Store Here Self Storage, which operates 23 facilities nationwide, has purchased Paterson Secure Storage in Jackson, Ga., and American U-Stor in Pantego, Texas. The sites, which will be rebranded under the Store Here name, comprise a combined total of more than 140,000 rentable square feet, according to a press release.

“The purchase of these two assets, along with a full rebranding to Store Here Self Storage, will enable us to bring a better experience to our customers and value to our portfolio,” said James J. Hanrahan, acquisitions director.

Store Here is an ownership and property-management company with an acquisition and analysis division focused on the self-storage industry. Its portfolio contains more than 1.5 million rentable square feet.

Store Here is the operations division of RHW Capital Management Group LLC, which was founded in 2012 by self-storage veterans with more than 70 years of combined experience. RHW plans to expand the brand by acquiring assets and third-party management contracts, the release stated.

 

Buyers, developers and investors who are new to the self-storage industry often begin their conversations with consultants by asking if they perform feasibility studies, how much a study costs and how soon one can be completed. Though these seem like simple, direct questions that should elicit simple, direct answers, they’re fundamentally dangerous.

Many assume that requesting a feasibility study is like ordering an appraisal. With the latter, an appraiser provides a cost and time frame, and the buyer simply waits until the document arrives. Then he’ll immediately look for the summary page and a bottom-line value.

That’s all well and good, but self-storage is a complex business, one that requires the absolute best information to make appropriate financial decisions. This is true whether you’re purchasing an existing facility or developing a new property. When ordering a feasibility study, you’ll make a seriously flawed determination of whether to proceed if you rush to find the executive summary with a “yes” or “no” answer.

Whether you’re buying or building, really dig into your feasibility conversations with consultants. It’s critical to ask the right questions up front. When the study is returned, don’t just look for a green or red light. The more important questions are “Why?” or “Why not?” Why might this be a successful investment, or not?

Before contacting anyone about feasibility, prepare questions that are open-ended and require thoughtful feedback. Seriously consider the purpose of the study. By doing so, your conversation will be much more informative.

Acquisitions

If you’re buying a property, I’d recommend this approach: “Our group is considering the acquisition of an existing self-storage asset. As a recommended professional in the industry, please share the process of helping us make a wise investment decision. What steps would your organization take to help us?”

Listen carefully to what’s said in response. Scrutinize even more carefully what isn’t said. Instead of looking for affirmation, seek confirmation. Self-storage experts can give long lists of why they love a deal; that’s affirmation. Confirmation is when the person offers a list of reasons not to buy an asset.

Moreover, a knowledgeable consultant will be able to provide a detailed plan of action for the first 30, 180 and 365 days of ownership. His job isn’t to paint a pretty picture. To help an investor make the best possible decision, his role is to illustrate the move from asset purchase price to the real cost and true projected returns.

Let’s say the price of a property you’re interested in acquiring is $1.5 million. During a site visit, it’s abundantly clear the facility needs new doors, new paint and a complete rehab of the office space, which is third-world in nature. The gate hasn’t worked in years and the fencing is all but lying in a creek.

During the inspection period, you need to determine what repairs, upgrades and expansions will need to be added to the purchase price to make the property fully operational. It’s common practice to create a capital-investment worksheet as part of the due diligence, which will include things such as security-system upgrades, office upgrades, door replacements and paving repairs. These increase the cost to much more than $1.5 million, which impacts your calculated returns. This is no joke. You would ultimately lose everything. Again, it’s critical to listen for what’s not being said when determining the best avenue in an acquisition.

Developments

Development is far more complex. Again, a feasibility study isn’t an appraisal. It isn’t a 100-page document that paints a picture with flowers and fluff. It should be a brutally honest report that provides the best possible information and offers the strictest warnings. Most important, a feasibility study cannot be completed in three weeks. It’s an evolution of information that’s modified dozens of times.

