Virtus Real Estate has acquired two more Memphis-area self-storage facilities for an undisclosed amount, totaling 847 units and more than 109,000 rentable square feet.

Virtus, a private equity firm based in Austin, Texas, purchased Collierville Mini Storage (347 units, 49,300 square feet) and Winchester Pointe Mini Storage (500 units, 59,870 square feet). Collierville Mini Storage was reporting 90 percent occupancy at the time of acquisition.

Virtus and its partner Tellus Development Ltd., which is based in Gulfport, Miss., purchased four self-storage properties in Memphis and nearby Southaven, Miss., last year for $7.5 million.

Some lawmakers in Idaho are unhappy with the states purchase of a self-storage facility last summer, and aim to pass legislation to end similar transactions.

A state-managed endowment trust overseen by the Department of Land paid $2.7 million in August to buy the 400-plus-unit Affordable Self Storage in a Boise suburb. The controversial purchase has been under fire by local business owners and self-storage professionals who questioned if a state-run commercial business could operate fairly.

Republican Rep. John Vander Woude told the House State Affairs Committee this week that the purchase was an inappropriate expansion of government into the private sector. Vander Woudes proposal would require state-owned businesses using non-agricultural land be sold to private persons.

Shortly after the transaction, the national Self Storage Association (SSA) sent a letter to the Idaho Department of Lands (IDL) and Idaho Department of Land Commissioners expressing concerns about the state competing with the private business sector. In the letter, SSA President and CEO Michael T. Scanlon Jr. stated that the purchase of the facility by the state creates an unfair competitive advantage over other local self-storage operators and requested that Idaho divest itself of the property.

The SSA received a response in November from George B. Bacon, director of the IDL. Bacon who said the states practice of purchasing and managing properties including office buildings and parking lots helps mitigate taxes for Idaho citizens and supports public schools and other institutions. He further said the states followed a traditional investor path in purchasing the self-storage facility and local citizens enjoy certain ancillary benefits generated by the trust, such as hunting, fishing, hiking, berry picking, and limited camping and motorized activities."

By Chuck Gordon

There are many ways to advertise your self-storage facility online, but the greatest return youll ever get is when you spend zero on your ads. Thats right. There are several ways to generate new tenants online without spending a single dime. Simple things you can do that will have a big impact are claim your Google Places, Yelp and CitySearch listings and post some Craigslist ads. In this article, youll learn exactly how to use each of these channels.

Google Places

The first and arguably most important free listing to claim is on Google Places. This listing helps you promote your company to consumers searching Google for self-storage in your area.

When you do a local ZIP-code search on Google, youve probably noticed a different kind of listing either above or weaved into the organic results (see accompanying image). These are Google Places listings, and you can get your facility listed here for free. In many cases, claiming your Google Places listing can be a free ticket to page one of Googleno search-engine optimization required.

To claim your Google Places listing, simply visit http://places.google.com/business and follow the instructions to list your business. During the listing process, youll enter your phone number, address, photos and a few other details about your facility. In some cases, Google might already have your facility listed. You should still go through the same process to claim your listing so you can make sure all the information is up to date and add more details.

If you have multiple facilities, Google has tools to let you easily upload multiple locations. Youll also need to enter a link to your website. This is this most important part of the Google Places listing since most people will actually click through to your site. Make sure your website provides a simple way for visitors to contact your facility.

Craigslist

Craigslist is another website that can help you generate tenants at zero cost. Craigslist took what newspapers do with paid classified ads, put them online and made them free (except for job listings). Im sure most of you have heard ofif not usedCraigslist. Youd be surprised by how many people use this online service to find self-storage.

Posting a classified ad on Craigslist is free and easy. Just go to Craigslist.org, find your city, go to the parking/storage section, and then click on the post link in the upper right-hand corner. Follow the simple instructions to post your free ad. The entire process should take you less than five minutes.

