Elmdale Ventures has purchased R Storage in Merrillville, Ind., with the intent to expand and upgrade the self-storage property at 3950 W. 73rd Ave. The renovations are coming years after the original developer failed to complete them, much to the disappointment of town officials who had approved the site plan according to the source. The site has been rebranded as Merrillville Self Storage.

The facility was expected to include pavement, security cameras, perimeter fencing, lighting and landscaping. The town had also approved the construction of 24 storage buildings, but only six were completed. Elmdale plans to address all of these issues as well as add 14 climate-controlled buildings. The amended plans also include fewer overhead doors, as more of the units will be accessed from the interior.

In addition, Elmdale has committed to clean up the property, which has become “a mess,” according to town attorney Joseph Svetanoff. The site contains overgrown vegetation and trash such as old mattresses and mulch piles, the source reported.

Greg Bouwer, the attorney representing Elmdale, called the property a “disregarded and dilapidated asset.” A timeline for the improvements and new structures has yet to be determined.

Source:
NW Times, Upgrades Planned at Merrillville Storage Facility

David Rogers, CEO and co-founder of self-storage real estate investment trust and management firm Life Storage Inc., has volunteered to fund the construction of a 73-foot-long replica packet boat in tribute to the vessels that first ventured down the Erie Canal in 1825. Rogers and his wife, Joan, offered to pay for the Buffalo, N.Y., Maritime Center’s $325,000 project after touring the Black Rock boat-building facility.

"I loved the idea that they were building it as historically accurate as they could get it," Rogers told the source. "All the work they do there is just remarkable, and they had a good plan."

The state also announced last week that it would spend $4 million to build a special structure to house the boat’s construction. Groundbreaking is expected next spring, with work on the vessel scheduled to begin on Memorial Day 2020. The packet boat, which will take three years to build, will be moored in the commercial slip at Canalside, a neighborhood and marketplace in Buffalo’s inner harbor. It’ll be used as a tourist attraction, making visits to towns along the Erie Canal, according to the source.

The Erie Canal will celebrate its bicentennial in 2025.

"We have worked so hard to prepare and advocate for this project, but David was the one who opened the door and made this a reality," said Brian Trzeciak, executive director of the maritime center. "He really does love Buffalo and believes in this project as much as we do."

As a board member for the Old Fort Niagara Association, Rogers saw how commemorative events for the 200th anniversary of the War of 1812 can galvanize community members. "I saw how milestones propel organizations," he told the source.

"Here's a guy who started and grew a business, and instead of taking his money out of town, he's used his position to invest it right back into the community, where it can have a lasting presence," said Deborah Lynn Williams, development director for the maritime center.

Based in Buffalo, Life Storage operates more than 700 self-storage facilities in 28 states under the Life Storage and Uncle Bob’s brands. Its portfolio of owned and managed facilities comprises more than 50 million square feet.

Source:
The Buffalo News, 'Sort of a Boat Guy': Life Storage CEO to Foot the Bill for Packet Boat at Canalside

An Extra Space self-storage location proposed for Lee’s Summit, Mo., hit a snag on Aug. 23 when the city council voted 8-1 to send the project back to the planning commission. Applicant WSKF Architects Inc. intends to build a 129,390-square-foot facility on 2.8 acres at 700 S.E. Oldham Court. The project would include three single-story buildings and a four-story, climate-controlled structure totaling 674 units, according to the source.

The council pushed the application back to planners despite having given the site plan and special-use permit preliminary approval on Aug. 9. During the public-hearing portion of the Aug. 23 meeting, several business owners who weren’t present earlier in the month spoke against the development, the source reported.

Those in opposition included Dennis Klein, who owns 50 Highway Self Storage at 953 S.E. Oldham Parkway. Klein estimated there are nine self-storage properties within a 4-mile radius of his site and argued another facility would hurt his business and property value. Others indicated the storage facility could disrupt normal business operation on neighboring properties and worsen storm-water issues already present in the area, according to the source.

Mayor Bill Baird said city planners should re-evaluate the project based on the objections raised during the meeting and consider any revisions. “Since [the preliminary vote], we’ve learned more information, but we’ve not had what I would consider an open dialogue or public hearing in which all of the facts and figures are brought forth,” Baird said during the meeting.

It’s not clear when the planning commission will next review the application.

Based in Kansas City, Mo., WSKF provides architectural, interior-design, master-planning, landscape-design and illustration services.

Headquartered in Salt Lake City, Extra Space Storage Inc. is a real estate investment trust and third-party management firm. The company owns or operates 1,568 self-storage properties in 39 states; Washington, D.C.; and Puerto Rico. Its properties comprise approximately 1.09 million units and 119 million square feet of rentable space.

Source:
The Kansas City Star, Business Owners, Residents Say ‘Not So Fast’ to LS Storage Biz

There’s been a lot of talk about new tax rates since President Donald J. Trump took office. At the same time, there’s been an influx of new self-storage properties into the marketplace. As a result, some facility owners may be feeling a lack of control over their own destinies. Well, fear not. You’re able to control something significant when it comes to your property taxes: lowering your assessment.