Again, carefully consider the study’s objective before contacting a consultant. If you ask if he performs feasibility studies and how much they cost, the answer you’re likely to get is, “Yes, they can run upward of $6,000.” Instead, here are some types of questions that empower the decision-making process:

• “We own 3.5 acres of land in ABC County. We’re considering building self-storage on it. Can you please share the process of helping us make the best possible investment decision?”
• “We own four storage facilities and have been asked by our bank to have a third-party review our business plan. If we were to choose your company, what’s the process of confirming the viability of this development and providing assurance to a lender?”
• “We’re under contract to purchase 2 acres in XYZ City. This is our first self-storage development. What are some things we can expect to encounter, and what would your company do to protect us in making the best short- and long-term decisions associated with this proposed development?”
• “My spouse and I have $200,000 to invest, and we hear that self-storage is one of the top performing real estate types in the country. Can you give us some counsel on where we might start, or how best to become a part of this community?”

Note the words “feasibility study” don’t appear in any of these examples. The term can be dangerous because it suggests that all you want is a document and fast answer. Simply asking for a feasibility study without discussing your objectives is like walking up to someone on the street and asking if they can invest your money.

A feasibility study is a complex business plan. It requires information about the local market, competition, municipality, product type and unit mixes, development or acquisition costs, and projected operating expenses. It surveys the industry and helps an investor navigate the pitfalls of an asset. It becomes an investment package or a lending document.

Most important, it’s the single most important tool to help you make the best possible decision. It will take time to get it right. Ask the right questions, listen carefully to the answers, and hear what isn’t being said. Don’t fall in love with a deal for the sake of doing a deal. Take your time and enjoy the process. 

Donald Jones is president and CEO of Donald Jones Consulting & Service LLC, which provides support for self-storage management, consulting, acquisition, feasibility and development. He has 25 years of experience in the industry. For more information, call 817.676.5574; e-mail [email protected]; visit www.donaldjonesconsulting.com.

Guardian Storage, which operates 22 self-storage facilities in Colorado and Pennsylvania, has hired Michael Katz as vice president of accounting and finance. He’ll work with the company’s accounting department to manage the daily bookkeeping and finance functions, and assist with strategic financial planning and analysis to drive company growth, according to a press release.

“Michael brings over 30 years of progressive accounting and finance experience across several business categories, including public accounting, construction and real estate development,” said Steven Cohen, president. “We’re thrilled to add someone with such passion and well-rounded experience in this industry to our team, and look forward to perfecting our financial structure and practices to support our growth.”

Katz has served as a leader, manager and professional in senior financial and accounting roles. His expertise includes strategic financial planning and analysis, risk management, cash-flow management, taxation, and mergers and acquisitions. He earned a business degree from Miami University, and was a finalist for the “Pittsburgh Business Times” Chief Financial Operator of the Year. He’s also a national-level examiner for the Baldrige Performance Excellence Program, which focuses on best practices related to leadership, strategy, customer service, knowledge management and analysis.

“I was born and raised here in Pittsburgh, so I’ve had the opportunity to follow Guardian’s success over the years and it’s been my radar for some time,” Katz said. “Year after year, I’ve watched them expand their fleet of properties, [and] finesse their business model and reputation, all while staying true to their core company values.”

Established in Pittsburgh in 1987, Guardian operates five self-storage facilities in Colorado and 17 in Pennsylvania. It recently opened a new facility in the Forest Hills suburb of Pittsburgh, and has a location in Bethel Park, Pa., scheduled to open this year. Another project is slated for completion in Aurora, Colo., in 2019.

Compass Self Storage, a member of the Amsdell family of companies, has acquired two facilities in the Atlanta self-storage market. The company now operates 14 locations in the region and 79 nationwide. The purchases were made by separate affiliates of Amsdell Group LLC and Compass Self Storage LLC, and will be rebranded under the Compass name, according to a press release.

The properties at 4365 Commerce Drive in Buford, Ga., and 282 E. Crogan St. in Lawrenceville, Ga., comprise a combined 178,000 net rentable square feet of storage space. Compass plans to upgrade the sites with climate-controlled units and new access control. The facilities will also offer moving and packing supplies, and truck rentals.

“The acquisition of these two self-storage centers broadens our ability to further serve the greater Atlanta market. We have been successful helping our customers throughout Atlanta for several years, and we are thrilled to extend that reach,” said Todd Amsdell, president. “Compass Self Storage will proudly offer our new customers top-notch product and customer service to make moving and storing both easy and convenient.”

