Update 5/17/18 – Pinnacle has secured an $8.85 million construction loan for its self-storage project on W. Indiantown Road. Affiliate Jupiter Self Storage LLC paid $3.5 million for the 1.6-acre property. Demolition work is scheduled to begin in June with completion expected next summer, according to the source.

Life Storage Inc., a self-storage real estate investment trust and third-party management firm, will manage the facility.

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11/8/17 – Self-storage developer Pinnacle Storage LLC has proposed building a three-story facility at 1400 W. Indiantown Road in Jupiter, Fla. The project would include demolishing and replacing the former Ellison Graphics building, a vacant single-story structure on the property. The new structure would comprise 97,500 square feet in 700 storage units. If approved, the project would break ground next spring, with completion expected in 2019, according to the source.

The site is on the south side of Indiantown Road where it intersects with Commerce Way. Land and construction costs are estimated at $13 million, Christopher Perry, president of Pinnacle, told the source. The Jupiter project would be the company’s first in Palm Beach County, Fla.

Pinnacle has previously developed five self-storage facilities in Florida ranging from 45,000 to 120,000 square feet, according to its website. The company is also building a 118,000-square-foot facility in Miami.

The Jupiter Planning and Zoning Commission is scheduled to review the proposal during its Nov. 14 meeting. The town council, which has final authority on the project, is expected to vote on Dec. 19.

Based in Hilton Head, S.C., Pinnacle has developed self-storage in Florida, Georgia, Ohio, South Carolina and Tennessee. During his career, Perry has been involved in more than 2 million square feet of self-storage acquisitions and development throughout the Southeast, according to the company website.

Sources:
The Real Deal, Pinnacle Buys Land, Scores Construction Loan for Jupiter Self-Storage Facility
Palm Beach Post, On Indiantown Road: What Would a New $13 Million Building Be Used For?
Pinnacle Storage, Website

Sacramento, Calif., officials are considering an ordinance that would ban new development of self-storage and several other business uses within a quarter-mile of its transit stations. The intent behind the possible restriction would be to incentivize pedestrian-friendly business projects and allow more space for apartments and hotels, according to the source.

The ordinance would also put a buffer on auto-service shops, drive-through restaurants and gas stations. Auto repair, car dealerships and nurseries could be allowed within the quarter-mile restriction but would require a conditional permit, the source reported.

"You wouldn't ride light rail to a gas station, but you would ride it to buy groceries, get a haircut or have a meal," planner Jim McDonald told “The Sacramento Bee.” "This ordinance addresses those uses that absolutely don't serve [transit riders].”

Proximity of business uses to transit has been a source of contention between the city and developers. Real estate developer Paul Petrovich is fighting the city in court over a proposed gas station that would be built within a housing development but sit within a quarter-mile of a transit stop. Petrovich has argued the gas station is necessary to attract a Safeway, according to the source.

The ordinance is backed by the Sacramento Area Council of Governments and Sacramento Regional Transit. Reason, a free-market think tank, has questioned the logic that limiting business uses near transit stops will increase ridership. The group pointed out that ridership fell from a weekday average of 58,000 in 2009 to 44,600 in 2016, despite the addition of a new rail line.

Source:
Smart Cities Dive, Sacramento Weighs Restricting Gas Stations, Drive-Throughs Near Transit Stops

Update 5/17/18 – JHM is no longer pursuing the 5-acre parcel on which it considered building a hotel. It’s not immediately clear how the decision will affect the rezoning request for the nearby TD Self Storage project when the city council considers the application on May 22, according to the source.

Opponents continue to speak against the self-storage proposal, describing it as an ill fit with the plan for the area. Land along this section of Buford Highway backs up to Peachtree Creek, where the city intends to invest millions of dollars to create a linear park called the Peachtree Creek Greenway. To help fund the project, the city raised its hotel tax last year from 5 percent to 8 percent. It’s expected to break ground this year, the source reported.

Councilmember Joe Gebbia is among those against the rezoning and supports the planning commission’s decision not to recommend it. “I’m proud of the planning commission for making a rationalized decision based on vision statements and policy set by the council,” Gebbia told the source. “This development doesn’t meet the criteria we want on Buford Highway. Let this be a loud message to other developers.”

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5/6/18 – The Brookhaven Planning Commission voted unanimously to recommend against the TD Self Storage proposal for Buford Highway, concurring with the community development department. Planners don’t view the project as a good fit with the city’s comprehensive plan and overlay district for the area, according to the source.

