Real estate developer Brooks Lumpkin of Lumpkin Development is facing opposition to build a five-story self-storage facility on a former McDonald’s site in Birmingham, Ala. Lumpkin’s variance request for shorter setbacks on the property along 20th Avenue S. and Richard Arrington Jr. Boulevard was denied by the zoning board last week, as was his appeal for a reduction of the landscape buffer between the property and the residential neighborhood behind it, according to the source.

The variance would have allowed an expansion of the building footprint so Lumpkin could build a five-story, 50-foot-high facility rather than a seven-story, 75-foot-high facility, according to John Pickering, an attorney with Balch & Bingham LLP, who represented Lumpkin during the July 13 meeting. The proposal calls for a 75,408-square-foot building and 10 parking spaces. The city’s planning and zoning staff recommended the board deny the variance, noting the developer's hardship was self-imposed and not due to constraints of the property, the source reported.

Residents from the adjacent Redmont Neighborhood also opposed the development. Resident Don Long called the building too large for the site, while Bill Mudd said self-storage wasn’t appropriate for the lot, which is near the Vulcan Park & Museum, home to a 56-foot-tall cast-iron statue that’s considered a symbol of the city.

Self-storage is an allowed use for the property under the current zoning. The maximum building height is 75 feet, the source reported.

It’s unclear if Lumpkin, who has the property under contract with McDonald’s Corp., will move forward with the project, the source reported. The sale is expected to close in less than two weeks.

The Jefferson County Property Assessor most recently valued the property at $945,840, which includes $572,540 for the land, the source reported.

Lumpkin Development owns more than 2 million square feet of commercial space in Atlanta and Central Alabama.

 

National Self Storage (NSS) recently broke ground on a new property in Marana, Ariz. The development will be the first multi-story, climate-controlled storage facility in Dove Mountain, a master-planned community about 40 minutes from Tucson, according to a press release. Expected to open in March, it’ll comprise 63,000 rentable square feet of space in 637 indoor units. Amenities will include electronic access, covered loading, free use of a moving truck and video surveillance.

The facility’s design will reflect the history of the area, the release stated. Features will include a 45-foot stone tower inspired by the Kiva Room at the Golf Club at Dove Mountain and a 28-foot blade sign similar to that of the historic Fox Theater in Tucson.

“This is a nice neighborhood, and we want to build a facility to match. This is a very underserved market, so we’re excited to get this development going,” said Travis Morrow, president. “I actually live about 400 yards from the site, so I should be able to see my house from the third floor when it’s finished.”

The facility’s front office will deviate from industry tradition by lacking a service counter. Instead, the facility will employ rental stations with handheld tablet kiosks. “These rental stations and tablets will allow the renter to have as much or as little contact with the manager as they please,” Morrow said. “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.”

Earlier this month, it was announced that Morrow will continue to oversee National’s portfolio of storage facilities, even though he’s also been hired as president of the self-storage division for Strat Property Management, a third-party management firm and facility operator. His new position takes effect Aug. 1.  

Based in Tucson, Ariz., National Self Storage has developed, owned and operated self-storage facilities for more than 40 years. It currently operates 11 properties in Arizona, California, New Mexico, Texas and Utah.

Strat owns or operates 54 facilities in California and Texas. It also manages apartments, condos and townhouses.

 

 

Update 7/20/17 – The 41st Ward's Zoning Advisory Committee unanimously approved Lunn’s self-storage plan for Northwest Highway this week. The developer intends to build an 88,000-square-foot storage facility that will feature climate-controlled units and a drive-through loading dock. The project still requires city-council approval for the zoning change, which will likely be reviewed in September. If approved, construction could begin next spring, Lunn told the committee.

Lunn presented revised renderings of the facility design during Wednesday’s meeting. The new drawings show layered masonry with several windows facing Northwest Highway. "We got some comments that that first design was just a little too contemporary for the location," Lunn told the committee. "It's always difficult to design a building as a group, but I took everyone's comments to the architect, and we ended up making it look more like a first-generation storage facility."