Amsdell was represented in the transaction by J.L. “Chip” Mack III, a partner with real estate firm McWhirter Realty Partners LLC.

Headquartered in Cleveland, the Amsdell Cos. draws its roots from the family-owned construction company founded in 1928. Since its inception, the company has been active in several billions of dollars of real estate ventures, with a primary focus on self-storage. It has owned and operated more than 500 storage centers under various trade names in more than 27 states. It currently owns and operates properties in Florida, Georgia, Kentucky, Michigan, Mississippi, New Jersey, Ohio, Pennsylvania, Tennessee and Texas.

 

In today’s DIY (do-it-yourself) world, the line between when you should fix something yourself or CAP (call a professional) can be blurry. Many self-storage operators believe they can fix anything with how-to videos, which are just a click away. Beware, though, as many of those videos are filmed by amateurs.

When it comes to maintaining or repairing your facility’s security system, the key is to understand which simple tasks you can complete on your own and when to do them. Other issues will require the attention of n expert. The following advice will help you keep your gates, keypads, alarms, cameras and other components in great shape.

Gate Systems

Gates and gate operators have become more complex with the advent of the Universal Laboratory (UL) 325 standard. If your gate isn’t working properly, you’ll need to call a trained and certified professional to look at the system. However, maintenance and inspection should be done regularly and is simple enough to handle yourself. Just a word of caution: Always turn off the power to the gate before working on the system.

It should take less than 30 minutes to do the necessary gate inspections and testing. If you’re unsure how to conduct these tests or what features your system has, ask a local certified installer to review it with you. Have him do an inspection so you have a good point of reference. Following is some upkeep you can handle on your own.

All gates. Check the gate, post and other structural items for wear and rust. Keep them painted. This not only makes a good impression, it helps prevent failure due to corrosion. If your system is bolted in place, make sure the bolts aren’t missing and they’re tight, and that the posts aren’t loose.

No matter what type it is, your gate system should be equipped with safety devices such as photo eyes, safety edges and obstruction loops. Test them at least weekly to ensure they’re in working order. This is a simple procedure that takes only minutes. Keep a log on how they perform and when they’re serviced, including battery changes and any adjustments.

To check a photo eye, just block the eye with your hand while the gate is moving. The gate should either stop or stop and reverse. Some gates only have an eye for the closing direction while others have one for closing and opening.

To check a safety edge, simply press on it while the gate is moving. Again, there may be one for each direction, and the gate should stop or stop and reverse.

Checking the obstruction loops is a little more involved as you’ll need a car or golf cart. With the gate closing, slowly approach it in the vehicle. Before you enter the gate path, the gate should stop or stop and reverse. Test this from both the entrance and exit side of the gate. The gate should stop before you enter the gate path. If it doesn’t, you need to call a professional. This isn’t a DIY project.

Slide gates. If you have a chain-driven sliding gate, check the chain to ensure it isn’t too loose. Most manufacturers suggest it be tightened so there’s no more than a 2-inch drop from one end to the other. The chain can be adjusted by the bolts on the end, but don’t let it spin. Keeping it at the proper tightness will eliminate many performance problems.

You also need to keep the chain lubricated. Use a spray such as WD-40 Dry Lube or Blaster Dry Lube with Teflon. Both can be found at big-box stores or online. These won’t leave a wet film that will attract dirt and other particles, and they’ll extend chain life. Apply this at least once a month or more often in wet or damp areas.

Finally, inspect the rollers for wear or looseness. You should be able to see marks or filings from wear, either on the rollers, the gate or the ground. Note this in your log and track it to see if it’s a normal situation or something new that’s progressing. In most cases, roller replacement should be a CAP project. However, if you see the problem and can get it fixed before it becomes an emergency, it’ll save money.

Swing gates. Check the connecting arm that attaches to the gate and gate operator for wear and looseness. The bolts that hold the arm can become worn or slack, which can put strain on the gate and operator, resulting in a failure if not corrected. While it’s simple to replace the connecting bolt, it may be best to have your gate company do it to ensure there are no hidden problems.

