Self-storage development is considered by some to be the darling of the commercial real estate world right now, but that doesn’t mean some markets aren’t more oversupplied – or undersupplied – than others.

A new report from CBRE sheds some light on which markets are out of equilibrium, one way or the other.

Chris Sonne, CBRE executive vice president-self-storage valuation, says New York is unsurprisingly the nation’s most undersupplied market – followed by San Jose, Los Angeles, San Diego and Baltimore. Some cities, he said, have zoning regulations that make it more difficult to get entitlements to move forward on construction.

Oklahoma City ranks as the nation’s most oversupplied market, followed by Memphis, Columbus, Kansas City and Salt Lake City.

“It’s a time to make really well-thought out, well-researched decisions despite the sector having really performed well over the last four or five years. No one knows what’s going to happen in the future,” Sonne said.

Finishing up the third deck pour at StorQuest, 6th and Kalamath. pic.twitter.com/SeTI40kLGl

— dcb Construction (@dcbConstruction) July 22, 2016

Most markets undersupplied

To come up with the rankings, CBRE considered occupancy, income and cap rate. Of the 38 markets CBRE looked at, 16 fell into the undersupplied category. 11 were oversupplied, and the other 11 were at equilibrium.

Looking beyond the numbers, almost everyone interviewed for this article agreed on one thing: that these numbers be taken with a grain of salt.

In their report, Sonne and co-author Nick Walker, caution that the best analytics for the self-storage sector is by local trade area, which is a three-mile radius around a facility. That means even in an undersupplied market, there can be oversupplied trade areas within the market due to “zoning, overbuilding or demographic trends”.

The reverse is also true, Sonne said. There can be pockets in an oversupplied market where there is demand and not much supply.

“It doesn’t mean that everything is saturated in the city,” he said. “You might still find a neighborhood where there is a lack of self-storage.”

Regulations matter

In general, though, Sonne says states like Texas where the business environment is more favorable tend to be oversupplied because it’s simply easier to get approvals for construction. On the flip side, markets like California or New York tend to present more challenges, and have more expensive land. Thus, they tend to fall more in the undersupplied category.

“It’s basic economics 101, with supply in demand in relation to the population,” he said. “But you have to look at all factors such as population, percentage of rents, average household size and income.”

In some markets, it can still be very difficult to get entitlements for storage and financing remains a challenge, Sonne adds.

Pockets of demand

Todd Amsdell, president of Cleveland, Ohio-based Amsdell Companies, says his firm is building in both oversupplied and undersupplied markets.

“Since our footprint and sphere of influence with our customers is much smaller than other real estate products,” he said, “it doesn’t mean that the specific location you are building in is overbuilt even if the overall MSA by some metric has too much square footage per person compared to national averages.”

Amsdell points out that markets like Dallas, which has historically been considered overbuilt, is still seeing a lot of demand.

“More people move into that MSA than just about any other,” he said.

One area of concern for Amsdell is that as developers mature in the development cycle, projects often become larger to justify the increased costs of land and construction.

“This contributes to an overbuild situation in certain markets and/or prolongs other lease-ups or hinders the ability for other operators to grow rents,” he said. “That’s as much of a worry as new projects coming in.”

Impact of expansions

Amsdell also notes that many existing developments are expanding.

“I don’t know we’ve ever seen so many self-storage centers conducting expansions,” he said. “It may not be the brand new facilities that end the party. It might be that too many operators are adding a bit here and there.”

Overall, Amsdell is not too concerned about what’s happening in this development cycle.

“The development game and cycle is about managing expectations and understanding the cycles,” he said. “But a lot of what it is being done is by operators and developers that know what they’re doing. Fear looms when there’s too many builders and flippers that aren’t that experienced in the industry.”

Choose carefully

John Good, president of self-storage lender Jernigan Capital, says the company has largely stayed away from Texas with the exception of the Austin area, which seems to be growing.

“It’s a fairly unique submarket,” he said.

And while the company is relatively active in Atlanta, there is concern of oversupply there. Good adds that his company is currently fairly active in Florida in markets such as Miami-Fort Lauderdale, Orlando, Tampa and Jacksonville.

“There’s a lot of developers there with access to capital,” Jernigan Capital chairman and CEO Dean Jernigan – who is the former CEO of CubeSmart – said. “So far, so good but it is a market the gets overbuilt over time.”

In general, the pair note that cities such as Miami, Atlanta, Dallas, Houston, Denver and Phoenix are very pro-growth. To Sonne’s point, zoning is not that difficult in those areas so there is more potential for oversupply.

It's a good time to develop self-storage simply because supply is not meeting demand.

— Dean Jernigan (@deanjernigan) September 7, 2016

Early to the party

Meanwhile, it takes a “special, well-capitalized developer to develop in cities like New York, Washington, D.C, the San Francisco Bay Area and Orange County. – where the entitlement process is very difficult and land expensive,” Jernigan said.

Markets to watch, in his opinion, include Charlotte, Nashville, Austin, Raleigh and Atlanta.

“There’s plenty of population with a lot of affluence and historical shortages,” he said. “Those are really good high-growth markets. We got in early fortunately, and we’ll be getting out because of overheating.”

The post Self-storage development searches for equilibrium appeared first on The SpareFoot Storage Beat.

Extra Space Storage has closed on a newly converted storage facility in Glendale, CA for $13.8 million. The property was previously the studio of acclaimed movie makeup artist Rick Baker.

Broker Stephen Grossman, of Laguna Beach-based Self Storage Investment Services, confirmed the closing with the SpareFoot Storage Beat on Wednesday.

Grossman represented the developer, Morelli Brothers Enterprises, when they purchased the property from Rick Baker’s company last January. Morelli Brothers purchased the property for $7.4 million.

Baker was behind some of cinema’s most memorable creatures, including those seen in: Hellboy, Gremlins, Men in Black, An American Werewolf in London, and The Ring.

Grossman told the Storage Beat that Extra Space is expected to open the 70,000-square-foot facility this week, which has been built to offer about 700 units.

The property is located at 6527 San Fernando Road.

The post Extra Space buys “monstrous” storage facility at C of O appeared first on The SpareFoot Storage Beat.

Texas has been at the forefront of the latest self-storage development cycle, but industry heavyweight Dean Jernigan thinks things are getting overheated.

Jernigan, who leads publicly traded self-storage investment firm Jernigan Capital, added Austin and Dallas to the company’s “Danger List”—cities in which the amount of new supply under development exceeds 10 percent of the current supply.

Jernigan announced the designation via his Twitter account:

When speaking at the SSA show in Vegas last month, I stated that the DFW metroplex is over saturated with new development.

— Dean Jernigan (@deanjernigan) October 5, 2016

As I have researched further, I now want to add a second city to the aptly named Danger Zone list. That city is Austin, TX. — Dean Jernigan (@deanjernigan) October 5, 2016

These two markets will be adding new supply that exceeds 10% of their current supply. I would advise against developing in either place.

— Dean Jernigan (@deanjernigan) October 5, 2016

Jernigan said the Austin MSA as 40 new projects underway that will add three million square feet to the existing 15.5 million square feet. The Austin MSA has a population of about two million people. Jernigan went on to call out other oversupplied markets that make up his “Worry List”, which have new supply above five percent of current product, and his “Watch List”, which have new supply above 7.5 percent over existing:

Right now the Watch List cities are Denver, Houston, Phoenix, and San Antonio. — Dean Jernigan (@deanjernigan) October 5, 2016

The Worry List cities are Atlanta, Charlotte, Miami, Nashville, and San Jose.

— Dean Jernigan (@deanjernigan) October 5, 2016

If you are building storage in these cities, let us know so we can keep record of that. — Dean Jernigan (@deanjernigan) October 5, 2016

As we all continue to tackle this development cycle, we need to build smart. Being aware of where others are building helps everyone.

— Dean Jernigan (@deanjernigan) October 5, 2016

Jernigan’s portfolio

As of June 30, Jernigan Capital has invested in 11 development properties, either ground up or conversion projects, representing about $76.5 million in principal financing. That list includes a $8.6 million project in Austin.

Jernigan Capital also has issued $36.8 million in construction loans to developers who have a contract to sell to third-party purchasers upon completion, and five loans to acquire or refinance operating properties totaling $128.28 million.

On Monday October 3, Jernigan Capital announced that it closed a $9.2 million development investment on 798-unit facility to be developed in Columbia, SC. The project is to be developed by Hallmark Self Storage. Jernigan Capital made the loan through its $122.2 million joint venture with Heitman Capital Management.

Developer perspectives

All Storage CEO Jay Schuminsky told the SpareFoot Storage Beat that he does sees an abundance of development in the Dallas market, where the company has three projects currently in development.

But Schuminksy said he doesn’t see a lot of direct competition with his company’s new projects.

“We have a bit different product type,” Schuminsky said, adding that it is developing more expensive and harder to permit “drive thru” buildings.

Schuminksy said he thinks there is still some development opportunities for his company in the Dallas-Ft. Worth area.

“We have a little bit of pipeline left, after that I don’t see us doing anymore,” Schuminsky said.

Barriers to entry vary

Schuminsky said there is a disparity between planned developments and actual projects getting built. Labor shortages and permitting challenges are slowing down projects, even though Coming Soon signs suggest otherwise, he said.

He said there company is focusing on high barrier to entry submarkets, such as Arlington, rather than Dallas proper where there is more development activity.

“Dallas proper is a little more lax. You see lot’s of cranes so we’ve stayed away from places that don’t have barriers to entry–they’re scary,” Schuminksy said.

Finding equilibrium

Banner Storage Group also has three projects under development in the Dallas-Ft. Worth market. President Gary Delaney said they don’t have direct competition within a two mile radius of their sites.

