Self-storage owners aim to provide a safe and secure site for their employees, customers and guests, and thorough facility lighting should be part of that goal. Providing all that illumination, however, comes at a cost. Not only is there equipment, bulbs and installation to consider, operators must be aware of local ordinances and the dangers of light pollution, particularly in and near residential areas. To minimize expenses, many are now installing more efficient, economical lighting that lasts longer and requires less investment.

In a recent thread on Self-Storage Talk, the industry’s largest online community, members discuss how they light up their properties while keeping the overhead under control. From motion sensors to timers to staggered placement, there are a number of workable solutions. See what they are and share your own ideas.

Hampshire Real Estate Cos., a private real estate investment firm and self-storage operator, has partnered with former New Jersey Gov. Chris Christie and his wife, Mary Pat Christie, in launching a quality opportunity fund (QOF) targeting investment for Opportunity Zone development projects. Hampshire Christie QOF Fund I will focus on multi-family real estate in the New York metropolitan area, industrial space in Northern New Jersey and self-storage projects in the Northeast, the source reported.

The fund is targeting up to $150 million in equity capital for up to $400 million in projects, according to Mary Pat Christie, executive vice president of the fund. Chris Christie is a fund adviser. In a May filing with the Securities and Exchange Commission, Hampshire Christie Qualified Opportunity Fund LLC indicated it would make a total offering of $250 million, of which it had already raised more than $18 million.

The partnership is hopeful it will benefit from the former governor’s relationships at the state and local levels. “There may be powerhouses raising money, but at the end of the day, you’ve got to have people on the ground that can source the deals,” James E. Hanson II, president and CEO of Hampshire, told the source. “And we partnered up with the Christies to help us tap into additional private investor sources through the relationships they have.”

“To be connected to the town and the mayor and the town councils and the zoning board, all those things are really, really important,” added Mary Pat Christie. “Who knows New Jersey better than my husband? That is why we’re focused on New Jersey. We have a property in Connecticut, but we’re focused on the I-95 corridor.”

The fund will have a 10-year lifespan beginning with its last investment, the source reported. It’ll charge 1.25 percent on contributed capital and anticipates additional fees projected at .25 percent of capital contributions for fund-level expenses.

In February, Hampshire entered a joint-venture partnership with real estate firm Harrison Street to develop self-storage facilities along the Interstate 95 corridor from Boston to Washington, D.C. In January, the company was set to develop a 100,000-square-foot facility in New London, Conn. The 800-unit project was slated to be the company’s second in a designated Opportunity Zone.

Based in Morristown, N.J., Hampshire has repositioned or developed 33 self-storage facilities with an aggregate value of more than $440 million since 2012. As of February, it had 12 developments underway, totaling $217 million of investment across the Eastern United States. The company was also targeting another 12 projects, with a collective value of more than $215 million. Founded in 1976, it has a diversified investment platform that includes self-storage, industrial, medical, office and retail properties primarily in Northern New Jersey.

Sources:
Barron’s, Chris and Mary Pat Christie Team Up With Real-Estate Investment Firm for Opportunity Zone Fund
Securities and Exchange Commission, Form D

OpenTech Alliance Inc., a Phoenix-based provider of self-storage kiosks, call-center services and other technology, has launched INSOMNIAC SmartGate, a new technology that alerts self-storage facility operators when a gate or other access device on the property doesn’t open or close as requested, or is opened or closed manually. The new tool is the latest integration for the company’s intelligent platform of smart-connected solutions, OpenTech IoE (Internet of Everything). It works in tandem with INSOMNIAC CIA (centralized intelligent access), according to a press release.

The system is designed to help operators address gate-access issues before they negatively impact tenants or create a security problem. “If a tenant enters a valid code at the keypad and the gate does not open within a specified period of time, an e-mail or text alert notifies the facility there is a problem with the gate operator,” company officials said.

Similarly, if a gate opens but doesn’t close within a specified period, whether due to malfunction or physical obstruction, the system will send an alert indicating the gate didn’t close. SmartGate can also alert facility management if a gate is forced opened without a valid code, the release stated.

