10 Federal, which operates 11 self-storage locations in North Carolina, has acquired an Extra Space Storage facility in Wilmington, N.C. The property at 5135 Market St. is the sixth purchase made by 10 Federal Self Storage Acquisition Co. 1 LLC, which the company launched last year, according to a press release.

10 Federal admitted an additional $1.45 million for the acquisition closing and ongoing renovation of the asset. The company will deploy its suite of technologies at the site to support unmanned operation, including a call center, kiosk-rental center, model unit and overlock system.

The company also opened a new location in Raleigh, N.C., in March. The five-story property is in the historic Five Points neighborhood, a cluster of suburban developments that were built in the early 1920s. It’s managed by CubeSmart, a self-storage real estate investment trust and management company.

In addition, 10 Federal announced that an 8 percent annualized distribution was given to its investors for the first quarter of 2018.

Founded in 2010 and based in Raleigh, N.C., 10 Federal is a diversified real estate company that also operates multi-family properties. Integrating technology into its operation is a core tenet of the business, according to the company website.

Source:
PR Newswire, 10 Federal Closes on 6th Acquisition, Admits Additional Equity Funds & Announces Distribution

Three California self-storage operators have been sued in separate lawsuits in the last two weeks for alleged violations of the Americans With Disabilities Act (ADA). The suits were filed in the Central District of California by the same plaintiff and law firm, who are considered “frequent fliers in ADA litigation,” officials of the national Self Storage Association (SSA) wrote in a May 14 e-mail newsletter to members. The complaints allege the operators violated ADA regulations in their management offices and parking lots.

“Operators in California and elsewhere are reminded to review items such as proper designation of parking spaces for the disabled, the route from the parking space to the office, the grade of the wheelchair ramp, and the height of the office counter,” SSA officials wrote. “Resolution of any items that are not in compliance is inexpensive compared to the cost of litigation.”

The SSA didn’t identify the plaintiff or law firm. At least 18 ADA cases involving self-storage operators have been filed nationwide since 2004, according to Justia, a website that tracks dockets and case filings across federal appellate and district courts.

Enacted in 1990, the ADA is a civil-rights law that prohibits discrimination against individuals with disabilities anywhere the general public has access. Many of the lawsuits against self-storage operators have been related to the public-accommodations provision, which requires facility-management offices, as well as some parking spaces and units, be accessible to anyone with a disability, including those in wheelchairs.

ADA compliance also extends to website accessibility. Lawsuits related to website infractions grew 16 percent last year, and litigation is expected to increase in frequency this year, according to law firm Seyfarth Shaw LLP.

Sources:
The Monday Morning Globe 5/14/18, Lawsuits Remind Storage Operators of Need for ADA Compliance
Justia, ADA Cases Involving Self-Storage
Inside Self-Storage, Everything Self-Storage Operators Need to Know About the Americans With Disabilities Act
Inside Self-Storage, Building a Self-Storage Website That Complies With the Americans With Disabilities Act

Commercial real estate company Colliers International Group Inc. has agreed to acquire a 75 percent stake in Harrison Street Real Estate Capital LLC (HSRE), an investment-management firm that has extensive interests in “needs-based” real estate, including self-storage. The $450 million deal is expected to close during the third quarter, according to a press release.

Under the agreement, HSRE senior management will retain 25 percent equity and continue to oversee day-to-day operation. Christopher Merrill, co-founder and CEO of HSRE, will serve as CEO and remain the firm’s largest individual shareholder. No changes to the company name were announced.

HSRE’s interests are primarily in the education, healthcare and self-storage sectors, with approximately $14.6 billion in assets under management. Colliers officials expect HSRE management-fee revenue to contribute up to $115 million annually, the release stated.

“The investment in Harrison Street is transformational and the most significant in our history,” said Jay Hennick, chairman and CEO of Colliers. “The transaction establishes us as one of the major players in global real estate investment management, providing an important new growth platform that also facilitates the integration of our existing operations in Europe.”

