Storage World LLC is nearing completion of two expansion projects in New Jersey and Pennsylvania that will increase the company’s total rentable square footage by 37,000 square feet. The first, which began in June, is at the company’s corporate headquarters in Sinking Spring, Pa. The second expansion, in Mickleton, N.J., commenced in July.

The expansions include the erection of five new buildings by Trachte Building Systems, a manufacturer and supplier of self-storage buildings. The buildings were constructed on site by Brecknock Builders LLC, a Denver, Pa.-based company focused on agricultural, commercial and residential development.

The additions to the company’s headquarters at 1 Caramist Drive includes two buildings encompassing 15,000 square feet of storage space. The property now has 428 storage units. The New Jersey expansion at 350 Swedesboro Ave. comprises three buildings with 22,000 square feet of storage space, 133 units and 114 outdoor-parking spaces, bringing the property’s total number of units to 560.

“The new buildings at our company’s corporate office are currently in use,” said Annmarie Quinn, vice president of operations. In addition, the new 11-by-30 and 12-by-30 units at the New Jersey property are “great options for customers looking to keep their boats, cars or small RVs indoors,” Quinn said.

Storage World operates 10 self-storage properties in New Jersey and Pennsylvania.

Based in Sun Prairie, Wis., Trachte designs, manufactures and erects a full line of pre-engineered steel building systems and portable-storage containers. Its customized self-storage systems include single- and multi-story, interior partition and corridor, and canopy boat/RV. The company has more than 113 years of manufacturing experience.

 

Update 9/26/14 – Compass Self Storage has opened its newest facility in downtown Cleveland. The property encompasses 50,000 net rentable square feet of storage space. Amenities include climate-controlled units, video cameras, individually alarmed units, packing and moving supplies, and Penske truck rental.

"We are proud and excited to be a part of the positive news happening in Cleveland's revitalization. We believe this storage center will help serve the needs of the growing downtown residential and business population," said Todd Amsdell, president.

Amsdell plans to open a second Cleveland-area facility in Shaker Heights in 2015.

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12/10/13 – The Amsdell family of companies plans to convert a cluster of three buildings on the eastern edge of downtown Cleveland into a 60,000-square-foot, 700-unit self-storage facility operated by Compass Self Storage LLC. An affiliate of the company purchased the property earlier this year for $1 million. This will be the first self-storage project the company has completed in the city where it is headquartered.

"We are a Cleveland-rooted company," said Ed Hainrihar Jr., vice president of operations for the Amsdell Cos. "It really had been a desire of ours to be in Cleveland. We were turning over every leaf that we could, every rock that we could, to find a place to be in Cleveland."

The group of buildings at 1544-1559 Superior Ave. will serve downtown residents and businesses. The property is within a few blocks of apartments, Cleveland State University and office towers, according to the source. Hainrihar said he expects residential customers to comprise about 70 percent of the facility’s tenant base and anticipates business demand will be high. The facility will offer climate-controlled units as well as document-storage services.

The building cluster is comprised of single-, two- and three-story structures. The three-story building at 1559 Superior Ave. is the largest and was designed in the 1920s to hold stationery for a paper company.

"These are great buildings," Hainrihar said. "If the building already is there and we can get it at a good price and successfully do the conversion, it ends up being a little bit less expensive for us to purchase and convert."

Interior demolition is already underway. Amsdell also plans to restore the buildings' facades, while adding signs, lighting and awnings. The company presented plans for the conversion project at a city design-review meeting last week, according to the source. Compass expects to open the facility next summer.

Headquartered in Cleveland, the Amsdell Cos. draws its roots from the family-owned construction company founded in 1928. The company, which owns and operates self-storage properties in Florida, Georgia, Kentucky, Michigan, Mississippi, New Jersey, Ohio, Pennsylvania and Tennessee, has since been active in several billions of dollars worth of real estate ventures with a primary focus in self-storage.

With favorable market conditions encouraging many self-storage owners and investors to build new or expand existing facilities, industry resources have emerged to guide interested parties through the development process. Available assets include articles, conferences, reports and whitepapers.

Inside Self-Storage (ISS), a provider of ongoing information and education resources for industry professionals, will host a one-day Online Self-Storage Developers Conference on Nov. 13. The conference will provide expert insight to ground-up construction, conversions and remodeling projects. It will begin at 10 a.m. EST with an overview of the current development climate and then unfold in 60-minute segments covering all aspects of the development process including feasibility, financing, new construction, the conversion process, facility renovation and expansion, and boat and RV storage.

The event is designed to be an online version of the Self-Storage Developers Conference ISS produced in June in New York City.

Several of the presenters associated with the ISS conferences also participated in a new whitepaper, “How to Build, Buy and Expand with Confidence,” published by online self-storage marketplace SpareFoot. The paper examines 10 common mistakes related to self-storage real estate and development and provides tips on construction management, due diligence, feasibility and financing, as well as advice on facility amenities and marketing.

