Alcatraz Storage of Fort Wayne, Ind., has formed an alliance with Perfect Paws Pet Rescue, a local group whose mission is to provide a safe, temporary home for cats and dogs. As part of the partnership, the self-storage facility will host three adoption days per year for the pet shelter, which also provides animal vaccinations and adoption services.

In addition, Alcatraz Storage donated storage space to Perfect Paws. Facility owner Kevin Rollings is also offering a storage discount to anyone who makes a donation to the organization. We really want to reward all the great folks out there that go out of their way to make a difference, he said. We feel very fortunate to have super customers that treasure our animal friends as much as we do.

Alcatraz Storage has a second facility in Brownsburg, Ind. The facilities offer RV/boat storage, truck rental, packing supplies and unit shelving. Rollings managed the facilities on behalf of former owner Scott Myers prior to buying them.

Perfect Paws is a 501c3 non-profit charitable organization operated by directors, foster families and volunteers. Its mission is to provide safe harbor and find permanent homes for neglected, abandoned or unwanted cats and dogs. Each animal receives age-appropriate vaccinations and health testing and is spayed/neutered. The organization also hopes to educate the public on the value of spaying/neutering in decreasing pet overpopulation along with proper animal care and responsibility.

 

Quality Self Storage Kenneth City LLC has purchased a 93,146-square-foot self-storage facility in Sarasota, Fla., for $1.7 million, about half what the seller paid for it less than 10 years ago. Orlando, Fla.-based SS Washington LLC paid $3.28 million in 2004. The facility was built in 1973.

Although the commercial real estate market in Southwest Florida has started to show improvement, with increases in property sales and office-leasing activity, the market around Sarasota is still far from robust, according to the source.

In nearby Bradenton, Fla., for example, 36.2 percent of the general office space downtown is empty, and that figure is up slightly from the previous quarter. By comparison, the office-vacancy rate in downtown Sarasota is 12.6 percent, the Bradenton Herald reported.

In July, Storage Quest LLC of Winter Garden, Fla., purchased a similarly sized self-storage facility in Bradenton for approximately $6 million. The former Big Jim Self Storage facility has 90,964 square feet and sits on approximately 6 acres. It was built in 2003.

Quality Self Storage Kenneth City is based in Sarasota and managed by J. Bradford Baldwin.

David Grant, managing partner of Catalyst Storage Partners, a privately held firm specializing in self-storage development, investment and consulting, has been appointed to the board of directors at Washington Federal Inc.

Prior to forming Catalyst, Grant spent 20 years with Shurgard Storage Centers, a self-storage real estate investment trust that owned and operated a portfolio of more than 600 properties in the United States and seven foreign countries. He retired from his duties as Shurgard CEO in 2006 when the company was sold to Public Storage Inc.

Grant began his career as a certified public accountant in 1975 with Touche Ross & Co., where he worked until joining Shurgard in 1985.

Grant is a graduate of Washington State University, with degrees in business administration and accounting. He serves as a member of the board of governors for the Washington State University Foundation and is on the national board of advisors to WSU's College of Business.

"We are honored to have Dave join our board," said Roy M. Whitehead, Washington Federal's chairman, president and CEO. "He will bring a wealth of experience in the areas of commercial real estate, accounting and finance to bear on the company's decision-making in those areas. His experience managing a large public company will also be useful in planning for Washington Federal's own future growth."

Headquartered in Seattle, Washington Federal is a bank holding company with 165 offices in eight western states.

The California Self Storage Association will host a Storage Olympics competition as part of its 10th annual conference and membership meeting, Oct. 25-26, in San Diego. Designed to mimic the "Minute to Win It" television series on NBC, the event will take place during the evening cocktail reception on Thursday.

