A pile of debris may have started a fire Wednesday at a self-storage facility under construction in White Plains, N.Y.

The fire began just after noon on the top floor of the four-story Westy Self Storage facility at 179 Westmoreland Ave. Firefighters were able to quickly extinguish the flames.

Several construction workers were working in the facility when the fire ignited, but no one was injured. The cause of the fire is still under investigation.

With corporate headquarters in Stamford, Conn., Westy Self Storage spans the tri-state area with seven centers in New York, six in Connecticut and three in New Jersey.

This fall, experts on the use of solar panels will present live information on how this technology can be used at self-storage properties to generate additional income, improve the environment and create greater consumer appeal.

On Sept. 21, Michael OBryant, regional manager for roofing contractor D.C. Taylor Co., will present a free webinar for self-storage facility owners titled, A Solar-Ready Roof: What It Means and How to Get One. The live online event will explain what a solar-ready roof is, options for solar-ready roofs, the importance of evaluating the condition of a facilitys roof before installing solar panels, and the benefits of installing solar technology. Registration for the event, scheduled for 2 p.m. ET, can be completed at MiniStorageMessenger.com.

Additional information about using solar technology can be obtained live at the Inside Self-Storage World Expo in Tacoma, Wash., Oct. 4-6, where experts will discuss the costs, financial incentives and benefits of installing solar panels to self-storage buildings and carports. On Oct. 5, Bob Hayworth, owner and CEO of Baja Construction Co., and Robin Heuer, a partner in Elevated Solar, will talk in detail about the use of solar panels, drawing on real-life case studies. Seminar and show details can be found at www.insideselfstorageworldexpo.com.

D. C. Taylor Co. is a commercial and industrial roofing contractor with nearly 60 years of experience in roof installation, repair and maintenance. The company is licensed to work in 25 states.

Baja Construction is a design/build company specializing in carports and RV/boat storage. Hayworth designed the patent-pending Solar Support System, which Baja has successfully implemented in the installation of more than 5 megawatts of fully integrated solar- and RV-shading structures.

Elevated Solar specializes in the development, financing and construction management of elevated solar systems including solar carports, solar RV/boat-storage facilities, and solar storage and warehousing yards.

Self-storage operator Strategic Storage Trust Inc. recently purchased a four-property, 2,584-unit self-storage portfolio in North California from a real estate investment management firm. The properties are at 3480 Tennessee St. in Vallejo, 2300 Grant St. in San Lorenzo, 222 San Pedro Ave. in Morgan Hill and 8900 Murray Ave. in Gilroy. The acquisition was completed in three separate transactions.

The seller was represented by HFF (Holliday Fenoglio Fowler LP). The sales and marketing team included senior managing director Aaron Swerdlin and managing director Doug McCarron. Thus far in 2011, HFFs self-storage group has closed more than $81 million in sales transactions nationwide.

The self-storage industry continues to perform at extremely strong operational fundamentals, which is likely why we see buyers outnumber sellers by a very wide margin, said Swerdlin. Quality assets in economically stable markets draw levels of interest that Ive not seen in the 17 years Ive focused on the industry. The confidence the investor community shows in the product type suggests that we will continue to see, for quite some time, strong interest levels for quality deals.

HFF, a provider of commercial real estate and capital-markets services, operates out of 19 offices nationwide. The company and its affiliate, HFF Securities LP are owned by HFF Inc. Together they offer debt placement, investment sales, advisory services, structured finance, private equity, loan sales, and commercial loan servicing.

Strategic Storage Trust, one of five publicly traded self-storage REITs in the United States, is the first and only one to not be publicly traded on the stock exchange. The companys facilities are branded as SmartStop Self Storage.

Since the companys launch in 2008, its portfolio has expanded to include 76 facilities in 17 states and Canada, comprising approximately 51,000 self-storage units and 6.3 million rentable square feet of storage space.

Experience International, a company that provides investment opportunities in emerging markets worldwide, is offering a commercial investment venture in the United Kingdom through StorePods, individual self-storage units available on a six-year lease.

