The California Supreme Court recently ruled that self-storage tenant-protection plans aren’t considered insurance and, therefore, aren’t subject to insurance licensing requirements. Facility operators and vendors consider this an industry win, but it’s unclear how the decision will impact the market outside California. Let us know how your business approaches tenant-property risk management in this new Inside Self-Storage poll.
Update 5/25/18 – The Denver City Council voted unanimously on May 20 to ban self-storage development within a quarter-mile of any regional transportation district as well as suburban and downtown Main Street zones. Industrial areas are exempt from the restriction, according to the source.
The council reiterated its desire to reserve the land near light-rail stations for development projects that are “pedestrian-oriented and friendly to people,” Susman told the source. “Mini-storage just doesn’t do that. They’re sort of dead zones. There’s nothing for people to do there. Transportation-oriented development is what is expected around rail lines. Self-storage is not transportation-oriented.”
“Storage facilities aren’t human-oriented use; we need people living there and working there, and using the train instead of driving in their cars,” agreed Black. “The goal is for all light-rail stations to have the appropriate kind of development.”
The self-storage restriction was part of a zoning-amendment package suggested by the community planning and development department.
3/13/18 – Denver officials will explore if it’s in the city’s interest to restrict self-storage and drive-through businesses from being developed within a quarter-mile of light-rail stations. The proposed ban would apply to new construction. The idea is supported by councilmembers Kendra Black and Mary Beth Susman, according to the source.
Susman isn’t a fan of the architectural aesthetics displayed by traditional storage facilities. "Very often these places look like boxes that hold boxes," she told the source. "It's not a very good use of our land."
Preserving properties near the light rail for higher-traffic uses could encourage more people to use mass transportation and ease vehicle congestion, according to Black. “Storage facilities—the nature of them is there are no people there," she said. "The right kind of activity around the station, I think will increase transit use, which will ultimately improve our traffic situation and really the quality of life."
If the ban is recommended by the planning committee, the city council will hold a public hearing on the subject. It’s possible the restrictions could take effect as early as November, the source reported.
“We don't want to get rid of [self-storage] all together, but maybe put it in places where we're not looking for activation," Susman said.
The move to ban self-storage development is similar to recent decisions made by other municipalities, including New York City.
The Woodland, Calif., City Council recently extended an original 45-day moratorium through December to prevent any new self-storage facilities from being developed while officials work on new zoning codes that will determine where future projects will be allowed.
City officials in Margate, Fla., have made an existing moratorium on storage development indefinite, while Miami last year passed an ordinance that requires a minimum 2,500-foot distance between self-storage facilities in any direction.
In Washington state, Ferndale officials passed a six-month ban on self-storage development in November, shortly after officials in Federal Way imposed a one-year ban in September. Other incidents in Washington include a six-month ban passed in August in Poulsbo and a previous six-month moratorium in Shoreline.
Source:
SpareFoot Storage Beat, Denver Closes Off Parts of City to Self-Storage Development
Denver7, Denver Wants to Ban Storage Units Near Transit Hubs
Inside Self-Storage (ISS) has published a new gallery, “A New Aesthetic Ideal: Self-Storage Facility Design 2018,” featuring photos of projects from around the world. The free presentation displays property façades and grounds, highlighting architectural elements, building techniques and materials, color palettes, landscaping, and other inspiration for sites of all sizes. Provided by developers, management firms and property owners, the images represent the various styles and components being incorporated into today’s storage developments.
The gallery is available for viewing in the ISS Resource Center, which can be found on the main menu at insideselfstorage.com. Past galleries on design and other industry topics can be accessed through the same page.
For more than 27 years, ISS has provided informational resources for the self-storage industry. Its educational offerings include ISS magazine, the annual ISS World Expo, an extensive website, the ISS Store, and Self-Storage Talk, the industry’s largest online community.
Strategic Storage Trust IV Inc. (SST IV), a public non-traded real estate investment trust sponsored by SmartStop Asset Management LLC, has purchased a self-storage facility in Puyallup, Wash. Puyallup Mini Storage at 1401 N. Meridian Ave. is on the corner of Washington State Route 167. Built in 1990, it includes 13 single-story buildings comprising 85,000 net rentable square feet of storage space in 780 units. It also contains a two-story office with a manager’s apartment, according to a press release.
