England-based Sentry Self Storage has opened a new facility in the community of Eastleigh after agreeing to a 10-year lease with Lambert Smith Hampton (LSH), a U.K.-based commercial-property consultancy. The 17,775-square-foot property is Sentry’s 17th storage location.

The leased building at Unit 4, Trafalgar Close, Chandlers Ford Industrial Estate had been vacant for three years, according to the source. LSH represented Horatio Properties Ltd. in the transaction.

"Due to the success of our Toynbee Road premises in Eastleigh, we have been looking for another premises in the area, and we believe Unit 4 is just right for our needs,” said Mark Hickman, owner of Sentry Self Storage. “It will enable us to offer a further range of storage options for business and personal customers."

A lack of similar sites in the area and an improving local economy made the building an attractive option for self-storage, according to Adrian Whitfield, director of industrial and logistics agency at the LSH South Coast office.

Founded in 1988, Sentry operates self-storage facilities in the English counties of Hampshire, Surrey, Sussex and Wiltshire.

By Price Self Storage

Did you know Americans make up the world’s largest wine-drinking market, consuming 13 percent of globally produced wine and racking up more than $34 billion in wine sales in 2012? Today’s consumer wants access to extensive wine lists, all within a close distance. It’s great business for private collectors, retailers and restaurant owners, who are purchasing cases from wineries around the world.

Where does all of this wine get stored? While some businesses and collectors still attempt to store their wine in-house, the demand for off-site storage is increasing. If you’re a storage-facility owner, now’s the time to re-evaluate the demand for wine storage and determine if it’s a viable service to offer at your location.

Wine Retailers and Collectors as Customers

Wine retailers and collectors take their wine seriously. They’ve already weighed the advantages and disadvantages of storing their wine in-house. Here’s what they’ve discovered:

• Wine refrigerators can only hold between 10 and 250 bottles.
• Wine refrigerators don’t offer humidity control.
• Wine refrigerators usually can’t accommodate larger champagne, pinot or magnum bottles.
• Wine cellars are an expensive option. Building a cellar ranges from $4,000 to $50,000.
• Wine-cellar humidifiers can wear out and be expensive to replace.

The risks and heavy maintenance for in-house storage are a high deterrent for this group. They have specific needs they expect to be met, and they’re willing to pay extra money to make it happen. In fact, many of them are willing to pay up to 35 percent more for a storage unit that features consistent temperatures and balanced humidity.

Wine retailers and collectors will also stick around for the long haul. From a retail perspective, they’re looking for consistency. They want a place where they can store their wine for years to come. This means staying with a storage facility that makes it easier to manage their collection or run their business. Wine-storage operators offer several features that appeal to these customers: loss prevention, security and stability.

Loss Prevention

It’s surprising how easy it is for an expensive bottle of wine to go missing, especially in a restaurant or retail environment. A retailer might carry several bottles of an exclusive label that could go months before being purchased. In the meantime, there should be a record of its whereabouts, which is hard to maintain when wine is constantly going in and out of the store. Unfortunately, the largest source of shrinkage comes from within a business. This means owners are cautious of the staff who handles their shipments.

The easiest way to prevent wine loss is to keep only a few bottles of each label at the actual store. The rest should be kept off site, where there’s record of when it was brought to the facility or taken out, and in what quantity.

Security

Business owners need to feel secure with the people who handle their wine. Wine-storage operators allow retailers the exclusivity necessary to access their product and offer more privacy. It’s easy for a large, expensive home or business to stand out to burglars. Storage units, however, come with uniformity and can conceal what lies behind them.

Stability

A big concern for wine collectors and retailers is the inability to dedicate around-the-clock supervision for their collections. Wine-storage operators make them feel more secure by ensuring their wine will always be taken care of. For example, they provide back-up generators so wine can remain at a consistent temperature even during an emergency.

Another benefit for customers is provenance. Wine-storage facilities provide a record of the historical climate, which is a great selling point for anyone buying the wine. The value of wine goes up if there’s a record to show it’s been properly stored. Further, collectors appreciate that wine-storage operators are often able to accept shipments on their behalf.

Adding to Your Bottom Line

While many storage operators may prefer to stick with “what they do best,” ancillary sales still account for about 5 percent of revenue. Don’t forget a wine lover is the type of customer who will spend more to improve the value and quality of his collection.

Targeting wine lovers not only brings in new commercial accounts, it opens the door for a more upscale clientele. It sets your storage facility apart from competition and presents the business as a well-rounded storage offering. Consider whether your facility would benefit by providing wine-storage solutions to customers.