HSRE was actively seeking an outside investment partner to assist in its global strategy. “Colliers provides long-term stability and increased alignment among our team and limited partners. The relationship strengthens our global capability and offers unique market knowledge and deep relationships with owners and occupiers of real estate around the world,” Merrill said. “Colliers’ entrepreneurial culture, decentralized management style, significant insider ownership and proven investment record was another significant difference. On behalf of our entire team, we look forward to leveraging these advantages for the benefit of our partners, employees and investors, while further differentiating Harrison Street in the future.”

Headquartered in Chicago with an office in London, HSRE manages assets through commingled funds and public securities products. The funds focus exclusively on the education, healthcare and self-storage segmentsAffiliate Harrison Street Securities LLC manages publicly traded real estate securities on behalf of institutional clients and high-net-worth individuals.

Colliers is a global commercial real estate services firm employing more than 12,000 professionals in 69 countries. The company offers a variety of services for investors, business owners and developers. These include consulting, market research, real estate intermediation for sale and rent, project management, property management, and valuation.

Colliers International Valuation and Advisory Services LLC is a partner with Inside Self-Storage (ISS), offering custom data reports based on expenses and cap-rate analysis. The reports are created on demand using comparable data to a specific U.S. address supplied by the customer. They are available for purchase through the ISS Store, an e-commerce website providing research and education products for industry professionals.

Sources:

Colliers International, Colliers International to Make Transformational Strategic Investment in Harrison Street Real Estate

REBusiness Online, Colliers to Acquire 75 Percent Stake in Harrison Street for $450M

Update 5/15/18 – Absolute Storage Management (ASM), a self-storage owner and property-management firm, announced operating results for the first quarter of 2018. The company increased same-store revenue by 6.3 percent and same-store rent per occupied unit by 2.8 percent compared to the same period last year. Occupancy at its 65 same-store pool increased by 1.7 percent as of March 31, according to a press release.

ASM gained eight management contracts during the quarter. The facilities are Bonaire Mini Storage in Bonaire, Ga.; Chestnut Self Storage in Doraville, Ga.; East Hickman Self Storage in Lyles, Tenn.; Murrayville Self Storage in Murrayville, Tenn.; North Lanier Boat & RV Storage in Cumming, Ga.; Reedy River Storage in Greenville, S.C.; The Second Attic Mini Storage in St. Louis; and Twin City Self Storage in Normal, Ill.

“We are extremely excited and pleased with our same-store revenue growth for the first quarter. This growth comes on the heels of an outstanding 2017 in which we saw same-store revenues grow 5.8 percent; and I believe it speaks volumes for our company’s ability to respond to increased competition and maximize results in each of our local property trade areas,” said Scott Beatty, chief financial officer. “Our second quarter has started strong as well and we look forward to a productive peak summer rental season.”

Founded in 2002, ASM operates 105 properties in 13 states. Headquartered in Memphis, Tenn., it has regional offices in Atlanta; Charlotte, N.C.; Jackson, Miss.; and Nashville, Tenn.

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5/9/18 – Sentry Self Storage Management, an industry management and consulting firm, has released its first-quarter 2018 operating results showing year-over-year improvement in revenue, net operating income (NOI) and occupancy. The company reported revenue growth of 5 percent and a 1.9 percent increase in property expenses, which resulted in a 7.2 percent increase in NOI compared to the same period in 2017.

Occupancy at Sentry-operated self-storage properties was 90.5 percent as of March 31, a year-over-year increase of 20 basis points, according to a press release.

The company is expanding two properties in Lakeland and Tampa, Fla., which are expected to be complete during the fourth quarter. A third expansion project in Grayson, Ga., finished on May 1. The firm opened a new site in Deerfield Beach, Fla., earlier this year, and is expected to open another property in Hollywood, Fla., during the first quarter of 2019.

Based in Coral Springs, Fla., and founded in 1997, Sentry owns or manages 27 properties comprising more than 2.3 million net rentable square feet. The company’s services include consulting, development, feasibility studies, acquisitions, renovations and facility management.