“This self-storage facility is prominently located between the area’s two primary highway corridors, through which thousands of commuters travel each day,” said Wayne Johnson, chief investment officer. “Adding to its visibility and accessibility, the facility is situated just 200 yards away from a major grocery-anchored retail center. This acquisition is well-aligned with our investment criteria, and we expect it to be an excellent addition to our growing portfolio of self-storage assets.”
Based in Maryland, SST IV owns five self-storage properties comprising about 324,500 net rentable square feet. It intends to invest in a portfolio of self-storage properties in Canada and the United States.
SmartStop is the asset manager for 116 facilities in Canada and the U.S. Its portfolio comprises approximately 8.5 million rentable square feet.
Source:
PR Newswire, Strategic Storage Trust IV Acquires 780-Unit Self Storage Facility Near Tacoma, Wash.
For decades, self-storage operators across the globe have been controlling access to their properties. A typical access-control system includes a gate and controller, a keypad, and a software program. The software is how you lock out tenants, change access codes, and monitor who’s entering and exiting the facility.
Technology is ever-changing, and one of the biggest evolutions in self-storage access control is the ability to manage the system through the cloud. Let’s see how that works and how it benefits facility operators and customers.
One of the key ingredients is the gate controller itself, which is essentially the “brains” of the entire access system. Most of the older gate controllers can’t be plugged into a high-speed Internet connection via an Ethernet cable, but newer cloud-based gate controllers do. They also have built-in hard drives that store tenant codes in case your Web connection has a hiccup. When a user punches in his code at the keypad, it’s verified through the controller and access is granted.
But what if you need to change a code or block access? With a legacy gate controller, you had to drive down to the facility and update it on the computer where the access-control program resided. Now, if you have a controller tied to cloud-based software, you can change those items right from the convenience of your mobile phone, tablet or any Web-connected device.
The other nice thing is cloud-based technology can even allow you to remotely open your gate through a smartphone app or your management software, if there’s direct integration. This eliminates the need to manually admit contractors, police or service providers during non-business hours. It also comes in handy when a tenant is having trouble accessing the facility or has forgotten his gate code. You can either remotely change the code or just open the gate through your mobile device.
Because it doesn’t require having a computer on site, a cloud-based access-control program eliminates downtime caused by updates or crashes. Another key benefit is how fast things are accomplished. Since information is passed through the Web, you can change a tenant’s gate code on your phone and it’ll immediately be revised, with no lag. Updating codes through legacy gate controllers would sometimes take as long as 10 minutes!
Speed is also important when it comes to rentals completed through your website or another mechanism, such as an onsite tablet or kiosk. You need instant communication because you don't want the tenant to sit around and wait for his code to register in the system.
Another nice thing about a cloud-based program is you can add “groups” and levels to control which tenants have access to certain gates or doors on the property.
Finally, a cloud-based access system that integrates with your facility management software can help you keep track of and change tenant status, adding an extra layer of security. For example, if a customer becomes past due on rent, access can be automatically denied until he gets current. You can also auto-download an active log of onsite visits right into your software in real time; so, if you need to step away from your facility to run errands or you’re on vacation, you can see who’s entered and exited right from your smartphone.
With the evolution of new technology, a cloud-based access-control system is by far the best bang for your buck. This is especially true if you’re looking to automate your business and streamline day-to-day management activities. Having the right tool set allows you to be more hands-off with your business, and that’s what’s trending in the industry right now.
Jimmy Sorenson is co-founder of Easy Storage Solutions, which was launched in 2008 to provide access control, management software and other technology-based products and services for small- and mid-sized storage operators. He purchased his first storage facility in 2014. For more information, call 888.958.5967; visit www.storageunitsoftware.com.
Whether you’re a self-storage owner or manager, your understanding of the myriad aspects connected to facility operation has a direct correlation to the success and sustainability of the business. Facility management requires expertise and efficiency across multiple functions.
Bob Copper, owner of consulting firm Self Storage 101, created three USB Keys of Knowledge to help owners and managers with facility operation. Contents include video presentations, articles, workbooks and PowerPoint presentations.
