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Articles from 2017 In April


Choosing Your Self-Storage Facility Gate: Types, Pros and Cons

Article-Choosing Your Self-Storage Facility Gate: Types, Pros and Cons

By Robert Toy

Whether you’re installing a new security gate for a self-storage facility in development or replacing the gate at an existing site, it’s important to research and compare product types. Each has its advantages and disadvantages, and knowing these in advance can help make your decision easier. Here’s an overview of the gates on the market as well as their pros and cons.

Slide Gate

This is the most common gate type, but don’t assume it’s going to be best choice for your site. It uses a chain, belt or hydraulic pump connected to pinch rollers to pull the gate open, and any supplier should be able to install it. Limit devices connected to the operator sense when to stop the gate in the open or closed position.

Advantages

  • Security: Since the gate is a solid barrier, it helps to prevent unauthorized access to the property.
  • Convenience: The gate may display signage that advertises the facility, explains operation of the access system, or shares access hours and safety warnings.
  • Cost: Slide gates generally cost less than some other types of gates.
  • Size: Slide gates can close off a larger opening than any other gate type. Most others are restricted to a maximum of 20 feet for a single operator. A chain-driven slide gate can generally close off an opening of 35 to 40 feet, and a hydraulic/track operator has an essentially unlimited opening width.

Disadvantages

  • Space: The gate needs somewhere to retract while opening.
  • Speed: Because of safety regulations, slide gates are restricted to a max opening speed of one foot per second. That can take quite a while if you have a large opening. Dual gate operators in a main/secondary configuration can be used for extra-wide openings. This increases speed, but at the expense of having two gates and operators.

Barrier Arm

These gates are also common and usually paired with a manual or motorized slide gate. This gate uses a motor connected through a belt or chain drive to a lightweight (wood, fiberglass, etc.) arm that can be up to 20 feet long. The arm rises to allow vehicle passage, and then automatically closes once the vehicle is through.

Advantages

  • Speed: This operator has the quickest reaction time. It typically takes only two or three seconds to open. This can be especially useful in a situation where the entrance has limited space for vehicles to line up, for example, just off a busy street.
  • Cost: These operators are the least expensive.
  • Maintenance: They generally require less maintenance than other types.
  • Space: The operator has a small footprint and requires no horizontal space to retract.
  • Battery backup: Some brands have a built-in battery-backup system.

Disadvantages

  • Security: Since the barrier is only a small arm, the path into the facility isn’t secure and the operator only provides traffic control. Therefore, this type of operator is usually backed up by a slide gate that will close after hours.
  • Vulnerability: Since the arm is made of a lightweight material, it can be susceptible to damage from vehicles. However, it can be replaced at a lower cost than a metal gate in the same situation.

Swing Gate

This gate operator is less common than the others. The motor is attached to a pivot arm, which is then attached to a hinged gate that swings open like a door.

Advantages

  • Security: The gate is a solid barrier, improving security.
  • Convenience: Like the slide gate, the swing gate may display signage.
  • Space: The gate requires no horizontal space to retract, which can actually be an advantage and a disadvantage.

Disadvantages

  • Space: The gate needs to swing back when it opens. For this reason, it’s most often used for one-way traffic only. If used for two-way traffic, the keypad on the side the gate swings toward will need to be placed an adequate distance away.
  • Installation costs: The cost of the gate fabrication may be more expensive than that of a slide gate. This gate also requires a more elaborate safety-loop installation than others.

Vertical Pivot Gate

A vertical pivot gate uses a motor and belt system, and is attached to a counterweight spring system with the gate mounted on top. This allows the entire metal gate (up to 18 feet long) to open vertically.

Advantages

  • Speed: It opens faster than a slide gate, but not quite as fast as a barrier-arm gate.
  • Space: Since the gate opens vertically, it needs no space to retract.
  • Convenience: Like some of the other types, this gate may display signage. Depending on the weight of the signage, however, it may require adjustment of the counterweight system.
  • Battery backup: The gate runs on a 12-volt marine battery that’s constantly charged. That means it has a backup if the power goes out.
  • Security: The gate is a solid barrier, which helps improve site security.

