Update 10/30/15 – Murphy Brothers Contracting held a grand-opening and ribbon-cutting ceremony on Oct. 28 to celebrate the completion of Mamaroneck Self Storage. The event was attended by elected officials, local business associates, friends and family. A town proclamation, presented by Mamaroneck supervisor Nancy Seligson, was made in recognition of the service Murphy Brothers has provided to the Sound Shore community, according to a press release.

“The business council is proud to have members like the Murphy Brothers who represent the essence of what the Business Council of Westchester is all about,” said Ravitz, who served as master of ceremonies. “[They are] entrepreneurs who care deeply about their employees, are community minded, and continue to make their presence known throughout Westchester County.”

Additional ceremonial remarks were given by Otis, Plunkett and Rosenblum.

“It’s been a long time coming, nearly six years, but we’re thankful to be standing here inside Mamaroneck Self Storage, and there are a lot of people to thank,” said Sean Murphy.

Murphy Brothers is currently working with the Westchester Green Business Challenge to become the program’s first green-certified self-storage facility in the county.

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10/5/15 – Murphy Brothers Contracting will hold a grand-opening event and ribbon-cutting ceremony celebrating the completion of Mamaroneck Self Storage on Oct. 28 at 4 p.m. Festivities will be held at the facility, 426 Waverly Ave., which offers 250 climate-controlled units, according to a press release. Refreshments will be served.

The event will also celebrate the company’s 36th year in the construction industry. "We see Westchester as a county of progress and positive change," Chris Murphy said. "Sean and I believe that Mamaroneck Self Storage is a big part of that positive change, particularly as it relates to our Sound Shore community and Mamaroneck's future industrial area plans."

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4/23/15 – Murphy Brothers Contracting held a “topping out” ceremony this week to celebrate the installation of the last structural beam at its Mamaroneck Self-Storage facility being built in Westchester County, N.Y. The company is at the halfway point of construction, according to the source.

The last beam was signed by members of the construction team and others involved with the project. In keeping with an ancient construction tradition, an evergreen tree was placed at the top of the structure after the beam was placed. An American flag was also raised while a trumpeter played “God Bless America,” the source reported.

“It's amazing to think we were just here in September for the groundbreaking," said John Ravitz, executive vice president of the Business Council of Westchester. "The Business Council is proud to be affiliated with the Murphy Brothers. This facility is going to be a game-changer in this part of the county."

The self-storage development is the first commercial project in the tri-state area to feature solar roof shingles, according to the source.

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12/31/14 – The Westchester Industrial Development Agency (IDA) has approved financing and incentives for the Murphy Brothers Contracting Mamaroneck Self-Storage project and three other Westchester County, N.Y., development projects. The four projects are expected to receive $71.5 million in private investment and generate 750 permanent and full-time jobs, according to the IDA.

The self-storage facility was previously awarded a $110,625 sales-tax exemption as part of $1.9 million in tax exemptions given to the four developments by the IDA.

The $3.5 million self-storage project is expected to create approximately 200 construction jobs and be completed by Labor Day weekend 2015.

"The sales-tax exemption from the county's IDA will go a long way in helping us to grow our new business venture in an exciting direction,” said Sean Murphy, vice president of Murphy Brothers Contracting. “We will be able to purchase better lighting, upgrade the landscaping, improve the look of the customer service area and make Mamaroneck Self-Storage more attractive to our prospective customers and to those who live and work in the area."

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11/19/14 – Murphy Brothers Contracting was awarded a $110,625 sales-tax exemption on its Mamaroneck Self-Storage project by the Westchester Industrial Development Agency (IDA). The decision was part of $1.9 million in tax exemptions given to four development projects in Westchester County, N.Y., that the IDA said would yield $71.5 million in private investment, according to the source.

The 40,000-square-foot Mamaroneck Self-Storage development, expected to be completed in May, will incorporate green-building technologies including solar shingles, heat-recovery ventilators, a high-efficiency variable refrigerant flow cooling and heating system, and energy-efficient windows.

The $3.5 million project is expected to create 200 construction jobs, the source reported. The four projects combined will create more than 750 permanent and full-time jobs, according to the IDA.