“We’ve always been selective in our submarkets, part of our due diligence as always been checking with the planning people to see who else has been in looking at sites,” Delaney said.

Delaney said he isn’t sure if the Dallas market is reaching an over saturation point–only the market can determine that.

“I think those numbers of what supply can handle are subjective,” Delaney said. “The product is a lot more accepted by greater numbers of people. Until we see a softening of the occupancies, I don’t think we really know where equilibrium is,” Delaney said.

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Columbia, SC-based Taylor/Theus Holdings has received the necessary approvals to build an 81,000-square-foot self-storage facility at 1440 South Dixie Highway in Hollywood, FL. The company expects to complete construction by the end of summer 2017; Extra Space Storage will manage the completed facility.

The 650-unit facility will be Taylor/Theus’ first project in South Florida. The firm has three additional sites in the market under contract and in the entitlement phase, according to Tyler Colpini, project manager at Taylor/Theus.

The company is also in the permitting stages for a 135,000-square-foot self-storage facility with more than 1,000 units at Ardrey Kell Road and Community House Road in Charlotte, NC. (pictured at top) Completion is expected by summer of 2017.

Colpini provided an update on various other properties in the company’s pipeline as follows:

• Completion of a 60,000 square foot expansion at 3308 South Boulevard in Charlotte, NC is expected in the next 45 days.
• Completion of a new 108,000-square-foot facility at University City Boulevard and North Tryon Street in Charlotte is expected in the next 45 days.
• Completion of a new 100,000-square-foot facility at WT Harris Boulevard and Old Statesville Road in Charlotte is expected in the next 45 days.
• Completion of a new 116,325-square-foot facility at 6933 Rivers Ave. in Charleston, SC is expected in the next 45 days.
• A 101,815-square-foot facility at 1014 North Graham St. in Charlotte is under construction; completion is expected by early summer of 2017.
• A 95,000-square-foot facility at 2307 Hydraulic Road in Charlottesville, VA is under construction; completion is expected by early summer of 2017.
• Additional sites are under contract in Atlanta, Tampa, Orlando and South Florida.

Planned

Costa Mesa, CA-based North American Self Storage Group has acquired a former food distribution facility at 340 Taylor Street in Springfield, MA it will convert into a 91,391-square-foot storage facility. Construction is scheduled to start in January 2017 with a projected opening in September 2017. The facility will be managed by CubeSmart.

MCSS Development, also known as Miami City Self Storage, has purchased its eleventh South Florida development site located at 18460 Pines Blvd in Pembroke Pines. The 100,000-square-foot facility will provide more than 1,000 climate-controlled storage units. The facility will be managed by a national REIT.

Brandon Grebe of Grow Your Storage proposed a development combining new apartments and a self-storage facility at 6020 S. College Avenue in Fort Collins, CO. The exact size of both components are still being determined as the proposal makes it way through preliminary review with the the city planning department, the Coloradoan reports.

Willis Hiker, owner of I-Deal Self Storage has proposed a 10,500-square-foot self-storage facility at Freeville Road and Enterprise Drive in Dryden, NY. Ithaca.com reports that Hiker is seeking a special use permit to proceed with the project.

Under construction

Baranof Holdings  plans to demolish a four-building mid-century office complex at 622-628 Capital Boulevard in Raleigh, NC to make way for a 89,790-square-foot self-storage facility. The Raleigh Public Record reports that Baranof purchased the site in September for $3.4 million and that the four existing buildings are permitted for demolition. Baranof is also developing a 70,000-square-foot facility at 7901 Glenwood Avenue in Raleigh.

Los Angeles-based JMS Ventures, operator of All Storage, has broken ground recently on three sites in the Dallas-Ft. Worth Metroplex: Mapleshade Lane and 190 in Plano, Marine Creek and Longhorn in Fort Worth, and Custer and University in McKinney. Combined the three projects total more than 550,000 square feet. JMS is also nearing completion on a 22,000-square-foot expansion to the facility at 8850 Trinity Boulevard in Hurst, TX and a 156,000-square-foot expansion at 6900 Granbury Road in Fort Worth. All Storage also just opened in August a 1,000-unit facility at 3000 S. Watson Road in Arlington, TX.

A company owned and operated by a group of 19 pueblos in New Mexico are getting into the self-storage business. Indian Pueblos Marketing has broken ground on a 36,450-square-foot storage facility with 497 units at 1901 8th Street NW in Albuquerque. A second phase is planned that will add another 230 units, according to Albuquerque Business First. Extra Space Storage is set to manage the facility.

Mike Erdman Motors is developing a 419-unit self-storage facility in Brevard County, FL near the intersection of Viera Boulevard and U.S. Highway 1. The general contractor is M.H. Williams Construction Group, according to the Orlando Business Journal.

Universal Development plans to convert a vacant hotel into a 450 unit self-storage facility. The hotel is attached to the Metroplex Expo Center at 1620 Motor Inn Drive in Liberty, OH, which has been vacant since 2014. Universal acquired the hotel and convention center in 2015. The refurbished convention center opened recently, and the storage facility component is scheduled to open in 2017, according to Vindy.com.

Completed

A recently completed conversion project in Milwaukee, WI has opened under the management of Life Storage. The more than 90-year-old building at 420 W. St. Paul Avenue underwent extensive renovations to become a self-storage facility with more than 1,000 climate-controlled units. The 114,000-square-foot building is Life Storage’s second Milwaukee-area facility. The building was most recently used by Iron Mountain for document storage. In July 2015, Whitefish Bay-based St Paul Storage LLC purchased the property for $3 million, obtaining $6.8 million in financing from Jernigan Capital, property records show.

Safeguard Self Storage recently completed and opened three new stores: two in Chicago and one near New York City. The company opened a 68,125-square-foot facility with 880 units at 2757 North Clybourn Avenue in Chicago and a 58,925-square-foot facility with 769 units at 1909 West 95th Street. In New York, the company completed a 59,725-square-foot facility at 6000 Sunrise Highway in Massapequa. The new developments bring Safeguard’s total portfolio to 70 locations, with more on the way.

“The company has three additional properties in New York, two more in Chicago, and five in Florida that are in various stages of development” said Jim Goonan, senior vice president of development for Safeguard.

Osborne Capital Group recently opened Ace Storage at 4850 E. 355th Street in Willoughby, OH. The facility was converted from a 40,000-square-foot building that served as headquarters for a contracting business, according to The News-Herald. The facility has 184 units and was completed in early September.

The post The Roll Up: Weekly Self-Storage Development Round Up 10.12.16 appeared first on The SpareFoot Storage Beat.

Some people thought there was no way self-storage construction spending could keep pace with last year’s growth rate of more than 70 percent.

It actually hasn’t kept pace, it’s accelerated at a 124 percent annualized rate instead, far exceeding the wildest expectations of veteran industry observers who say the self-storage construction market is approaching levels not seen since the boom years prior to last decade’s financial crisis.

“At this point, I’m just trying to ride the wave,” said John Bull, owner of Portland, OR-based John Bull Builders LLP, a subcontractor for larger self-storage construction contractors.

“It’s full throttle for us,” said Caesar Wright, president of San Diego’s Mako Steel Inc., a self-storage contracting and engineering firm. “The industry is as busy as it’s ever been.”

Growing pains

While welcoming what many now consider an outright construction boom, particularly in the northwest and southwest portions of the U.S., contractors, subcontractors and suppliers report they’re beginning to see the downsides of a thriving construction market. Construction costs are starting to bite into margins. Skilled workers are getting harder to find as prices for some commodities, especially steel, have seen wild swings in recent years and even months.

The country’s overall unemployment rate is 4.9 percent, what economists consider to be “full employment”. That gives workers more bargaining power when it comes to demanding higher wages. And that’s exactly what’s happening, with economists noting that workers in general are beginning to see income growth ranging on average from 1 to 5 percent.

But within the construction field, some builders say they’re now paying skilled workers 20 percent to 30 percent more for labor. One reason for this is that the supply of skilled trade workers has gone down over the past ten years, with many workers retiring or just leaving the industry after last decade’s real estate crash.

“I’ve been advertising to hire people but I’m not getting many responses,” said Bull, noting his top priority now is keeping his current employees happy, well paid and productive.

Material costs

For Dennis Rome, co-owner of Pinnacle Commercial Development in New Jersey, his more pressing problem is the cost of commodities. He estimates costs have risen by about 5 to 10 percent in the past year or so. Those aren’t earth-shattering numbers, but they do signify an industry that’s heating up.

Rome estimates the price of concrete has increased about 10 percent in the past two years, while the price of steel has skyrocketed about 30 percent. Indeed, federal government data shows steel prices spiked in 2015, then plunged in early 2016, then rebounded again in late spring, only recently flattening out in recent months. Rome said he’s also worried the industry may soon see spikes in copper prices.

Record high spending

The self-storage market is now the second fastest growing industry in the country, behind only the fabricated metal construction sector. Through August, the value of self-storage construction was pegged at $1.2 billion, compared to $534 million during the first eight months of 2015, a 124 percent increase, the latest data shows.

With four months of reporting left, self-storage construction spending this year is on track to set a record high—beating 2007 when $1.22 billion in spending was reported.

Though that’s a blistering pace, Pinnacle’s Rome — whose company is now involved with 12 self-storage construction projects, most of them along the East Coast – said he likes the current expansion. He describes the current cycle as a “more smart” recovery than what was seen last decade. Contractors are more “strategic” in selecting where to build, rather than taking a build-it-and-they-will-come attitude toward constructing new facilities, he said.

Top of the bubble?

Chris Woodward, president of SS20 Building Systems Inc., a Florida maker and installer of steel structures for multi-story self-storage facilities, said business overall is going “quite well” in his general market area east of the Mississippi. “There’s a lot of construction going on,” he said.