Disadvantages

  • Size: This gate is the largest of all types. Installing it requires a large concrete pad. It also requires mechanical help to unload it from its shipping transport and move it into position.
  • Cost: This gate is more expensive than other types.

Vertical Lift-and-Fold Gates

A vertical lift-and-fold gate (VFL) combines the operating principles of a barrier-arm gate with a lift gate. It’s made of pickets connected to the gate arms through pivot points. As the arms are raised, the pickets "fold" into a smaller space.

Advantages

  • Speed: It opens almost as fast as a barrier-arm gate.
  • Space: It requires only a small footprint.
  • Battery backup: Like a pivot gate, the gate operator runs on a 12-volt battery that’s constantly charged.
  • Security: The gate is a solid barrier, which helps improve site security.

Disadvantages

  • Installation: A more elaborate installation process is required, including a reinforced concrete pad.
  • Cost: This gate is more expensive than some other types.

Optional Items

There are some optional items that should also be considered for your gate. On some models, these may be standard equipment. The first is a radio remote control or “clicker,” which is handy when you drive your cart from the office into the facility.

The other is a battery backup. If this doesn’t come standard with your gate operator, strongly consider it. You also want to make sure the backup unit can open and close the gate with the usual input when the power is out, not just open the gate and hold it open. Of course, your access-control system will need to be backed up as well.

Safety Requirements

Mo matter which type you choose, these gates aren’t meant for foot traffic. You should provide a separate pedestrian gate. In some jurisdictions, it’s required by local code.

All gates require safety devices, for example safety loops and detectors. Universal Laboratories 325 guidelines may call for additional equipment, such as infrared beams or contact edges.

Some jurisdictions may require the installation of an emergency gate-opening device for fire personnel. The type of device varies, so check with your local fire department for instructions. This device generally must be able to function even if the power is disconnected.

Before purchasing a gate and gate operator for your new or existing facility, consider the pros and cons of each type. Determine the factors that are most important for your site, and then choose a security system that will best fit your needs.

Robert Toy is an engineer with PTI Security Systems, which offers access control, door alarms and other site-security products for self-storage. He has worked in the industry since joining Doug West & Associates in 1992. For more information, call 800.523.9504; visit www.ptisecurity.com.

Sounds of Storage Podcast: Michael Mele Discusses the Trump Administration Effect on Self-Storage Real Estate

Audio-Sounds of Storage Podcast: Michael Mele Discusses the Trump Administration Effect on Self-Storage Real Estate

Many years of low interest rates and a favorable buyer’s market have led to a robust self-storage real estate sector. But with a new U.S. president and the threat of rising rates, what can owners and investors expect in the years ahead?

In this informative podcast, Inside Self-Storage Editor Amy Campbell speaks with Michael Mele, senior managing director of investments for Marcus & Millichap, about self-storage real estate trends and how the Trump Administration may affect them moving forward. Mele offers insight on how the sector is performing, what’s changed in the past year, and how legislative variations might impact the playing field. Finally, he offers advice on how to prepare for rate increases.

Duration: 7 minutes, 25 seconds

Coatesville Self Storage of PA Celebrates Grand Opening

Article-Coatesville Self Storage of PA Celebrates Grand Opening

Coatesville Self Storage will host a ribbon-cutting ceremony on June 28 to celebrate its opening in Coatesville, Pa. The 4:30 p.m. event will include tours of the property at 99 N. Caln Road as well as refreshments and raffles. Members of the Western Chester County Chamber of Commerce will attend the celebration, according to a press release from Storage Asset Management Inc. (SAM), the third-party firm that will manage the site.

The facility comprises 68,000 square feet of rentable storage space in 565 temperature-controlled units. It also includes a retail center that sells moving and packing supplies. Security features include keypad access and video cameras. Customers can take advantage of online reservations and billpay.