To give your listing the best chance to succeed, make sure it stands out and has a lot of information about your facility. You can also include a phone number and a link to your website in your ad, making it easy for consumers to contact you. Depending on the population and volume of ads in your city, youll need to post a new Craigslist ad at regular intervals. In a place like Chicago, you might need to do it every day since so many other ads are posted. However, if your facility is in a more rural area, you may only need to do it once a month.

Yelp

Another site you should be listed on is Yelp. Millions of consumers look to Yelp for reviews of local businesses by other customers. You dont need to be signed up for people to leave a review about you, and its very possible there are already reviews about your facility on the site.

You can claim your Yelp listing for free. This gives you the ability to publicly respond to reviews (positive and negative), announce special offers, and even see stats about how many people are interacting with your Yelp page.  

Simply visit http://biz.yelp.com and click Create your free account now. Follow the steps to find your business and set up your account. Once youre set, you can start engaging with customers. When people use Yelp to find a business, theyll often look for the highest-rated listings. You become the highest-rated storage facility in your area by encouraging your existing customers to leave reviews about your facility on Yelp.

CitySearch

CitySearch is a better version of Yellow Pages online. Its good at search-engine optimization, so the pages often appear in local storage-search results on Google. For this reason, you want to make sure your facility is front and center on CitySearch when someone clicks through to the site from Google. CitySearch is like Yelp in that your listing already exists on the siteyou just need to claim it.

To do this, go to CitySearch.com and use the search box to find your facility. Once you find your listing, click through to your page and look for the Own this business? link directly below the photo. Click on the link and follow the steps. Once youre setup, make sure all the information on your page is accurate, including hours, address, phone number, etc., and add any special offers youre running. You can also find out how many people are viewing your page.

Many self-storage operators are already taking advantage of the free advertising channels discussed in this article. Theyre easy to use and popular with online users. What are you waiting for?

Chuck Gordon is the CEO and co-founder of SpareFoot.com, an online self-storage marketplace. SpareFoot is 100 percent performance-based with no setup or monthly fees. For more information, call 202.257.2111; visit www.sparefoot.com.

Christopher McGrath Jr., a well-respected member of the self-storage industry community, passed away on Feb. 18 at the age of 74.

As founder of New York Capitol Consultants, Chris served as the executive director for the New Jersey, New York, Massachusetts, Rhode Island and Vermont Self Storage Associations. He was also a regular contributor to self-storage publications and tradeshows.

Chris was a triple Ram, having graduated from Fordham Prep, received his bachelors degree from Fordham University, and then acquired his Juris Doctor degree from Fordham School of Law. Upon finishing his studies, he served as associate council to the Cuban Families Relief Committee, instrumental in the negotiated release of more than 300 prisoners held by the Cuban Government. Chris was then campaign assistant to Senator Robert F. Kennedy, campaign scheduler for Governor Hugh L. Carey, and Deputy Borough President of Manhattan. He worked as executive director of the New York State Petroleum Council before starting his own business.

Chris was a loving and dedicated husband, father, grandfather, brother and uncle. He is survived by his wife, Jayne; his five children and their spouses, Christopher Columbus III (Beth), Patrick (Christine), Siobhan, Matthew (Michael), and Luke (Viviana); his grandchildren, Christopher James, Aidan, Grace, Bridget, Rory, Leah and Coco; his siblings, Michael, Terence, Kevin, and Kathleen "Muffin"; and a large loving extended family. Christopher is pre-deceased by his parents, the Honorable Christopher Columbus McGrath Sr. and Helen Gaffney McGrath, and his sister Mary Ann.

The self-storage industry has lost a true leader, said Jim Chiswell, president of Chiswell & Associates LLC and a self-storage industry comrade. Chris was a professional in every sense of the word in the management of the associations he directed. I watched him over the years give tirelessly of his talents and insights to all those around him. On the personal side, you could not ask for a better friend. It was great watching him smile when we had a chance to talk about his childrens accomplishments and about his grandchildren, as well as witnessing the relationship with his loving wife, Jayne. I will miss my friend, and our industry will miss his guidance and vision.