He agreed that it’s hard to find skilled workers and that labor costs are going up as a result. “It’s been difficult,” he said. He said the key is not to “overextend” the company and to work with the employees one already has on its payrolls.

Woodward said he believes that “we’re at the top of the bubble” and that the industry should calm down soon, allowing prices to stabilize.

“We hope and think prices will come down,” Woodward said.

The post As prices rise, storage construction poised for record year appeared first on The SpareFoot Storage Beat.

Phoenix-based Wentworth Storage Co. LLC purchased two industrial properties in San Diego and Chula Vista with plans to convert them into self-storage facilities. The company paid approximately $27.8 million for both properties, according to the San Diego Business Journal.

The properties are located at 12340 World Trade Drive in San Diego and 2391 Fenton Street in Chula Vista. (pictured at top). The company plans to convert both buildings to provide 100,000 square feet of climate-controlled space. Both are expected to open in 2017.

Planned

Utah-based Wasatch Storage Partners has closed on two properties in the Minneapolis area that plans to convert into self-storage facilities, according to Finance & Commerce. Wasatch paid $7.2 million for both properties, located at 1828 Buerkle Road in White Bear Lake, MN and 9200 Hudson Blvd. in Lake Elmo, MN.

Metro Self Storage wants to build a 100,000-square-foot facility in Westhampton Beach, NY on a 2.6 acre lot it owns on Old Riverhead Road. The company is seeking an exception to the company’s permitting fees, which would be in excess of $200,000, according to 27east.com. The facility would be the largest building in the community.

U-Haul plans to convert the historic C. Cowles & Co factory at 83 Water Street in New Haven, CT into a 2,000-unit self-storage facility. The 156,000-square-foot building operated as a factory for more than 125 years. The company originally produced lanterns for carriages, and would go on to manufacture automobile parts. Operations moved to North Haven in 2015.

Completed

Better Boxes Self Storage, a new facility at 881 Gold Hill Road in Fort Mill, SC, will host a ribbon-cutting ceremony on Nov. 16. The 63,690-square-foot facility offers 441 units.

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The developer of a proposed self-storage facility in Morristown, NJ has shaved a floor off of its original plan in an attempt to appease residents.

Hampshire Properties reduced their original plan for a 100,000-square-foot, five-story storage building, to a four-story structure. Other revisions to the plan include increased green space, updated architecture and off-site public improvements, according to MorristownGreen.com.

The project would replace a former auto repair shop and an oil distribution operation at 175 Morris Street. Plans for the storage facility include a 2,600-square-foot art studio that would be run by a local nonprofit. A public information session on the revised plan is slated for November 29.

Planned

Pearl Street Commercial LLC received the variance it needed to build a 102,750-square-foot facility at 8290 Broadway in Merrillville, IN. The three-story facility will occupy 3.5-acres of a 10-acre parcel, according to the Chicago Tribune.

Jernigan Capital is investing $7.5 million for the development of a 784 storage facility in Jacksonville, FL. The developer of the property is Georgia-based PLG Properties LLC. The deal marks the developers’s first co-investment with Jernigan Capital.

Jernigan Capital also announced a $5.1 million commitment to fund a 256-unit expansion of an existing facility at 11860 W Colonial Dr. in  Ocoee, FL. The facility, managed by CubeSmart, opened in May 2016 and is already 65 percent occupied. The developer is Orlando-based Storage Builders II.

Under Construction

Morningstar Storage is nearing the finish line on an office-to-storage conversion at 1795 NE Peachtree Street in Atlanta, GA. Property records show the Matthews, NC-based operator purchased the property in 2014 for $3.35 million. The original 35,500-square-foot building was built in 1968.

1 mos from opening. Redone facade on Peachtree activates old 1960’s building. #cre #atlcre #storage #redevelopment @MstarStorage pic.twitter.com/9oy1rgT2sy

— Matt Shapiro (@Matt_Shapiro) November 11, 2016

Multiple building permits have been issued for Searcy Way Self Storage, a new facility under construction at 911 Searcy Way in Bowling Green, KY. The property was acquired in July for $1.15 million by Lovers Lane Self Storage LLC; the purchase was financed with a $3.43 million loan from Heritage Bank USA.

Greenbox Self Storage is building a 143,000-square-foot self storage facility at 5512 Leetsdale Drive in Denver, CO, according to Business Den. The company purchased the 4.4-acre parcel last year for $3.95 million. The site was previously occupied by the Dillon Dairy, which has been demolished. Greenbox is operated by Focus Property Group and has three other locations in Denver.

Killed

Plans to convert a vacant office building at 781 Whalley Avenue in New Haven, CT into a self-storage facility have been abandoned after the developer discovered hazardous materials in the roof and ceilings that would cost too much to remediate. Advantage Development Group expected to spend $12 million converting the property to a 570-unit facility, with $600,000 set aside for environmental remediation. The new discovery would have raised costs considerably, according to the New Haven Independent. The development company, led by Stephen Zagoren, also faced opposition from neighbors and city development officials.

Completed

Big Tex Self Storage has opened a new 100,000-square-foot facility at 1810 Richmond Avenue in the Montrose neighborhood of Houston, TX. A 15 foot by 10 foot exterior wall will feature art produce by local artists, which will rotate on a quarterly basis.

“As a born and raised Houstonian, I can’t think of a better neighborhood to grow into than Montrose,” said owner Bobby Grover.

The company is planning to complete its next facility in early 2018; the next facility will be located at Ella and 34th streets in Houston.

The post The Roll Up: Weekly Self-Storage Development Round Up 11.23.16 appeared first on The SpareFoot Storage Beat.

Tighter rules on where and how self-storage facilities in Miami are constructed could soon become law.

The city of Miami’s Planning, Zoning, and Appeals Board (PZAB) unanimously approved an ordinance calling for strict regulations that would limit the development of new public storage facilities in many parts of Miami.

The board approved the measure on Dec. 7 and it is now headed to the City Commission for two readings in the near future – possibly in February and in March, according to Joseph Eisenberg, a city planner.

Proposed restrictions

The controversial ordinance has developers more than a little concerned. It proposes a minimum separation of 2500 feet between self-storage facilities in two of Miami’s zoning designations, T5 and T6.

“Our analysis has shown that even with the separation requirement in place, roughly half the property in the city zoned T5 and T6 would still be available for self-storage construction,” wrote Eisenberg via email.

The ordinance also mandates that self-storage facilities have ground-floor commercial space – at least 50 percent of which is dedicated to use independent of the self-storage facility.

“One of the primary goals of our zoning code is to activate the pedestrian realm, which contributes visual interest and safety to the city,” Eisenberg wrote.

Many uses – such as condos or commercial developments – accomplish that by default, he said.

“People go in and out of these establishments throughout the day and night, they often have many windows that provide ‘eyes on the street,’ he wrote. “These benefits to the public realm are not as inherent to self-storage facilities which often see minimal traffic and, for the sake of efficiency and security, tend to be windowless boxes. This incompatibility was the main reason for this proposal.”

More hoops

Based on a recommendation from the PZAB, the planners modified the ordinance to require a public hearing for all new proposed facilities and a design review from the Urban Development Review Board.

Eisenberg emphasized that city planners acknowledge the need for self-storage facilities and believe there is demonstrative market demand.

“That is why we are not seeking any sort of prohibition,” he wrote. “We simply hope that this ordinance spreads out any of the deleterious effects that we have seen from self-storage facilities in the past, and encourages the creation of more activated and visually pleasing structures.” 

Dampening effect

Jay Crotty, managing partner of Tampa-based SkyView Advisors, notes that it is not uncommon for cities to try and limit self-storage development. He says it’s too early to tell if the Miami market is oversaturated, though.

“Self-storage is a service that is appreciated and utilized and it is important that it is close to where people are living and is convenient for them to get to,” he wrote via e-mail.

Limiting self-storage development would “significantly alter the plans of developers,” Crotty added.

“It will be very interesting to see how they will adapt to the changes,” he said.

Preliminary analysis from the department shows around 30 facilities that have been completed or are in for permit within the City of Miami, according to Eisenberg.

Anyone who can submit a full application to the city before the ordinance takes effect will likely be grandfathered in.

Developers on edge

Gary Delaney, president of Chicago-based Banner Storage Group LLC, has been developing in the Miami market for about 20 years and currently has four self-storage developments under construction in the city.

He’s not surprised by the ordinance.

“Miami’s never been a big fan of self-storage,” Delaney said. “They want the streets to be more activated, more of an urban center. Self-storage doesn’t activate a street. So while customers like that we’re close and convenient – it runs counter to what the city wants.”

He is waiting to see what is ultimately passed.

“If it (the separation) is increased, it will significantly impact future developments in Miami,” Delaney said. “Even just a 2,500 foot radius around every self-storage facility would leave very few pockets where you can put something.”

If it is increased to say, 5,000 feet, he believes there will be hardly any locations large enough to build a self-storage facility.

“That would almost create a situation where there’d be zero development,” he said.

Michael Mele, senior director of Marcus & Millichap’s National Self Storage Group in Tampa, agrees such an ordinance will make things “extremely difficult” for developers.

“This is good news for existing operators because there will be less competition and they can raise prices as they see fit without worrying if someone will undercut them,” he said. “But developers who aren’t grandfathered in are going to have a big problem.”

The post Restrictions on self-storage development proposed in Miami appeared first on The SpareFoot Storage Beat.

Portland, Oregon could be headed into overbuilt territory when it comes to self-storage, while some developers and owners say the rate of growth is sustainable.

In all, more than 1.6 million square feet of new facilities are now under development in the Portland area, adding 12 percent to the overall supply of self-storage space in the region, according to Union Realtime, a New York research firm for hedge funds and other real estate investors.