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11/14/14 – Real estate developers Chris and Sean Murphy of Murphy Brothers Contracting are seeking a $110,625 sales-tax break on their $3 million Mamaroneck Self-Storage project. The request is among $2.4 million in tax breaks being sought by businesses in Westchester County, N.Y. The Westchester Industrial Development Agency was expected to vote on the applications on Thursday.

The Mamaroneck Self-Storage development, expected to be completed in May, incorporates “green” construction standards including DOW Powerhouse Solar Shingles, a combination of roof shingles and a solar-panel system.

Other tax-break applicants include Ritz-Carlton, which is seeking a $297,500 sales-tax exemption on a $4 million hotel renovation, and Gateway Kensington, which has requested a $1.87 million sales- and mortgage-recording tax break on a $60 million condominium development in Bronxville, N.Y.

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9/8/14 – Real estate developers Chris and Sean Murphy of Murphy Brothers Contracting started construction last week on Mamaroneck Self-Storage, a 40,000-square-foot, eco-friendly property in the New York village of Mamaroneck. Local officials attended the groundbreaking ceremony at 416 Waverly Ave.

The $3 million facility, predicted to open in May, will incorporate “green” construction standards, according to the source. The Murphys spent five years planning the project, working with the New York State Energy Research and Development Authority as well as Steven Winter Associates Inc., a research, design and consulting firm for high-performance buildings, to ensure it included features such as DOW Powerhouse Solar Shingles, Sean Murphy told the source. Murphy Brothers is an authorized dealer/installer of the product, which is a combination of roof shingles and a solar-panel system.

Last week’s event was attended by Andres Bermudez-Hallstrom, Village trustee; Kimberly T. Martelli of New Rochelle, N.Y.-based KTM Architect; Bill Mooney, county director of economic development; Steven Otis, state assemblyman; Kevin Plunkett, deputy county executive; John Ravitz, vice president of the Westchester Business Council; Norman Rosenblum, Village mayor; Louis Santoro, Village trustee; and Rose Silvestro of Hudson Valley Bank, who also represented the Village of Mamaroneck Chamber of Commerce.

Plunkett proclaimed the day “Murphy Brothers Contracting Recognition Day in Westchester County” on behalf of Rob Astorino, county executive. He lauded the company as “an economic engine, committed to Westchester, giving back to the community.”

Founded in 1979 and headquartered in Mamaroneck, Murphy Brothers Contracting constructs and renovates custom homes and builds commercial projects in the Westchester Hudson Valley region and Fairfield County. It also owns Murphy Brothers Millworks.

Author Jay Bonansinga, best known for writing “The Walking Dead” novels based on the Robert Kirkman comic-book series, has written a supernatural thriller titled “Self Storage.” The book is being released through Magnetik Ink, an entertainment venture launched by Bonansinga and Jeff Siegel, a marketing and branding consultant, according to a press release.

The company describes the novel as a “moving, suspenseful—and ultimately horrific—journey into the world of addiction and recovery.” The story revolves around Johnny Fitzgerald, a lonely, divorced graphic illustrator with a heroin habit. When Johnny accidentally gets trapped inside a deserted self-storage facility with his 6-year-old son, he is forced to face demons both real and imagined. “Self Storage” is currently available for pre-sale on the Magnetik Ink website.

The entertainment company will specialize in content that is “dark, edgy and controversial,” with a focus on crime noir, fantasy, horror and science fiction, the release stated. “I’ve always dreamed of being part of an entertainment company that puts out cutting-edge and amazing work, but more than that, a company that has a tone—dark, edgy, controversial. We’ve got that with Magnetik Ink,” Bonansinga said.

In addition to nurturing and introducing new authors, Magnetik Ink will create collectible products. “Self Storage” is available in a collector’s edition hardcover as well as paperback.

Bonansinga has authored 23 novels, including the “The Black Mariah,” “Lucid,” “The Sinking of the Eastland” and “Shattered.”