That’s right, it’s very possible to put money back into your pockets simply by contesting the assessment to get it lowered. Though this involves filing a petition and a doing little homework, the truth is property owners can and should be their own advocates. You simply need to understand that arriving at an assessment isn’t an exact science. Trust me; this is a good thing.

Most taxing districts use mass-appraisal methodologies because departments typically don’t have sufficient time or money to inspect each property individually. Thus, they rely on things like aerial photos and Google Maps, which simply don’t give a full and accurate representation of a property's value. Now, let’s talk about how to combat this.

Paint an Ugly Picture

Property owners can influence their assessment value by pointing out contrary conditions during a hearing before a special magistrate. All the bad news about your facility can be converted into good news regarding your tax value. After all, as the owner, you’d better have thoroughly inspected your own property and clearly understand all the onsite issues.

Inform the magistrate about your property’s overall condition in detail. You can even come armed with letters of complaint from tenants and a laundry list of capital improvements that may need to be made. Remember, it’s in your interest to paint the darkest, thickest cloud over your facility to lower the assessment from what the government estimated.

Criticizing your property won’t be held against you during this hearing. If you have a roofing problem, for example, and it doesn’t get fixed during the calendar year, you can and should complain about it year after year. When it comes to tax assessment, owners are under no obligation to fix anything. The property stands by itself. The appraiser can’t say that because you were given a reduction the previous year, none should be warranted for the current year. Poor conditions that carry over from year to year should still negatively affect and reduce the assessment, regardless of who the owner is at any given time.

Rebut Arguments

The appraiser may attempt to refute your arguments at the petition hearing by pointing out the sale prices of comparable properties. Be prepared for this. Do your homework and look at your competitors’ websites, photos and glowing reviews. You should be able to come up with something to illustrate how your property is inferior to theirs.

Also, remember that your understanding of the self-storage business will probably be much better than that of the magistrate hearing your case. Explain why you believe your competitors’ properties are superior to yours to justify a lower dollar-per-square-foot assessment. The sky is the limit as to what you may want to bring up.

It’s important to understand that self-storage properties don’t have a sticker price when it comes to assessed value. Value can vary depending on condition of the premises, income generated and the overall performance of the market. As new facilities open, they create more competition. This could create more vacancies, which could translate into negative rent growth for you. When talking to the magistrate, explain how the overbuilt market is casting a shadow on your income potential.

Understand BEV

Your self-storage property also has a business economic value (BEV). The Appraisal of Real Estate defines this as a value enhancement resulting from intangibles, goodwill, franchise rights and other non-realty-related items. In self-storage, this could include the sale of tenant insurance, RV storage and truck rentals.

Although the BEV of a purchase may not be easy to estimate in any meaningful way, it’s still in your interest to provide your best estimate by extracting the value of the business component. Establishing even a small portion of the total value of your property as attributable to BEV can lower your ad valorem assessment.

Most taxing jurisdictions agree BEV shouldn’t be taxed as part of the real-property tax base. Instead, it’s an intangible personal-property component. Many investors purchase self-storage assets based on the overall income potential of the business rather than looking at it only as a real estate transaction. Therefore, for property-tax purposes, the BEV should be extracted.

Help With Your Case

Many are under the impression that a tax appeal is costly and time-consuming, and that you you’re likely to lose in the end. The truth is the exact opposite. You can get a lot of free help from others just by asking. Your real estate broker, banker and accountant should all be able to assemble the “negatives” you’ll need to prepare your case. Presenting letters from these professional sources will help make a compelling presentation. The odds are actually good that you’ll receive a big tax return for your efforts. They’re certainly better than any you’ll find in Las Vegas!

During the presidential campaign between Hillary Clinton and Trump, Clinton complained that Trump wasn’t paying all his taxes, to which he responded, “That makes me smart.” The fact is, the law still allows property owners to contest assessments, so why not take advantage of your right to do so?

According to the National Taxpayers Union, a nonpartisan citizens’ group, just 5 percent of property owners bother to file a petition to contest their assessments. Property owners who try it once are amazed at the big savings. Many continually appeal year after year. There is certainly a lot of money to be saved.

Brian Sharpe is president of the Miami Commercial, Miami Realtors Association in South Florida. He’s also the managing member of the Property Tax Appeal Group, which petitions property-tax assessments, and Sharpe Properties, which owns a portfolio of industrial and commercial real estate assets. To reach him, call 305.693.3500; e-mail [email protected]. 

Interbay Self Storage has opened in the Interbay neighborhood of Seattle. Owned by Interbay Urban Storage LLC, the four-story structure at 1561 W. Armory Way is just west of 15th Avenue W., near a Whole Foods grocery store. It’s also adjacent to the Magnolia and Queen Anne neighborhoods.

Designed by Jackson|Main Architecture, the facility comprises 68,776 rentable square feet of storage space in 883 storage units, the majority of which are climate-controlled. Additional features included a covered loading bay, controlled access, a retail center selling moving and packing supplies, video cameras, and vehicle storage. Plans are underway to add U-Haul rental trucks.