Price Self Storage has facilities throughout California and offers wine storage at its Walnut Creek location. From individual 18-case lockers to 500-case rooms, the company’s wine storage can be configured in a variety of layouts to accommodate any size or collection. For more information, visit www.priceselfstorage.com.

California-based self-storage operator LifeStorage LP has secured a $100 million line of credit from Citigroup Global Markets (Citi) to fund future acquisitions. The storage company’s growth plan includes buying properties in the top 50 U.S. markets. LifeStorage prefers to clusters its facilities in strategic locations, company officials announced in a press release.

“Citi’s credit facility confirms our success in selectively acquiring institutional-quality properties and significantly improving operating results. It will provide us with the flexibility to expand our portfolio opportunistically,” said Mark Good, CEO. “We’ve found that many self-storage customers often settle for a mediocre storage solution and are disappointed by their experience. By contrast, LifeStorage is committed to creating the very best storage experience across all customer interactions in order to surprise and delight customers.”

Among the criteria LifeStorage examines for facility acquisitions are location and convenience for customers, property amenities, security standards, and retail environment, company officials said.

“As one of the most stable real estate asset classes, self-storage is an appealing market,” said Matthew Greenberger, managing director of Real Estate and Lodging Global Banking at Citigroup. “The LifeStorage management team has deep experience in building and operating businesses, and they are committed to creating a strong real estate portfolio and adding value across the self-storage ecosystem.”

LifeStorage changed brand ownership in 2011 and moved its headquarters from Chicago to Roseville, Calif. Today, the company operates a self-storage portfolio of 73 properties in nine states, with a heavy concentration in the Chicagoland area.

Consumer buy-in to self-storage services in Hong Kong has made the industry an attractive investment option, according to a whitepaper released by Colliers International, a commercial real estate services firm. “Self-Storage in Hong Kong: A Growing Niche” highlights factors driving consumers to rent space from storage operators and why the sector is ripe for investment.

“The increasing volatility of prices in various asset markets and the growing difficulty of finding reasonable risk-adjusted returns have prompted real estate investors to look for non-traditional real estate investment opportunities,” according to the report. “Self-storage has come onto the radar because this niche sector offers them the benefits of stable rental income and premium yields.”

Among the key drivers for consumers and businesses are tight living quarters and insufficient storage at residences and offices. Colliers estimates that approximately 852,000 homes in Hong Kong don’t have adequate storage. “If half of them demanded 30 square feet of storage space each, the market size would be 12.3 million square feet, compared to an estimated current supply of 2.8 million square feet,” Colliers analysts said.

As consumers have grown accustomed to using self-storage for seasonal items, they’re becoming “increasingly comfortable with putting items like valuables, sports gear, wine and seasonal clothing in self-storage,” according to the report. “Customers are also attracted by value-added services such as providing moving assistance and receiving products ordered online.”

Tenants are also drawn to security amenities and 24-hour access, Colliers analysts said.

As a result of the increased consumer activity, investors are now examining self-storage as a reliable investment opportunity. “As a non-traditional real estate investment category in Hong Kong, the self-storage sector provides a higher return when compared to traditional buy-and-lease-out investment options for industrial properties,” according to the report.

As a lease investment, a new 20,000-square-foot self-storage facility in Hong Kong will reach 90 percent occupancy in about 18 months, Colliers estimates. “This results in a payback period of about 4.5 years,” according to the report. “Assuming a nine-year lease, the internal rate of return (IRR) is estimated at more than 30 percent.”

For property owners who convert to self-storage, the acquisition cost accounts for more than 85 percent of the total investment amount on a 20,000-square-foot facility. Colliers calculated the IRR for this scenario at approximately 15 percent for the same nine-year period. “Although the internal rate of return of this buying case is lower than the leasing case, the returns of the buying case are more secure,” according to the report.

The 12-page PDF report is available for free download from the Colliers Hong Kong website.

Self-storage directory Storage.com will make a monetary donation to the Boomer Esiason Foundation (BEF) to support cystic fibrosis research for every storage company that joins its member network this month. In addition, the company will donate money for every new storage rental booked through the website in September and October.

According to a company press release, the fight against cystic fibrosis is an issue close to Storage.com, which is owned and operated by B² Interactive, a digital-marketing agency based in Omaha, Neb. B² Interactive’s social media firm, Hurrdat Social Media, has had a long relationship with BEF and its president, Dave Rimington, a former NFL and college football player, the release stated.