The Complete Facility-Operation Kit contains a comprehensive set of written and recorded training materials on self-storage auditing, collections, customer service, marketing, revenue management, sales and more. This product offers the best value of the three drives and contains almost all the material on the other two keys in addition to several operational resources.
The Manager-Training Kit contains an essential set of written and recorded training materials designed to train self-storage managers on collections, customer service, sales and more.
The Ownership Kit is designed to help operators increase business profitability. This USB drive contains written and recorded training materials on self-storage auditing, marketing, revenue management and other topics.
Some content is duplicated between the three offerings. To see a detailed breakout of key contents and choose the best fit for your individual needs, please view this side-by-side comparison chart. Visit the ISS Store for full product details.
Update 5/24/18 – Additional details have emerged for the self-storage facility Tulfra is developing on Kingsland Street. The property will feature 765 climate-controlled and 160 traditional units. It’ll be managed by CubeSmart, a self-storage real estate investment trust and third-party management firm.
“The property’s location off Route 3, its strong demographics within the trade area and, a top-tier operator such as CubeSmart made this a very attractive deal to lenders,” said Michael Klein, managing director for HFF (Holliday Fenoglio Fowler LP), the commercial real estate and capital-markets services firm that secured $10.2 million in financing on behalf of the developer.
Tulfra will use the construction loan for the land-acquisition costs, site improvements, construction and lease-up expenses, according to an HFF press release. Klein worked with Jon Mikula, senior managing director, in obtaining the loan through the Bank of New Jersey.
HFF and its affiliate, HFF Securities LP, are owned by HFF Inc. The firm operates out of 26 offices nationwide and specializes in advisory services, commercial-loan servicing, debt and equity placement, and investment and loan sales.
9/19/17 – Real estate management and development company Tulfra Real Estate has purchased a 6.5-acre property in Nutley, N.J., on which it plans to build a 125,000-square-foot self-storage facility. The seller was an out-of-state corporation, according to a press release.
The property at 10 Kingsland St. is a half-mile from the Passaic River and 1,000 feet from the New Jersey Route 3 eastbound corridor, which runs through Clifton, N.J. Vacant for more than a decade, it’s near homes, stores and recreational areas, the release stated.
“This property is situated right in between Route 3’s bustling retail and recreational attractions, and a high-density residential neighborhood,” said Sonny Jumani, president and managing member of Tulfra. “This makes it the perfect location for a self-storage facility, which will serve both commercial and residential tenants, alike.”
More than 250,000 people reside in communities within three miles of the site, including Passaic, one of the largest municipalities in New Jersey. It’s a densely-populated area with 22,179 residents per square mile. “That density bodes well for self-storage,” Jumani said.
Tulfra was represented in the acquisition by Jason Sobel, an attorney with the law firm Sills Cummis & Gross P.C. Chis Richter, senior vice president for investment firm Avison Young, obtained the land-use permit.
Tulfra recently redeveloped an industrial property at 65 Industrial St. S. in Clifton into a 200,000-square-foot bakery. The firm is also converting the former Roche Diagnostics USA property at Park 11 in Belleville, N.J., into a 500,000-square-foot, mixed-use project, the release stated.
“Transforming vacant and non-performing properties into vibrant, productive environments are a tremendous asset for the community and the people who live there,” Jumani said. “They beautify the area, generate jobs and increase tax revenues. We are proud to be a part of such a transformation.”
Independently and with its institutional partners, Tulfra has owned or developed more than $1 billion in commercial and industrial properties in northern and central New Jersey over four decades. It works with municipalities to transform underutilized or non-performing assets into projects in all asset classes including commercial, hotels, healthcare and residential. The company is based in Rochelle Park, N.J.
Update 5/24/18 – Hampshire presented a revamped design for its proposed self-storage project on Morris Street to the city council this week, but the changes don’t appear to be enough to flip residential opposition. The new design includes a 6 percent reduction in capacity to 98,000 square feet and an 800-square-foot addition to the art studio. A new façade designed by New Jersey architect Dean Marchetto includes brick-loft styling, according to the source.
Marchetto appeared at the meeting and told the council the structure would be comparable to his other work in the city, including cube-like apartments and the triangular Fox Rothschild building near the town green.
Though some residents like the design, they are dead set against the use. “Please do not build a storage facility and pretend it is a cultural asset,” resident Linda Carrington told the council.