Open to all conference attendees, the Storage Olympics will feature an opening ceremony, 10 sponsored competitions and an awards ceremony during which medals will be distributed to winners. Self-storage companies are encouraged to sponsor individual events, which will include:

• Get the Lead In: Players must bounce pencils, eraser end down, off the table and into each of seven glasses (60-second limit).
• Penny Hose: Players must retrieve a penny from each leg of a pair of panty hose and put them on a table using only a single hand (60-second limit).
• Egg Zone: Players must balance four footballs on individual plastic tees, and then balance four eggs upright on the tips of the footballs (60-second limit).
• Noodling Around: Players use a piece of uncooked spaghetti, held in their mouth, to pick up six penne noodles placed around the perimeter of a table. Fastest time wins.
• Stack Attack: Players must stack 36 plastic cups into a perfect triangle-shaped structure, and then get the cups back into a single stack. Fastest time wins.
• Ping Pong Pogo: Players must empty eight ping-pong balls from a tissue box, strapped to their lower back with a belt, while remaining upright and without using their hands.
• Hot Hoops Basketball: Players use a launcher to rapid-fire as many mini basketballs as possible into baskets (60-second limit).
• Extreme Nutstacker: Players must stack 10 large metal nuts, edge to edge, by sliding them off a chopstick onto a wooden cutting board held in the opposite hand 60-second limit).
• One-Handed Tissue Grab: As quickly as possible, players use only one hand to pull tissues out of the box, one-at-a-time, until the box is empty.
• Create Your Own Game: Subject to approval. Game supplies, rules and description to be provided by game sponsor in advance.

All conference attendees will get three tickets as part of their registration, each good for one game of their choosing. Additional tickets are available for $10, or three for $20.  Points are awarded for each game played.

CSSA is a non-profit trade association dedicated to supporting the self-storage industry in California. The group offers educational events, networking opportunities, legislative advocacy and more. More information can be found at www.californiaselfstorage.org.

The Florida Self Storage Association (FSSA) has elected three new members and two alternates to its 2013 board of trustees. Dennis Hofmann, senior producer for Wells Fargo Insurance; Danielle Toms, vice president of business development for Mindful Management, a third-party management firm; and Rory Williams of AC Commercial Property Management will serve three-year terms. Chris Potash, vice president of storage operations for Self Storage Zone Management LLC, and Matthew Van Horn, vice president of operations for Cutting Edge Self Storage Management, will be alternates.

For the last three years, Hofmann has been a co-speaker and exhibitor at FSSA conventions. In addition, the Wells Fargo Boca Raton, Fla., office has been a long-time supporter of the association through hands-on work and financial support, according to Robert Bret, FSSA executive director.

Toms assisted the association in the planning and execution of the FSSA Educational Conference and Expo in 2011 and 2012 and currently serves on the membership committee. She is also a contributor to the associations InPrint magazine. Before the election, Toms promised to bring fresh, new ideas to the table, along with a strong work ethic.

Williams experience includes operating up to 40 self-storage facilities in addition to other commercial property. Also a licensed Florida real estate broker, he provides third-party management throughout the state and serves on several FSSA committees. His experience in all facets of the self-storage industry makes him a valuable asset to provide support and guidance to the FSSA for the benefit of all its members, Bret said.

Potash is a past president and former board of trustees member of the New Jersey Self Storage Association and was a board member for the New York Self Storage Association. In addition to presently overseeing self-storage properties in Maryland, Virginia and Florida, he has also been involved in the management and acquisition of facilities in Austrailia and England.

Van Horn has previously served on the FSSA board for many years and volunteered on the finance committee. He has presented numerous seminars to members and contributed articles to InPrint. He is also a licensed real estate agent in Florida.

The FSSA is a nonprofit organization of businesspeople involved in the self-storage industry in Florida. Its members include facility owners, operators, vendors, developers, investors, property managers and suppliers.