Sperry Van Ness International Corp. (SVNIC), a commercial real estate services franchisor serving self-storage and other industries, is partnering with Rock Advisors Inc. to open SVN Rock Advisors Inc., a Canadian-based real estate brokerage franchise. The company will be led by Rock Advisors CEO Derek Lobo and Jim Dimanis, chief operating officer of Rock Advisors, according to the source. Sales representative Adam Dearbourn will work with Nick Malagisi, national council chair of self-storage for Sperry Van Ness Commercial Realty, on self-storage property brokerage in Canada. The company also has plans to expand beyond its Burlington, Ontario-based location.

“The ambition and the plan is that we will have approximately 30 offices from coast to coast,” Dimanis said. “We are already talking to six interested individuals. One individual is part of a very large organization that recently went corporate.”

SPVNIC’s growth plan was an attraction to get on board, Lobo said. “They just sold the master franchise to Canada to me, they sold the master franchise to Mexico, and they are busy expanding in Europe; they have sold one in Russia and so on,” said Lobo, adding that the company provides a strong platform for firms such as Rock Advisors, which specializes in the multi-residential market.

“Today a brokerage is complicated; you need databases, packages, technology, but SVN has built a platform that you just plug in and play,” Lobo added.

The partnership will allow Rock Advisors to expand its real estate reach into new markets, including self-storage. “We are also going to make this franchise available to people who do office, who do land, who do industrial,” Lobo said.

SVN Rock Advisors plans to zero in on smaller commercial deals, the source reported. “It is really an untapped market, that mid-market. Whether you are in multi-family or in the other classes, that really is a sweet spot, that $2 [million] to $10 million area just seems to be an un-serviced area,” Dimanis said.

SVNIC markets all of its properties nationally to a 100,000-member brokerage and investment community, according to the source. It includes more than 180 locations in 200 markets, with all offices independently owned and operated.

Rock Advisors is an Ontario-based commercial real estate company with a focus on multi-residential properties.

 

Alpha Self Storage in Allen, Texas, is launching its first food and toy drive this holiday season. Spearheaded by facility manager Tressa Stewart, the effort will benefit local food bank Allen Community Outreach (ACO). Donations of non-perishable items and toys can be made at 307 S. Butler Drive Nov. 6-8 and Nov. 13-15, 9 a.m. to 5 p.m.

The drive is also a first for Stewart, who took over management of the storage property in May. She had often hosted Christmas dinners at her home in Alaska for people with no place to go and wanted to do something on a bigger scale, according to the source. She contacted ACO, which provides services to families in need in Collin County, Texas. For help with logistics, she contacted Move For Hunger, a service program that helps people organize food drives in their communities.

“[Stewart] said, ‘I know what it’s like for people to struggle with hunger,’ and she felt that being a new community member she wanted to give back to people during the holidays, especially children,” said Anna Mazzotta, a communication and event intern for Move For Hunger.

The organization helped Stewart locate a mover in her area that would provide boxes for the donations and assist in publicizing the drive through the press, social media and fliers. The mover also found local sponsors to help deliver the items to ACO.

If the drive is successful, Stewart hopes to make it an annual event. “I think that everybody at one time or another needs a little bit of help. I hope that if I’m ever there that I can be one of those people who can get it,” she said.

Move For Hunger partners with relocation companies across the country to pick up unwanted, non-perishable food items from those who are moving and deliver it to local food banks. To date, it has collected more than 5 million pounds of food.

By Murphy Klasing

“Say what you mean, and mean what you say.” It’s a common cliché, and yet many business owners fail to follow that time-tested rule. Every company that deals directly with consumers makes promises about its product or service—it’ll relieve heartburn, re-grow hair, help you sleep, improve your swing, improve “performance,” and so on. When a product fails to deliver on the promises made, lawyers like me start making money.

Self-storage facilities aren’t immune from this risk. Hopefully, after you read this article, you’ll have some ideas on how to avoid liability from the words you use in your facility advertising, promotions, signage and communication with tenants.

Security

If you’re a self-storage owner, your tenants should each have a signed lease. In nearly every state, the lease primarily—if not exclusively—controls the relationship. It sets out what you and the tenant will and won’t do. If your facility doesn’t provide security for tenants’ stored goods (guards, specialized locks, 24-hour surveillance), that should be explained in the lease agreement.