“I don’t care how you dress it up. It’s the scale, it’s the size, it’s the use,” argued former councilmember Brady.
Vitolo noted the public presentation was his seventh during the last two year and indicated the next move is up to the city council to accept or reject the proposal.
2/14/18 – Morristown residents remained strongly opposed to Hampshire’s Morris Street self-storage proposal during a city council meeting on Feb. 8. After more than two hours of debate, the council adjourned the meeting without voting on the zoning amendment the developer needs to move forward on the project, according to the source.
Objections included the potential for increased late-night traffic and noise from the outdoor performance plaza included in the plan. Some also criticized the architectural renderings presented to the council for not including signage, surrounding homes and topography to better depict how the storage facility would fit into the community, the source reported.
Werder told the council the local arts scene would flourish from the dedicated studio spaces. While councilmember Alison Deeb and some residents liked that aspect of the proposal, others questioned whether 50 artists could share 10 spaces of 160 square feet each.
Former councilmember Margaret Brady argued the storage facility would hurt tourism by distracting visitors on their way to nearby historical venues. A community park, fire station or additional housing would be a more appropriate use for the site, she said.
Though Hampshire officials indicated they want to continue working with the community to alleviate or accommodate concerns, Iannaccone indicated he’s seen enough. “The proposed use is inappropriate for the location,” he told the source. “I think the public was correct with its concerns and position on the appropriateness of the use and scale of the proposed storage facility.”
It’s not clear when the council might further review the proposal.
2/8/18 – The controversial mixed-use project proposed for Morristown will be presented to the town council tonight. The hearing had been delayed for more than a year due to “scheduling issues,” according to Abramson.
Mayor Tim Dougherty, who hasn’t publicly endorsed or opposed the project, said he didn’t request delaying a vote on the project during last year’s election. “My election wouldn’t have mattered either way,” he said, adding it’s up the applicant to “make his case.”
Hampshire, which has cleaned up the site and demolished the existing structure, requested the meeting to find out what kind of redevelopment the council wants for the property, Abramson said. “What can be expected is an indicator one way or another on how they would look to proceed,” he said. “The developer would like to know the council’s reaction to the proposal and whether it makes sense to prepare something for them to vote on.”
Councilmembers, who are also the town’s redevelopment authority, haven’t received any new information about the project from the developer or town officials, according to councilmember Robert Iannaccone, whose First Ward includes the proposed site. “They didn’t show us anything. Even the agenda is not clear what they’re coming for,” he said, noting he’s not inclined to support the project based on public input during the workshops. “I basically vote the way my constituents ask me to vote.”
The council has also had turnover, with councilmember Michelle Duprée Harris leaving after an unsuccessful mayoral bid. She was replaced last month by David Silva.
Frank Vitolo, the attorney representing the developer, hopes to show how the project will benefit the community. “We’re there to present our plan for the project, but also to field questions from the council and the public, explain why it’s a terrific fit for Morristown, and how it comports with the redevelopment plan and the town master plan,” he said.
1/24/17 – Plans for the self-storage building that will be part of the Morris Street Redevelopment project have reduced the number of floors from five to four after residents expressed concern it would be an eyesore. The adjustment was made public during a recent workshop in which representatives from SNS Architects & Engineers PC and planning firm Topology were present, according to the source.
In addition to self-storage and the art studio, a “performance center” will be part of the project, the source reported. While the art studio will cater to local artists looking for affordable space in which to work, the spaces will be surrounded by windows allowing the public to view projects as they are created, Katie Dempsey, director of placement for Morris Arts, told the workshop audience.
Town officials are still accepting comments from the public.
7/18/16 – A large group of residents participated in a public workshop last week to learn about the Morristown project that would feature self-storage and art space. Members of a neighborhood association in the nearby Franklin Corners townhome community told city officials they were concerned the facility would be an eyesore for more than 70 apartments under development on Hill Street, according to the source.
Similarly, former council member Margret Brady said an artist rendering of the facility “looked to me as though a huge box had landed from outer space.”
Other residents argued the development didn’t meet the town’s plans to make this particular stretch of Morris Street into a residential gateway to the community.