When National Self Storage (NSS) opens its newest property in Marana, Ariz., this spring, it’ll include many of the features expected of a modern facility. The multi-story building in Dove Mountain, a master-planned community about 40 minutes north of Tucson, will include climate-controlled units, security measures and covered loading. It’ll even honor the history of the area with a 45-foot stone tower inspired by the nearby golf club and signage like the historic Fox Theater in town.

The front office, however, is where the site will deviate from industry tradition. Rather than the standard service counter found in thousands of storage facilities worldwide, this property will offer three rental stations with a tenant interface (TI) to offer customers as little or as much help as they desire in completing a move-in, making a payment or otherwise interacting with the business. The stations will include 24-inch touchscreen monitors that, much like the kiosks found in grocery-store self-checkout aisles, will guide users through the transaction with prompts.

“The rental stations will also have features that give the managers more tools to complete the sale, including interactive facility maps, unit-size-guide videos and live competitor pricing,” says Travis Morrow, president of the self-storage division of Strat Property Management Inc., the management firm that oversees the NSS portfolio.

This shift in office design is about more than streamlining the rental process and creating a paperless environment. It’s intended to mirror similar experiences customers have at the bank and retail stores, and when shopping online. “We pay close attention to customer experience, and creating a system that keeps current with modern consumer experiences is important to us,” Morrow says.

The self-storage industry has sometimes been “painfully slow” in adopting new technology; but the customer base is demanding that it wake up and pay attention. Tech-addicted generations of consumers are leading the charge for more self-serve options at faster speeds. “Technology creates efficiencies and conveniences that consumers come to expect from the business they transact with, and we need to continue to live up to that expectation,” Morrow says.

These days, more and more self-storage operators are offering online reservations and billpay, and many have added self-serve kiosks, allowing the facility to be “open” around the clock. But these innovations are just a fraction of the tech-based opportunities available to benefit facility staff and their tenants. Let’s explore some others.

Automation in Use

One area of technology in which the storage industry has lagged is automation. “Nearly every sales experience I can think of, I can do without interfacing with a person—whether that’s getting a car wash or cash, renting an airplane seat or hotel room, or buying nearly any physical product out there. Yet, most self-storage facilities still can’t rent you a unit without a person being involved,” says Brad Minsley, co-founder of 10 Federal Cos., which operates 10 unmanned facilities in North Carolina.

The company categorizes its technology offerings into three areas: sales, operation and remote monitoring. The sales category includes its leasing-capable website, kiosks and a call center. Remote monitoring relates to security measures as well as maintenance components such as the HVAC system. 10 Federal has also developed an overlock-release system that allows tenants to remove an overlock upon making a payment. Now the company is working on a 360 virtual-reality rover to conduct walk-throughs, and seeking ways to modify the construction process on future projects with technology.

10 Federal has even introduced a new system to sell merchandise. Rather than offering a large vending machine or locker system, it has created a static display of moving and packing products with UPC codes customers scan with their Amazon app. “Then decide if they want the items delivered to them in two hours, two days or whatever speed they need,” Minsley says.

Automating its facilities has not only reduced 10 Federal’s staffing expenses, the company is providing a better customer experience. “We can service the customer 24/7, whether that’s leasing a unit, taking a payment or removing an overlock,” Minsley says. “And if the customer does want to talk to someone, our call center is available 91 hours a week, which exceeds your typical operator's availability.”

Although the new NSS facility will only be partially unmanned, its TI menu allows users to rent a unit, make a payment, view a facility map and even peruse a competition survey. Using a customer workflow designed by StoreLocal, a co-op owned by independent storage operators, the interface will guide the customer through a transaction from start to finish. In addition to the touchscreen, the device will include a driver’s license scanner to import the tenant’s information and photo into the site’s management software. It’ll also have a credit card scanner to process payments.