“Over the years, we have had firsthand experience with not only the passion that Dave and the BEF team have, but also the incredible good the foundation can do,” said Bill Hipsher, CEO of Storage.com and co-founder of B² Interactive. “With our flagship self-storage website, Storage.com, we are fortunate to have a vehicle that can help individuals and causes throughout the year.” The partnership with the foundation will be a pilot program for Storage.com, opening the door for participation in other causes important to the company and its members, according to the release.

Rimington befriended Norman Julius “Boomer” Esiason in the 1980s when they both played for the Cincinnati Bengals. He has been involved with the foundation for 20 years. Under his leadership, BEF has instituted and developed a variety of educational programs, scholarships and media initiatives that have directly benefited cystic fibrosis communities nationwide.

Cystic fibrosis is a life-threatening genetic disorder in which the body produces a thick mucus that clogs lungs and prevents the creation of natural enzymes to break down food and absorb nutrients. It’s one of the most common chronic lung diseases in children and young adults.

Esiason’s son was diagnosed with the disease in 1993, at two years old. BEF was formed soon afterward to fund research to find a cure for the disease. The foundation also provides scholarships, transplant grants, hospital grants, education and awareness campaigns.

Based in Omaha, Neb., Storage.com is an online directory and marketing tool that delivers exclusive reservations and provides a complete search engine optimization package.

An Uncle Bob's Self Storage facility in Austin, Texas, is hosting a go-kart racing event on Sept. 19 and a contest in which entrants will have the chance to win pit passes and tickets to the Sept. 20 Tudor Cup Lone Star Le Mans race at the Circuit of the Americas in Austin. The storage company is partnering with 98.1 KVET FM and 96.7 Kiss FM to give away two “hot” pit passes to the race as well as access to AIM Autosport Team pit and the Ferrari co-sponsored by Uncle Bob’s and Revo, a sunglasses manufacturer. Winners will enjoy hospitality and an AIM Autosport-themed gift.

Racing fans can enter the contest at www.unclebobs.com/k1.

The Uncle Bob's Sports Car Challenge at K1 Speed go-kart racing track at 2500 McHale Court will take place 8 p.m. to 10 p.m. Three pairs of tickets to the Le Mans race will be given away. Attendees will also have the chance to race against International Motor Sports Association Tudor Cup pro drivers Townsend Bell and Bill Sweedler of AIM Autosport, and Boris Said and Eric Curran of Whelen Motorsports. Not only will they compete for a chance to race on a team with the pro drivers, they can buy one race and get one for free from 8-9 p.m.

Established in 1995, AIM Autosport operates multi-car teams that compete in several racing series.  

Uncle Bob’s Self Storage is owned by Sovran Self Storage Inc., a real estate investment trust that acquires and manages self-storage facilities. The company operates more than 500 facilities in 25 states, including 14 in Austin.

Update 9/9/14 – OpenTech Alliance has completed its acquisition of the TXTCollector SMS (short media messaging) solution from Hub Media Marketing and subsequently launched XpressCollect, a text-messaging cloud service that automates collections for self-storage operators, company officials said in a press release.

"Nobody likes making collection calls, and now managers don't have to,” said Chiti. “Our plan over the next few months is to invest heavily in development resources to integrate the texting technology into our Self-Storage Cloud platform and create several new features that will deliver even more value to self-storage managers.”

Chiti acknowledged the company’s kiosk products have not always made OpenTech a favorite among self-storage managers, “but we are hoping XpressCollect will reinforce our mission of helping them to be more productive and not trying to take their job," he said. To launch the product, the company is offering current customers a free XpressCollect trial until 2015.

"Tenants are not always in a place where they can talk by phone, especially during the awkward setting of a collection call,” said Jim Mooney, director of operations at Devon Self Storage, which has locations in 15 states and is using the new product. “The service lets the tenant control directly how and when the message interaction occurs without feeling hassled or judged during the process."

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7/17/14 – OpenTech Alliance Inc., a Phoenix-based provider of self-serve kiosks, call-center services and other technology for self-storage businesses, has entered an agreement with Hub Media Marketing to acquire its TXTCollector SMS (short media messaging) solution, which automates the collection of past-due storage rent via text-messaging software. The transaction—OpenTech’s second acquisition in 2014—is expected to close by the end of the third quarter.

According to an OpenTech press release, SMS is at the forefront in technology when transmitting payment reminders, past-due notices and/or auction alerts to self-storage tenants. “With eight times the response rate of e-mail and a much less disruptive experience for the recipient than robo-calls, the collections service has proven to be one of the most reliable and productive methods of communication with tenants,” the release stated.