The facility was built by Sierra Construction Co. Inc. of Woodinville, Wash. It’ll be managed by West Coast Self-Storage Group (WCSSG), an acquisition, development and property-management company headquartered in Everett, Wash. Its portfolio of managed and owned properties includes 37 sites in Washington, eight in Oregon and six in California.

“Interbay Self Storage is not only architecturally beautiful but has all the amenities that storage customers have come to expect: secure, comfortable storage units at affordable prices as well as expert service from knowledgeable storage professionals. We’re very excited to be managing this facility,” said Tom Davies, WCSSG district manager for South Puget Sound.

Colorado-based Red Dot Storage has acquired Three Rivers Self Storage in Gulfport, Miss. It’s the company’s fourth location in the state and 115th nationwide.

The property at 12497 Three Rivers Road comprises 30,600 net rentable square feet in 212 units. Red Dot plans to upgrade the facility with a new access-control system, LED lighting and video cameras, according to a press release. The asphalt will also be repaired, and a 24-hour rental center will be added.

“This property is a great addition to our expanding footprint within the Gulf Coast region,” said CEO Seth Bent. “We look forward to providing a safe and simple storage solution to our new and existing customers in Gulfport.”

Earlier this month, Red Dot acquired a four-property portfolio in St. Joseph, Mo. The former Attic Storage facilities comprise a combined 204,600 net rentable square feet, with each offering room for expansion.

The Red Dot brand is operated by Boulder, Colo.-based Sparkplug Capital LLC. Launched in 2013, its portfolio comprises 4.4 million net rentable square feet in 14 states.

Real estate developer Adval Properties Inc. intends to build a three-story self-storage facility in the Cannery Business Park in East Sacramento, Calif. McKinley Village Self Storage would comprise 107,558 square feet in more than 500 units at 3301 C St., according to the source.

“The building façades have been designed to fit well within the architectural language of the existing office development,” the developer wrote in its application. “The building will be three floors, but the scale of the building is closer to a two-story office building.”

The structure would include a manager’s office, a reception area and retail space for selling moving supplies.

The project will require approvals for the building design as well as the inclusion of a parking lot, the source reported.

Source:
Sacramento Business Journal, Three-Story Self-Storage Project Planned in East Sac

StorTrack, a division of 365 Media Inc. that offers competitor-pricing data, market-analysis tools and first-stage due diligence to the self-storage industry, has agreed to integrate its real-time rate data with the Self-Storage Rent Optimizer (SSRO), a dynamic-pricing solution offered by revenue-management firm Prorize LLC. The partnership will add more than 1 million daily competitor price points for SSRO users, according to a press release.

“Self-storage operators are becoming increasingly aware of the enormous benefits of data-driven price optimization and competitive intelligence,” said Jeff Brink, vice president at StorTrack. “StorTrack is the most comprehensive dataset available in the market, and users of Self-Storage Rent Optimizer now have access to that.”

"Competitive pricing may have an impact to your own customer demand, but this impact varies," added Ahmet Kuyumcu, founder and CEO of Prorize. "In some cases, ignoring competitive prices might be the right answer. In other cases, you should go half-way or match them. What this agreement with StorTrack does is provide us with the data we need to accurately guide our clients to forecast demand and set optimum rents, always considering the impact of competitor prices.”

StorTrack serves more than 2,000 self-storage facilities in North America with dynamic pricing data, local market intelligence, market-valuation insights, reports, and market-analysis tools. It tracks more than 30,000 facilities worldwide with daily pricing data, according to the release. It’s part of 365 Media, a global data company headquartered in Burlingame, Calif.

Founded in 2006, Prorize offers dynamic-pricing solutions to help companies set prices and optimize revenue streams. Its services are used across multiple industries, including self-storage, airlines, apartments, gaming resorts, high-tech manufacturing, hospitality, media, online retailing and senior living.

PTI Security Systems, a provider of access-control and security solutions for the self-storage industry, has integrated its IoT (Internet of Things) cloud platform with ecobee smart thermostats, which have a built-in Amazon Alexa for voice control. PTI CORE also works with ecobee Room Sensors, which detect occupancy and temperature. The tools quickly relay temperature and humidity data to the facility operator, allowing him to identify when doors are propped open or the property is experiencing HVAC problems, according to a press release.

Smart temperature control reduces the need to manually check thermostat settings. In addition, ecobee units integrate with multiple virtual-assistant platforms including Alexa, Apple HomeKit, Samsung SmartThings and Wink from Wink Labs Inc. They’re also compatible with IFTTT (If This Then That), a free, Web-based service that connects apps and devices, the release stated.

Ecobees also use “weather impact” algorithms to help users understand how outdoor temperatures affect a self-storage facility’s heating and cooling, and proactively maintain temperatures throughout the property.

PTI manufactures technology-enabled access-control and security solutions. Its product line includes access-control hardware and software, wired and wireless door alarms and mobile-access solutions. The company has installed more than 36,000 systems in 30-plus countries. It operates through two U.S. locations as well as distributors in Asia, Australia and Europe.