Chris is one of the most respected men I know, said Troy Bix, publisher of Inside Self-Storage magazine. He will be sorely missed by everyone, including me. I am going to miss his genuine smile the most.

The family will receive friends at the Frank E. Campbell Funeral Chapel on Feb. 23, from 2 to 5 p.m. and 7 to 9 p.m. A mass will be held at the Fordham University Chapel in Bronx, N.Y., on Feb. 24 at 10:15 a.m. The burial will be held at Greenwood Union Cemetery in Rye, N.Y., followed by a reception at Manursing Island Club.

In lieu of flowers, donations can be made in Chri's memory to Memorial Sloan-Kettering Cancer Center, Pediatric Cancer Research, Hagerstown, MD 21741.

Today the phrase "work from home" is common as many companies and employees have realized the benefits of telecommuting. But for many in the self-storage industry, "work from home" isn't as accurate as "work near home" or maybe "work at home." For on-site, or resident, managers, working in pajamas isn't an option, though the commute still isn't long, perhaps a flight of stairs or a stroll across the lawn or street.

On the other hand, resident managers always have work right around the cornerthey never really escape it. Customers are known to bang on private windows and doors after office hours are over, begging and pleading to pay a bill or get access to a unit. In the rare but often inevitable events of theft and vandalism, resident managers must live within a stone's throw of the criminal act, perhaps putting themselves and their families in harm's way.

Self-Storage Talk, the largest online forum in the self-storage industry, is hosting a discussion on the pros and cons of on-site managers from the manager and owner perspectives. Member Satyra from PhoneSmart began the thread "On-Site Managers" by posing the question, "Any job that comes with a place to stay sounds like the perfect job, but is it scary at times with all the customers knowing where you staymore specifically, the ones that lose their belongings or become upset for some reason? Where does your peace of mind come from?" So far, nearly 40 responses have surfaced.

The prevailing sentiment among the on-site managers respondents is tenants must be treated and screened like neighbors; you don't want to rent space to anyone whom you wouldn't want living next to you. Of course, some managers don't have the luxury of turning away seedy, "borderline" customers because they need the rental. Member SMSSId points out initial design of a facility with an on-site apartment is crucial. The apartment must be somewhat hidden and tough to access for the Joe Public customer to provide the manager and family with a little privacy. He also suggested putting resident-manager properties in generally safe, low-or-mid-rate crime areas only.

Member Lisa T says the biggest challenge is if the facility offers truck rental completely separate from the self-storage business. Though she understands the business benefit of renting trucks, in her opinion the service attracts even more undesirables than regular self-storage. She also tells a few on-site horror stories, including one where a tenant banged on a restroom door while she was using it, even though a sign out front said, "Manager Will Return Shortly." Other added saftey measures include dogs and alarms at the private residence.

Moderator and manager MusicCity Gal points to an obvious point beyond safety: "You have all of your eggs in one basket," she posts. "If something happens to your job, not only do you have to change jobs, but you also lose your home at the same time." Owners and personnel managers must also consider this complication. They are effectively the boss and landlord of their managers, which carries with it many more responsibilities, yet the salary or wage expectation is also lower.

Those who want to express how much they prefer or abhor on-site management roles can weigh in on the thread at http://www.selfstoragetalk.com/day-day-management/4557-onsite-managers.html. Only registered members can post, but registration is free, takes only a few minutes, and can be done at http://www.selfstoragetalk.com/register.php.

Live and growing since January 2008, Self-Storage Talk is the official forum of Inside Self-Storage, a dynamic services company that provides publications, events and educational resources for the self-storage industry. In addition to more than 4,100 registered members, SST has approximately 4,106 discussion threads and 36,200 posts in 23 different topical subforums.

Miracle Self Storage in Canton, Ga., sold for $2 million in an all-cash deal to a real estate investment trust. The seller was a financial institution.

