Phoenix-based U-Haul International Inc., which operates more than 1,300 self-storage facilities across North America and frequently recycles existing structures for its new locations, has purchased two warehouses in Libertyville, Ill., with the intention to convert them to self-storage. The company acquired the former Chadwick's Surfaces International Inc. building at 14045 W. Rockland Road and the abutting property at 14121 W. Rockland Road, which housed Aurora Casket Co. The buildings comprise 48,280 square feet and 12,067 square feet, respectively, according to a press release.

U-Haul Moving & Storage of Libertyville is currently operating from a temporary showroom, offering moving and packing supplies, towing equipment, and trailer and truck rentals. Plans are underway to convert the Chadwick warehouse to 300 indoor, climate-controlled self-storage units. The 5-acre site will also offer hitch installation, propane sales and other services, the release stated. The other warehouse will house more than 100 U-Box portable-storage containers.

“Our neighbors were worried these properties would remain dark and become eyesores,” said Heather Skelton, president of the U-Haul Co. of Northwest Chicago Suburbs. “Now we will be beautifying these sites and making them part of the community again.”

U-Haul recently acquired several properties it will convert to self-storage. It’s also working on current conversion projects and expanding two existing locations.

Established in 1945, U-Haul owns more than 44 million square feet of storage space. The company’s corporate sustainability initiatives, which support infill development to help local communities lower their carbon footprint, has led to dozens of conversion projects in recent years.

Source:
PR Newswire, Adaptive Reuse: U-Haul Buys 2 Warehouses to Address Self-Storage Demand in Libertyville

Real estate developer Keller Inc. intends to convert a former Pick ’n Save grocery store to self-storage in New Berlin, Wis., as part of a proposed mixed-use project that would also include two newly constructed retail buildings on the property. The former store on W. National Avenue comprises 66,893 square feet. The two additional structures would comprise 14,580 and 15,228 square feet, though their positioning on the property hasn’t been determined, according to the source.

Three of the five planning commissioners who were present during a developer presentation last week indicated they are initially supportive of the plan but want to see more details, New Berlin Mayor Dave Ament told the source. City staff recommended Keller pursue a planned-unit development (PUD), since the self-storage portion of the plan would be included without having to apply for rezoning.

“I would like to see more. I think it can be done right. I have seen self-storage facilities where they look nice and they function well, and I have seen some bad ones,” Ament said. “I think it would be a whole lot less traffic and disturbance to the neighbors than the Pick ’n Save was.”

The mayor also indicated the additional structures are attractive to city officials, who would like to spur revitalization of existing properties. The Pick ’n Save has been closed for about a year. “It’s a chance to redevelop areas that are a little bit sluggish,” Ament told the source. “Rather than always looking for a new location and changing the character of a neighborhood, we’re trying to redevelop some of these [commercial] areas and bring their vitality back.”

Planning officials will gather initial feedback from council members and residents, while Keller fleshes out its plan. No timetable is set for when the developer may approach planners with additional details on the project.

Founded in 1960, Keller specializes in feasibility, planning and designing services in addition to development and construction. Its project portfolio includes self-storage in addition to industrial, medical, office, retail and warehouse developments, according to its website.

Source:
GM Today, Self-Storage Facility Pitched for Vacant New Berlin Pick ’n Save

Update 7/4/18 – PDR has completed construction on its four-story self-storage facility at 7710 Alexander Town Blvd. in Brier Creek. The climate-controlled building features two elevators. It will be managed by CubeSmart, a self-storage real estate investment trust and third-party management firm, according to a press release. PDR and Jernigan have since co-invested in four other projects.

A grand-opening celebration was held on June 13. The event included facility tours and a ribbon-cutting ceremony, with participation from contractors, facility staff, investors, PDR employees and vendors. It also included a social hour with light snacks and refreshments.

PDR chose Brier Creek based on the long-term prospects of the Raleigh market, the release stated. The property is accessible from Highway 70.

Headquartered in Tampa, Fla., PDR is a real estate and development company. Its services include acquisition, construction, construction management, development, financing, product supply and property management for the multi-family and self-storage industries. PDR has 18 projects under development in four states.

---

1/5/17 – Jernigan Capital Inc., a merchant bank and advisory firm serving the self-storage industry, has invested $8.9 million in a Raleigh, N.C., self-storage development project. The investment was made through Storage Lenders I LLC, the company’s joint venture with real estate investment firm Heitman Capital Management LLC and an unidentified institutional partner. The multi-story facility will be built in the Brier Creek community and comprise 65,110 net rentable square feet in 756 units, according to a press release.

Tampa, Fla.-based Phillips Development & Realty LLC will serve as the developer. This is the first self-storage project in which both Jernigan Capital and Phillips have co-invested, the release stated.