“In the past few years, occupancy rates and real estate prices have soared. As the economy continues to improve, the demand for storage units is only expected to grow,” said Chuck Gordon, SpareFoot CEO. “Still, competition is fierce. To successfully build, buy or expand requires thorough research, fact-based decisions and smart planning.”

Founded in 2008, SpareFoot helps consumers find and reserve self-storage units, with comparison shopping tools that show real-time availability and exclusive deals. With a network of more than 7,000 storage facilities ranging from mom-and-pop operations to real estate investment trusts, the company reaches prospective storage renters though partnerships with brands including SelfStorage.com and Penske Truck Rental.

In recent weeks, ISS also has published several articles related to development topics, including design and construction mistakes to avoid, interest rates and development in the Northeast, boat/RV-storage projects, and climate control.

A Self-Storage Market Conditions Report, prepared by commercial real estate firm Cushman & Wakefield, is also available for purchase in the ISS Store, an e-commerce website providing research and education products for industry professionals. The report examines the market conditions in the top 50 U.S. Metropolitan Statistical Areas to determine whether they are under supplied, at equilibrium or over supplied.

For nearly 25 years, ISS has provided informational resources to self-storage owners, managers, developers and investors. Its educational offerings include a monthly magazine, annual conferences and tradeshows, an extensive website, an online store, and Self-Storage Talk, the industry’s largest online community.

London-based Access Self Storage has launched an awards program to recognize the achievements of the more than 6,000 business customers who rent space from any of the company’s 53 U.K. locations. Honors will be presented in several categories, with one commercial tenant receiving a grand-prize business package worth £4,000, according to a company press release.

“We have worked with incredible companies and traders over the years, and it’s time we recognized them for their innovation and success, whilst showing more entrepreneurs the potential of running or launching businesses from storage facilities,” said Kevin Pratt, marketing manager.

Only businesses that rent from Access are eligible to enter. Entries may be made in multiple categories but must be submitted by Dec. 31. Categories include Home-Grown Business of the Year, Tradeperson of the Year, Small Business of the Year and Access Business of the Year. The grand prize includes a customized publicity campaign from an award-winning agency, according to the release.

A panel of judges, including Alon Shulman, CEO and founder of Entrepreneurs Universe, a forum that helps entrepreneurs find investors and network with industry leaders, will select the winners. Submissions will be judged on business excellence and initiative, according to Pratt. “We’re looking for resourceful sole traders and companies that have prospered, whilst keeping operating costs down,” he said.

In the last few years, Access has experienced a surge in rentals from start-up companies and small businesses looking for managed office space within self-storage facilities, according to company officials. In addition to storage services, Access offers post-box addresses, phone-answering services, IP telephony and shipping services from DHL.

Among the commercial tenants that use Access storage facilities for business purposes is Gibbs Bookshop in Manchester, England, which set up a successful virtual bookshop; Saturday Sewing Session in Chelsea, England, which runs sewing classes from inside a unit; and Elite Sports Nutrition, which uses its storage space as an office for meetings and storing inventory, according to the release.

A reception announcing the award winners will be held on Feb. 5, 2015, at the Grand Royale Hotel in London. Entries may be submitted online or completed at any Access location, officials said.

Access Self Storage facilities are concentrated in Greater London, with additional locations in the Birmingham, England, metro area and the English counties of Berkshire and Hampshire.

West Mesa Bargain Storage LLC recently purchased Allstate U-Lok Self Storage in Mesa, Ariz., from FRI Allstate U-Lock LLC for $2.1 million. The asset was sold in an off-market transaction arranged by Norm Herd of Empire Commercial Real Estate.

Constructed in 1974, the property at 1460 W. Broadway Road encompasses 51,360 square feet of storage space, 564 units and 136 RV-parking spaces. The facility traded at a 5.47 percent capitalization rate on its reported income and expenses, according to an Empire Commercial press release. It was 90 percent physically occupied and 59 percent economically occupied at the time of the sale.

The real estate transaction is the second Herd has completed with Bargain Storage, which has been actively acquiring storage facilities in Arizona.

Phoenix-based Empire Commercial Real Estate offers brokerage services for a variety of commercial investment properties including self-storage, retail, medical office and multi-family, and lender-owned real estate and special assets.

Gandy at 4th Street Storage, a six-building, 720-unit self-storage facility in St. Petersburg, Fla., recently sold for $10.2 million, or about $143 per square foot. The buyer was an unidentified self-storage real estate investment trust, according to a press release from Marcus & Millichap Real Estate Investment Services, which brokered the transaction. 