“The TI is not only for the tenants to interact, but it’s also designed as a sales tool for the manager, which is where the facility map and competition survey come into play,” says Morrow, adding that the new Marana site will be used as a beta test. If proven successful, the system will be rolled out to other stores in the NSS portfolio.

Another operator that relies heavily on technology to run its sites is Storage Express. In addition to offering online rentals and a call center, many of its 93 properties have 24-hour rental centers that can process the move-in and dispense a lock. “It’s been our operating model since we started into our industry. We think we do it really well!” says marketing manager Janna Jackson.

Staff Impact

Some managers might fear all this automation will leave them jobless, but that’s simply not the case. “The manager is still critical in this consumer experience. Customer service is a core value of ours, and the intent of this system was never to reduce payroll; but it will free up the manager to focus more on sales. We’ve got 600 units to rent still,” Morrow says.

Not only will managers have more time for sales and other responsibilities, automation allows them to interact with a larger base of current and potential customers. “Many tasks that are in day-to-day operation are repetitive in nature and are being replaced and enhanced with systems,” says Phil Murphy, president of Next Door Self Storage, which uses an assortment of tech-based products and services at its 14 facilities in Illinois.

For example, operators who once called past-due tenants to request a payment can now send messages during a set time and to a greater number of recipients. These systems, including text messaging, allows operators to communicate with customers on other matters as well, such as holiday closures, facility specials and referrals.

Providing information quickly to a broader audience is vital for operators looking to connect with younger generations. “Millennials communicate differently from Baby Boomers,” Jackson notes. “They’re more apt to text and don’t leave voicemail messages, let alone listen to them.”

Murphy likens this communication shift to the “have it your way” slogan from fast-food giant Burger King. “Customers want to interact with businesses the way they choose, not the way you choose,” he says. “If they can’t interact with you that way, they’ll choose somewhere they can.”

In the Cloud

One area in which the self-storage industry has kept pace with evolving technology is management software. Today’s programs go well beyond tracking units and processing payments. They can oversee a site’s revenue-management plan, provide reports operators can use to analyze marketing campaigns and facility performance, and integrate with other programs to automate and enhance a facility’s security and management system.

“Software companies are frantically keeping up with the industry needs for data in many different varieties,” says Rodney Vernon, vice president of business development for DOMICO, a provider of standalone and Web-based management software to the self-storage industry.

One aspect in which software has especially excelled is cloud technology. Most industry programs now offer some form of cloud computing, and more operators are tapping into to its power. “Software that is accessible on any mobile, tablet or desktop device, and on any browser, allows owners to manage their facility from any device, anywhere, at any time,” says Toni Colasso, national sales manager for the U-Haul Self Storage Affiliate Network, which offers a Web-based management software for storage operations.

The cloud also allows multiple-site information to be used together or in comparison. “You can have multiple sites on the screen side-by-side so you can tell which ones are doing things the way you want and which ones need improvement,” says Kevin Taylor, president of Space Control Systems Inc., another supplier of self-storage software.

Web-based software that’s integrated with a mobile-friendly website to support online rentals is a must in today’s competitive storage markets, says Jimmy Sorenson, co-founder of Easy Storage Solutions, an industry provider of software and other technology. “Consumers are always on their phone, and they are constantly finding what they need by searching through their Web browser,” he says, stressing the importance of text messaging as a communication platform. “Your management software should have a way to e-mail and text-message notices to tenants.”

To get the most from your software, regardless of platform, it helps to be familiar with all its features. “Operators can get the best results for their existing software by fully understanding what their software has to offer,” Colasso says. “They should always be aware of the features made available to them and how to use them to their advantage. Every software has something to offer; it’s just about understanding and utilizing what you have.”

A good way to stay informed about new features and updates is to contact your vendor every year, Taylor advises. “Most companies send out newsletters telling customers about the new additions, but if you’re like me and receive countless e-mails every day, you may miss something important. It never hurts to check in with your vendor and talk to them about the best way to take advantage of their software.”