"Our strategy is to grow our company through internal development, acquisition and partnerships. TXTCollector has a rapidly growing user base because it does not require any manager intervention. It is easily customizable and, in many ways, performs better than a collections agency,” said Robert Chiti, OpenTech president and CEO. “We are excited to add it to our platform and integrate it with the rest of our services. We feel it will be a solid foundation from which to develop new SMS services outside of just collections for the self-storage industry."

Earlier this year, OpenTech acquired the call-center customer base previously serviced by online self-storage directory USStoragesearch.com (USSS). The companies entered an agreement in December and worked together to transition USSS customers to OpenTech's customized service, Live! XpressRes. OpenTech also opened a second call center this spring, in Dayton, Ohio, to better serve customers in the Eastern time zone.

Based in Vienna, Va., Hub Media Marketing (HMM) was formed in 2011 to address the online marketing needs of businesses that deliver products and services to local markets. The company’s central service, Hub Content Pages, has delivered thousands of page-one search rankings and increased in Web traffic to clients, according to HMM’s LinkedIn page. It also offers website design, development, hosting and support as well as social media and video-marketing solutions.

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.

Morningstar Properties LLC, which operates self-storage facilities under the Morningstar Mini-Storage brand, has launched a $75 million fund through its private-equity real estate affiliate Blue Doors Capital Partners. Blue Doors Storage Fund II will invest in facility acquisitions as well as the renovation and development of storage properties in major U.S. metropolitan markets and strategic secondary markets, company officials said in a press release.

The fund, backed by a handful of institutional investors, is the second private-equity investment vehicle sponsored by Morningstar Properties. The company launched the $55 million Blue Doors Storage Fund I in February 2013.

“Morningstar has been extremely pleased with the assets it has acquired and developed through Blue Doors Storage Fund I. Even more importantly, so have our institutional partners, all of which are working toward another investment in our second fund,” said Dave Benson, president. “Blue Doors Storage Fund II will allow Morningstar to continue to grow its portfolio of high-quality storage facilities and create additional value by capitalizing on the continued, strong underlying operating fundamentals, coupled with our operational expertise and 30-plus years of experience in the sector.”

Last October, Morningstar sold 65 percent of its self-storage portfolio (43 facilities in concert with investment-management firm Harrison Street Real Estate Capital LLC) to Public Storage Inc. for $315 million. The move was similar to 2006 when Morningstar sold 60 of its 63 properties to Public Storage.

Founded in North Carolina in 1981, Morningstar Properties is a vertically integrated developer, owner and operator of real estate products focused primarily on self-storage and marinas in the Southeast. The company has developed, acquired and operated more than 150 self-storage projects across the country, totaling more than 8.8 million square feet. It currently owns and operates 35 self-storage centers comprising more than 13,000 units in nine states, with most concentrated in the South. The company’s future growth is funded through Blue Doors Capital Partners, an affiliated private-equity fund designated for acquisition and development of self-storage centers.

Less Mess Storage Inc. (LMS), which operates self-storage facilities in Prague as well as Warsaw, Poland, has changed its auditor following the Sept. 2 resignation of Smythe Ratcliffe LLP, a Canada-based accounting firm. LMS directors have appointed Warsaw-based BDO Sp. z o.o. as the new auditing firm. The change has been approved by the LMS Board of Directors and Audit Committee.

BDO is the fifth largest accountancy firm in the world, with offices in Canada, the Czech Republic and Poland. The company is expected to provide LMS with a more efficient auditing process, according to a company press release.

“While we have received excellent service from Smythe Ratcliffe, we also see this transition to BDO as a significant positive step forward for the company,” said Clarke Nakamoto, LMS chief financial officer. “Not only should the audit process now be more efficient, as BDO has offices in Prague and Warsaw, but we also know that a great deal of the investment world is very familiar and comfortable with the BDO name.”

LMS also announced that two company officers surrendered an aggregate of 64,833 of LMS stock options, including 45,833 options that were exercisable at $1.40, and 19,000 options exercisable at $1.

LMS owns and operates five self-storage properties—four freehold, one leasehold—encompassing more than 180,000 square feet of net rentable space. The company reported $4 million in revenue in 2013. Though its records office resides in Vancouver, British Columbia, Canada, it also has a headquarters in Warsaw and offices in Prague. Its common shares are listed on the TSX Venture Exchange under the stock symbol "LMS."