Constructed in 2007, the property at 10111 Gandy Blvd. is one of the newest self-storage facilities in Pinellas County, according to the release. The buildings feature stucco exteriors with reinforced modular metal framing. Amenities include keypad entry, video cameras, and moving and packing supplies.

The facility is near the intersection of Gandy Boulevard, which receives traffic counts of 48,620 vehicles per day, and 4th Street, which produces a daily traffic count of 38,000, the release stated. The population within a 3-mile radius is more than 47,000. Interstate 275, the major thoroughfare that connects Pinellas and Hillsborough counties, is approximately two miles away. Other commercial properties in the neighborhood include Baypoint Commerce Center, Derby Lane Greyhound Track and Vantage Point Condominiums.

Michael Mele, a senior vice president of investments in Marcus & Millichap’s Tampa office, represented the buyer and the seller, a local developer. “The asset is a premier self-storage facility in an area of St. Petersburg that is experiencing an apartment and retail construction boom,” Mele said. “This is the highest price per square foot we have seen since the downturn.”

Marcus & Millichap has more than 1,300 investment professionals in offices throughout the United States and Canada. The company closed more than 6,600 transactions last year with a value of approximately $24 billion. 

 

By Pamela Alton

The time has come to find a new self-storage manager, but where do you begin? Unless you’re a major player in the storage industry—one who receives unsolicited résumés daily—you’ll likely resort to other measures to find your new employee. Gone are the days when you placed a newspaper ad. Today there are numerous job-search websites, employee-placement services and free-listing sites where you can post job openings confidentially.

Another way to find great job candidates is to ask other facility owners, managers or staff if they know of any good people seeking new opportunities. You might already have a pool of experienced full-time staff members—your relief managers! They’re trained in your company policies and might be looking for a chance to move up the ranks.

Once you have a stack of possible candidates, the real work begins. Below are the five phases of the interview process. Follow these steps to ensure you find the right manager to fill your open position.

Phase 1: Phone Interviews and References

After disqualifying applicants who didn’t meet your criteria, begin calling the ones who do. Try using a guide sheet when conducting the initial phone interviews so you stay on track and get the most from the conversation. Keep notes about your discussion, particularly notable qualities of each candidate and any red flags.

Next comes the first elimination process. At this point, you should be able to narrow your list to a handful of qualified applicants. These are the people for which you’ll verify references.

Don’t be surprised if a lot of companies you call for references won’t give you anything more than employment dates and position. Don’t put too much stock in employer references, as it’s just a small part of the hiring process. Also, don’t limit references to former bosses or human-resources departments. Consider current or past co-workers, personal or business references, and even a manager’s tenants.

If the person is currently managing a facility, consider conducting a mystery phone shop to evaluate his sales skills. This can give you a fairly good indication of whether to pursue this candidate. If the phone shop goes well, it’s time to set up a face-to-face interview.

Phase 2: The In-Person Interview

In phase two of the interview process, you’ll continue to hone in on the best candidate for your position. You should be able to whittle your list to two to three applicants.

First, be prepared for the interviews. Give the candidate an application and essay questionnaire at the beginning. These will give you a chance to see the person’s handwriting, spelling, punctuation and common sense. Here are some questions you can add to the form or ask in person:

• How do you feel about rate increases?
• How would you handle a possible break-in?
• How do you feel about first-of-the-month vs. anniversary due dates?
• How often do you make collections calls?
• What would your last employer say about you as an employee?
• Why are you looking for a new job, or why did you leave your last one?
• If we conducted a background check, credit report and drug testing, what would we find?
• Why should we hire you?

At this point, you’re determining if this person is going to fit into your organization. Does he have the skills to do the job? Also figure out if your personalities mesh. Can you work with this person on a daily basis? You can’t put a square peg into a round hole! Consider each person’s talents and match them to the job duty. Those who don’t make the grade should be eliminated. The rest will move on to phase three.

Phase 3: The Follow-Up Meeting

If your job candidates are currently managing a facility, have someone you know conduct an in-person mystery shop. See how the manager conducts himself while showing the property. The shopper should note the overall cleanliness of the facility and the organization of the front office. Finally, does the manager look and act like a professional? This person will be the face of your company and, right or wrong, people will judge you by your managers.

If the manager isn’t currently employed at a storage facility, move on to the follow-up meeting. This is when the candidate meets you at the facility where he’ll be working—but only if it’s appropriate. It’s acceptable if your current manager has given you notice or is retiring. If you’re current manager doesn’t know you’re looking to replace him, be more discrete.

Phase 4: Background Checks

Next up is the background check, credit report and drug test. Don’t be surprised if you see people with bankruptcies in the last five or six years due to the recession. This doesn’t mean a person can’t manage your money; it probably just indicates that someone in the family lost a job or weathered hard times, much like many Americans.