Operators who are opening a new facility or considering a software change need to think about the user experience of onsite management and tenants. The product should interface smoothly with other programs, be easy to use with intuitiveness of flow, and provide accurate data, Vernon says.

Mobile Apps

While there are apps for everything from online banking and shopping to social media and gaming, few have specifically targeted the self-storage operator or user until recently. At the forefront are apps designed to secure rentals and give customers easy access to the facility. The driving force behind these advances is, of course, consumer demand.

“As Millennials are starting to become a larger percentage of tenants using self-storage, they want to interact with operators using technology, specifically smartphones and apps or responsive mobile websites. They expect to be able to accomplish most if not all of the rental and ongoing interaction via their smartphones,” says Terry Bagley, vice president of business development for Janus International Group LLC, a manufacturer of roll-up doors and building components that also provides the SecurGuard smart-lock system.

Multi-site operators like AAAA Self Storage & Moving, Mini U Storage and YourSpace Storage are keeping pace with this demand by offering a mobile app that operates similarly to other mainstream platforms, providing tenants with options to rent a unit, pay their bill, and even gain access to the main entrance gate or buildings from the convenience of a smartphone. Tenants can also view their access history, and even be notified of alarms and access activity.

Operators who employ mobile apps will also enjoy improved marketing. “The entire population checks their phones on average once every 12 minutes, and that is a conservative statistic,” says Aaron Harwell, owner of SpiderDoor. “The chances of that consumer seeing your app’s logo on a regular basis is present, and it is wonderful for your business.”

Robotics

Although it may seem futuristic, there is at least one robot making its way into the self-storage industry. Keylo, a service robot designed by French engineering company Wyca SAS, allows facility operators to interact with customers autonomously or remotely. And while a U.S.-based operator has yet to incorporate the machine into daily operation, Keylo boasts several users in Europe, including Bluespace, an operator with 30 sites in Spain; Kingbox in Toulouse, France; and Zebrabox, which has eight facilities in Switzerland.

Much like a self-service kiosk, Keylo is designed to assist customers through the rental process, but with one big difference—it’s on wheels. This enables the machine to offer a facility tour or just lead a customer to a unit. “According to Google, 74 percent of clients want to see the unit in person before leasing it,” says Wyca co-founder Matthieu Besozzi. “By using a robot, clients visit the facility, discuss it with the manager, digitally sign the lease agreement and retrieve a lock.”

Keylo can also connect customers via its screen with a live counselor to answer questions. Consumers are already becoming more comfortable using two-way screens on smartphones and via Skype when communicating with others. “Their life has dramatically changed over the last 10 years, and they expect these great technologies to make part of any service, self-storage included,” says Besozzi, who predicts kiosks and robots will work collaboratively in the future.

Wyca signed an exclusive distribution agreement last year with OpenTech Alliance Inc., a provider of self-storage kiosks, call-center services and other technology. “The kiosk will receive the client outside the facility and the remote agent will switch to the robot once the client is inside the property,” Besozzi says of the partnership.

Getting Started

If all this new tech is making your head spin, you’re not alone. One reason many operators shy from adding new technology is because the options are mind-boggling. Those who’ve already paved the path recommend starting with the basics. All storage businesses should have management software, and a mobile-friendly website that can take payments and reservations.

“At this point, customers should be able to rent a unit from you without walking into your office. That means they access your website, select a unit, sign up for insurance, sign a legal lease, make a payment and get a gate code. All of that should happen smoothly from their cell phone,” Morrow says.

From there, you can consider adding a kiosk, access-control app, electronic locks, call center or even a vending machine to automate at least some aspects of the operation. “Talk to other operators who are using technology and see what’s working well for them and what isn't,” Minsley suggests.

Before adding new gadgets and gizmos, you need to make sure they make sense for your business. “It’s easy to get caught up in fancy new trends. If you think something is cool and flashy but forget to look at the real-life implications, you may be trying to push something on your tenants that they may not be ready for,” Sorenson says. “Self-storage shouldn’t be complicated. The key is to provide enough technology to keep up with demand but not to overwhelm tenants with flashy tools that don't provide a lot of extra value.”