In my experience, most self-storage facilities don’t provide security. Sure, there may be keypad entry, but that’s to keep people out who don’t pay. There may be video cameras, but those are for the protection of your employees. Do you feel confident you won’t be liable if a thief breaks into a unit and steals items from a tenant?

Consider this: A prospective tenant asks the facility manager, “Is this a safe location? Will my stuff be protected here?” The manager, wanting to make the sale, says, “Absolutely. We never have break-ins, and we have keypad entry and cameras.” The prospect says, “Whew! Now I know this box of gold will be safe.”

A week later, that tenant’s unit is broken into and the gold is gone. The tenant sues. Your lawyer says, “Sorry tenant, your lease clearly states that we don’t provide security.” The tenant’s lawyer says, “That may be, but your property manager told my client this place was safe, never had break-ins, and there are security devices on the property.” Your contract begins to look like fax paper from the 1980s, faded and curled.

The law works like this: If you entice a customer into purchasing your service or produce with statements about its quality, you’d better deliver. If you don’t, you may be accused of “deceptive trade.” Your contract may sound great, but you can’t promise something orally and then flash a contract in the tenant’s face like a shield that says the opposite.

The lesson here is, if you don’t provide security, don’t say you do. Take down any signs that say “Cameras on property are recording to aid in law enforcement,” “24-hour security surveillance” and “Keypad entry for your protection.” When a tenant asks, tell him you don’t provide security, and that’s why you suggest he purchase a really good lock … and tenant insurance.

Advertising

Advertising is a style of persuasive argument. It’s meant to convince someone to use your self-storage facility, not the one down the road. National companies use phrases like, “The self-storage experts,” “Tomorrow starts here” and “Your self-storage solution.”

When you advertise, make sure everything in your flier, commercial, brochure, etc., is accurate. If it says your tenant-protection plan covers earthquake damage, make sure it does. Don’t tell customers your rent is the best in town if you intend to mark it up every six months to where it becomes more expensive than that of competitors.

Climate Control

The phrase I’ve seen result in the most self-storage litigation is “climate-controlled.” It’s a phrase many facility operators use, but is it accurate?

What is climate control? If you ask 10 different people, you may get 10 different answers. Let’s break it down. “Climate” is the air quality, temperature and humidity of the unit. “Controlled” means the facility is literally controlling the climate. As with anything in life, if you’re in control, you have only yourself to blame if you lose it. If you tell your tenants their items will be in a climate-controlled space, they’ll expect those items won’t melt or freeze, or get wet, moldy or mildewed. When their goods are destroyed by these things, they’ll sue you for not meaning what you said.

I’m not suggesting the industry take a massive u-turn and get rid of the phrase “climate-controlled,” but you should define what that means in your lease agreement. Consider the following example language:

“You are leasing a climate-controlled unit. At [Self-Storage Facility], we strive to maintain a humidity level of no more than ____ and temperature of no greater than ___ and no lower than ____ throughout the year. Of course, extreme weather conditions, electrical outages, and unforeseen breakdowns in equipment may alter the humidity and temperature temporarily. You are encouraged to periodically inspect the items in your unit. You are also prohibited from bringing any items into your unit that are wet, damp, or that contain mold or mildew. You understand by signing this lease that although your unit is “climate-controlled,” [Self-Storage Facility] is in no way guaranteeing that the air quality, humidity or temperature will remain as desired at all times.”

Further, as a property owner who’s “in control” of the environment, you should conduct regularly scheduled maintenance on all HVAC equipment, especially during extreme weather months. Keep a detailed log of these checks and hold on to your receipts. It’s very valuable to a jury to see you did all you could do to maintain that controlled climate if someone accuses you of the opposite.

These are just three examples of how language can get your self-storage business into trouble. Here’s a suggested test for anything you tell a customer: Ask a friend or family member who isn’t in the storage business to listen to your sales pitch, advertisement, etc., and ask what he thinks each “promise” means. You may be surprised at how broadly he interprets words you thought were much more narrow.

Once you’ve done that, consider running the language by an attorney. That one-hour fee now might save you thousands of dollars later.