Coatesville Self Storage is owned by PFG Caln Road LP.

Based in York, Pa., SAM manages more than 50 self-storage properties and three UPS Stores along the East Coast.

Wentworth Storage Co. Purchases Self-Storage Facility and Land for Expansion in Tigard, OR

Article-Wentworth Storage Co. Purchases Self-Storage Facility and Land for Expansion in Tigard, OR

Commercial real estate firm Wentworth Storage Co. LLC (WSC) has purchased a self-storage facility in Tigard, Ore., as well as 2 acres of adjacent land to expand the site. The company acquired 217 Storage at 11708 S.W. Warner Ave. for $4.2 million and paid $2.3 million for the land at 11600 and 11660 S.W. Hall Blvd., according to a press release. The sellers were Saj Jivanjee and Henry Y. Louie. 

The properties are along Oregon Route 217. The existing facility comprises 29,685 square feet of storage space in 270 indoor, climate-controlled units. Built in 2008, it has secured gate access as well as a covered loading and unloading area. Construction on the new 524-unit storage facility will begin in the third quarter, with completion slated for early 2018, the release stated.

“It’s rare that we are able to secure a high-quality existing self-storage facility with the ability to expand,” said Dave King, vice president of self-storage for WSC. “Wentworth is excited to add to our portfolio in Northwest with this acquisition. We see tremendous value and opportunities with this purchase.”

The project is WSC’s second in the Portland, Ore., area. It has a conversion site under development on Columbia Boulevard near Interstate 5, the release stated. WSC also purchased two industrial properties in Chula Vista, Calif., and San Diego in November, with the intent to convert them to self-storage. The facilities are expected to open this year.

Based in Phoenix, WSC was founded more than 40 years ago. The company has been involved in more than 7 million square feet of development and acquisition transactions, and has a current portfolio of 1.3 million net rentable square feet. WSC closed on more than $205 million in self-storage projects in the last year, and is either under contract or evaluating another 1 million square feet nationwide. It’s the self-storage division of commercial real estate firm Wentworth Property Co. LLC.

Big Byte Insights Launches Self-Storage Development Tracker

Article-Big Byte Insights Launches Self-Storage Development Tracker

Big Byte Insights Inc., a New York-based provider of stock-market data analysis, has launched a crowdsourcing platform designed to map and track self-storage development activity across the United States. The free dashboard was launched with data sourced from the “SpareFoot Storage Beat,” the blog published by self-storage online marketplace SpareFoot. It allows property developers to regularly add their projects into the system, according to the source.

“Our primary motivation for creating this crowdsourcing platform is to better serve our clients, who are investors in publicly traded REITs [real estate investment trusts]. They have often voiced their disappointment in the quality of new development data that is available through various sources,” Shahzeb Zakaria, founder of Big Byte Insights, told the source.

The platform can be accessed at www.self-storage.supply. It currently includes information on 208 “new assets.” Data is organized by demographics within a development market, including number of households, median income, median value of owner-occupied homes and median age, all within a five-mile radius.

“As a positive externality, I think this website will allow more intelligent development in the storage sector,” said Zakaria, who previously covered the self-storage industry as an analyst for Macquarie Bank and One William Street Capital.

Developers will be able to use the dashboard to see where storage projects are underway, avoiding saturation or over supply in a specific market, according to Zakaria. A premium version of the service will eventually be available that will offer data analysis of “storage REIT exposure to new development,” the source reported.

Founded in 2008, SpareFoot helps consumers find and reserve self-storage units, with comparison shopping tools that show real-time availability and exclusive deals. With a network of more than 10,000 storage facilities ranging from mom-and-pop operations to real estate investment trusts, the company reaches prospective storage renters though partnerships with brands including SelfStorage.com and Penske Truck Rental.