“This new integration, like many others developed for the OpenTech IoE platform, enables operators to proactively prepare for, prevent and respond to onsite issues, which ultimately creates competitive and operational advantages for the facility,” said Jon Loftin, vice president and IoE product owner.

SmartGate is available at no additional charge to customers with INSOMNIAC CIA. It’s compatible with any type of magnet or contact, which mounts to a facility gate and connects with the CIA keypad, the release stated.

OpenTech provides several models of INSOMNIAC self-serve kiosks as well as a range of self-storage rental solutions including the INSOMNIAC Live! Call Center, INSOMNIAC Online Web and mobile applications, LiveAgent! software products, and the INSOMNIAC ILock Security System, all available through the company's self-storage cloud.

Source:
OpenTech, OpenTech Alliance Adds INSOMNIAC SmartGate to IoE Platform

Pinnacle Storage Properties, a Houston-based firm that operates more than 10 Texas self-storage facilities under various names, has hired Kurt Power as vice president of investor relations. In this role, he’ll oversee communication with current and new investors, and oversee the company’s social media marketing, according to a press release.

“We are very excited to welcome Kurt to Pinnacle Storage Properties,” said CEO John Manes. “His work ethic, diverse experience and impressive management skills align perfectly with our core values of integrity, honesty and respect, making him the perfect fit to head up investor relations.”

Power has experience in account management, marketing and real estate investment. Most recently, he was employed for four years as the national account manager for real estate firm Think Realty. During his tenure, he helped build the company into a national and international brand, initiated its expansion into China, and hosted two conferences in Shanghai.

“I am excited, humbled and grateful to be a part of the Pinnacle team, and I look forward to contributing to the continued success of Pinnacle Storage Properties,” Power said. “It’s invigorating to be with a company that has incredible focus, extraordinary self-awareness and a dynamic plan for business success.”

Pinnacle is a privately held real estate owner and operator focused on the acquisition, development and management of self-storage assets. Its investment strategy is to purchase under-leveraged properties in suburban and secondary markets.

 

Hiring is a task most self-storage companies start out doing on their own. Jobs are posted manually, résumés are reviewed in detail, applicants are personally interviewed, and references are checked. For businesses that are growing, however, this hands-on approach can become overwhelming. It can be difficult for the owner or upper management to search for new hires and handle the interviewing and onboarding processes. And hiring is just the beginning, as employers must take then steps to train, evaluate and retain skilled talent.

Recruiting and hiring are two of the many areas in which a professional employer organization (PEO) can help. Rather than spend valuable time on finding new employees, you can rely on a team of outside experts to attract people who are capable, dedicated and prepared for the work ahead. Following are four ways a PEO can help your self-storage business.

Reduce Costs

Recruiting can use up a lot of overhead, both in calculable revenue and your valuable time. Posting positions on job boards, sorting through résumés and interviewing can impact the thin profit margin and productivity of a growing business.

When working with a PEO, you can rely on innovative technology and efficient experts to find acceptable candidates and handle most of the initial recruiting phases. A PEO can provide a neatly stacked pile of résumés and a short list of valuable, available candidates to choose from with minimal cost and zero time wasted.

Fill Positions Faster

Empty positions can pose extreme hardship to a business. Whether you need a new full-time employee or seasonal help, outsourcing to a PEO can be an effective solution for identifying candidates quickly. PEOs specialize in connecting candidates to employers. No matter what kind of position you need to fill, they have the technology, resources, connections and skills to source a great selection of candidates.

Offer Fortune 500 Level Benefits

Employee benefits are consistently ranked as one of the most important company criteria to a job seeker. However, assembling an attractive, competitive package can be daunting for a small business. Robust benefits packages ordinarily include:

• 401(k) or other retirement plan
• Health, dental and vision insurance
• Pet insurance
• Life insurance
• Flexible-spending and health-savings accounts

It’s expensive to offer and maintain these benefits. Packages that include them are commonly provided by larger companies due to the costs involved. PEOs serve as a market aggregator, giving each client the purchasing power of a large corporation. When you work with a PEO, you have access to insurance products and other ancillary services that can retain top talent at a fraction of the price it would cost to obtain them on your own.