The firm counts at least 19 new facilities now under development in Greater Portland in a report on the market issued last month. The report states that the pace of new self-storage construction in the Portland area is running far higher than the norm in other parts of the country – and twice as fast as what the US Census is projecting in Portland.

“It’s inevitable, as you’ll see,” James de Gorter, a co-founder at Union RealTime, said of prices taking an eventual hit in Portland.

The bottom line: The overbuilding, as Union RealTime describes it, could lead to lower rental and investment prices for facility owners and investors, similar to what’s happened in other cities, such as those in Texas and other red-hot places that are seeing a self-storage boom.

A bubble in the making?

The Portland boom will probably continue as long as the “very attractive economics” hold up, de Gorter says, such as low interest rates and being able to build new facilities for $100 per square foot and then flipping them for $150 to $200 per square foot. But sooner or later, the bubble will burst, he said.

But self-storage developers and others, including city officials in Portland, say they don’t see a bubble forming – not in a city where the population has grown by 20 percent, more than 632,000 people, over the past 15 years. The metro Portland area is home to 2.3 million people

“We think we’re going to be just fine,” said Daniel Lyman, co-founder of Get Space LLC, a Portland self-storage owner and developer that’s already built four facilities in the Portland area since its founding in 2013.

Get Space, which is partnering with the private equity firm Richie Group out of Salt Lake City, currently has one self-storage facility under construction and five more in the planning stages.

Lyman said a case could be made that there’s an oversupply in some sections of Portland, such as near the downtown, but the entire area has been underserved for years amidst its population boom.

Just getting started

In 2013, Get Space conducted a thorough market study of the area and found there was room for as many as 70 to 80 new self-storage facilities – and developers haven’t hit that figure yet, he said.

John Bull, owner of John Bull Builders LLC of Portland, said his firm normally builds self-storage facilities across the country for large real estate investment trusts and self-storage companies. But he’s so bullish on his hometown market that he’s thinking of buying, upgrading and then flipping a facility just outside Portland, he said.

“Everywhere you go here in Portland, the facilities are all full,” Bull said. “The vacancy rate is low. I don’t think there’s overbuilding.”

He noted that more multifamily housing is being built in the city – and multifamily dwellers are among the biggest users of storage facilities.

Even if there was some overbuilding going on, said Bull, all signs point to the city of Portland continuing to grow – and the demand for self-storage growing with it.

“People are not just building for now, but for the future,” Bull said.

Pricing wars ahead?

But not all developers are so confident.

Kevin Howard, owner of Northwest Self-Storage, said he fears a pricing “bloodbath” in the next year or two, at least in the downtown area of Portland, where he said large national players are quickly developing and buying up large self-storage facilities.

In contrast, he said Northwest Self-Storage, which is part of National Storage Affiliates, a real estate investment trust, is focusing on building smaller facilities, roughly 38,000 to 50,000 square feet each, in Portland’s fast growing suburbs. The firm currently has one facility under construction and seven more in the permitting stage, said Howard.

“We’re also offering to buy facilities,” he said. “We believe in this (suburban) market.”

Restrictions proposed

Some owners and developers say they may even be helped by new restrictive city zoning laws now under discussion.

The city is currently putting the finishing touches on its 20-year comprehensive development plan, which would ban self-storage facilities in certain industrial areas near the harbor, airport and rails yards, as the city seeks to promote industrial jobs. The sentiment is that self-storage facilities simply don’t generate the number and type of jobs Portland is seeking in its newly established “industrial overlay” zones.

Steve Kountz, a senior planner at the Portland Bureau of Planning and Sustainability, said the restrictions aren’t an anti-self-storage backlash, the city just wants to restrict development to areas closer to where people are living, he said.

“It’s not at all aimed at self-storage facilities,” said Kountz, who added he’s talked with self-storage owners and they have no problem with the zoning changes.

The new zoning laws would take effect in 2018.

The post How sustainable is Portland’s storage boom? appeared first on The SpareFoot Storage Beat.

An East Coast company has put its own twist on fully automated self-storage, and customers have responded with resounding approval.

10 Federal Storage LLC opened its first built-from-the-ground-up automated and unmanned 155-unit self-storage facility in Graham, NC, in mid-2016 and it took just six months to lease it up — a rate twice as fast as what the company expected.

“We are the third iteration of what is automated or unmanned,” said Brad Minsley, co-founder of 10 Federal. “The first generation was people throwing up a number on a fence … the second generation has been kiosk-driven … the third iteration involves more hardware.”

10 Federal, a diversified real estate company based in Raleigh, NC, also recently automated a formerly manned facility in Durham, NC, with similar success — achieving more rentals per month via automation than it had ever achieved with a manned facility.

The company plans to raise a $10 million acquisition fund in 2017 —primarily from outside sources — to acquire and convert existing self-storage facilities in the Southeast to full automation while continuing to develop its own fully automated product closer to Raleigh.

More automation to come

While automation in the self-storage industry has been around for more than a decade, owners/operators have been slow to adopt it.

“We believe the peak (in self storage automation) hasn’t come yet,” says Robert Chiti, president and CEO of OpenTech Alliance, which has produced unmanned self-storage kiosks for 14 years and has 1,000 kiosks in operation at self-storage facilities around the country.

“I’m happy that people are starting to figure it out,” Chiti said. “People are seeing that automation works.”

Outside the industry

A small self-storage player, 10 Federal operates just four storage facilities currently, but cut its teeth on automation in its multifamily holdings.

For its automated storage facilities, 10 Federal went outside the storage industry and contracted with Advanced Kiosks, which installs self-service kiosks for the healthcare, human resources and retail industries and also for churches, schools and governmental agencies.

Will Manning, marketing manager at Advanced Kiosks, said 10 Federal is the company’s first self-storage client but said the company has been designing and building self-service technology solutions for other industries for 15 years.

Open playing field

“Automated self-storage facilities are unquestionably the future for the industry, and pioneers like 10 Federal are getting a taste of that future today,” Manning said. “There is no doubt that the impact self-service technology will have on this industry will be profound, and we are excited to help that happen.”

Manning said existing patents related to self-storage technology have limited the options for owners, but said those patents are expiring, which should open the doors to more technology innovation in the area of automation.

The patent protecting OpenTech’s line of INSOMNIAC self-storage kiosks expires in 2017.

“As they (patents) expire, organizations like 10 Federal can look forward to an exciting and increasing number of options for automation, as well as the increase of competition in providing them,” Manning said. “Competition in any industry is the impetus for innovation and, from that, we learn better ways to help our clients help theirs.”

Facility capabilities

10 Federal purchased a commercial grade kiosk from Advanced Kiosks that takes payments and prints receipts. It includes a handset for customers to contact a 10 Federal call center if they have a question. Advanced Kiosks provides cloud-based management for the kiosk, automated power management and usage analytics.

10 Federal’s Minsley said it opted to go with Advanced Kiosks because the company was able to customize the technology to fit their specific needs, which included the ability to operate its own call center and to avoid a monthly subscription fee on the kiosk.

As far as other aspects of automation, 10 Federal turned to well-known self-storage players including Janus International and PTI Security Systems.

For example 10 Federal facilities feature Janus’ SecurGuard Electronic Lock, which has been on the market about two years, said Terry Bagley, vice president of business development at Janus.

“One of the holes (in self-storage automation) was the ability to automate the locking and unlocking of individual unit doors, which is something that we’ve solved,” Bagley said.

Janus partnered with PTI Security Systems on the lock, which is installed on the interior of a storage unit, and which can be locked and unlocked remotely through a smartphone app, a remote access code on a keypad, or with a fob. The lock provides continuous monitoring, automates the process of restricting or granting access, and supports online, call center and kiosk rentals.

An automated future?

As self-storage automation technology improves, more owner/operators will consider automation, Bagley said, which could result more construction of small facilities in tertiary markets where labor costs previously would have made such projects unprofitable.

Minsley said 10 Federal believes fully automated, unmanned facilities make good sense for the customer and the owner/operator.

“Rewind 40 years and consider the following three transactions: Getting money out of bank; washing a car, and storing stuff in a box,” Minsley said. “Tell me which of those things, in 2016, wouldn’t be fully automated. It’s staggering to me that storage is the one that isn’t fully automated.”

The post 10 Federal forges ahead with unmanned facilities appeared first on The SpareFoot Storage Beat.

Miami-based MCSS Self Storage has opened the first three of several new self-storage facilities it has under development.

The new facilities are located as follows:

• 590 NW 137th Ave Miami, FL 33182, with 75,000 square feet and 879 units
• 1103 SW 3rd Ave Miami, FL 33130, with 80,000 square feet and 808 units (pictured at top)
• 2434 SW 28th Lane Coconut Grove, FL 33133, with 72,688 square feet and 849 units

“Leasing is progressing on schedule and we have 7 more projects in the immediate development pipeline,” said Jay Massirman, managing partner at MCSS, in a statement.

The company aims to build a total of 15 to 20 facilities in South Florida. MCSS is turning its eye to California next, teaming up with LA-based Cypress Equities to form Pacific Storage Partners.

Planned

NitNeil Partners will build a 90,000-square-foot facility at 5400 S. Westshore Boulevard in Tampa, FL. Construction of the three story facility is slated to begin in early 2017. The building will replace an old warehouse occupied by Ancient Art Antiques. The facility will be the developers’ second in Tampa; the company is nearing completion of a new 67,000-square-foot facility in North Hyde Park to open in early 2017. Both will be managed by Extra Space Storage.

A joint venture between Tulfra Real Estate and The Hampshire Companies will convert 105,536 square feet of a 225,336-square-foot light industrial building at 930 North Riverview Drive in Totowa, NJ. The two-story storage component will feature 1,235 climate-controlled units. The project is funded by a $12.2 million construction loan from M&T Bank, arranged by Jon Mikula and Michael Klein of HFF.