Lunn also shared a chart indicating the structure’s 33-foot height is in line with neighboring buildings. The developer said he’s also willing to sign a restriction to cap any further building at 37 feet.

"It really does fit in with the massing and scaling of other buildings in both directions," committee chair Mike Emerson said during the meeting. "And the setback provides some relief and walking space that isn't there now."

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6/9/17 – Developer Jonathan Lunn is seeking zoning approval to raze a vacant industrial complex in the Edison Park area of Chicago and build a three-story self-storage facility in its place. Lunn presented the plan on Wednesday to Anthony Napolitano, an alderman with the 41st Ward's Zoning Advisory Committee. Most alderman approve zoning changes at their own discretion; however, Napolitano defers to an 11-member committee made up of representatives from various community groups in the ward, according to the source.

The building at 6250 N. Northwest Highway is in the Norwood Park Commercial District. If the zoning isn’t approved, Lunn said he’ll likely build a two-story warehouse behind the existing structure.

The plans call for a 33-foot-tall building with a single entrance that would include 800 units and 30 video cameras for security. Lunn predicts the site would receive about 25 visitors per day. “Pretty much the lowest on the traffic scale out of any kind of business," he said. Lunn also noted a feasibility study showed the area has only one storage facility within two miles of the site.

A 25-foot setback from the street would leave room for landscaping. "I think the setback really does help as a buffer, and as the rest of Northwest Highway starts to develop, I think that'll be advantageous," said Marc Pelini, who represents the Norwood Park Historical Society on the committee. "There should be a happy medium here, when we're talking about getting rid of an old, antiquated building that probably shouldn't even be there in the first place."

During the meeting, some neighbors expressed concern about the facility’s height and design, which was shown in a preliminary rendering. "People like changes in the neighborhood up to a certain point. But if you're going to be building higher and higher, then we've got a problem," said resident Sande Ford. "You've got to make sure that you're setting a clear precedent for new buildings that get proposed."

The building’s design will “completely change” before the committee meets to discuss the project again in July, according to Chris Michalek, an architect with Sullivan, Goulette & Wilson Ltd., the Chicago-based firm designing the project.

"It's a nice proposal, but people are clearly looking for them to make some changes, to make the building a bit more decorative," said Chris Vittorio, Napolitano’s chief of staff. "But [Lunn] doesn't necessarily need this zoning change to start building, so hopefully we can make some trade-offs and meet them halfway."

 

Update 7/20/17 – The mixed-use self-storage project approved for Cardinal Development and Sanderson could be in jeopardy now that Costa Mesa’s voter-approved growth initiative, Measure Y, has gone into effect. Sanderson filed a lawsuit on July 11 in Orange County Superior Court arguing the self-storage project should be grandfathered under previous requirements because it was passed by the city council before voters approved Measure Y on Nov. 8, according to the source.

Because the Bristol Street project required rezoning and includes more than 10,000 square feet of additional commercial space, it falls within the new parameters for public approval established by Measure Y, the source reported. The legal question for the city and developers is whether the council’s earlier decision takes precedent over the new growth control.

In its lawsuit, Sanderson maintains Measure Y didn’t take effect until Dec. 23, after the city council certified vote totals, which was after the developers received final approvals for the self-storage project. Wording in the measure, however, indicates the new initiative should take precedent “on or after the date of publication of the notice of intention to circulate the initiative petition,” which was July 17, 2015, according to a city report.

Sanderson worked with the city for more than a year and spent in excess of $700,000 to obtain necessary approvals, according to the lawsuit, which indicates the project is stalled due to “the legal uncertainty.”

The self-storage project appears to be the only development affected by the retroactive clause in the measure, city spokesperson Tony Dodero told the source.

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11/3/16 – A scaled-down version of the mixed-use self-storage project proposed by Cardinal Development and Sanderson was unanimously approved by the Costa Mesa City Council on Tuesday. With a 5-0 vote, the city approved a revised plan that will develop a 719-unit storage facility and retain 12,500 square-feet of existing retail at the Autoplex, according to the source.