“This is our one opportunity to get it right,” commissioner John Funny said during the meeting. “All eyes are looking to how we develop Buford Highway. This creates a precedent if we approve it.”

Francesca Aragona, an architect with Detroit-based Designhaus Architecture, argued the self-storage facility would be a good fit for the location due to its proximity to multi-family housing. “We are not trying to hinder the growth of the city,” she said. “We are trying to fuel it.”

Roger Burgin, senior vice president of development for TD, told planners the company acquired the building site for more than $1 million and is under contract to purchase the Brookhaven Laundry property next door. That site is already zoned for manufacturing, which includes self-storage as a use, the source reported. TD would include an iShare co-working space on the laundry site.

Burgin also indicated the company is in the process of acquiring a 5-acre parcel at the corner of N. Druid Hills Road and Buford Highway, on which JHM intends to build a hotel. Though TD originally wanted to pursue a mixed-use development on the used-car site, officials determined it was too small to accommodate the multiple uses and necessary parking.

Funny and commissioner Conor Sen recommended Burgin create a master plan for all of the JHM and TD projects being planned for Brookhaven and present them together, rather than have planners review each application individually.

Several residents also opposed the self-storage proposal, arguing it wouldn’t mesh with the direction the community is headed. “The sun is beginning to rise on the city of Brookhaven, and without denigrating the property owner and the architect, this proposal is a waste of the land,” Jerry Cooper, chair of the Pine Hills Civic Association Zoning Committee, told the commission.

It’s unclear if TD and JHM will pull back from separate project plans and present a comprehensive development plan to the city, or if TD will wait for the city council to make its decision before determining its next steps.

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4/23/18 – TD Self Storage Enterprise LLC, a development and acquisition venture launched last year by JHM Hotels, is seeking zoning approval to build a five-story facility in Brookhaven, Ga., that would be managed by self-storage real estate investment trust Life Storage and branded under its name. The city’s planning commission will consider the proposal for the nearly 1-acre property at 2991 Buford Highway during its May 2 meeting.

The building would encompass 83,800 square feet of climate-controlled storage space. The parcel currently houses a Wheels & Deals used-car lot, according to the source.

TD is also pursuing a mixed-use project in the West End historical district of Greenville, S.C. The four-story facility would include self-storage, band-practice rooms, co-working space, street-level retail and a rooftop event venue. The project received positive feedback in March during an informal presentation to the Greenville Design Review Board Urban Panel. It’ll need formal board approval to move forward.

Launched in August, TD Self Storage is headquartered in Greenville. It was created to pursue opportunities in the Midwest and Southeast, with eventual expansion to California, Texas and other U.S. markets. Its goal is to amass an owned portfolio of more than 100 storage properties.

Since founding its self-storage division, JHM Hotels has since retired its name and created four separate hotel companies: Auro Hotels, Sarona Holdings, Siddhi Hotel Group and Sima Hotels. JHM acquired and developed hotels throughout the United States for 44 years. The group owns and operates 38 hotels in seven states, according to its website. Its brands include Hilton, Hyatt, Marriott and Westin. The group’s affiliate, JHM Restaurant Group, owns several high-end restaurants.

Based in Buffalo, N.Y., Life Storage is a self-storage real estate investment trust that operates more than 700 self-storage facilities in 28 states under the Life Storage and Uncle Bob’s brands. Its portfolio of owned and managed facilities comprises more than 49 million square feet.

Sources:
Reporter Newspapers, Proposed Self-Storage Facility on Buford Highway Met with Skepticism
Reporter Newspapers, Proposed Self-Storage Building on Buford Highway Rejected by Planning Commission
Reporter Newspapers, Self-storage Building Proposed for Buford Highway in Brookhaven

SIBCO Ltd. Self Storage of Beavercreek, Ohio, is planning to expand. Two buildings will be added to the property at 620 Phillips Drive. The first, valued at $1 million, will comprise 12,300 square feet. The other, valued at $989,000, will comprise 12,000 square feet, according to the source. Each building will include about 40 storage units. The addition is expected to be complete this fall.

Urbana, Ohio-based Walters Building is the contractor on the project.

The property originally opened in 2003 as a parking garage for vehicles, with the storage units added last year. It currently comprises 21,000 square feet of storage space in 146 climate-controlled and drive-up units. It contains 180 indoor parking and garage spaces as well as outdoor vehicle parking. Additional features include 24-hour access, electrical hookups, keypad access and video cameras.