And while the price tag to implement new technology should always be a factor, it shouldn’t be the sole one. Although these new tools and services are less costly than in year’s past, there will still be upfront expenses, meaning operators need to weigh the pros and cons. “All of the current technologies offer some form of return on investment, cost savings or increased level of security,” says Dave Brown, general manager at 2D Electronics, a provider of access-control and security products. “Each operator needs to determine which of those technologies best suit their business requirements.”

For those nervous about making the commitment to new technology, Besozzi offers this advice: Don’t be afraid. “Technology, when it’s well-implemented and when people are correctly trained, is the path to growth. Due to the increasing competition in self-storage, investing in technology is crucial to keep your costs low and to differentiate yourself from competitors.”

Updated 5/14/18 – Public Storage announced the winner of its “Things She Saved” video contest. Thiago, a brand “fan” from El Paso, Texas, won the grand prize of $5,000 for sharing a tribute to his mother, who taught him to love travel.

In his video, Thiago presents a box containing keepsakes from his mom’s journeys, such as a globe, maps, her camera and a toy sailboat he owned was a child. The entry, which garnered more than 1,400 views, is interspersed with travel photos and video of Thiago and his family.

Public Storage received dozens of entries from employees, customers and fans. The other finalists included an employee and her daughter who talked about saving baby mementos, and another fan and his roommates who performed a song tribute to their mothers.

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4/9/18 – Public Storage Inc., a self-storage real estate investment trust, has launched a “Things She Saved” video contest in anticipation of Mother’s Day. The company is offering videographers the chance to win a grand prize of $5,000 for sharing stories about family heirlooms that illicit good memories of time spent with their mother figures. Participants are asked to describe why their moms, or a special person who mothered them, are the best and what they love about their family treasures, according to a press release.

Entries are required to be less than two minutes long and contain original content, including music. They must be uploaded to the “Things She Saved” section of the company’s Facebook page or through its mobile-friendly contest page by end of day on April 30. Public Storage will announce the finalists and post their videos to its YouTube channel on May 4. The videos with the most views by 9 a.m. PDT on May 10 will win, the release stated.

Earlier this month, Public Storage announced the winner of its “What a Joke!” video contest in celebration of April Fools’ Day. Michael, a brand “fan” from Weston, Fla., won the grand prize of $5,000 for attempting to pull a prank on a friend.

Based in Glendale, Calif., Public Storage has interests in 2,386 self-storage facilities in 38 states, with approximately 156 million net rentable square feet. Operating under the Shurgard brand name, the company also has 220 facilities in seven European countries, with approximately 12 million net rentable square feet.

Sources:
Public Storage, Public Storage Launches ‘Things She Saved’ Video Contest
Business Wire, Public Storage Announces Mother’s Day Video Contest Winner

The Lackland Family has converted a former manufacturing plant to self-storage in Plainfield, N.J. The 850-unit facility at 639 South Ave. includes climate control, door alarms, and a retail store that sells moving and packing supplies. It has been branded and will be managed by Access Self Storage, which owns and manages 19 facilities on the East Coast.

Built in 1908, the building formerly housed Rushmore Dynamo Works, which made generators. The city took possession of the site following a municipal lien, and was later purchased by the Lacklands, the source reported.

A May 11 ribbon-cutting ceremony was attended by Access staff and city officials. Mayor Adrian O. Mapp kicked off the ceremony with a moment of silence for Fred Lackland, who died last year and had a long history in Plainfield. The event also included property tours by Manny Zamora, senior operations manager for Access.

Fred Lackland and his twin brother, David, established Lackland Self Storage in 1977 in Piscataway, N.J. It’s unclear how many total storage facilities the Lackland Family now owns.

Founded in 1976 by Foy and Ken Cooley, Access is family-owned and -operated. It owns and manages facilities in Connecticut, New Jersey, New York and Pennsylvania.