As part of the approval, the developers agreed to work toward installing underground utility poles in front of the property. “We think this project, when compared with what’s there, will not only be a lot better looking, [but] more vibrant, quiet and cleaner,” Freeman told the source. “We think it’s a great outcome for a sight that presents a lot of unique challenges.”

Three business owners spoke in favor of the revised plan during the meeting. George Bean, owner of Sandwich World, indicated Autoplex tenants were encouraged by the new plan after meeting with the developers following the original project’s denial by the planning commission in June. “We had a healthy back and forth,” he said. “I think they were very fair.”

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6/14/16 – Some of the Autoplex businesses that would be forced to relocate if the self-storage project proposed by Cardinal Development and Sanderson is approved are fighting the plan. Several owners met recently to discuss how they could convince Costa Mesa officials to reject the proposal.

Merchants submitted a report to the planning commission arguing the self-storage facility and food court don’t make economic sense, as the Autoplex currently generates more than 60 jobs and about $350,000 in annual tax revenue, the source reported. The planning commission was scheduled to hold a public hearing on Monday.

"It's pretty frustrating to think that we might shut down forever, but we're going to keep on fighting," Olivia Bean, general manager for Sandwich World, told the source. "I know a lot of my customers have been sending e-mails to the planning commission for them to reject the project, and hopefully, they'll succeed."

Multiple business owners told the source they are having difficulty finding suitable locations in Costa Mesa and may be forced to move to nearby municipalities if they want to continue operating. "It's been a good six or seven months of sleepless nights for me trying to figure out what to do," said Dan Krogh, owner of Dan’s Autocare Express, who has operated in the center for about 20 years.

Autoplex tenants were notified of the mixed-use development plan in August. If approved, the project likely wouldn’t break ground until October 2017, giving businesses more than two years to make plans, according to Paul Freeman, a spokesperson for the project. "I feel for anybody that is uprooted in their business or where they live," Freeman told the source. "There are few things in life that are more disruptive."

Although merchants called the project a “short-sighted blunder” in their report to city planners, Freeman believes the facility will meet local demand. “We’re not developing storage or the food hall to lose money,” he told the source. “We think it will be highly successful.”

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6/6/16 – A joint venture between Cardinal Development Co. and Sanderson J. Ray Development has proposed to build a mixed-use complex in Costa Mesa, Calif., that would include self-storage and a freestanding food court. The two-story facility would replace the Autoplex strip mall at 375 Bristol St., comprising 98,800 square feet of storage space in 744 units, a 1,200-square-foot management office, and a 5,000-square-foot food court with multiple vendors, according to the source.

The Costa Mesa Planning Commission is expected to discuss the project during a June 13 public hearing.

The Autoplex mall comprises 37,883 square feet on 3.2 acres but is experiencing leasing problems, the source reported. "The existing mall has struggled for years to maintain tenants as the need for small, independent auto-repair businesses has declined dramatically," the developers argued in their application to the city. "In short, the future of the Autoplex mall appears dim."

Cardinal Development lists the same Bristol Street address as the Autoplex mall for its corporate headquarters. It owns the trademarks for Autoplex and Extra Storage, according to its website.

The developers believe local demand for self-storage will increase due to residential development in the area. "Recent market research shows sufficient demand for self-storage within the surrounding community in light of current multi-family development under construction as well as in the planning stages," according to the application.

The property is also near John Wayne Airport and the Newport Beach Golf Course.

Founded in 1986, Cardinal Development is a privately held asset-management, brokerage and development firm. Recent development projects include Extra Storage self-storage facilities in Costa Mesa and Valencia, Calif., according to its website. The firm identifies six Extra Storage properties on a list of its owned and managed projects.

Sanderson J. Ray Development is a real estate investment company, according to the firm’s LinkedIn page.

Menard Inc., which operates the Menards home-improvement retail chain throughout the Midwest, intends to buy a former supermarket next to one of its existing stores in the Northridge area of Milwaukee and convert it to self-storage. The company is seeking zoning approval to use the 61,700-square-foot building at 8120 W. Brown Deer Road as self-storage, with plans to eventually expand its neighboring retail location into that space, according to the source.

