with break-ins and vandalism? There’s no need to panic. Instead, focus on positive changes that prevent crime and deter theft. While security cameras can be a preventive, they’re more reactive than proactive. You need to think one step ahead of criminals.
Consider some of the latest technology available in the industry, such as “smart locks,” which can be installed on unit doors and gates. This will provide renewed peace of mind for tenants as well as site managers, who can use them to grant and revoke facility access through the cloud.
Another benefit of implementing smart locks is the ability to enter the next wave of self-storage: unattended facilities, or those that operate without an onsite manager or other full-time employees. The customer-service aspect of the business doesn’t waver and, in some cases, can be even better than a traditional staffing model. Additional technology for unmanned sites includes kiosks, packing-supply vending machines, video-interface robots and more.
The self-storage industry has arrived at a crossroads. There are owners who are ready to move forward and meet the future with change and innovation, but there are also those who aren’t willing to invest in upgrades or adopt new technology that will appeal to potential customers. If operators drag their feet in the renovation race, it won’t be long before reality hits and early-improvement adopters will lead the pack.
Rachael Wheeler is a copywriter for Janus International Group LLC, a global manufacturer of turnkey self-storage building and security solitons, including roll-up and swing doors, hallway systems, portable-storage solutions, door-replacement programs, and the SecurGuard mobile-entry system. To reach her, call 770.562.2850; visit www.janusintl.com.
Drone technology has come a long way in just a few short years, becoming more affordable, accessible and easy to use. Now companies like Brentwood Self Storage in Brentwood, Calif., are using this tool to create captivating marketing material. This video offers an aerial view of the storage site, highlighting its massive size and prominent location on the corner of a busy intersection. There are also shots of the property’s security and curb appeal. Accompanied by soothing music, this is a great example of how to create an interesting video tour of a storage property.