The StorePods reside at a storage center in Lancashire, England, in a highly populated office and business park. According to Experience International, the property has easy access to motorways, a short driving distance to major cities, and maximum visibility and traffic flow. StorePods come in a variety of sizes and are available to customers 24/7. An onsite management team ensures the units are continuously rented at competitive rates.

This new storage concept, whereby individuals invest in one or several StorePods rather than an entire self-storage facility, allows for a low entry-level investment with guaranteed income, according to Experience International, which manages and markets the venture. Interested parties can invest in a StorePod package from £11,250, with total income projected at £30,360 over a six-year term. Income is paid quarterly in advance.

The investment is compliant with U.K. pension schemes SIPP (self-invested personal pension) and SSAS (small self-administered scheme).

U.K. storage Investment has weathered well throughout the recession and has emerged as a low entry-level investment that provides a guaranteed return from a six- year lease, already in place, making this a high-yielding and hassle-free investment, said Steven Worboys, managing director of Experience International.

Experience International provides investment opportunities in select real estate markets. The company performs due diligence on each developer to ensure land title, license to build and all other essential information are forthcoming and valid.

New Mexico self-storage operator A-1 Self-Storage is installing rooftop solar photovoltaic (PV) systems on all of its 16 storage facilities.

To reduce installation costs, A-1 Self-Storage used federal and state tax credits plus renewable energy incentives from Public Service Co. of New Mexico. The storage company predicts the new systems will pay for themselves through energy savings in about seven years. The projected savings are nearly 488,000 kilowatt hours of energy each year.

Installed by Daybreak Solar, the PV systems will also prevent about 975,000 pounds of carbon emissions annually, according to Murray Brott, managing director. We are thrilled to be able to benefit the environment while enhancing our bottom line, Brott said. Its a win-win situation for us as well as our community.

A-1 Self-Storage has 10 facilities in Albuquerque, four in Santa Fe, and one each in Rio Rancho and Tijeras.

Moore Self Storage in Staten Island, N.Y., sold Aug. 3 at an 8.5 percent cap rate. The family-owned and operated facility is on the south shore of Staten Island, 20 miles from Manhattan. The property includes 38,400 rentable square feet and climate-controlled units.

The property was attractive to buyers due to its close proximity to a regional shopping mall and the Outerbridge Crossing to New Jersey. 

Linda Cinelli of LC Realty represented the seller. Cinelli is the Argus Self Storage Sales Network broker affiliate for the northern New Jersey and NYC/Long Island markets.

Based in Denver, the Argus Self Storage Sales Network was formed in 1994 to assist owners and investors of self-storage. Argus has 36 broker affiliates covering nearly 40 markets.

By Toby Struewing

A self-storage facilitys insurance needs are different from those of many other businesses. While the basic commercial insurance coverage for property and general liability is still important, several specific options highlight the unique requirements of the storage industry.

One key distinguishing characteristic is the storage professional has a responsibility for customers goods and property being stored within his building(s). Facilities that store other peoples belongings need specialized insurance solutions tailored to their situation. Heres a list of coverage options every self-storage operator should consider and ultimately purchase.
 
Sale and Disposal Legal Liability

This coverage provides protection if a tenant defaults on rent and you need to dispose of his stored property. There could be a dispute if the tenant claims the goods were disposed of improperlyor if the wrong property was removed. This coverage will protect you against legal actions and pay damages up to policy limits and subject to policy terms, as long as youre in compliance with lien laws applicable in your province.

Unlike in the United States, theres a significant problem in Canada in that most provinces/territories have yet to establish appropriate lien-law legislation specific to the self-storage industry. As a result, facility operators are left to interpret other acts designed for related but not identical industries. At the time of this writing, there are steps being taken to remedy the situation, and theres hope to see more specific lien laws in coming years. This has been an ongoing pursuit of the Canadian Self Storage Association, but Canada-wide legislation is still years away, given that it has to be passed in each province/territory individually.