The current Menards facility is 162,300 square feet and is undergoing renovations to the building’s interior as well as adding warehouse space. Since the retailer doesn’t have immediate plans to expand, it would operate the former Pick ‘n Save as self-storage to help pay for ongoing maintenance costs until it needs the space for its retail operation, according to the proposal submitted to the city.

"Menards plans to be in this location for a long time, but in order for us to do this, we need to be able to continuously expand the store," company officials wrote in their proposal.

The city appears to favor the plan as a way to revitalize the area, which has been hit by several business closures, the source reported. The Pick ‘n Save closed in 2014. The nearby Northridge Mall shut down more than a decade ago. Menards opened its current retail location in 2005.

The city’s redevelopment plan for the area includes the addition of “smaller neighborhood-oriented retail businesses,” as well as the conversion of large vacant retail structures to distribution centers and light-industrial uses, according to the source.

The board of zoning appeals is expected to review the Menards proposal on July 27.

Founded in 1958 and based in Eau Claire, Wis., Menard Inc. operates more than 300 Menards home-improvement stores in 14 states, primarily in the Midwest.

Real estate developer Highland Development Ventures LLC has acquired a self-storage facility in West Allis, Wis., a Milwaukee suburb, for $5.5 million. The 49,330-square-foot property at 232 S. Curtis Road was very recently converted from a former warehouse, which was purchased in April 2016 by Wisconsin Storage Group (WSC) for $1.6 million, according to the source.

WSC purchased the warehouse with the intent of making significant renovations to the site, including a new façade, landscaping and drive-in doors with windows, according to Kurt Van Dyke and James Young of real estate firm The Barry Co., which brokered both deals.

“The sales are based on income,” Van Dyke told the source. “It is not dissimilar to when people take a warehouse and turn it into an apartment. They (WSC) completely redeveloped the building, leased it and were able to sell it based on the income they have.”

Highland Development acquired two other properties in Milwaukee in 2015 that were converted to self-storage. The sites were a former warehouse and a movie theater.

Based in Valhalla, N.Y., Highland Development is a real estate development and investment firm with interests throughout Canada and the United States. Its primary focus is the adaptive reuse of older buildings and small urban sites, specializing in self-storage and student-housing projects, according to the company website.

Wisconsin Storage also operates a facility in Saukville, Wis.

Update 7/19/17 – Wando Park Self Storage has been acquired by Strategic Storage Growth Trust Inc. (SSGT), a public, non-traded real estate investment trust (REIT) focused on self-storage acquisition and development, for $5.7 million. The 1.5-acre property comprises 48,000 rentable square feet of storage space. It’ll be managed by REIT Extra Space Storage Inc. and branded under its name.

“This modern self-storage facility is 100 percent climate-controlled and easily accessible to renters via Interstate 526 and other heavily trafficked thoroughfares,” said H. Michael Schwartz, CEO and chairman of SSGT. “The property presents an opportunity to add significant value to the portfolio of Strategic Storage Growth Trust as our professional management team leases up the facility, which is currently 16 percent leased. This acquisition fits our investment strategy, which is to acquire attractive value-add opportunities.”

SSGT focuses on the acquisition, development, redevelopment and lease-up of self-storage properties. Its portfolio currently consists of 20 storage facilities in nine states comprising approximately 1.5 million net rentable square feet in 12,900 storage units. The company is sponsored by SmartStop Asset Management LLC, a diversified real estate company with a managed portfolio of 109 self-storage facilities in Canada and the United States. Its managed properties comprise approximately 7.9 million rentable square feet.

Headquartered in Salt Lake City, Extra Space owns or operates 1,441 self-storage properties in 38 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 980,000 units and 109 million square feet of rentable space.

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12/1/16 – Wando Park Self Storage in Mount Pleasant, S.C., is now open. The property is near apartments, single-family residences and local businesses. The facility includes two elevators and a variety of unit sizes.

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7/19/16 – Wando Park Self Storage at 701 Wando Park Blvd. in Mount Pleasant, S.C., which is currently under construction, has named Grier Lesslie as a third managing partner. Additional partners include longtime local residents John C. Maize Senior and Junior.