Source:
Tap Into Plainfield, Access Self Storage Opens in Plainfield

The Self Storage Association of the United Kingdom (SSA-UK) and global real estate advisor Cushman & Wakefield have released results from the association’s 12th annual survey of industry operators, providing data on average rents, occupancy, facility types and other performance indicators. A demand study was also commissioned from YouGov for the fifth consecutive year to measure the level of consumer awareness and perceptions of the U.K. self-storage industry.

There are an estimated 1,505 self-storage facilities in the U.K., about 345 of which offer space predominantly through the use of shipping containers rather than dedicated metal buildings, according to the report. Survey responses were received from 72 companies operating 482 locations. It isn’t clear how many of those sites are container-based.

Occupancy rose 3 percent year over year, increasing to 76.1 percent, though the amount of space rented grew 8.8 percent. The growth in rented space was partially attributed to the addition of 2.4 million square feet of new leasable space. Though more than 70 new storage facilities opened in 2017, about 20 percent of new rentable space was added by expanding existing locations. There is now .67 square feet of storage space per capita nationwide.

Total industry revenue in 2017 was estimated at £750 million, with the average rental rate per square foot rising to £23.08. Growth in occupancy and revenue indicates consumer demand is outpacing supply, according to the study. The U.K. represents 48 percent of the European self-storage market.

Despite growing demand, just 46 percent of consumers have a “good awareness” of self-storage services, according to the report. Of those surveyed, 17.7 percent indicated they had never heard of the product, while 36.7 percent said they had heard of it but knew nothing about it. More than 60 percent of consumers couldn’t name a self-storage operator in their local area, and just 32 percent were aware that only tenants have access to their individual storage unit.

The 72-page survey report is available as a free PDF download from the SSA-UK website.

Founded in 1917, Cushman & Wakefield offers a complete range of services for all property types including consulting and appraisal, corporate services, debt and equity financing, investment banking, leasing, and sales and acquisitions. Its Self Storage Practice Group is dedicated to the asset class. The group offers consulting, data services, feasibility, investment advisory and valuation in major markets.

The SSA-UK is the trade association for the self-storage industry in the United Kingdom. Its mission is to support member operators and vendors, promote best business practices, and raise public awareness.

Source:
SSA-UK, Annual Industry Survey

Our company thrives on challenge. As we add to our self-storage portfolio throughout the United States, 1784 Capital Holdings LLC intentionally focuses on markets where the barriers to entry are high. We look for communities that mirror our design standards, and our team willingly works through complicated entitlement issues to further our mission of creating exceptional self-storage in targeted markets.

Take, for example, the recent approval and groundbreaking of Steam Pump Self Storage in Oro Valley, Ariz., near Tucson. The city’s thoughtful development policies and its dedication to community integrity fit perfectly with our objectives.

We first identified the site in 2016 after our feasibility study indicated a significant unmet demand for self-storage services in this growing, affluent area. The parcel is part of a neighborhood retail center developed by Evergreen Development and Diamond Ventures, located within the master-planned community of Steam Pump Ranch. Created in 2006, Steam Pump Village is a 40-acre development that includes a bank, hotel, convenience store and even a charter school. Because of the traffic and parking issues that come with tenants like these, the site we chose (directly behind a QuikTrip) was difficult for the land owner to sell.

As we moved forward with the purchase, our biggest obstacle soon became clear: The Planned Area Development (PAD) document specifically prohibited mini-storage within the community. Knowing the prevailing image of storage facilities is that of industrial, single-story, metal buildings, our team, led by executive vice president of real estate Kelly McKone, set out to educate the Oro Valley municipal team and potential neighbors about this class-A, state-of-the-art project.

Our approach embraces honesty and cooperation with all parties involved in prospective sites. To that end, we worked closely with our zoning attorney, Keri Lazarus Silvyn, and the municipality’s knowledgeable team of experts—a group of public professionals who embraced the idea of creating a project that complements the neighborhood while serving an unmet need in the community.