Background checks are similar. You have to consider what the report contains. Did someone have a “driving under the influence” charge 10 years ago or last year? Drug testing is another option. However, some drug-testing companies only test for harder drugs, since many states have legalized marijuana for recreational and medical use.

Phase 5: An Offer of Employment

The final step in the hiring process is to make an offer of employment to the candidate you feel is right for you, your company and the facility. You’ll meet again with your new manager and give him a “Letter of Employment” stating his job duties, goals, wage, bonus/benefit program, etc. If you have an onsite manager’s apartment, a separate “Resident Managers Apartment Lease” should be included with the package.

Once you’ve hired your new manager, he should be enrolled in your company training program. This should be in a classroom setting, not just a day or two of on-the-job training. All employees, whether they’re new to the industry or experienced, should complete a program that covers your company policies and procedures, employment forms, sales and marketing plans, maintenance tasks and schedule, and collections and lien-sale protocol. Once this training is complete, your new manager can begin his hands-on training at the site.

If you have a position to fill, the sooner you start your hunt, the better off you’ll be. It might take up to two weeks before you begin phone and personal interviews, or longer depending on your applicant pool and the time you can devote to the process. If your candidate is currently employed, he’ll need to give his employer two or three weeks notice. Give yourself at least 30 to 45 days, if possible, for the entire hiring process.

We’ve all been there—putting out the fire after a manager gave little or no notice, which led to a hiring rush job just to fill the spot. Sometimes we’re lucky and it works out. More often, it becomes more work. If you did hire the wrong person, begin a new search now and correct your error as soon as possible.

If you take your time to find the right candidate, give him proper training, treat him with respect, give him the authority to manage the day-to-day operation, pay him well, and design a motivating, achievable bonus program, it’ll be a win-win situation for everyone.

Pamela Alton is the owner of Mini-Management Services, a nationwide self-storage manager placement service. She also conducts audits and inspections, manager training, and feasibility studies. For more information, call 321.890.2245; e-mail [email protected]; visit www.mini-management.com.

U-Haul Co. of Iowa has acquired a self-storage facility in Waterloo, Iowa, from Extra Space Storage Inc., a self-storage real estate investment trust. The property at 1923 E. Mitchell Ave. has been branded as UHaul Storage of Waterloo and will be remotely operated by U-Haul of Waterfalls at 3633 University Ave., also in Waterloo. 

The property encompasses 40,142 square feet of storage space on 2.37 acres of land. It features two single-story buildings dedicated to self-storage as well as another single-story building with a two-story office and apartment attached.  

“We are glad to be able to reuse these existing facilities, renovate them and offer a superior product to our customers," said Randy Dickson, marketing company president.  

The acquisition of the Waterloo facility was driven by U-Haul’s corporate sustainability initiatives, which supports infill development to help local communities lower their carbon footprint, according to a company press release. U-Haul’s adaptive reuse of existing buildings eliminates the amount of energy and resources required for new-construction materials and helps local cities diminish their unwanted inventory of unused buildings, U-Haul officials said. 

Established in 1945, U-Haul International Inc. has more than 40 million square feet of storage space at more than 1,000 owned and managed facilities throughout North America.

Headquartered in Salt Lake City, Extra Space owns or operates 1,071 self-storage properties in 35 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 715,000 units and 79 million square feet of rentable space.

The Texas Self Storage Association (TSSA) recently elected executive officers for its 2014-15 board of directors. Newly elected board members and officers will begin their terms on Oct. 1. Executive Committee members are:

• President Amy Nolan (The Storage Place, Corpus Christi)
• Vice President Paul Glover (Storage Choice, Dallas)
• Treasurer Clint Wynn (Hixon Properties, San Antonio)
• Secretary Ricky Jenkins (The Jenkins Organization, Houston)
• Immediate Past President Mike Gately (Daughtry Properties, San Antonio)

Additional directors serving on the board include Larry Easley of Storage Management Associates Inc., Chris Martin of Ideal Self Storage in Waco, George McCanse of Yellowstone Investments LLC in Austin, Lisa Meylor of Tin Star Self Storage in San Antonio, Blair Valk of Assured Self Storage in Dallas, and April Young of Ultimate Properties in Fort Worth.

The board’s vendor-member representative is Bill Bellomy of Bellomy & Co. in Austin. Ex-officio members are Tom McCloskey of MC Self-Storage in Lytle and Mark Skeans of Skeans & Associates in San Antonio.

The board and its officers will be introduced at the TSSA “Big Ideas in Storage” conference, Oct. 26-28, in Fort Worth, Texas. Membership information and conference details can be found at www.txssa.org.

Established in 1986, the TSSA is a nonprofit trade association dedicated to enhancing the quality of the self-storage industry in Texas. The association provides opportunities for members to increase their knowledge of the self-storage industry through education, research, discussion and exchange of information.