Lubricate the gate hinges, if required. Some have grease fittings while others don’t. If your gate does, grease them at least four times a year. Inspect them monthly for wear or shavings, as this is a sign that they need to be replaced.

Finally, check to see the gate isn’t sagging. This can be done by measuring the distance between the end of the gate and the ground. Do this with the gate open and closed.

Pivot gates. The bolt that holds the lifting arm to the gate should be checked for wear and looseness. Also, check the gate-pivot bearings for wear points. Inspect the belts for looseness and cracks. While these belts don’t run at a high speed, they should be checked at least twice a year and replaced every three to four years.

A Quick Word About UL 325

Even though I’m a big proponent of UL 325, the addition of equipment and manufacturer requirements to make gates safer has had an adverse effect on some systems. While safer, certain gates are more susceptible to shutting down and requiring a reset. This is normal and shouldn’t be a concern unless it becomes a reoccurring problem.

Have your installer show you how and when to reset the gate operator. In many cases, this’ll get you back up and running in short order. Also, ask him what causes this problem and how you can minimize it. As with most issues, it’s easy to avoid with a little knowledge.

Keypads and Alarms

While it’s not recommended that you work on electronic systems such as keypads and alarms, there are things you should check if the system fails. Before calling a service tech, look for faults and communication problems. It’s not uncommon for provider to arrive at a site only to find the system had temporarily lost communication with some devices. Just about every system shows you when a device goes offline. It’s your responsibility to watch for and report these errors.

Most keypads are mounted on goose-neck stands. Over time, stands can become loose or rusty at the bottom. Ensure they’re securely fastened, and inspect the keypads for damage. A hard hit from a car mirror, for example, can damage the housing and even the electronics.

If your keypads look sad and worn, so does your site. Regularly clean them with a dust rag. Replace or repair faded keypads. If housings and stands are showing signs of rust, paint them. It only takes a can of spray paint and a bit of time, and will save you from having to replace costly items due to neglect.

If you have a battery backup or power supplies with batteries, write the installation date on the battery and in your security-service log. Batteries should be changed every two to three years. You might need a service tech to help you the first time, but for the most part, batteries are widely available and require minimal or no tools to change.

Check alarm wires when cleaning a unit to ensure they’re secured and out the way as much as possible. Look for wires that show signs of wear or damage. Check the main trunk line (the big wire) that runs at the top of the unit to ensure it isn’t drooping and can be damaged by the door. These items are secured with cable ties, which become brittle and break after years of service. They can be found at hardware stores in the electrical section.

On site walks, it’s common to look down or at eye level and forget to look up; however, most security wires run above units and hallways at ceiling height. These need to be checked for drooping or damage. If it’s simply a matter of tying them back up, it’s a DIY project. If they need repair, it’s a CAP job. In either case, don’t ignore them. Get them fixed quickly to avoid more damage.

Cameras

Camera systems almost always give a visual indication of any problem. It could be a simple menu selection or other easily solved item.

Make sure the recording device is receiving adequate air flow, especially since it has a built-in fan. It’s not uncommon to have a disk failure and find the device area is full of dust or other foreign objects. Not only does this kill the disk mechanism, it can do unrepairable harm to the electronics. Don’t put the recorder on the floor under a desk. It needs to be on a rack or shelf with space around it.

Check your cameras for dust and dirt on the lens or domes. This can affect the view, and in some cases, performance. Cameras use electronics to enhance picture quality. If they’re dirty, the picture will be compromised.

Also, ensure the camera is securely mounted and can’t move, which can cause damage to the wires and the device itself. Check around the mount to ensure no water can get behind the camera. You can use silicon to seal this area. In the event cameras are mounted high on your building, have a service tech check them once per year.

Watch and Report

Most parts of your security system are robust and will keep clicking away. They require minimal care relative to usage. If you can dedicate an hour or two each month to clean, check, adjust and lube them, you’ll find you have fewer problems and service calls. Furthermore, you’ll extend system life and save on replacement costs.