Stay in Compliance

One of the biggest challenges for businesses is staying compliant with the complex federal, state and local laws regarding employee recruiting and hiring. There are regulations that govern what questions can be asked on an application, whether you can require arbitration of disputes as a condition of employment, drug-testing requirements, hiring notices, etc. Keeping track of these laws and the changes that take place each year can be difficult.

Working with a PEO can take the headache out of compliance. By using a PEO as your external human resources (HR) department, it’ll help you stay abreast of legal changes, notify you when there are modifications on the horizon, and help you update forms and practices to limit exposure to a lawsuit or claim.

A PEO can help a small business reduce the cost of recruiting, fill positions faster, offer strong benefits packages and assist with HR compliance. Let one help alleviate the stress and burden that comes with running your self-storage operation.

Jeniece Henson is vice president of strategic business development for AlphaStaff, a professional employer organization that offers a customizable suite of solutions for HR, employee benefits and administration. Services include workforce management, benchmarking data, HR information systems and insurance. For more information, call 888.335.9545; visit www.alphastaff.com.

Hanison Construction Holdings Ltd., a Hong Kong-based development and investment firm, has agreed to acquire Minibox Self Storage from two funds managed by real estate investment company The Blackstone Group Inc. As part of the HK$735 million deal, Hanison will purchase any equity and shareholder loans associated with Minibox as well as the business. Minibox operates two self-storage locations in Hong Kong, with the largest comprising 68,296 square feet, according to the source.

The Minibox assets are rebranded holdovers from when Blackstone acquired MiniCo Asia Ltd. in February 2015 for a reported HK$420 million. Minibox was controlled by investment vehicles Blackstone Real Estate Partners VII and Blackstone Real Estate Partners Asia.

The acquisition will allow Hanison to add the self-storage portfolio to four other industrial assets the company owns in Hong Kong. In 2018, Minibox had a net profit $17.9 million, up from $7.6 million in 2017, the source reported.

“The directors consider that the acquisition is a valuable investment opportunity for the group,” Hanison officials said in a released statement. “Accordingly, the directors believe that the acquisition will enable the group to strengthen and enhance the property investment portfolio.”

Blackstone agreed to pay for any rectification work at the self-storage properties that was registered with the Hong Kong Lands Department prior to the sale.

Hanison specializes in property construction, development, investment and management. The company is majority-owned by the Cha Family, which also holds a majority stake in developer Hong Kong Resorts International, according to the source.

Blackstone has $545 billion in global assets under management. Its investment vehicles focus on private equity, real estate, public debt and equity, non-investment grade credit, and secondary funds.

Source:
Mingtiandi, Blackstone Sells HK Self-Storage Business to Hanison For HK$735M

Three feral kittens have been freed from a self-storage unit at U-Haul Moving & Storage of The Mile High City in Thornton, Colo., after being trapped for nearly two weeks. One was rescued while the other two eluded capture by animal control and are now loose in the area, according to sources.

The felines were discovered last week by Mandy Swartz, who heard their cries while visiting the storage facility at 7540 York St. with a friend who rented a unit there. The animals had become trapped inside the unit after crawling through a small crack between the ground and the structure.

Since finding the cats, Swartz has been giving them food and water every evening through the crevice. She was able to retrieve one of the kittens, which she named Jackson, through the hole.

Swartz also notified the property managers, who contacted Adams County Animal Control. A trap was placed inside the unit on Tuesday evening but was unsuccessful. Management also attempted to reach the tenant multiple times to obtain permission to access the unit, according to a statement from Andrea Batchelor, a media and public-relations specialist for U-Haul International Inc.

Frustrated by the delay to rescue the animals, Swartz turned to the local media for help on Tuesday, to add pressure to U-Haul to release the animals. “Why are you so concerned about this person's property over a living thing? It doesn't make sense," she said.

Mindful of the outside temperature, which approached 100 degrees this week, Jim Siedlecki, director of communications for Adams County, asked U-Haul on Wednesday afternoon to “accelerate its policy” so animal control could enter the unit and rescue the kittens. Staff unlocked the unit at 3:11 p.m., and the two cats bolted.

“I'm glad they got them out," Swartz said. "Thank God. But at the same time, I'm not sure if I believe them, because they've been so difficult this entire time.”