Airport South Mini Storage in San Jose, Calif., was recently sold to Pegasus Group, a Walnut Creek, Calif.-based real estate development and management company. Located at 355 W. Hedding St., the facility is about three miles south of Mineta San Jose International Airport and minutes from the downtown area. The property contains approximately 60,000 net rentable square feet and 398 self-storage units. The facility offers free use of a moving truck to tenants, moving supplies, records and archive storage with built-in shelving, and a business center with faxing, copying, delivery and pick-up services.

The store will be rebranded as Central Self-Storage San Jose II and fully integrated into the Pegasus operating platform. The company will undertake a major capital-improvement program for this facility, adding a new security system with individual door alarms and a digital video-monitoring system, as well as painting and remodeling the managers office.

This marks the 15th property for the Central Self Storage brand in Northern California. There are two more facilities in the Silicon Valley.

Founded in 1988, Pegasus Group owns and operates 60 commercial properties in the United States under the Central Self Storage brand.

Ask any mechanic, dentist or specialized tradesperson, and he'll tell you: Being successful depends on having the right tools for the job as well as knowing how and when to use them. Its the same for self-storage investors and operators. In fact, a full and fully utilized toolbox has never been more critical than in todays rapidly evolving self-storage market.

Once a relatively simple business, self-storage has become increasingly sophisticated, with technology being the driving force. As a result, owners are re-tooling their businesses, improving long-standing practices with the use of new technologies. Smaller operators, however, are recognizing that scale and capital can make a big difference in the ability to fully exploit state-of-the-art tools.

For example, large operators who can fund and operate sophisticated Internet-marketing programs are better positioned to capture consumer demand. This has led a growing number of smaller operators to affiliate with larger counterparts for access to their high-tech platforms and scale economies.

One of the easiest ways to partner with a larger operator without giving up ownership is through third-party management. This arrangement, which allows smaller owners to access and leverage a larger operators technology and processes for a fee, can offer benefits of scale that include marketing, access to call centers, sophisticated revenue management, lower cost of goods and services, and other efficiencies that are quantifiable over time.

A less obvious area that can directly benefit from third-party management is financing. How? Lets take a look at how third-party management can be a valuable tool for obtaining a financing package in three different scenarios.

Shoring Up New Investors

Lenders understand that self-storage is an operational business, and they are often reluctant to bank a first-time investor. Third-party management can help new investors secure financing.

Lenders base their real estate credit decisions on strengths, weaknesses and mitigates to a transaction, which ultimately translate into calculated risks and returns. A lender may have great appreciation for the self-storage industry and be very comfortable with the physical real estate, but a lack of comfort with a particular sponsors experience can mean, at best, a higher cost of funds and, at worst, a decision not to provide financing.

An easy way for a first-time investor to overcome this obstacle is to propose the use of an experienced third-party management company to drive the operation. This may give the lender the additional level of comfort necessary to push the loan through approval.

Insulating Out-of-Town Investor Buyers

Similar to new investors, out-of-town buyers often present a paradox for lenders that third-party management can be useful to overcome. Local and regional banks, for example, are a traditional source of financing for self-storage transactions. They typically have a relationship-oriented mindset with their customers and a geographic footprint that dictates where they can lend. When an existing bank client chases an opportunity outside the banks footprint, the existing lending relationship may not be willing or able to follow that investor out of market and provide funds for the opportunity.

Unfortunately, this situation typically results in the need for a new relationship with a lender whose footprint is within the propertys market. With new relationships come questions, however, and until the lender and borrower develop a track record of success, the new lender will likely look for ways to safeguard against perceived risk in the transaction. Furthermore, the lender may have questions about the operators ability to effectively manage the asset remotely, particularly if the operator has an investor mentality and lacks operational expertise, which is commonplace today.

In situations where investors without self-storage operation experience are looking to capitalize on opportunities that are in remote markets, often the solution is to present the use of third-party management as a viable solution that will help the lender gain comfort with the transaction.

Digging Out Troubled Borrowers

A final area where third-party management can be compelling for a lender or, in this case, an equity-capital source, relates to transactions with a troubled history that are in need of a workout or debt restructure. Regardless of whether the existing owner is deemed capable, in these situations bringing in third-party management can be a useful strategy to attract new debt and equity to the transaction.