Murphy Klasing has a wide range of appellate, arbitration and trial experience, successfully handling numerous litigation matters. With more than a decade of experience in the self-storage industry, he serves as counsel for Public Storage Inc. in Texas, and has defended matters involving allegations of breach of contract, code violations, employment issues, fraud, negligence, personal injury, premises liability and theft. To reach him, call 713.961.9045; e-mail mklasing@wkpz.com; visit www.wkpz.com.

CBRE Group Inc., a commercial real estate services and investment firm, has hired R. Christian Sonne as executive vice president in charge of its Self Storage Valuation Group in the United States. Sonne will oversee the company’s domestic self-storage business, according to a press release.

He joins CBRE from real estate firm Cushman & Wakefield, where he served as executive managing director of its Self Storage Industry Group. “Christian is a proven leader in the self-storage and appraisal field,” said Thomas McDonnell, president of the Americas, Valuation & Advisory Services, at CBRE. “His deep understanding of the industry and its market dynamics are a valuable addition to CBRE’s Valuation & Advisory Services team.”

Sonne was previously founder and president of The Sonne Group Inc., a full-service real estate appraisal and consulting company. He has also been a senior consultant in the Valuation Group at Deloitte & Touche LLP, and a senior appraisal officer in Bank of America’s Commercial Appraisal Group in Los Angeles, according to the release.

He is based in Newport Beach, Calif., and will report to Richard West, senior managing director.

Sonne is a frequent speaker at self-storage industry events and the author of “Self Storage Economics and Appraisal,” published in 2012 by the Appraisal Institute, the nation’s largest professional association of real estate appraisers. He has a bachelor’s degree from the University of Utah and is a member of the Appraisal Institute and Royal Institution of Chartered Surveyors. He is also a certified general real estate appraiser in California.

CBRE Group Inc., a Fortune 500 and S&P 500 company headquartered in Los Angeles, employs approximately 70,000 employees, excluding affiliates, and serves real estate investors, occupiers and owners through more than 400 offices worldwide. CBRE offers strategic advice and execution for appraisal and valuation; corporate services; development services; investment management; mortgage banking; property, facilities and project management; property sales and leasing; and research and consulting.

The body of a 21-year-old man who apparently died from a self-inflicted gunshot wound to the head was found on Oct. 28 behind a self-storage facility in Peoria, Ill. A utility-company employee discovered the body near Mini-Max Storage Co. at 7500 N. Brauer Road, according to the source.

Investigators have yet to release the man’s name, pending notification of next of kin. Identification cards and other personal belongings were found at the scene, as was a bicycle and handgun.

An autopsy will be performed and an inquest will be held at a later date, the source reported.

The Mini-Max Storage facility is on a rural road at the edge of the city. The operator also has a facility in Washington, Ill. The properties offer 24-hour access, climate-controlled units, keypad entry, and moving and packing supplies.

Update 10/28/15 – Stor-Age Self Storage opened its private-share placement and public offering under the fund name Stor-Age Property REIT Ltd. this week. The company is offering 71 million private shares to invited institutional and high net worth investors. A public retail offer was also provided to invited investors including customers, staff and suppliers. The initial price was expected to be R10 per share, with the final issue price determined by demand, according to a source.

“We’ve been very impressed with the response to date,” Lucas told a source. “Our corporate adviser and bookrunners, Questco, have been keeping us informed. When last I checked in slightly earlier on this afternoon, the offers were coming in really nicely, so we are tremendously pleased and well impressed with the response that our offering is receiving.”

Although Stor-Age originally indicated a goal of raising R715 million, Lucas told media outlet “BusinessDay Live” that the structure of the company’s move to a publicly traded REIT also includes the sale of another R120 million in shares from joint-venture partner Growthpoint Properties and another partner, bringing the total to about R820 million. At the end of the sales, Growthpoint will exit the business and another partner will partially exit.

“Principally the capital raising will be used to pay down debt and to essentially strengthen our balance sheet and put us in a prime position to continue to grow the business to both acquisitions and development in a very sustainable manner going forward,” Lucas told the source.

Company officials believe the growth of Stor-Age during the last five years, coupled with rising consumption and need for self-storage by consumers, indicated the market was ready for a publicly traded real estate investment trust. “This ushers in potentially a new era of genuine specialized listed property companies coming to the market, something that the market commentators have been certainly talking about for some time and on the back of the very healthy performance of the self-storage REITs in both the U.S. and Australian markets, as well as the U.K. market,” Lucas told the source. “In fact over the last few years, we felt it was the right opportunity for the South African market.”