Public Storage purchased the 184,791-square-foot industrial building at 2212 Polymer Drive in Chattanooga, TN for $9.8 million in November.

SJM Partners of Reston, VA has filed plans for a 44,432-square-foot, six-story storage facility in New York’s Upper East Side. The property is located on East 92nd Street and 1st and York, according to the Upper East Side Patch. An existing building on the site is occupied by a limousine company.

Blue Wing Capital Management has obtained approval from officials in Arvada, CO to build an 89,539-square-foot self-storage facility on a 2.9-acre parcel at 14872 W. 69th Street. The facility will be managed by Life Storage and contain 645 units, according to the Colorado Real Estate Journal.

The developers of a mixed-use complex containing 51,352-square-feet of climate-controlled storage obtained planning approval from officials in Bentonville, AR. The complex, Aspen Park, will consist of 16 building and also include retail, office and RV storage according to NWAOnline.com. The project is located at 3500 SW Regional Airport Boulevard.

Tim Judge, principal of Metro Storage (not affiliated with Lake Forest, IL-based Metro Self Storage) purchased a 2.3-acre parcel of land on East Michigan Avenue in Wayne, MI from the City of Wayne for a $1. Judge plans to build a 70,000-square-foot net rentable self-storage facility. The property was previously home to a radiator business, according to Hometown Life.

Chad Keller, operator of Elbow Room Self-Storage, will redevelop the vacant Piggly Wiggly grocery store at 4025 Cherokee Road in Athens, GA into a 82,000-square-foot self-storage facility. The project is scheduled to open as Lexington Road Self-Storage in June 2017. The project will cost about $5 million, according to Online Athens.

Southern Storage Solutions is planning to build a two-story self-storage facility on the site of a former retail store in Shreveport, LA. The property is located in the Madison Park shopping center on Fern Avenue. The developer’s plans for the property were approved by the local planning commission 8 to 1 in early December, according to KTBS.

Canada-based Macritchie Storage LLC will redevelop the warehouse at 506 Hosmer Street in Lansing, MI into a 79,000-square-foot self-storage facility with 678 units. The property was formerly used by the Michigan Liquor Control Commission, according to the Lansing State Journal.

Wheat Capital Management has filed plans to build a 130,000-square-foot storage facility at the southeast corner of North State Road 7 and Northwest 31st Street in Margate, FL, according to the South Florida Business Journal.

U-Haul is building a new self-storage facility at Coors Boulevard NW and I-40 in Albuquerque, NM, which it expects to complete by fall 2017. The facility is expected to offer 1,032 units inside 82,181 rentable square feet.

Completed

A new CubeSmart-managed facility has opened in Northaven, CT. The 649-unit facility opened December 17. Publicly-traded Jernigan Capital Inc. holds a $6.9 million investment and a 49.9% profits interest in the property.

The post The Roll Up: Weekly Self-Storage Development Round Up 12.21.16 appeared first on The SpareFoot Storage Beat.

As the self-storage industry heads into 2017, old and new players alike are looking to make their mark in an increasingly competitive self-storage industry.

Based on their past performance and future plans, here are 10 storage companies we expect to make headlines in 2017:

1. Baranof Holdings

Self-storage developer – Dallas, TX
2016 accomplishments: Broke ground on 9 new facilities in 4 markets: Seattle, Portland, Austin, Raleigh. Facilities will be completed one per month starting in March 2017, and represent a total of 650,000 square feet of rentable storage space.
2017 goals: 6-8 new storage developments in high barrier-to-entry markets.
Greatest strength: “Baranof is well capitalized and from the outset of our company, a purposeful internal set of systems and procedures were designed to move quickly throughout the development process, particularly in otherwise difficult to develop markets,” said Andy Hendricks, managing partner.
Biggest challenge 2016: “Increasing competition in the development market has had a major impact on almost every aspect of the process,” Hendricks said. The biggest day-to-day challenges was getting enough time with busy vendors. Forming long term strategic relationships with vendors has helped strengthen commitments.
Biggest challenge 2017: Rising construction costs will place higher premiums on site selection and partnering with the right design and build professionals.

2. Brookfield Asset Management / Simply Self Storage

Global alternative asset manager – Toronto, ON / Self-storage operator – Orlando, FL
2016 accomplishments: Acquisition of Simply Self Storage by Brookfield in March. Under Brookfield, Simply has acquired about $600 million in assets, going from 90 facilities to 175 owned properties by year-end. The company closed on developments and lease up facilities at a projected cost of $125 million that will expand its footprint into Southern California, Texas, Florida and the New York metro. “Many of the acquisitions marked Simply’s entrance into new markets thereby adding sufficient scale for the company to perform competitively in these markets while pursuing smaller deals to fuel future growth,” said Kurt O’Brien, CEO of Simply. Also obtained $750 million securitized loan to refinance existing debt, finance new assets and purchase additional facilities.
2017 goals: Continue aggressive growth through acquisition of operating and certificate of occupancy assets in addition to ground-up development. Invest in revenue management and digital marketing technology to further drive customer demand. I
Greatest strength: Brookfield has made a long-term commitment to the sector and provides sellers great comfort in Simply’s ability to close quickly with certainty, and enhances Simply’s already strong reputation in the industry among brokers and other industry players.
Biggest challenge 2016: The biggest challenge for Simply in 2016 was implementing Brookfield’s reporting requirements and policies and procedures. Brookfield’s policies and procedures now have Simply operating in the same fashion as a public company.
Biggest challenge 2017: Our aggressive growth strategies can stretch resources and our biggest challenge will be to ensure that we continue to invest in people and processes to execute the strategy.

3. Closetbox

Full-service storage provider – Denver, CO
2016 accomplishments: Achieved 7x growth year-over-year and expanded nationally to reach 70 percent of the US population, with service in 40 out of the top 50 metro areas.
2017 goals: Partner with a few great self-storage operators to help them expand service offerings. “Closetbox presents a unique opportunity for the most forward thinking and innovative self-storage operators to gain a competitive advantage by partnering with us,” said Chris Griego, vice-president of partnerships.
Greatest strength: Our devotion to exceptional customer service, our proprietary technology and our unique ability to help customers anywhere in the United States.
Biggest challenge 2016: We over came many challenged by doing hard things well.
Biggest challenge 2017: Finalizing partnerships with select self-storage operators.

4. Monolith Group

Self-storage owner and developer – Scottsdale, AZ
2016 accomplishments: Entitled and developed 5 self-storage facilities totaling more than 550,000 square feet. Drone video above shows construction in progress in Glendale, AZ.
2017 goals: 7 projects spanning 800,000 square feet under contract and finalizing entitlements. 2 more projects closed escrow and ready to start construction in February. Capacity for 2 more development projects.
Greatest strength: 30 years industry experience and vertical integration of acquisition, development, entitlement, brokerage and construction. Ability to build facilities faster and more economically than others.  “The fastest we have built an all Masonry CMU built building was 5.2 months from the moment we put a shovel in the ground. That building was 105,000 square feet. I won’t tell you what my cost was because nobody would believe us,” said Tony Ardizzone, CEO.
Biggest challenge 2016: Worthing with municipalities to build near residential areas. “When you are building a 100,000 + square foot building directly next door to a residential neighborhood, you need to envision your own family living in that house that you are impacting. You need to take yourself out of the developer/investor mode and acquiesce to the concerns of your neighbors,” Ardizzone said.
Biggest challenge 2017: “Lenders appear to be restricting the advantages we saw in the last 24 months. There is still plenty of lending options but the right lending partnership is crucial to a successful project,” Ardizzone said.

5. Prime Group Holdings

Self-storage owner and operator – Saratoga Springs, NY
2016 accomplishments: Acquired more than 80 locations and entered 5 states for the first time. Portfolio now totals 124 facilities in 19 states.
2017 goals: Add 50 to 75 more locations, approaching portfolio of 200 facilities.
Greatest strength: Our greatest strength is our people. We have carefully chosen people that not only have excellent skill sets, but also care about others and the industry as a whole.
Biggest challenge 2016: Adding 80+ locations while maintaining solid infrastructure.
Biggest challenge 2017: Finding properties that meet criteria.

6. Space Shop Self Storage

Self-storage owner and developer – Atlanta, GA
2016 accomplishments: Acquired or started construction on 7 new self-storage properties. Opened 3 new properties in metro Atlanta.
2017 goals: 7 ground-up development projects on track to open. Several acquisitions of existing properties with improvement and expansion capability in process.
Greatest strength: “Discipline. Performing detailed, thoughtful market due diligence and choosing to walk away from mediocre deals to find great deals,” said Cliff Hite, vice president of operations.
Biggest challenge 2016: Rising construction costs and increasing new supply in overheated markets. “Construction costs have elevated the overall cost of doing a new development to a point where conservative rental rate projections many times do not justify moving forward,” Hite said. Willingness to walk away from deals that are just “good” and waiting for ones that are “great” is critical to success.
Biggest challenge 2017: Our big challenge is operating multiple facilities in multiple states undergoing lease up. “Keeping an eye on unit rates and balancing concessions and growth, this is where we excel and we have put systems in place to help maximize our success,” Hite said.

7. Storage Pros Self Storage

Self-storage owner – Farmington Hills, MI
2016 accomplishments: Acquired 13 properties and started 3 development projects. Completed portfolio repositioning involving sale of 54 assets over two-year period.
2017 goals: Complete 2 to 3 developments in progress and carefully examine other opportunities. “If we could match 2016’s production, that would be terrific,” said David Levenfeld, CEO.
Greatest strength: “We think that for a while now, we have been the largest company in the industry without pre-determined equity source that has a hand in our investment decisions,” Levenfeld said. This allows Storage Pros to be nimble and quick when it comes to decision making, and freedom to consider strategic exits in response to market conditions.
Biggest challenge 2016: Transformed from a self-managing operator of 70+ assets to a company utilizing third-party management (CubeSmart). This change in business model resulted in a substantial restructure of our organizational Chart and day-to-day focus.  On acquisition front: intense competition for desirable properties and high asking prices. On development front: extremely difficult, costly and lengthy permitting processes.
Biggest challenge 2017: Continued disciplined growth at this part of the cycle.