The facility has 53,105 rentable square foot, and is within the greater Atlanta metropolitan area in Cherokee County. The property was initially a note sale that was in foreclosure with no financing available to the purchaser. The property was purchased on price per square foot, rather than cap rate.

Stacey Gorman, an investment specialist and member of the National Self Storage Group in the Atlanta office of Marcus & Millichap Real Estate Investment Services, had the exclusive listing to market the property.

With more than 1,200 investment professionals in offices nationwide, Marcus & Millichap is the nations largest firm specializing in commercial real estate investments.

Red Nova Labs, the company that created StorageFront, an online directory for the self-storage industry, unveiled a new marketing venture called WebWorks for self-storage operators. The service provides website design, development, content management tools, search-engine optimization (SEO) services and Web marketing consulting.

We pulled the basic marketing and engineering behind StorageFront and moved it up the chain, said Dan Miller, CEO of Red Nova Labs. Now operators in the industrys middle tier operators with 10 to 100 facilitiescan leverage StorageFront and all the expertise that goes along with it.

In addition to creating the website, the WebWorks team will constantly monitor any website it builds and seek ways to improve it for clients who pay a flat monthly fee per facility. There is no additional charge for leads. If a WebWorks client opts to cancel the service, the website remains live and the client retains ownership. 

When it comes to Web marketing and SEO, consistency and proactivity are key. A facilitys Web presence is a critical asset that must be maintained, Miller said.

When a multi-facility operator signs up for WebWorks, the parent company website will be built first. Additional website sections can be added per physical self-storage location. Each clients website will be designed and coded. A content-management system (CMS) enables any self-storage representative to log in and update content and pictures.

Based on Google tools, WebWorks SEO-centric pages will geo-target prospective renters in certain regions. Additional features tailored to the self-storage business include rent-now interface, mapping, driving directions, self-storage tips module, storage calculator, and storage auction listings.

The WebWorks team will consult clients and make recommendations for sponsored advertising (pay-per-click) and affiliate marketing as needed for all major search engines including Google, Yahoo, Bing.

Self-storage operators will also be able to track Web activity, including calls, clicks, inquiries, maps, direction and coupon prints. They can even track leads from other Web sourcesall through their own website.

Marc Smith, former director of business development at StorageFront, will lead the new WebWorks sales team. Tom Cox, an SEO expert at Red Nova Labs, has been named WebWorks Web visibility manager. Cox will monitor each websites productivity, suggest improvements, and handle any customer service needs. 

Charles Chico LeClaire and Nicholas Walker of Marcus & Millichap Real Estate Investment Services recently brokered the sale of an Extra Space Storage facility in Redlands, Calif. The 38,995-square-foot facility on 2 acres includes an onsite management office and apartment, video surveillance and electronic access control. It also features drive-up units and parking for boat and RV storage, and garners ancillary income from billboard rental. As of Aug. 31, the facility was 79.4 percent physically occupied and 83.9 percent economically occupied.

LeClaire, senior vice president of investments for the Marcus & Millichap Denver office and senior director of the companys National Self Storage Group, has been with the company since 1990. Specializing in self-storage brokerage, he closed more than $900 million in self-storage transactions from 2004 to 2010. He has won numerous awards from Marcus & Millichap including the Chairman's Circle of Excellence Award in 2004 as well as the National Achievement Award in 1999 and 2000, 2003 to 2008, and 2010.

Walker, also part of the Marcus & Millichap National Self Storage Group, specializes in the sale of self-storage facilities throughout Arizona, California, Nevada and Texas. Involved with commercial real estate for more than six years, he has participated in self-storage transactions totaling more than $70 million dollars. His family has been involved in the self-storage industry since 1984, owning, managing or consulting on more than 45 properties.

With more than 1,200 investment professionals in offices nationwide, Marcus & Millichap specializes in commercial real estate investment services.