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10/12/15 – Stor-Age Self Storage Pty. Ltd., which operates 37 locations in South Africa, intends to list itself as a real estate investment trust (REIT) on the Johannesburg Stock Exchange (JSE) in November under the fund name Stor-Age Property REIT Ltd. The group will list an initial portfolio of R1.3 billion in an attempt to raise about R715 million from investors including customers, staff and suppliers, according to a press release. The company will use the funds to expand assets within its current portfolio and look for acquisitions to grow its national footprint, officials said.

The company is targeting a market capitalization of around R1.2 billion upon listing, with the final price per share determined after the “institutional bookbuild,” which will take place during the first week of the two-week offer period. The second week will be set aside for retail investors to participate, the release stated.

Stor-Age officials are confident in the listing, citing the success of self-storage and other property-based REITs in Australia, the United Kingdom and the United States. The company would be the first self-storage REIT listed on the JSE, the release stated. “The majority of our listing portfolio assets are considered ‘mature,’ meaning over 80 percent tenancy,” Gavin Lucas, CEO, told “SA Commercial Prop News,” a real estate website. “This stabilizes our portfolio, minimizes investor risk and provides visibility of earnings.”

If the capitalization doesn’t go as planned, Stor-Age will likely opt to reschedule the listing. “Listing Stor-Age is a choice, not a necessity, and we will always act in the best interests of the company,” Lucas said. “We have accumulated 10 years as a profitable, respected operator with proven performance, and given the extraordinary prospects of this asset class, now is opportune to offer local investors first-time exposure to the growing, recession-resilient niche self-storage asset class through an established low-risk vehicle.”

Analysts believe the move could be a smart one for Stor-Age. “Storage has been a very successful sector globally, especially in the U.S.,” Keillen Ndlovu, head of listed property funds for asset management group STANLIB, told the source. “We believe that there is room for growth in South Africa over time. It's also refreshing as well to have a new sector in the listed property sector which is traditionally retail, office and industrial sectors.”

Headquartered in Cape Town, Stor-Age operates self-storage facilities in six South African cities. Established in 2006 by the Lucas family, it is the operator appointed by Stor-Age Property Fund Managers Pty. Ltd. to manage and market the property portfolio owned by Stor-Age Property Holdings Pty. Ltd.

A Rhode Island man who pleaded guilty this week in federal court to possession and intent to distribute more than 500 grams of cocaine and 100 grams of heroin is linked to nearly 900 grams of heroin seized from a Woonsocket, R.I., self-storage facility, according to investigators. When police arrested Miguel A. Colon, 55, they found keys to two self-storage units he rented. A subsequent search uncovered 895 grams of heroin and various items used to package and distribute drugs, according to the source.

Colon also admitted in U.S. District Court to being a felon in possession of a firearm and carrying a firearm during a drug-trafficking crime, according to the Rhode Island U.S. Attorney’s office.

Investigators tracked Colon using a court-approved GPS device on his cellphone. He used two vehicles during trips in which he drove to the Florida Panhandle through the South and into Texas before returning to Rhode Island, according to authorities. Investigators tracked him for about a week before stopping him in North Attleboro, Mass., the source reported.

During the traffic stop, police found a secret compartment in Colon’s SUV that contained three kilos of cocaine, a loaded .380-caliber semi-automatic pistol, two magazines of ammunition, 21 rounds of ammo and approximately a third of a pound of marijuana, according to court records.

Police obtained a search warrant after finding the keys to the self-storage units, according to the Rhode Island U.S. Attorney’s office. Investigators also raided Colon’s home, where they found more .380-caliber ammunition and drug ledgers with the names of known drug dealers in Woonsocket along with amounts of money listed next to their names. They also uncovered several small marijuana plants and a Rhode Island marijuana caregiver card issued to Colon, the source reported.

Colon has been in custody since his April arrest. He is scheduled to be sentenced on Jan. 14 by U.S. District Court Chief Judge William E. Smith.