If you do discover a problem you can’t fix on your own, report it quickly. It’s not unusual for a tech to arrive on site to repair, inspect or install new equipment only to be told there are other problems that have been ignored or not reported. Not only does this put your servicing company at a disadvantage, it’s likely your issue won’t be resolved without a return visit. Most techs won’t have the proper equipment to fix an unanticipated problem.

Most security maintenance is simply being aware of changes. For example, a gate should run quietly. If it starts making a new or loud noise, something is likely wrong. If a system starts acting out of character, there may be a looming problem. Become a DIY maintenance specialist so your CAPs are kept to a minimum.

Chester A. Gilliam is the owner of Wizard Works Security Systems Inc. in Castle Rock, Colo. He’s been involved in the self-storage industry for more than 30 years, and holds certifications in the design and installation of automated-gate, access-control and video systems. He can be reached at 303.798.5337; e-mail [email protected]; visit www.wizardworkssecurity.com. 

Depending on who you talk to, the self-storage summer season is either slow and boring, or a busy time dealing with student and residential moves, short tempers, site-maintenance issues, and other trials. Let us know your biggest operational challenge this season in this new Inside Self-Storage poll.

Update 7/5/18 – Storage Master has acquired the former Cudahy Tannery property for $325,000 from Tasman Great Lakes Real Estate LLC. The purchase includes four buildings comprising a total of 94,173 square feet. About two-thirds of the facility’s 650 storage units will be climate-controlled. The facility is expected to open in March 2019, according to the source.

Earlier reports inferred the property contained a single structure. The tannery operated from 1952 to 2007. In addition to environmental concerns, the site has been plagued by vandalism and fire during the decade it’s been vacant.

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5/18/18 – Storage Master LLC, which operates nine self-storage facilities in the Milwaukee area, received a recommendation from the city’s planning commission last week to convert a former tannery in Cudahy, Wis. The property at 5083 S. Packard Ave. has been vacant for 14 years. Storage Master expects to close on the sale in July or August, and open within a year, according to the source.

The plans include 600 storage units that will mitigate a “severe shortage of self-storage in Cudahy,” said CEO Alex Simic, noting the city has three storage facilities.

Mayor John Hohenfeldt said the proposal will bring a “new vibrant use” to a challenging site. The building has been vandalized and damaged by fire. It also has environmental issues, including soil and an underground, capped area that are contaminated.

During the meeting, Storage Master proposed a decorative plant structure for the property, but the planning commission voiced concerns about it being allowed by the Wisconsin Department of Natural Resources (DNR). Noting that the DNR considers the site “closed,” the commissioners suggested the weight of the structure could disturb the underground cap.

“To raise or alter the buildings, the DNR would have many requirements for the soils on the site and the costs would be astronomical. That is why no one has touched the site in years,” Hohenfeldt wrote on the city’s Facebook page. “The new site plan only fixes up the outside of the buildings and allows a viable use for the inside.”

In addition to updating the building exterior, Storage Master plans to seal and restripe the parking lot. “[We will] transform the façade to give it the ‘wow’ factor,” Simic said.

Storage Master operates three facilities in Milwaukee, and has locations in Caledonia, Franklin, Franksville, Muskego, New Berlin and Waukesha, Wis. In addition to self-storage, select properties offer interior and exterior vehicle storage.

Source:
Journal Sentinel, Storage Master Continues Expansion With New Facility at Former Cudahy Tannery Site
Journal Sentinel, Former Tannery in Cudahy, Vacant for 14 Years, to Become Mini-Storage Warehouses

Space Station Self Storage, which operates nine facilities in Greater London, has acquired a facility in the Cricklewood area of Northwest London. The property at 303-305 Cricklewood Broadway formerly operated as Cre8 Self Storage.

“We’re really excited to increase our presence in North London with a new store in Cricklewood,” said Vlatka Lake, marketing manager. “The store is open for business now, so if you require convenient self-storage in the near future, give us a call or pop in-store to see us.”

Founded and owned by Alastair Caldwell, Space Station operates six facilities within London and one each in Birmingham, Slough and Uxbridge, England. The company also provides free removals for customers who rent a self-storage unit.

Source:
Bdaily News, Self Storage Specialist Space Station Acquires New North West London Premises