Sources:

ISS Blog

Influencer Marketing Could Be a Self-Storage Referral Program on Steroids

Article-Influencer Marketing Could Be a Self-Storage Referral Program on Steroids

Successful self-storage operators have routinely touted their points of differentiation as key drivers to entice customers. These are typically mixed with a value proposition that speaks to prospective customer needs and pain points, such as wine storage, divorce or military deployment. The new buzz is “influencer marketing,” which illustrates your value in content created by someone other than yourself. The aim is to be visible to an audience you wouldn’t normally reach. Think of it as a self-storage referral program on steroids.

Though industry professionals have highlighted the growing importance of content marketing and the need to establish perceived value for quite some time, influencer marketing combines these strategies onto a social media platform and aims squarely at a shift in consumer behavior exhibited most prominently by Millennials—the need for outside opinion. It’s essentially about leveraging the influence of someone online who can help create value for your brand beyond the basic rental by conveying a positive experience to his followers.

Brands have coveted celebrity endorsements since the dawn of advertising, but this is a diluted approach that’s accessible to small brands that can think creatively and connect with an audience looking for reasons beyond price to store with a particular company or facility. Influencers are visible in relatively small circles and trusted by their followers, according to a study of 500 influencers on Instagram by Influence.co, an online platform that connects influencers with marketers.

Unlike a super model or prominent actor or athlete, the average follower count of Instagram influencers is 62,568, according to the Influence.co report. Among the study group, 59 percent were women, and the most popular category for paid content was “lifestyle.” What’s interesting about that is the average follower count among lifestyle influencers was just 27,699 and the average cost per lifestyle post was $172—the least expensive payout of the 10 categories studied.

While self-storage isn’t a lifestyle for most people, it’s often necessary as an extension of certain lifestyles, whether we’re talking wine enthusiasts, boaters and fishermen, art and car collectors, active military and so on. Having someone who relies on your self-storage facility to enhance their lifestyle interests or career publicly convey positive messages about their experience with your business could be a powerful message to their followers and entice future rentals.

The gut reaction for many may be to roll their eyes at the advent of the Instagram model making a living with product-placement images, but the fact that folks are making a handsome living or traveling the world on some brand’s dime suggests there is return on investment (ROI) to some extent. In a recent study of 127 marketers, including consumer-packaged-goods companies, media, retailers and others, 94 percent of those who have used influencer marketing believe it’s been effective, according to Linqia, a content-marketing company that offers influencer marketing among its services. The top three reasons why marketers believe the strategy works is that it creates authentic content about a brand (89 percent), drives engagement around a brand (77 percent) and drives traffic to a website or landing page (56 percent).

Linqia identifies Facebook and Instagram as the two most important platforms (87 percent), followed by blogs (48 percent) and Twitter (44 percent). It published the findings in its “The State of Influencer Marketing 2017” report, which can be downloaded for free but requires registration.

Though 78 percent of respondents in the Linqia report also indicate that determining ROI is their top challenge as a part of influencer marketing, businesses on average generate $6.50 for every dollar spent (better than a 600 percent return), according to a report by the marketing website ClickZ. The potential win-win for marketers is they’re not wasting resources creating the content themselves, while 68 percent of consumers are actively looking for product information from other consumers, ClickZ reported.

Besides the lifestyle tenants who may rent from your self-storage facility, consider other avenues of influencers who may be connected to your business, including those who have participated in community events on your property or activities you’ve sponsored. Among those, who's most visible within your community and active online? There could be several lucrative synergies worth exploring and leveraging.

I’m not suggesting this is an easy path for most self-storage operators, but it’s certainly worth considering based on what we know about the idiosyncrasies of Millennials, whose influence on how you market will only increase as they gain more spending power. The driving force behind marketing today is the ability to tell a compelling story through the lens of someone who has benefited from your business. That’s the power of influence. When tied together with a comprehensive content-marketing strategy, you might be surprised by the power of your reach.

Real Estate Roundup: Self-Storage Transactions April 2017

Article-Real Estate Roundup: Self-Storage Transactions April 2017

Self-storage properties are constantly changing hands, and Inside Self-Storage is regularly notified of these market transactions. Many are covered in detail on the ISS website and available for viewing on the “Real Estate” topics page. Following are additional acquisitions and sales that weren’t covered.