8. Store Here Storage Management

Owner, operator and management company – Orange, CA
2016 accomplishments: 4 acquisitions, 2 expansions/remodel projects, 15 facilities rebranded, 4 facilities sold. Launched call center for system of 70 facilities.
2017 goals: 10 acquiisitions, 4 new development projects, expand call center to serve 150 facilities.
Greatest strength: “The owners/principals are highly involved in every aspect of the business from acquisitions, operations, accounting, tenant insurance and call center, we handle all business internally and limit outsourcing. We use state of the art tracking and revenue management to maximize returns to our investors and partners,” James Hanrahan, managing partner.
Biggest challenges 2016: Finding deals with solid upside, with preference for off-market direct deals. “It can be a ton of work, but we have found the deals in the areas we wanted with a bit of tough digging,” Hanrahan said.
Biggest challenges 2017: Finding the right deals to expand into regions where we are not doing business. Anticipating cap rate trends and lending environment.

9. Wentworth Property Company

Self-storage developer and owner – Phoenix, AZ
2016 accomplishments: Since late 2015, accumulated portfolio of 15 existing facilities and development projects in 4 states: Arizona, California, Oregon and Nevada. Currently have 9 facilities in operation and 6 under construction, representing an eventual total of 1.2 million rentable square feet.
2017 goals: Close on one project a month and surpass 2 million rentable square feet. Grow into several more states.
Greatest strength: “With a lot of help from the rest of our company, David Brown and I pride ourselves on not getting out-hustled. We’re a small team that are all willing to wear a lot of hats,” David King, vice-president of self-storage.
Biggest challenge 2016: Sourcing good opportunities and being able to get debt that makes sense. “Having great partners that can move fast is also really important,” King said.
Biggest challenge 2017: “Getting the doors open on all of our current development projects and replicating what we did in 2016,” King said, “Finding the right kind of Debt is also a challenge.”

10. Westport Properties / US Storage Centers

Self-storage owner, operator and management company – Irvine, CA
2016 accomplishments: Acquired 25 new facilities in 4 states. Expanded brand and market presence. Began construction or entitlements on 8 new facilities.
2017 goals: Continue to acquire and develop well-located facilities. Capacity to do as many good deals as the market allows. Starting year with “very full” pipeline of prospective acquisitions and development deals.
Greatest strength: “What differentiates us competitively is our entire team and company culture. Our late founder – and industry pioneer – Barry Hoeven created a culture of being results driven, accountable, respectful, and of giving back to the community. Also, we have a very deep bench with dedicated departments for acquisitions, development, marketing and operations.”
Biggest challenge 2016: Market shift made deals more difficult to get done. “We still got all of our deals done but, just not with the ease of 2015. I know many of our peers experienced this as well and it’s probably for a variety of reasons.”
Biggest challenge 2017: Finding quality deals in good markets due to heightened competition compared to recent years.

The post 10 Storage Companies to Watch in 2017 appeared first on The SpareFoot Storage Beat.

Costa Mesa, CA-based North American Self Storage Group have closed on a new development site at 9950 Mills Station Road in Rancho Cordova, CA near Sacramento.

The company will convert the former envelope manufacturing facility (pictured at top) into a 97,350-square-foot self-storage facility. Construction is set to begin in March 2017, with an expected opening in September. The facility will feature drive-up access and RV and boat storage.

“We believe this is an excellent self-storage conversion opportunity, which is ideally located with strong visibility from I-50 and easy access for customers,” said Russ Colvin, CEO and President for North American, “This will be the highest quality self-storage facility in the Rancho Cordova market.”

CubeSmart is set to manage the facility.

Planned

1784 Capital Partners purchased a development site at 5204 River Road in Bethesda, MA for $11 million. Sale of the 1.5-acre property was arranged by Marcus & Millichap. The buyer will replace an auto repair shop on site with a new self-storage facility, according to Commercial Property Executive.

Tampa, FL-based Phillips Development and Realty LLC plans to develop a 65,110-square-foot self-storage facility with 756 units in the Brier Creek community of Raleigh, NC. A joint venture between Jernigan Capital and Heitman Capital Management has invest $8.9 million to fund the project.

Metro Self Storage is planning to build an 85,000-square-foot self-storage facility at 765 Route 17 in Wood-Ridge, NJ. The company will demolish four existing buildings on the 4-acre site, according to Ridgefield Park Daily Voice. The facility is scheduled to open late 2017.

Calgary-based Macritchie Storage Fund obtained approval to convert a vacant 139,000-square-foot building at 650 Church Street in Lake Zurich, IL into a self-storage facility. The building was previously occupied by Worldwide Transmissions until 2010, according to the Daily Herald. The drive-thru facility will offer 1,062 units and will be managed by CubeSmart.

Under Construction

Developer Ron Valk, principal of Platinum Storage, is developing three facilities in Plano, TX that are slated to be operated by CubeSmart, according to Community Impact. The facilities range between 750 and 950 units and are slated to open by early 2017.

Advantage Storage is building a 500-unit facility at McDermott Road and Independence Parkway in Plano, Community Impact also reported.

SpaceMax is in the process of a converting a vacant Wal-Mart Neighborhood Market at 1216 Gallatin Avenue in Nashville, TN into a new self-storage facility.

Completed

Lee Self Storage opened a new self-storage facility at 493 E. Quality Drive in St. George, UT.

The post The Roll Up: Weekly Self-Storage Development Round Up 1.4.16 appeared first on The SpareFoot Storage Beat.

Orlando, FL-based Liberty Investment Properties is currently building a 90,000-square-foot self-storage facility near the The Mall at Millenia in Orlando. The property will offer a drive-thru bay and 24 hour access.

The facility marks the 51st self-storage investment for Liberty, and the ninth Florida facility in its current portfolio. The facility will be managed by My Neighborhood Storage Center. Liberty was founded by husband and wife Mike and Melissa Mikkelson who built their first self-storage facility in Orlando in 1988. (The Liberty Investment team is shown breaking ground on the project at top.)

Under Construction

Diversified Realty Development Company of Fort Lauderdale, FL is building a 130,000-square-foot self-storage facility at 3803 White Lake Boulevard in Naples, FL. The project is a joint venture with Sefira Capital LLC.The 1,000-unit facility is scheduled to open in the summer of 2017.  The project is funded by a $9 million loan from First GREEN Bank in Fort Lauderdale. The facility is being constructed by Gates Inc.

Bernard Frogel, a Los Angeles, CA-based developer, is converting a vacant Big Lots store he owns at 5952 Brainerd Road in Chattanooga, TN into a 100,000-square-foot self-storage facility. The project is expected to cost $3.5 million and is scheduled for completion in May 2017, according to the Times Free Press. CubeSmart has been tapped to manage the facility.

Timberline Self Storage is set to break ground on two parcels in Fort Collins: 2120 Midpoint Drive and 1615 Specht Point Road. The 88,500-square-foot facility is a project of Grow Your Storage LLC, the Coloradoan reports. The company also has another facility under development in Fort Collins on South College Avenue, south of Harmony Road that is expected to open in the fall of 2017. A third, at 56,600 square feet, is under construction in Fountain, CO with a spring 2017 opening scheduled.

Planned

Scannell Properties and Berman-Lapetina Enterprises LLC are seeking approval to build a four-story self-storage facility on the 5800 block of Howard Street in Skokie, IL. The Chicago Tribune reports that Extra Space Storage will operate the facility.

Stowaway Self-Storage obtained approval to build a 25,200-square-foot self-storage facility at Emory Road and Gass Drive in Greeneville, TN, according to the Greeneville Sun.

Affordable Self Storage of Hudson, NY seeks approval for a proposed 16,000-square-foot self-storage facility on a 4-acre plot at Fairview Avenue and Kipp Lane in Greenport, NY. The company hopes to start construction this spring, according to the Register-Star.

The post The Roll Up: Weekly Self-Storage Development Round Up 1.18.17 appeared first on The SpareFoot Storage Beat.

As more and more retailers find themselves retreating from brick-and-mortar spaces, self-storage developers are seizing the opportunity to build facilities in prime locations.

Supermarkets, office supply, discounters and furniture stores are just a few of the empty big box stores that are getting a second chance as self-storage facilities. Meanwhile developers are bidding up prices on lots traditionally targeted towards apartment and hotel developers.

In the past, self-storage developers have not given those locations much of a second glance, because they haven’t been able to pay the higher prices that retail space typically commands. These days, self-storage is chasing – and winning – retail sites that bring them ever closer to a dense customer base.

Economic shifts

Two notable shifts have helped clear the runway to buy existing retail property for conversions or in-fill sites for new development. First, e-commerce has changed the retail landscape and thinned the herd of potential retailers willing to backfill an empty big box space or acquire land to build new stores. Second, rising rents at storage properties has given storage developers a bigger appetite – and more buying power – to acquire prime retail property.

“What has really happened is that as rents in certain markets have increased, that has given developers a greater opportunity to take a look at more expensive locations and conversions,” said Todd Amsdell, president and CEO of Cleveland-based Amsdell Companies.

That is true not just of vacant retail space, but also other vacant commercial space such as warehouse or even office space, he adds. Amsdell Companies has been doing conversions of big box retail stores, small shopping centers and car dealerships since the late 1980s. The company currently owns 72 properties operated as Compass Self Storage.