In virtually every workout or restructure situation, theres a story that needs to be told about the history of the asset, combined with an outline of a strategic plan that will be implemented to restore value. Third-party management is often a key component of this strategic plan.

If an equity infusion is necessary to rebalance the capital stack and demonstrate a renewed equity commitment to the debt lender, a logical source for the capital may be a large operator of self-storage. This company will likely stipulate its management platform be implemented to participate in the transaction. Alternatively, if the equity capital is more institutional and fund-driven in nature, the capital provider will likely rely upon an existing operating partner relationship. Either way, third-party management in all probability would be a component of the new strategic plan for the asset.

Regardless of the reason for a transactions troubled history, it can be difficult to attract new debt or equity to the deal without instilling a level of certainty about the operational capabilities of the management. Bringing in experienced, institutional third-party management is a viable way to demonstrate a renewed commitment and ensure management and operations will not be problems with the asset going forward.

Valuable Multi-Use Tool

For smaller self-storage owners, third-party management offers a number of compelling applications. Its a valuable tool that, with the right affiliate, can help alleviate financing issues that were difficult to overcome a few years ago.

Shawn Hill is a principal at Chicago-based The BSC Group, where he provides mortgage brokerage and financial consulting solutions to self-storage and other commercial real estate owners nationwide. He can be reached at 773.517.8504; e-mail  [email protected] ; visit www.thebscgroup.com .

By David Wolf

A key question for many self-storage operators is whether to outsource online marketing and lead generation to an agency or consultant. Hiring an outside resource comes down to you and your teams time, expertise, and breadth of your online and offline marketing efforts. Partnering with a third party provides the benefit of having an expert deployed on your digital lead generation and online branding.

The challenge many operators face is staying abreast of the numerous online, mobile and social-advertising channels and how they converge within the scope of an integrated media plan. Another variable is the rapid pace of change in the online- and mobile-media landscape and the evolution of new advertising platforms. Lastly, the continued introduction of online directories and lead-aggregation platforms targeting consumers looking for self-storage has created an additional layer.

Finding the right agency or consultant to leverage the opportunities online advertising can yield is crucial to ensure your facility generates leads that convert into high-quality tenants. There are a myriad of factors you should consider to ensure you find the right partner.

Determine Your Goals and Objectives

Define what youre looking to get from your partnership. Are you looking to remove the administrative burden of managing your online marketing efforts? Are you looking for expertise and guidance? A combination? Defining and sharing your goals and objectives with prospective vendors during your evaluation will serve as an essential guidepost to find the best solution. 

Define Roles, Responsibilities and Account-Service Needs

A key benefit of hiring a third party to manage your online marketing initiatives, besides expertise and knowledge, is account-service and program-management capabilities. Chances are youre looking for someone to remove the administrative tasks of managing multiple campaigns. Define the roles and responsibilities you and your team want to pass off and the parts of the relationship in which you want to be engaged.

If client service is important, select someone who has a strong account-service pedigree. Focus on getting to know the agencys culture and the importance it places on the client experience. Some variables to consider is the level of account service, for example, are phone and e-mail requests promptly addressed?

Also consider the firm's size and capabilities. If youre working with a smaller company with few employees or a sole contractor, this may be a poor fit if your goal is to disengage from online marketing. Lastly, ask the prospective candidate to provide client references.

Industry Expertise and Experience

Choosing a partner with self-storage experience is beneficial. One who already understands consumer drivers and how consumers shop online for self-storage is useful. You dont want to pay a company to learn about your industry and the drivers of your business.

Strategy and Approach

Have the agency rep or consultant define his strategy and approach to online advertising. Evaluate how he will approach media planning and measure the efficacy of the campaigns he recommends. Have him distill his approach to online lead generation as it relates to self-storage. Look for new and creative ideas he suggests to improve performance, generate leads and increase conversions. I suggest choosing someone whos media agnostic with the ability to understand, plan, place and analyze the results generated from all the channels in which you advertise.