Source:
Dayton Business Journal, Dayton-Area Storage Company to Expand, Add Two New Buildings
SIBCO, Website

 

When I ask self-storage owners about managing safety at their sites, they bring up cameras, alarm systems, security guards and more. These are all great options, but there’s a foundational component that must come first: lighting. A well-lit facility is critical to safety. You need enough light to attract customers, avoid accidents and deter crime.

The Need to See

Why is lighting a such an important piece of security and even your overall business plan? First, humans are hardwired to distrust darkness. Evolutionarily, it was advantageous for us to avoid situations in which our primary sense—vision—couldn’t help us detect danger. In fact, the amount of light around a street or building still informs our subconscious judgement as to whether we feel safe.

I learned from designing and installing lighting for gas stations that having enough light is a key factor to people choosing one location over another. No one drives up to the “creepy,” poorly lit place. Similarly, in self-storage, your facility’s nighttime lighting will either draw customers or drive them away.

Your business also needs adequate light to prevent falls and accidents. A poorly lit facility is a lawsuit waiting to happen. Low visibility turns regular walkways into tripping hazards and your parking lot into a crash site. Not only do you need enough light, your fixtures should be placed so they create an even level of light across your space. The alternative is bright pockets of light with deep shadows in between that create night blindness and eerie silhouettes.

In addition, good lighting allows you to get the most out of security cameras and generally deters crime. Most cameras are useless in areas of low or no light. Footage becomes grainy, and it’s impossible to capture details like a car’s make and model, or a license plate number. If there’s an incident at your facility, that video won’t help much. You can pay at least double for infrared cameras, or you can simply use exterior lighting to support standard cameras and enhance the overall feeling of safety at your property.

If you’ve added security guards to your team, good lighting makes their job easier, allowing them to see and be seen. Having visible personnel goes a long way toward deterring opportunists.

Placement and Cost

Now that you know lighting is important for security, what’s the best, most cost-effective way to illuminate your self-storage facility? Where is it important to install lights, and where is it a waste of money to use them? To properly place lights and take advantage of energy-saving tricks, you need to think about your customers’ experience when approaching, entering and occupying your property.

First, consider your exterior lighting. When customers approach, you want a pathway of light to lead them from their car to the entrance. By enhancing your entry and parking-lot lights, you’ll ensure current and potential renters see your property as safe and inviting.

For facilities that are open 24 hours, keep lights on all night. Yes, you could save money with motion sensors, but the loss of perceived safety isn’t worth it.

For the facility interior, there are two methods to increase lighting performance and decrease energy bills. The first will sound familiar: Switch to LED lighting. Simply put, LEDs will add the least cost to your utility bill and won’t flicker like the fluorescents in scary movies.

The second is to use motion sensors. You can put them in places people visit only occasionally, like an upper floor. This will save you a ton of money. To avoid the off-putting effect of lights turning on and off as you walk down a hallway, set the sensors set to light up the whole floor or area at once.

You can also use motion sensors around the perimeter of your building in tandem with your cameras. They’ll trigger lights to come on when there’s movement and allow your cameras to capture any important details. Just don’t aim lights toward your cameras. This will only create glare in your feed. Place them along the same wall, facing the area of interest.

Some utility companies will offer to rent you security lighting and install it for you. As convenient as that may seem, the decision will haunt you. You’ll end up paying five to 10 times the cost of each light fixture just within the first 10 years. Instead, create your own lighting plan. Specifically, I recommend quality LED lights. Purchase products endorsed by the DesignLights Consortium, a nonprofit that promotes the use of energy-efficient lighting, to ensure the best value and the highest rebates for your upgrade.

Good self-storage lighting will pay dividends in increased safety and an inviting, worry-free customer experience. The initial cost of adding quality lighting may seem steep, however, the payback is short while the benefits are long-reaching.

Steven Brookman, director of the energy-management division at Joule Energy, is a veteran LED lighting designer. He helps businesses find cost savings in energy efficiency. Joule offers LED lighting, energy management and solar-system services. For more information, call 920.341.5337; visit www.joule-energy.com. 

Real estate developer Highlands at Cedar Downs LLC has opened Raceway Heated Storage in Auburn, Wash. The race-themed self-storage facility comprises 108,885 square feet in four buildings. Features include a “Herbie the Love Bug” replica Volkswagen on top of the management office and a tower patterned as a checkered flag, according to the source. The project was constructed on 6 acres at 30402 132nd Ave. S.E. and also includes a retention pond.