A-B-C Self Storage in Kerrville, Texas, was sold to a private investor. The 2.2-acre property at 1201 Bandera Highway comprises 40,700 square feet of storage space in 269 units. The seller, a limited-liability company (LLC), was represented in the transaction by Jon Danklefs, a senior associate for Marcus & Millichap. The buyer was represented by Anthony Lagred, associate, and Chad Knibbe, first vice president of investments, also with Marcus & Millichap.

Two Add-A-Room Self Storage facilities in Bradenton and Sarasota, Fla., were sold to 3805 53rd SP LLC, a Santa Monica, Calif.-based company, for $10.8 million. Together, the properties comprise 182,268 net rentable square feet in 1,622 units as well as 69 vehicle-parking spaces. The transaction also included a vacant parcel of land just south of one of the facilities.

The property at 3805 53rd Ave. E. in Bradenton was built in 1993. Jerry Pies purchased it 11 years ago for $3.5 million, according to the source. The Sarasota site is at 5530 Pickney Ave. The buyer and the seller, Add-A-Room Self Storage of Bradenton LLC respectively, were represented in the transaction by Michael Mele, senior managing director of investments, and Luke Elliott, vice president of investments, in the Tampa, Fla., office of Marcus & Millichap.

Belle Chasse Self Storage in Belle Chasse, La., was sold for $2.6 million to Volta Global LLC, a private investment group. Built in 2000, the property at 9385 Highway 23 comprises 32,450 net rentable square feet of storage space in 276 units and 66 parking spaces. The seller, an LLC, was represented in the transaction by Brett Hatcher, first vice president of investments, and Gabriel Coe, an investment specialist, in the Columbus, Ohio, office of Marcus & Millichap. The buyer was secured by Brian Baldwin, an investment specialist in Marcus & Millichap Tampa, Fla., office. Chris Shaheen, a broker with the firm, assisted in the closing.

Bergin Way Self Storage in Sparks, Nev., was sold for $1.6 million to Cali Clean LLC, based in Canoga Park, Calif. The nearly 2-acre property at 930 Bergin Way contains three single-story buildings comprising 36,240 net rentable square feet of storage space in 192 units. The buyer and the seller, Bergin Way Self Storage LLC, were represented in the transaction by Bobby Loeffler, a storage specialist for The Loeffler Self-Storage Group (LSSG).

Berrong’s Hwy 76 E. Mini Storage in Hiawassee, Ga., was sold to a private investor. The 3.2-acre property at 3575 Highway 76 E. contains four buildings comprising 21,400 rentable square feet of storage space in 143 units. The seller was represented in the transaction by Dale C. Eisenman, president of Midcoast Properties Inc.

A nine-property portfolio in Texas operating as Extra Space Storage was sold to an LLC. The properties in Amarillo, Lubbock and Plainview comprise 644,795 net rentable square feet of space in more than 4,700 units as well as 18 offices. The buyer and the seller were represented in the transaction by Hatcher, and Charles “Chico” LeClaire, senior managing director of investments in the Denver office of Marcus & Millichap.

Gate 1 Mini-Storage in Clarksville, Tenn., was sold for $3.5 million to an LLC. The property at 178 Jack Miller Blvd. comprises 79,123 square feet of storage space in 606 units and 31 parking spaces. It was built in 1994 and renovated in 2003. The buyer and the seller, also an LLC, were represented in the transaction by Coe and Hatcher.

Gateway Storage Mall acquired a Guardian Self Storage facility in Columbia, Ill. Gateway Storage Mall – Columbia at 300 Rueck Road comprises 35,370 square feet of storage space in 253 units. The property also contains warehouse units as well as covered and uncovered parking.