Location, location, location

Traditional retail locations are highly desirable for storage operators, as they often come with great demographics, access and visibility. Those were all key factors that helped convince Oak Management & Development Company to purchase a vacant HOM furniture store in the Minneapolis suburb of Roseville last year. The store overlooks Interstate 35 and has an estimated 100,000 cars passing that location each day.

Oak Management is converting the 85,000-square-foot furniture store to a 65,000 square foot storage facility. The company converted the first floor last summer, and will buildout the second floor once the first phase is nearly fully leased.

“It has been leasing up quicker than we had anticipated. It has been a great location for us and I think it will continue to be,” said Chris Kirwan, director of development at Oak Management & Development Company in Minneapolis. The firm operates 13 Acorn Mini Storage properties in the Minneapolis-St. Paul metro with nearly 1 million rentable square feet.

Self-storage is proving to be an ideal alternative use for a growing inventory of empty big box retail stores. For example, U-Haul recently converted a former Modway Furniture Building to self-storage in Rancho Dominguez, CA. CubeSmart is on deck to manage a new 250-plus unit facility underway in Chattanooga that will take the place of a former Big Lots!

The continued shake-out and downsizing of footprints from the likes of Macy’s, Sears and Sports Authority indicate that there will be an ample supply of space still ahead.

Bidding wars

It isn’t just vacant retail buildings attracting self-storage developers, but prime development sites as well.

Edward Del Beccaro, a senior managing director for Transwestern, recently represented the seller of a commercial infill site in downtown Walnut Creek, CA.

Top bidders for the site included the usual hotel and apartment players. Apartment developers in particular have been very aggressive in the upscale market – paying as much as $60 to $80 per square foot for the best sites. However, there was not one, but three storage developers also competing for the in-fill site.

Although the self-storage guys were edged out by a hotel company, each of the storage developers was willing to pay $65 per square foot. Why the exorbitant price?

Traditionally, self-storage operators in the Walnut Creek area have been content to pay $5 to $10 per square foot for land further out on the fringe of the metro. Developers would pop up a one-story cinder block facility and achieve rents of $0.60 to $0.80 per square foot.

That scenario has radically changed, Del Beccaro said. Self-storage developers are raising the bidding for in-fill sites that gets them closer to a prime customer base of both residents and businesses. Developers are penciling out deals where they can put more density onto higher priced land with vertical, multi-story buildings and also achieve higher rents of $1.50 to $2 per square foot.

One big stumbling block

One big stumbling block for storage developers is that acquiring retail real estate often requires a change of use or change of zoning. Many municipalities still classify self-storage as a light industrial and the use would not be allowed in areas zoned for retail use.

“Cities, are really, really hesitant to change the use. So, you may have a big box store that would work perfect, but nine times out of 10 the city is going to be reluctant to grant you the approvals you need to make the conversion happen,” said Kirwan.

In the case of Oak Management’s recent furniture store conversion, the city of Roseville happens to treat zoning for retail and self-storage the same.

“That is what made that deal work, because we didn’t need to do a lot of negotiating with the city,” said Kirwan.

Not always economical

“There are definitely a lot of people who see this opportunity to do conversions and are pursuing it,” said Michael Mele, senior director of the National Self Storage Group for Marcus & Millichap.

The retail box is usually well located, but it is difficult to find retail property that is big enough, or not set too far off the road. In addition, the resale price on conversions is generally not as good as new ground-up construction with higher cap rates on conversions, he adds.

“It is not as easy as it might seem, and getting the numbers to work on a conversion is difficult,” said Mele.

Mele worked with one client recently who was looking to buy a vacant grocery store. The client had a plan to create a mezzanine level, but after closer examination, the maximum rentable square footage they would have been able to get was only 52,000 square feet and the rents in the market were not that high – $11 to $12.

“At the end of the day, considering what the fixed expenses would have been, it just wouldn’t work,” said Mele.

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Orlando-based Liberty Investment Properties has partnered with Osprey Capital to develop a new 92,000-square-foot self-storage facility in downtown St. Petersburg, FL. The group recently broke ground on the 600-unit facility, located on 2nd Avenue North.

“Because of Liberty’s prior experience in Pinellas and Hillsborough counties, we are excited to re-enter the downtown market,” said Adam Mikkelson, president of Liberty.

Under Construction

Morningstar Properties is developing 200,000-square-feet of storage on two parcels at 900 and 929 College Street in Charlotte, NC. The first 100,000 square feet is under construction, and expected to deliver in May 2017, according to Matt Shapiro, chief investment officer at Morningstar.

Our latest infill development taking shape along the light rail extension. #storage #cre #cltcre #development @MstarStorage pic.twitter.com/xh0f0Wec0c

— Matt Shapiro (@Matt_Shapiro) January 26, 2017

Philadelphia, PA-based Nolen Development Group purchased the vacant Superfresh grocery store at 2105 Philadelphia Pike in Claymont, DE. The developer will convert the building into a 100,000-square-foot self-storage facility, with an expected opening in June 2017.

Hertz Construction is developing a 112,000-square-foot self-storage facility in Darien, CT. The facility will be located adjacent to the Interstate 95 rest stop across the street from the Norton Heights railroad station. Company principal John Hertz purchased the property in August for $3.8 million, according to Darien News. Construction on the 700 to 900 unit self-storage facility started in December, with an opening expected in the spring of 2018.

Construction of a 104,000-square-foot self-storage facility is set to start in the second quarter in Vinings, GA. The facility is a joint venture between Jernigan Capital and Mequity LLC. The facility will offer 1,118 units and is schedule to open during the second quarter of 2018. The project will include conversion of an existing structure, in addition to ground up construction, according to the Altanta Business Journal. The site is located near the I-285 loop.

Planned

A developer has obtained approval to build a 94,500-square-foot self-storage facility in Flower Mound, TX. Construction management firm Texas Land Planning & Management Services will complete the 620 unit facility over the next 18 months. The facility is located on  Enterprise, Drive in the Southpoint Addition. The developer has owned and operated facilities in North Texas for 20 years, according to the Cross Timbers Gazette

Mike Herro of Herro Brothers LLC obtained approval to build a 45,740-square-foot self-storage facility at 1201 Commerce Street in Oconomowoc, WI, according to Lake Country Now. Mike Herro is brother to city alderman Ken Herro.

Developers are seeking permission to develop a Dollar Self Storage facility on a 4.5 acre parcel at Pinnacle Peak Road and Lake Pleasant Parkway in Peoria, AZ. The proposed facility is 901 storage units, according to Your West Valley.

U-Haul is seeking approval to build a multi-story self-storage facility at 5047 Union Street in Union City, GA, the Atlanta Journal-Constitution reported.

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Fast-growing Denver has many self-storage facilities in place — but there’s still room for more, according to a new joint venture that plans to spend about $40 million to build three such buildings in the metro Denver area this year.

“While Denver, as a whole, is pretty well-supplied, we felt there were still some projects with low supply ratios,” said Wade Buxton, principal with VanWest Partners, which will handle leasing. “That’s where these three projects come in -– finding the remaining few pockets that still have a demand for self-storage.”

“The growth of Denver is also a huge factor,” Buxton said.

Baron Properties, Haselden Construction and VanWest Partners formed their joint venture in late 2015. VanWest Partners develops retail, townhomes and single-family homes. Haselden is one of the biggest construction firms in Colorado. Baron Properties specializes in multifamily housing.

Two of the projects (Park Avenue Self Storage and Steele Self Storage) will be built from scratch. The third (Grant Self Storage) involves retrofitting the former headquarters of Denver Public Schools downtown.

Construction underway

Park Avenue Self Storage, 2249 Champa St., will have 75,145 square feet, with 3,701 square feet reserved for retail.

Grant Self Storage, 900 Grant St., will have 99,806 square feet, including 4,569 square feet for retail.

Steele Self Storage, with addresses of 3879 Adams St.  and 3874-3879 Steele St., will have 58,950 square feet and no retail.

The Park Avenue project began demolition of an abandoned store a few weeks ago; completion of the new building is scheduled for November. The other two projects will begin construction soon, with completion expected in Q1 2018.

Most of the units will be 5-by-5 or 10-by-10 feet, with monthly rent between $1.50 and $3 per square foot.

Galloway & Company Inc. is the architect for all three projects. Waner Construction will build Park Avenue Self Storage. Haselden Construction will put up the other two facilities.

Serving of retail

What kind of retail will go into the first floors of Park Avenue, which will have two retail spaces, and Grant, which will have three?

“There’s likely going to be more local retailers, such as copy shops and small quick service restaurants, such as sandwich shops, those kinds of tenants,” Buxton said, adding that his company has its own in-house broker to speed things along.

The stores would lease out at about $30 per square foot per year.

The joint venture will hire outside help to manage and market the properties; Extra Space is one candidate, Buxton said.

“We are looking at the major companies to hire them to manage these facilities,” he said. “It’s not really our strong suit. They’ll be more successful at managing than we would be.”

All three new facilities will be independent operations.

Looking further out

Since 2005, Buxton’s parents have owned a self-storage operation with about 100,000 square feet in Riverside, CA.

“We’ve certainly learned a lot on the operational side –- what works, what doesn’t work, and the complexities of dealing with cities and municipalities regarding work beyond the development of the facility, such as the right of way,” Buxton said.

The joint venture plans to expand its geographic reach to find other places that need more self-storage facilities, he said.

“We’re all general partners on this, and we’re continuing to look for additional self-storage projects, both inside and outside of Denver,” Buxton said. “We’re looking for both developing projects and existing projects, and to grow the self-storage portfolio. We’ll also look out of state.”

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The owners and operators of a firehouse-themed storage facility are building a second, and even-bigger facility in Longmont, CO.