The development took 17 months to complete, partially due to wet, wintry weather. The site environment of glacial till and silty sand was determined unsuitable, forcing local contractor Donovan Bros. Inc. to import a large quantity of dirt. The company also installed quarry-spall roadways and implemented erosion-control measures, the source reported.

Easement requirements also forced the storage buildings to be reduced by 10 feet, prompting a redesign. A planned two-story building was changed to four floors to reach the targeted storage capacity.

The property is listed on the Urban Self Storage website. Founded in 1987, Urban operates a portfolio of more than 60 facilities in Arizona, New Mexico, Oregon and Washington. Its portfolio comprises more than 3.2 million net rentable square feet.

Source:
Daily Journal of Commerce, Raceway Heated Storage

Jernigan Capital Inc., a merchant bank and advisory firm serving the self-storage industry, has hired Jonathan Perry as executive vice president and chief investment officer (CIO). Perry will join the executive team next month and oversee all investment and asset-management activities including the development of new relationships with self-storage entrepreneurs, origination of investment opportunities and managing relationships with third-party managers, according to a press release.

Perry joins the company from CubeSmart, a self-storage real estate investment trust (REIT) and third-party management firm. From 2008, he held several positions at CubeSmart, most recently serving as senior vice president and CIO. Perry began his career at Storage USA in 1998 and served in multiple capacities until the company was acquired by GE Capital in 2002. He previously teamed with Dean Jernigan, chairman and CEO of Jernigan Capital, in a private investment partnership that owned and operated self-storage facilities, the release stated.

“The addition of Jonathan rounds out what we believe to be an outstanding management team,” Jernigan said. “I have had the pleasure of working with Jonathan for over 20 years and have found him to be one of the most talented executives in the self-storage sector. As we continue to provide innovative capital solutions to self-storage entrepreneurs, while we move into different stages of the real estate cycle, I am confident that Jonathan’s experience, relationships and prominence in the self-storage industry will create additional opportunities for us to create value for our shareholders.”

Perry will report directly to John Good, president and chief operating officer. He’ll also join Good and Jernigan to form a three-member investment committee.

“Dean, our board of directors and I all believe that as the real estate cycle progresses and we move into a period of more customized and innovative investment opportunities, including a period of increased acquisitions of developer interests in our properties and other potential growth initiatives, Jonathan is the perfect addition to our already strong team,” Good said. “Jonathan has led billions of dollars of self-storage investments over the course of his 20-year career, and that investment experience will be invaluable to us as he leads our investment efforts.”

Jernigan Capital also expects Perry’s presence to help in fostering a greater partnership with CubeSmart. “Jonathan’s 10 years of distinguished service with CubeSmart also provides a seamless bridge to his overseeing our asset-management function, as we would expect to continue to expand our extensive third-party management relationship with CubeSmart as we continue to grow,” Good added. “I look forward to partnering with Jonathan for many years of continuing to build Jernigan Capital into one of the great companies in our industry.”

In March, Jernigan Capital hired David Corak as senior vice president of corporate finance to focus on capital strategies.

Jernigan Capital is a REIT listed on the New York Stock Exchange. The company provides financing to private developers, operators and owners of self-storage facilities. It offers financing for acquisition, ground-up construction, major redevelopment or refinancing. The firm is externally managed by JCap Advisors LLC.

Source:
BusinessWire, Jernigan Capital Announces Addition of Jonathan Perry as Executive Vice President and Chief Investment Officer

All Storage, which operates 42 self-storage facilities in Oklahoma and Texas, has opened a new location in Plano, Texas, that features a 40-foot-tall “cardboard box” on the exterior. The architectural element at 500 Talbert Drive houses the facility office. It was created to look like a corrugated cardboard with open flaps, an up-arrow marking and the words “Do not stack” and “Fragile.”

All Storage was granted a Class 39 trademark for the building design last year. The Plano facility is the fourth of its kind in the metroplex to feature it. Plans for six similarly designed properties are underway in Aledo, Texas, according to a press release.

“We think storage can be easy and fun,” said CEO Jay Schuminsky. “I think our customers recognize that we want to make their change-of-life situations that much better.”

All Storage operates two facilities in Oklahoma and 16 in Texas. Many of the properties feature the company’s “EZ drive-thru” feature, which allows tenants to drive their vehicles directly into the facility for loading and unloading.