The joint venture was launched last March with a $35 million commitment from Heitman. The investment firm’s contribution was contingent on a $75 million institutional co-investment, which was contributed in April by a public-pension plan. The $122.2 million capitalization is intended for self-storage development.

During a November earnings call, Jernigan Chief Operating Officer John Good indicated the firm had executed nine term sheets totaling $88.9 million, on which the company expected to close before the end of 2016, according to the source.

Jernigan Capital is a commercial real estate finance company that provides financing to private developers, operators and owners of self-storage facilities. It offers financing for acquisition, ground-up construction, major redevelopment or refinancing. The firm intends to be taxed as a REIT and is externally managed by JCap Advisors LLC.

Sources:
PE Hub Network, Jernigan Invests in a Raleigh, North Carolina Storage Development Project
Triangle Business Journal, Brier Creek Storage Facility Lands Development Cash From Memphis Investor

One of the many effective ways to generate quality leads for a self-storage business is through search engine marketing, more commonly known as paid search or paid media. The 500-pound gorilla in this area is Google AdWords. Last year, Google’s revenue from this offering was a monstrous $95.4 billion!

If you’re like most self-storage operators, you’re already tapping into this lead-generation source. Unfortunately, many of you aren’t properly managing or optimizing your AdWords campaigns. There are countless reasons why these efforts could be underperforming or outright bleeding money. Let’s focus on three ways you may be wasting your marketing dollars and how you can make improvements.

1. You’re Not Using Negative Keywords

If there’s a single thing you can do to reduce costs and increase leads, it’s to properly manage your negative keywords. A negative keyword is a word or phrase that tells Google when not to display your ads in a search query. Some common strategies are:

• Block products and services your facility doesn’t offer. For example, if you have a non-climate-controlled property with exterior drive-up units, you shouldn’t let your ads appear for people with queries containing “climate,” “indoor,” “air-conditioned” and so forth. They’re looking for something you don’t offer.
• Block local competitor’s names. Usually, when someone is searching for a specific competitor (excluding real estate investment trusts in some scenarios), he’s already a renter of that property; he’s maybe seeking a phone number or looking to make a payment. Ninety percent of the time, if you’re tracking conversions properly, you’ll see that competitor keywords are the most expensive. They may not even be producing anything at all.
• Run through your “search terms” report every 30 days to identify other bad keywords you might have missed. I’m still surprised at how many storage operators don’t block phrases like “live in storage unit” or “storage auctions.”

You can save a lot of money by properly using negative keywords. During my pay-per-click audits, it’s common to find spend-waste as high as 30 percent. Think about that. It means for every $100 you spend, you’re wasting $30.

2. You’re Not Properly Using Geo-Targeting

It’s very common to use “radius targeting” in Google AdWords to target a specific area around your self-storage facility. This is useful because you only display ads to people in a geographic region of your choosing. The problem is you can’t always use the blanket method, which would be a five-mile radius around your property.

Natural barriers can deter potential renters from choosing your location. Look at the map for highways, rivers, bridges and other potential obstacles. What’s only a mile as the crow flies could be a six-mile trip by car. Always think driving distance when geo-targeting.

3. You’re Not Properly Using Bid Adjustments

One of the best ways to optimize your budget is to make bid adjustments where it makes sense. This allows you to increase or decrease your bid (cost-per-click) on a percentage basis. Here are three adjustments you should be using:

• By device: It’s common to see better conversion rates on mobile devices than desktop, and you can choose to automatically increase or decrease your bid based on the user’s device. If mobile conversions cost 50 percent less than desktop, why wouldn’t you bid more for mobile clicks?
• By day of the week: If you’re not open on Sunday, should you be paying for clicks on that day? No! If Wednesday happens to be your best day of the week for conversions, why wouldn’t you increase your bids on that day? Play the numbers and push the money where you’re getting the best results.
• By time of day: Certain times of the day produce more conversions than others. Why pay top dollar for clicks at 3 a.m. when you get most of your leads between 10 a.m. and 6 p.m.? Maybe you should only run your ads 12 hours a day to make the most of your money. Target the times that generate the most value, especially if you have a limited budget.

Many storage operators are finding success with paid search, but there’s always room for improvement. Take time to ensure you’re properly managing and optimizing your campaigns. A few adjustments could lead to more leads and bigger profit.

Stephen Sandecki has been in the self-storage industry for more than 15 years, focusing on digital marketing, technology and Web development. He’s the chief marketing officer at Store Space Self Storage. To reach him, call 702.753.4780; e-mail [email protected].