Owned and operated by Chris and Barbi Burton, the second FireHouse Self Storage will be built on a 43.5 acre parcel at SEC Airport Road and Rogers Road in Longmont, CO. Under the name Airport Road Self Storage LLC, the property was purchased for $1 million dollars cash, according to the Colorado Real Estate Journal.

The developers will use 17 acres of land for the 235,000-square-foot self-storage facility. Seven to eight acres will be donated to the city for the creation of a dog park. The remaining 10 acres will likely be used for office/flex development.

Planned

Wentworth Storage Company has purchased 1.63-acres west of the northwest corner of 19th Avenue and Glendale Avenue in Phoenix, AZ for $770,000. The Arizona-based development and acquisition company plans to develop a 100,000-square-foot self-storage facility on the property.

“This property offered us an opportunity to acquire a great infill site,” according to Dave King, Vice President of Self Storage for WSC.

Wentworth owns the site across the street from the 1.63-acre property and believes there will be a synergy between the two sites. Wentworth Storage Company plans to start construction on the indoor, climate controlled self-storage facility this year with completion by early 2018.

MCSS Development has closed on its twelfth South Florida development site, located at 5678 South University Drive in Davie.

“The visibility and high traffic count on University Drive makes this one of the most desirable self-storage sites in the area,” said Leon Dixon, director of acquisitions and development for MCSS.

The new project will offer 100,000 square feet of rentable square feet and about 1,000 climate-controlled units. The facility will be managed by a national storage REIT and bring MCSS one step closer to its goal of developing 15 to 20 infill self-storage projects in South Florida.

The firm is pursuing other strategic sites in Broward and Palm Beach counties and is on track to building more than 2 million square-feet of self-storage in South Florida.

Cherney Development Company is seeking approval to build a three-story 80,000-square-foot self-storage facility at 1001 Williamson Road in Roanoke, VA. The facility would provide about 56,000-square-foot rentable space.

“The growth in the number of apartment dwellers in downtown Roanoke has created a need for storage. Sophisticated urban residents expect to be able to meet their storage needs in a leading edge facility designed to fit how and where they live,” the developer wrote in its rezoning application.

Cherney has developed and operated eight similar facilities in the Washington D.C. metro, as well as a large drive-in facility in Winston-Salem, NC.

This week the Roanoke Planning Commission unanimously recommended approval of the project.

Plans for a three-story self-storage facility near the corner of Steam Pump Way and Oracle Road in Tucson, AZ obtained approval from the Oro Valley Planning and Zoning Commission, reports Tuscon Local Media. The project still requires design review and town council approval.

1784 Capital acquired the 2.5-acre property at 7550 W. Paradise Lane in Scottsdale, AZ, where it plans to build Scottsdale Promenade Self Storage. The property is located in a master-planned development project of the same name.

“The coveted North Scottsdale market is undersupplied with self-storage and faces significant barriers to entry. The market attracts strong rents that are twice the national average,” said Shane Albers, chariman and CEO of 1784 Capital.

Henry S. Miller Companies started construction in mid-January on a 77,000-square-foot self-storage facility at 1020 Hebron Drive in Garland, TX. The CubeSmart-managed facility is expected to open in the fall, according to REBusiness Online.

Taylor/Theus purchased a 5-acre site on University City Boulevard near Cabarrus Farms Road in Charlotte, NC for $797,500. The company plans to build a three-story climate-controlled facility, with additional storage space for cars and boats. A grocery store and other retail is expected to be developed on adjacent properties, according to the Charlotte Observer.

Chicago-based LSC Development has filed applications to build a 158,490-square-foot self-storage facility at 34-12 Collins Place in Queens, NY. The facility would stand 51 feet high when completed, according to New York Yimby.

Under construction

Treasure Island Storage is currently building a self-storage facility at 2325 Hollers Ave in Bronx, NY. Treasure Island operates 5 facilities in New York City and New Jersey.

Treasure Island is also in the end stages of developing another new facility at 225 Pennsylvania Ave, Brooklyn, NY.

Storage Choice is set to start construction on a new 121,000-square-foot facility at Wichita and Slocum streets in downtown Dallas. The facility will offer 1,084 climate-controlled units.

“The Design District site will be our 15th location,” said Paul Glover of Storage Choice. “We are very excited about this property and its location.” The project is scheduled to open in the first quarter of 2018.

Talus Capital Corporation is constructing a new 80,000-square-foot self-storage facility in mid-town Toronto, Canada. The new Spaces Self Storage facility will offer 733-units spread across seven-stories. The facility is slated to open at 1120 Dupont Street in early 2018. The deal took two and half years of negotiations with the local planning department.

“Urban sites always present new challenges,” said Jonathon Wheeler, CEO of Talus.

Completed

The Howard Hughes Corporation has entered the self-storage industry with a pair of developments in the The Woodlands, TX, REBusiness reports. The first facility recently opened at 6375 College Park Drive with 654 storage units. The second facility is scheduled to open in April with 784-units, it is located along FM 2978.

Northfield Self Storage opened its doors at 546 Frontage Road in Northfield, IL. The facility is family owned and operated.

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Safeguard Self Storage has completed a new 50,750-square-foot self-storage facility at 1112 East Tremont Street in the Bronx, its 25th facility in New York. The new facility offers 905 units.

The facility (pictured at top)  features a drive-in loading area, door alarms and video monitoring among other amenities.  The company has three additional facilities still under development in the New York metro area, as well as five new stores in Florida.

Under Construction

A new 280,000-square-foot self-storage facility is under construction near the Miami International Airport that will cater to the more than 1,800 small businesses located nearby. The first phase will cover 113,000-square-feet of space and is located at Northwest 25th Street and Palmetto Expressway. When fully completed the facility is poised to be among the largest self-storage facilities in South Florida, according to The Real Deal.  The project is a joint venture between Florida Value Partners and Elite Stor Capital Partners. The group obtained an $8 million construction loan from IFB Bank. The first phase is expected to open in August with 940 units.

Public Storage has opened the doors to a new seven-story facility at 133 2nd Street in Jersey City, NJ. The facility currently has 290 available units, with a total of 4,000 expected to be completed by the end of the year. That would make the project Public Storage’s largest facility. It is located in a converted 100-year-old cold storage building.

West Coast Self-Storage is nearing completion on a new 69,800-square-foot self-storage facility at 4424 A Street SE in Auburn, WA. The facility will offer 733 units.

Planned

A new self-storage facility has been approved in Senoia, GA, consisting of two 40,000-square-foot self-storage buildings. The facility will be fronted by a 12,000-square-foot office and retail building with several suites, according to The Newnan Times-Herald. The project is being developed by Thomas Humber.

Carroll Companies purchased a 1.62-acre property at Augusta Road and Cedarcrest Drive in Lexington, SC for $625,000. The company plans to build a Bee Safe Storage and Wine Cellar on the site, according to Cola Daily.

Completed

River City Storage recently opened at 785 15th Street SW in Mason City, IA. The 30,000-square-foot facility has 134 units and took about a year and half to plan and construct, according to the Globe Gazette. The facility is locally owned by mother and son Julie Reindl and Matthew Reindl.

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LSC Development LLC has won a “controversial” zoning case over its plans to build a five-story self-storage facility at 5150 N. Northwest Highway in Chicago’s Jefferson Park neighborhood. The approved plan calls for the demolition of an existing warehouse building on the site, followed by construction of the new facility. Dozens of residents spoke out against the project during its recently held hearing, according to DNA Info.

A previous plan by the developer to renovate the existing building into storage was derailed by a zoning change, resulting in a lawsuit and legal settlement with the city.

Planned

SurePoint Self Storage is developing a new 91,950-square-foot self-storage facility in Pearland, TX in the Houston MSA. The site is located west of Highway 288 near the intersection of Broadway and Kirby Drive. JLL Capital Markets secured construction financing for the project, which will offer 726-units. Construction is set to start in April.

SurePoint will also construct a new 90,000-square-foot facility in Sugar Land, TX at the intersection of Voss Road and Highway 6; work is scheduled to start next winter. The San Antonio-based developers recently opened a new facility in Richmond and just opened their fourth Houston-area on March 17 at Highway 290 and Barker Cypress Road in Houston.

StoneRidge Capital LLC of Vancouver, WA has proposed construction of a three-story facility with more than 60,000-square-feet of space in the North Image neighborhood at the intersection of Northeast 157th Avenue and Northeast Fourth Plain Boulevard. Developers are scheduled to discuss the project with city planners on March 30, according to The Columbian.

Pratt Home Builders is building a 35,000-square-foot facility with 266 units at 1734 Dayton Boulevard in Chattanooga, TN, according to Nooga.com.

Nashville, TN-based Natchez Group is replacing the former Great Value Inn at 1105 Dayton Boulevard in Chattanooga with a 75,000-square-foot self-storage facility with 600 units. Natchez bought another site nearby, at Main and Carter streets, for $2.4 million where it plans to build another facility as well.

Under Construction

Construction is set to begin on a new 98,000-self-storage facility at 536 West Tremont Avenue in Charlotte. The facility is being developed by Development Management Inc., and will feature a wine cellar. DMI purchased the 3.5-acre site last year for $1.5 million, according to the Charlotte Observer.

“We will introduce a modern self-storage facility in Charlotte’s South End, one of the nation’s hottest submarkets for multifamily development, while providing highly competitive rates to our customers,” said Ivon Rohrer III, vice president with DMI, in a statement.

The project is scheduled to open in 2018. The company operates five other facilities in the area.

Completed

Fowlerville, MI-based Farmer Development recently completed the conversion of a former car dealership into a self-storage facility. Located at 3512 S. Martin Luther King Boulevard in Lansing, MI, the new facility operates under the name MySpace Self-Storage.

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