Lesslie is a South Carolina native and a graduate of the University of South Carolina, where he majored in sports administration with a concentration in finance and marketing. His career in sales and marketing includes 20 years in various management positions in the healthcare, hospitality and industrial-instrumentation industries, according to the source.

Most recently, Lesslie was the business-development manager for MedTrust Medical Transport LLC, a provider of ambulance services and medical transport in Beaufort, Charleston and Myrtle Beach, S.C. Prior to that, he served as a sales manager for Swagelok, which designs and manufactures fluid-system products.

The 68,000-square-foot, climate-controlled self-storage facility will include 500 units over three stories, and be open daily from 6 a.m. to 10 p.m. It’s next to the Westbrook Brewing Co. and a mile from the intersection of Interstate 526 and Longpoint Road. Slated to open next month, the business is offering customers a special pre-opening rental rate, according to its website.

“We think we will be the perfect neighborhood solution for extra personal and business storage,” Lesslie said. “We actually live in the greater community and consider ourselves the neighborhood option for safe, secure and well-managed extra storage space.”

Update 7/19/17 – A revised remuneration policy for Safestore executives is also in jeopardy of being rejected by shareholders. At least two voting advisory services—Institutional Shareholder Services Inc. and Institutional Voting Information Service (IVIS)—have issued reports criticizing the revised plan for providing excessive compensation, according to the source. Safestore officials are expected to hold a special meeting next week to try to gain support from voters.

"Despite a reduction in quantum as compared to the original proposals, the new framework will nonetheless provide a significant (up to 1.6 percent of the issued share capital) reward opportunity to the executive directors, for which the underlying rationale remains not particularly compelling," Institutional Shareholder Services indicated in its report to clients. "In parallel, there is an increase in annual bonus award opportunity. Altogether, the new remuneration policy will significantly enhance the total potential remuneration package."

IVIS rated the proposal as a “red top,” its strongest warning to shareholders. Its assessment raised concerns to the “structure and scale” of prospective compensation, the source reported.

"We have engaged extensively with shareholders, listened to their concerns and revised our proposed remuneration policy accordingly,” Safestore officials said in a released statement. "The new proposed five-year LTIP is structured to reward success, extending beyond the board to the wider management team. The board believes that the policy is right for the company and for all shareholders to continue the success of the last three years.”

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3/22/17 – After gathering feedback from shareholders, the board of directors for U.K. self-storage operator Safestore Holdings PLC has withdrawn proposals to adopt a new directors’ remuneration policy and replace the company’s existing Long Term Incentive Plan (LTIP). As proposed, CEO Frederic Vecchioli would have received up to 2.5 million shares after five years, worth £9.4 million by current valuation. Nearly 40 other company leaders would also have received pay bonuses, according to the source.

By withdrawing the resolutions, the existing pay policy, as approved by shareholders in 2014, will remain in place until Oct. 31. The company will then seek approval for a new policy, according to a company press release.

"After an extensive consultation process, which resulted in amendments to and tightening of performance conditions, the board had proposed a new and innovative long-term incentive plan. Its central aim was to incentivize and reward a wider group of executive directors and senior management to drive corporate performance over the next five years,” board chair Alan Lewis said.

“While we have received considerable support from shareholders on the proposed structure, it is clear that for others concerns remain. Under these circumstances, the board considers it appropriate to withdraw the remuneration proposals,” Lewis continued. “The board will continue to engage in dialog with shareholders to find a solution that best meets the needs of all."

The board had previously tightened the proposed bonus plan due to pressure from shareholders, the source reported. Other publicly traded firms in the U.K., including defense manufacturer Chemring Group and tobacco company Imperial Brands PLC, have recently scuttled incentive plans due to dissatisfaction among shareholders.

Safestore operates 134 self-storage facilities, including 109 facilities it owns in the U.K. and 25 in France. Its wholly owned properties comprise more than 5.6 million square feet of storage space, while its entire portfolio serves approximately 55,000 customers.

By Anthony Vross

If you’re not being proactive about roof maintenance at your self-storage property, you’re not alone. However, that doesn’t make it right. The run-to-failure model allows facility operators to believe they’re saving money on upkeep, but it’s actually the contrary.