As proposed, zoning revisions would need to be passed to accommodate the project, since self-storage isn’t among the permitted uses for the area and building height is limited to three stories, Abramson said.
Residents spoke favorably about the art-space component to the project. “There were a number of people who showed up who learned a lot of new information about the plans,” Werder told the source. “We heard that people wished that the artist studio was a much larger part of the program for the new building.”
It’s too early in the approval process to know if the art space will become a larger portion of the project, Werder said.
7/12/16 – Hampshire Properties, an affiliate of real estate investment firm Hampshire Real Estate Cos., has proposed a mixed-use development for Morristown, N.J., that would feature self-storage and rentable art space. The five-story structure at 175 Morris St. would include 100,000 square feet of self-storage and a 2,600-square-foot art facility operated by Morris Arts, a nonprofit agency, according to the source.
If approved, the storage facility would be managed by real estate investment trust Extra Space Storage Inc. and rebranded under the company’s operating name, town planner Phil Abramson told the source.
Under the plan, Morris Arts would rent space to artists as well as hold performances and exhibitions on patio space to increase pedestrian traffic in the area, which is near railroad tracks and several recently developed apartments. “This will bring some life down there,” Tom Werder, executive director of Morris Arts, told the source.
The project would replace the former Milelli’s Auto Service and Towing and extend onto an adjacent property that abuts the train tracks. Morris Street 2015 LLC acquired both parcels last year for $5 million.
The property also once housed a heating-oil distributor. Environmental issues makes the ground unsuitable for residential development, Abramson said.
A public workshop to discuss the project was scheduled for Monday. The proposal was inspired by Mana Contemporary, a Jersey City, N.J., warehouse that was converted into a popular arts venue, as well as other self-storage projects that have incorporated art space, according to Abramson.
Hampshire Real Estate has a diversified investment platform that includes self-storage, industrial, medical, office and retail properties primarily in Northern New Jersey. The company has a “strategic alliance” with Extra Space, which has been involved in other Hampshire developments. The partnership includes the REIT acquiring a 50 percent interest in a 78,000-square-foot self-storage facility in Bloomfield, N.J., according to the Hampshire website.
E&R Investments LLC received endorsement from the city council this week for a four-story self-storage development in Burnsville, Minn. The facility would be built on a 1.7-acre property at the southern tip of the Golden Triangle, considered the gateway to the Twin Cities for northbound travelers.
This last undeveloped parcel in the area is between the split of Interstates 35W and 35E, and County Road 42, according to the source. A 1980 planned unit development called for an eight- to 10-story office building on the property, but it was amended in 2001 to allow for a four-story structure.
During the Tuesday meeting, council members agreed the storage proposal would fit with the current vision for the site. The drive-in building would include an exterior featuring brick, glass, and decorative precast and awning details.
Councilmember Bill Coughlin suggested the company follow the design of a brick-heavy storage building it constructed in Eden Prairie, Minn. The look is similar to that of banks and offices, added councilmember Dan Kealey.
E&R plans to be flexible about the facility design and wants to build “a project that fits the community,” said Greg Hayes, vice president of real estate and development for Ebert Construction who served as E&R’s representative at the meeting.
Family-owned Ebert Construction was founded in 1968 to offer commercial general contracting, construction management and real estate services in Minnesota. Its projects include banks, churches, retail and self-storage.
Source:
Sun This Week, Storage Building Proposed for Tip of Golden Triangle
ezStorage Corp., which operates 48 self-storage facilities in Maryland, Virginia and Washington, D.C., has opened a new facility in Arnold, Md., its first location in the city. The property at 1434 Ritchie Highway features interior, climate-controlled units in a range of sizes, and a retail office that sells moving and packing supplies. Security measures include controlled access, individually alarmed units and video cameras.
ezStorage opened new facilities in Alexandria and Columbia, Md., last year. In addition, the company received silver-level certification for its Burtonsville, Md., location in March from the U.S. Green Building Council under the Leadership in Energy and Environmental Design (LEED) program. The facility was designed specifically to meet LEED v4 BD+C: Warehouse and Distribution Center requirements, company officials stated.
Based in Columbia, Mo., ezStorage was founded in 1987. The company’s portfolio comprises more than 44,000 units.
Source:
PR Newswire, ezStorage Opens New Facility in Arnold, Maryland