Determine Success Factors and Benchmarks

Identify the benchmarks you plan to use to measure success and evaluate performance. Also determine the intervals on which you plan on reviewing your partner's performance. If your partner misses the targets you established at the onset of your relationship, this is a great time to discuss changes and get back on track.

Dave Wolf has been the managing partner of Linkmedia 360 since 2004. Hes responsible for a number of innovative strategies that have enabled the companys clients to use online, mobile and social media to maximize the impact of their lead-generation campaigns. For more information, call 877.843.1091; e-mail [email protected]; visit www.linkmedia360.com.

A proposal to build a $5 million Compass Self Storage facility at a former car dealership in Shaker Heights, Ohio, has been rejected by the citys planning commission. The commission last week voted unanimously against converting the existing garage and showroom into a storage facility that would have housed 575 units.

One of the co-owners of the property, Debra Pando Blaushild, said the lot requires $60,000 a year in taxes. No business has operated on the lot in three years. Previously approved plans to open an automotive-repair service and used-car dealership fell through about a year ago, according to the source.

The commission deemed the self-storage proposal as an incompatible use to what is designated as a neighborhood gateway. Blaushild and Amsdell Cos., the parent company to Compass Self Storage, had sought a conditional-use permit to allow self-storage on the property.

The Sept. 11 hearing was a continuation of an Aug. 9 public hearing to allow the applicants to provide more information about the project. Amsdell President Todd Amsdell was frustrated by the process, even commenting during the meeting that he believed commission members had already made up their minds to oppose the project.

What were trying to bring into the city is a viable business, he said.

Planning Commissioner John J. Boyle III said he was opposed to recommending the conditional-use permit to the city council, believing the project might require a full rezoning measure.

Other city officials voiced concerns regarding whether the proposed project was closer to a warehouse than outdoor self-storage and its economic impact on the community. Amsdell officials said the facility would employ four to five employees at salaries ranging from $25,000 to $40,000 per year.

Former councilmember Al Foster argued that approving a self-storage facility on the property would set a bad precedent and hinder future development in the area.

Based in Cleveland, Amsdell Cos. draws its roots from the family-owned construction company founded in 1928. It has since been active in several billion dollars of real estate ventures, with a primary focus on self-storage. The company has owned and operated more than 500 self-storage facilities under various trade names in more than 27 states.

Compass Self Storage currently operates facilities throughout Florida, Kentucky, Michigan, Mississippi, New Jersey, Ohio, Pennsylvania and Tennessee.

Byram Self Storage in Port Chester, N.Y., will celebrate 20 years of business and a rich family history this weekend with a community party including free refreshments, music, food, face-painting, a bouncy house, raffles and giveaways. The event will take place at the Higland Street facility on Saturday from noon to 4 p.m., or the same time on Sunday if it rains.

The building that houses Byram Self Storage dates back to the 1880s when it was th site of Abendroth Brothers Foundry. What is now the facility-management office used to serve as the foundry dispatch.

During World War II, the site was operated by EMCO Porcelain Enamel Co., which made ammunition boxes, ship lockers and relay boxes for the U.S. Post Service. After the war, the company made steel cabinets for homes. Also in the building for many years was Bantam Toys and another toy manufacturer.

Mortimer Patchen, whose parents formed EMCO in 1938, created Byram Self Storage in 1992. The family had acquired all of the land and buildings that had been previously owned by Abendroth Brothers, which went from Willett Avenue to Highland Street and Abendroth Avenue to the Byram River.

Patchen's children later joined him in the business, which is now run by Robin Klein, Jeffrey Patchen, Kip Patchen and Mortimer Patchen.

The Byram building, which has more than 900 storage units of various sizes, has undergone a facelift since its factory days and has been repainted red, white and blue.