In roofing, if you wait until it’s broke to fix it, you can spend nearly twice as much on repairs and premature replacements than if you stayed ahead of issues. And that’s only taking into consideration roof-related costs. Think of the potential damage to your customers’ goods. Practicing proactive maintenance is proven to be more cost-effective in the long run because it extends the life of the roof and delays the expense of replacement.

Prevent Bigger Problems

Here’s a common scenario: A self-storage manager detects a leak in one of his buildings and dispatches a roofing company to repair it. But he neglects to address anything else on the verge of disrepair until the next leak. Then, another service call is needed and the budget takes another hit.

The numbers speak for themselves. Those who only react to problems as they occur pay an average of 25 cents per square foot annually in roofing expenses. Those who routinely inspect and proactively repair—before leaks occur—spend an average of only 14 cents per square foot annually. Plus, maintained roofs last an average of 21 years compared to an average lifespan of 13 years for roofs under reactive maintenance, according to “Roofing Contractor,” a magazine for roofing professionals.

The longer you extend your roof’s life before succumbing to replacement, the more its life-cycle costs decrease, and the more budget dollars you have to spend on other facility needs. Being disciplined with proactive maintenance will not only prolong the life of your roof, it’ll minimize the leaks and other disruptions that occur when you don’t have an accurate assessment of its condition.

There are now sophisticated diagnostic tools, data-analysis programs and scientifically formulated restoration systems available in the commercial roofing industry. Relying on these to effectively asses a roof’s condition, forecast its remaining life and show cost-saving methods to extend its useful life may reveal that you don’t need that complete tear-off and replacement after all.

Assess the Roof

Proactive roof-asset management includes projecting capital expenses for preventive maintenance, repairs and other services designed to extend the life of the roof. The most critical part of this planning is an accurate, scientific-based measurement of the roof’s life expectancy. Asset management can’t be effective if this calculation is incomplete or incorrect.

The first step is an inspection. The National Roofing Contractors Association recommends that roofs be inspected at least twice per year. Such reviews should be thorough, including a test of roof membranes and core sampling in addition to infrared scans to detect wet insulation, as well as visual examinations.

Many roofs are replaced unnecessarily because of bad information about their condition. A roof undergoes serious wear and tear throughout its lifetime, with factors such as weathering and degeneration taking their toll. However, that doesn’t always mean the roof needs to be replaced. Through scientific testing and analysis, a quality roofing provider can accurately determine the remaining life expectancy and depletion rate as well as whether repair or restoration is a viable option.

Self-Evaluation

Again, preventive maintenance can go a long way toward thwarting or minimizing the impact of roof leaks. In addition to professional inspections, there are things you can do yourself to ensure roof performance and longevity. This simple checklist will guide your self-evaluation efforts:

• Remove debris such as leaves, sticks and garbage so they don’t cause a backup in the drains.
• Make sure contractors who have cause to be on the roof—window washers, HVAC techs, plumbers and electricians—are being escorted to proper areas and using walkways as opposed to dragging their equipment and potentially damaging the roof.
• Verify that mechanical equipment and doors are tight and shut.
• Check condensation lines to ensure they’re flowing and firmly connected.
• Inspect the portable hangers—where conduit and pipes sit and are connected on the roof—and make sure they’re in place.
• Check for coping (metal flashing) that’s missing. Don’t ignore holes in the roof or vegetation growing on the corner of the building.

Positive Steps

Proactive asset management empowers a self-storage operator to take control of roof-related expenditures through long-range planning. This is based on the roof’s current and anticipated condition, taking into account geography, climate and performance of similar roofing systems.

These are positive steps for those who recognize the value of extending a roof’s life. Being proactive can very well be the difference between a less-costly roof restoration now and a much more expensive total replacement later

Anthony Vross is a co-owner of Simon Roofing, a national roofing manufacturer and contractor. The company provides roof asset management, evaluations, preventive maintenance, repairs, restoration and replacement. For more information, call 888.353.7178; visit www.simonroofing.com.