For risk-management and loss-reduction purposes, self-storage professionals should work closely with their insurance broker and lawyer to review their local lien laws and ensure the contract wording in their rental agreements is clear and consistent. Also, there needs to be a standard internal procedure regarding notification and process of pending sales. Ideally, the procedure to follow in the event of delinquency should be addressed completely in the rental agreement. Its critical these procedures are followed to the letter to avoid being taken to court. If charges are laid, the odds of winning a court battle greatly improve.

Assuming youve purchased sale and disposal legal liability and followed the terms and conditions of the policy, legal costs and damages will be paid by the insurance company up to the policy limits. Limits ranging from $10,000 to $250,000 are common for this coverage.

Operators Legal Liability

Another key coverage for self-storage professionals is operators legal liability. This insurance defends and protects operators from claims for goods that are lost or damaged while in storage. For example, a tenant may have valuable goods or property that has gone missing so they initiate a lawsuit against your facility.

A common issue facility owners see is water damage to contents, with the tenant claiming the storage operator is at fault. This coverage will pay the legal defense costs and damages for legal liability up to policy limits. In theory, its designed to pay a tenant only when the storage operator or employees are negligent. Typical limits available for this coverage range from $100,000 to $5 million depending on the number of units within a facility and the estimated value of the tenants contents.

One good way to mitigate this risk is to actively educate and inform renters about tenant insurance. This broad form of coverage allows tenants to cover their own property and goods for most losses at affordable rates and low deductibles. Its an excellent way to avoid disputes and legal actions regarding liability for damaged or lost property. It also provides peace of mind for facility operators, employees and tenants.

Most tenant-insurance programs allow tenants to choose the appropriate limit for their contents in storage. Its common to see the limits range from $2,000 to $30,000, and sometimes higher limits are available.
 
Tenant-Contents Abandonment

This specialty coverage addresses tenant-contents abandonment. Its designed to handle proper removal and disposal of environmentally sensitive or dangerous substances abandoned by a tenant. Again, it will cover costs associated with removal and disposal up to the policy limits and subject to policy terms and conditions.

To reduce this risk, self-storage professionals should have standardized rental-agreement language that prohibits storage of flammable, combustible, corrosive, toxic, unstable, explosive or poisonous materials. The agreement should also restrict activities of a hazardous nature, such as welding or woodworking. Many storage facilities are now incorporating surveillance cameras with digital recording as another way of monitoring the activities of their tenants.
 
Finding the Right Coverage

While these specialized insurance coverage options are vital to self-storage, owners should also consider comprehensive property, liability, business income/interruption and crime-protection insurance tailored to their facilitys specific needs. Issues like crime, personal injury of tenants on site, and fire and water damage also need to be addressed through a comprehensive risk-management and loss-prevention program. This kind of program should be one of the value-added factors your insurance broker provides.

In fact, self-storage professionals should consider several factors when looking for the right insurance partner for their unique needs. These include:

• Qualified assistance in evaluating exposures operators face
• Advice on how best to manage risks from physical facilities and through contracts
• A simplified underwriting process for securing quotes for coverage
• Broad coverage, competitive rates and low deductibles
• Services tenants can access to obtain insurance coverage on their unit contents
• Access to risk-control services to assist in mitigating physical risks on site
• Industry experience and expertise
• Reputable and financially secure insurance company and brokerage

Your self-storage facility is unique in its possibilities and risks. Your insurance solution should reflect that uniqueness and respond with a clear understanding of your exposures and specialized coverage that fully protects your facility.
 
Toby Struewing, commercial account executive for Cowan Insurance Group, is a specialist in Canadian self-storage business insurance. To reach him, e-mail [email protected].

Serenity Storage, a self-storage company based in Buffalo, Mo., has acquired its third property, the 131-unit Clearwater Mini Storage facility at 3777 W. US Hwy 54 in Camdenton, Mo.

The buildings, provided by Trachte Building Systems, were constructed between 2005 and 2008. The site also features perimeter security and gates by Chamberlain Access Solutions, and the WebSelfStorage property-management system provided by U-Haul Inc.

Serenity Storage was established in 2007. Owned by Martha and David Kolstedt, the company also owns two facilities in Buffalo and is Buffalos U-Haul dealer. Serenity Storage now has 366 units across its three properties, including some dedicated to boat and RV storage.