One of the most convenient ways to stay current with self-storage trends and boost your professional development is with Inside Self-Storage Guidebooks. The 2018 Series covers all aspects of the business. Created for facility owners, managers, investors and developers, the books come in softcover or digital formats, individually or in a discounted package. They are:

Building/Investing Guidebook: Designed to help those interested in self-storage investing as well as those who want to establish or expand an operation, this 84-page book addresses real estate, finance, development and construction.

Facility-Operation Guidebook: Designed for managers and owners, this 164-page book addresses key aspects to self-storage operation, providing insight to revenue, sales, legal issues, marketing, maintenance, liability, technology, security and much more.

Visit the ISS Store for full product details.

Wayne Johnson, chief investment officer for SmartStop Asset Management LLC, a Ladera Ranch, Calif.-based diversified real estate company that manages 116 self-storage facilities in Canada and the United States, will speak at the City Equities “Self Storage Private Operator and Broker Dinner” on July 10 in Manhattan, N.Y.

Johnson and other participants will hold roundtable discussions on industry trends. Topics include technological changes in marketing and revenue management, the impact of aggregators, growth in large third-party management platforms, and the outlook for new supply growth, according to a press release.

“I am honored to be selected as a participant of Citi Equities’ Self Storage Private Operator and Broker Dinner and look forward to in-depth discussions with attendees about the trends and fundamentals currently shaping the self storage market,” Johnson said.

The event will be held at the CitiGroup Center. Citi Equities is a division of CitiGroup that provides products and services for equity and “equity-linked instruments,” including devising and distributing structured solutions, financing, sales and trading. It provides access to liquidity through its internal crossing platform and connectivity with global markets, the release stated.

SmartStop has approximately $1.5 billion of real estate under management. Its self-storage portfolio comprises about 8.5 million rentable square feet. It’s also the sponsor of Strategic Storage Growth Trust Inc., Strategic Storage Trust II Inc. and Strategic Storage Trust IV Inc., all public non-traded real estate investment trusts focused on self-storage assets.

Woodland Park, Colo., officials are considering several changes to how self-storage is defined and permitted within the city. The change would eliminate a restriction limiting individual storage units to a maximum 300 square feet to accommodate recreational vehicles. In planned-unit development (PUD) and heavy-service commercial/light-industrial zones, self-storage use would be a conditional use. Both are downgrades from “permitted conditional” and “permitted,” respectively, though city staff believes the current designations were entered by mistake, according to the source.

Some wording changes would also be included. “Self-storage” would be favored over the term “mini-storage,” and the municipal code would be altered to say “personal property” instead of “storage of household materials,” the source reported.

Building-height limitations would remain at 35 feet in both types of zones; however, developers would be allowed to apply for variances.

Planning commissioner Vicky Goode questioned the need for additional self-storage development in Woodland Park during a recent special work session, but staff indicated there is demand from businesses and residents.

The planning commission has scheduled a public hearing on July 12 to discuss the proposed changes. The city council will have final authority on their adoption.

Source:
The Mountain Jackpot News, Stage Set For Public Hearing on Future Storage Facilities in Woodland Park

StorageMart, which operates more than 200 self-storage properties across Canada, the United Kingdom and the United States, has acquired Vail Self Storage in Vail, Colo. The property is in the town of Avon, which is a part of Vail Valley, a group of towns near Vail Mountain. The company also operates a facility in Edwards, another Valley town.

The three-building property at 41458 U.S. Highway 6 contains more than 16,000 square feet of rentable space in 299 drive-up units. StorageMart plans to upgrade the buildings with new paint and roof coatings, as well as replace exterior and interior lighting, unit doors, and video cameras.

“We're excited to expand StorageMart to Avon,” said Cris Burnam, president. “This location is an excellent self-storage solution for the Avon community.”

Founded in 1999 and based in Columbia, Mo., StorageMart is privately owned and operated by the Burnam Family, which has been in the storage industry for three generations. Its portfolio consists of more than 12 million square feet of storage. It serves more than 75,000 self-storage customers, and operates in Chinese, English, Punjabi, Quebecois French and Spanish.

Source:
PR Newswire, StorageMart Expands Into Avon, CO With a New Storage Facility

A+ Mini Storage, which operates 10 self-storage facilities in South Florida, has opened a new location in Lauderhill, Fla. The property at 1403 N.W. 40th Ave. comprises 130,000 square feet of climate-controlled storage space. Customer amenities include moving and packing supplies, truck rentals, and online billpay and reservations.

“We designed this property to offer the very best self-storage experience possible,” said Heidi Prendes, general manager. “We wanted to provide the right kind of storage at the right price. We are excited to be a part of the Lauderhill community.”

Founded in 1979, A+ Mini operates five facilities in Miami, two in Doral, and one each in Davie, Hialeah and Lauderhill.

Source:
PR.com, A+ Mini Storage Now Open in Lauderhill Mall