In a crisis such as this, it should be easy to free an animal, Swartz said. “If you break the window, if a dog is stuck in a hot car—and people do it all the time and cops will do it for you," she said. “They don't arrest anybody. Nothing happens, but this is different. Why is this different?”

In the statement released by U-Haul on Wednesday evening, Batchelor said U-Haul deferred to the recommendations and expertise of animal control, with the goal “to capture the cats without harm.” The storage tenant was finally reached on Wednesday and granted authorities permission to access the unit. The customer said the cats didn’t belong to him. The statement also noted that “keeping animals in a self-storage unit is a violation of the U-Haul rental agreement, not to mention reckless and inhumane.”

Established in 1945 and based in Phoenix, U-Haul operates more than 1,500 self-storage facilities across North America and owns more than 38 million square feet of storage space.

Source:
KDVR, Kittens Freed After Problem Solvers Uncover Them Trapped in Thornton U-Haul Storage Locker
Contact 7, Animal Rescue Volunteer Seeks Contact7's Help Rescuing Cats Locked Up in Stifling Hot Storage Unit

If you’ve been looking for your next great business venture, chances are you’ve heard about self-storage. In the last few years, major media outlets have covered the growth of the industry, including “Forbes,” “The New York Times,” the “San Francisco Chronicle” and many others.

According to Bloomberg, the number of available storage units on the market more than doubled from 1998 to 2012. Business-media website Bold Business reports the industry comprises more than 2.3 billion rentable square feet, growing 7 percent annually. This $38 billion business shows no sign of slowing, but that isn’t the only reason it’s a prime investment opportunity.

Profit Potential

Every market has its idiosyncrasies and revenue drivers. Generally, a storage facility with 40,000 rentable square feet in a market bearing monthly rental income of $9 per square foot will generate $450,000 in gross annual rent at 100 percent occupancy, according to The Parham Group (TPG), which specializes in self-storage consulting, construction, development and management. A 29.6 percent return on investment is a standard profit margin in the industry, company officials say.

In self-storage, income is primarily derived from the rental of space, but add-on products and services can also yield healthy profit. Many facility operators sell locks, moving and packing supplies, and other retail merchandise. Additional profit centers include truck rentals, outdoor vehicle storage, records storage, wine storage, pack and ship services, and others. Additional ways to incrementally increase revenue include charging late fees and offering tenant insurance or a tenant-protection plan, on which the storage operator earns a commission.

Of course, the best way to operate a stable business is to have great tenants who pay rent on time, but TPG estimates that add-on income streams such as retail sales can add another 5 percent to facility revenue. That may not sound like a lot, but that’s supplemental income that typically doesn’t require a lot of heavy lifting.

Ease of Operation

Many small businesses require years of constant hard work to stabilize and maintain efficiency. While operating a self-storage facility isn’t always easy, modern advancements can make it a relatively painless and even remote process. By leveraging a call center, online rental tools, automatic gates, smart devices and other technology, storage operations can function with little overhead and few employees. Setting up a fully automated facility takes some initial investment, but the long-term convenience and revenue opportunities are plentiful.

Investment Options

Those looking to profit from self-storage without having to own or manage a facility themselves can consider hiring a third-party management firm to oversee day-to-day operation. To be even further removed, consider investing in an industry real estate investment trust or becoming an angel investor to an existing operation. Hands-off investment can be a great way to get your feet wet before diving in headfirst with your own business.

Entering the self-storage industry isn’t a quick process. Begin by deciding how involved you want to be. If you prefer to invest in someone else’s company, do research to find one you trust. If you want to operate a facility of your own, explore the many industry vendors who can help you along your journey. Investigate applicable land issues, zoning laws and business licenses.

There are no guarantees that your business will be successful; however, a self-storage facility is widely considered to be one of the safest real estate investments you can make. It might just be worth taking a chance to be part of this $38 billion and growing industry!

Laura Gattis is a marketing specialist for The Storage Group, a provider of self-storage technology products and services including website design, search marketing and an industry Progressive Web App. She earned a master’s degree in media innovation from the University of Nevada. Her expertise lies in social media management, digital marketing and strategic communications. For more information, visit www.storageinternetmarketing.com.