Design Flexibility and Excellence

Our goal is to have people enter our facilities and be surprised by how much they exceed expectations in terms of quality, cleanliness and amenities. The Steam Pump property more than meets that objective, with a building that fits seamlessly into its surroundings, calling to mind an upscale office building or multi-story retail project.

The design, overseen by RKAA Architects Inc. of Phoenix, is completely customized to the site. During our neighborhood meetings and conferences with planning officials, our team was careful to listen to any concerns and suggestions offered. While we like to work with a standard core design, we accommodated a wide range of changes to meet some very specific community needs.

For example, the project is adjacent to the River Path recreation trail, and residents using that trail didn’t want their views obstructed by a commercial project. Because the path is slightly elevated, we designed extra landscaping and a screen wall to buffer the trail from the rear of our building. The property will have no exterior storage, and the loading area will be restricted to the rear of the building, out of sight.

The Holiday Inn Express next door was concerned that any lighted signage would create a disturbance to hotel guests, so we agreed to post signs only on the east side of our building, facing Oracle Road, a major thoroughfare. McKone was able to get approval for a mixed-use structure, and we integrated 3,800 square feet of ground-floor retail and our operational office into the design.

In addition to these accommodations, our architect creatively addressed the neighbors’ façade concerns by designing a building without any flat exteriors. Instead, it features specially designed inlets, windows and faux windows that mimic an office structure. The roof line is pitched, and a shaded walkway will be constructed around the entire building. The design of the entire exterior blends seamlessly into the Steam Pump Ranch community, featuring a Southwestern ambience with colors that blend with the surrounding structures.

A Community Partner

After working with stakeholders for nearly a year, our plan was unanimously approved by the planning and zoning committee and the city council. But our work certainly doesn’t stop there. We remain true to our commitment as a community partner, serving the existing need for self-storage while developing a facility that will complement its environs.

Customers will experience the renaissance of our industry, enjoying a special play zone for children, a refreshment area with drinks and snacks, and even a conference room for their use. The floors will sparkle with a unique diamond-polish finish, and the management staff—provided by self-storage real estate investment trust and property-management firm Life Storage Inc.—will provide unsurpassed customer service. We broke ground on the project in February, and construction is being overseen by Tarik Williams of TLW Construction Inc.

Steam Pump is just one example of our commitment to bringing class-A self-storage to markets with high barriers to entry throughout the United States. Our portfolio includes properties along the East Coast, from Long Island, N.Y., to Washington, D.C., to sites throughout California and the most affluent markets of Arizona. We have no geographic limitations.

Under McKone’s guidance, we’re willing to pursue an extended zoning and entitlement process to develop value and opportunities in these municipalities. With more than $250 million in capital already committed to our ongoing projects, we’re poised to double that pledge during the next 18 months as we continue moving self-storage toward its state-of-the-art future.

Shane C. Albers is the founder, CEO and manager of 1784 Capital Holdings LLC, which develops, builds, leases, owns and ultimately sells self-storage facilities. Albers allocates capital for the company and strategically oversees the investment activities of acquisition, development and disposition. He’s led the company’s self-storage portfolio growth as well as that of its subsidiary, 1784 Solar LLC. For more information, visit www.1784capitalholdings.com. 

The education DVDs recorded during the 2018 Inside Self-Storage World Expo in Las Vegas, April 3-6, are available in the Inside Self-Storage Store. Choose from 45 individual seminars and nine discount packages covering self-storage building, investing, management, marketing, ownership and technology.

Discount packages offer tremendous savings off individual DVD pricing and are a convenient way to obtain educational material most pertinent to you. All six concurrent education tracks offered during the event were recorded in their entirety. Each session is available as an individual DVD, while each complete track is offered as a DVD set. Three larger bundled packages offer the most savings off the cost of individual DVDs.

Fulfillment of DVD pre-orders are expected to be complete by June 22. All 45 individual sessions will also be offered as on-demand video toward the end of June. Visit the ISS Store for full product details.