J & B Storage in New Palestine, Ind., was sold to an LLC. Built in 1992, the 8.5-acre property at 5780 W. U.S. Highway 52 comprises 29,500 net rentable square feet of storage space in 241 units. The buyer and the seller, a partnership, were represented in the transaction by Mele as well as Sean M. Delaney, first vice president of investments, and Mickey Hurley, investment specialist, for Marcus & Millichap.

Jensen Mini-Bay Storage in Jensen Beach, Fla., was sold to a self-storage real estate investment trust (REIT). The property at 1105 N.E. Industrial Blvd. comprises 39,119 square feet of storage space in 504 units as well as 96 vehicle-parking spaces. The buyer and the seller, a private investor, were represented in the transaction by Elliott and Mele.

Lexington Park Self Storage in Lexington Park, Md., was sold to an LLC for $2.2 million. The property at 21323 Great Mills Road comprises 28,550 square feet of storage space in 345 units. The buyer and the seller, also an LLC, were represented in the transaction by Mele and Robert Bloch, senior managing director, in the Tampa, Fla., office of Marcus & Millichap.

Palmdale Self Storage in Palmdale, Calif., was sold to a private investor. The property at 3305 E. Palmdale Blvd. comprises 78,630 net rentable square feet of storage space in 626 units. The seller, American Self Storage of Palmdale LLC, purchased the facility in 2013 for $2.4 million, according to the source. The buyer and the seller were represented in the transaction by Mele, Elliott and Devin Beasley, an investment associate for Marcus & Millichap. They were assisted by Kent Williams, a California-based broker for the firm.

SIBCO Self-Storage opened in Beavercreek, Ohio. The property at 620 Phillips Drive comprises 21,000 square feet of storage space in 146 climate-controlled and drive-up units. It contains 180 indoor parking and garage spaces as well as outdoor vehicle parking.

SurePoint Self Storage purchased property in Overland Park, Kan., to develop a three-story, climate-controlled facility. The 3.4-acre parcel at 12020 Glenwood is near the southeast corner of 119th Street and Metcalf Ave. The company will also begin construction this summer on its first Kansas City-area project at 135th and Blackbob in Olathe, Kan.  

Tolleson Self Storage in Tolleson, Ariz., was sold to a private investor. The property at 9620 W. Van Buren St. comprises 26,875 rentable square feet of space in 250 units. The buyer and the seller, also a private investor, were represented in the transaction by Beasley, Elliott and Mele.

The owner of a single-story warehouse in Astoria, N.Y., is looking to tear down the 41,188-square-foot structure and build a self-storage facility in its place. Development plans for the property at 22-25 46th St. include a three-story building comprising 103,615 square feet of storage space. The project will feature two cellar levels, an office on the ground floor, five off-street parking spaces and four loading docks.

Headquartered in Salt Lake City, Extra Space is a REIT and management company. It owns or operates 1,427 self-storage properties in 38 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 960,000 units and 107 million square feet of rentable space.

Founded in 2016 by Alex and Todd Erbs, Gateway Storage operates four facilities in Illinois.

LSSG specializes in self-storage real estate in California and Nevada, having closed more than 80 transactions in those states.

Founded in 1971, Marcus & Millichap is a commercial-property investment firm with more than 1,500 investment professionals in offices throughout Canada and the United States.

Midcoast Properties offers brokerage services to self-storage owners and investors in the Carolinas and Georgia.

SurePoint is owned by developers Jeff Bailey, Brian Cisarik and Robert Loeb. Cisarik and Loeb have been active in the San Antonio self-storage market since 2001.

Sources:

Debate Continues on Savannah, GA, Self-Storage Project as Council Decision Looms

Article-Debate Continues on Savannah, GA, Self-Storage Project as Council Decision Looms

Update 4/27/17 – The Savannah City Council is expected to make its decision tonight on the zoning-change petition that would provide a path for a controversial self-storage facility on Limerick Street. Residents continue to object primarily to the proposed building’s height at 56 feet, which is twice the height of a nearby Whole Foods grocery store and much taller than the single-story businesses and residents that are in the area, according to the source. Other key concerns are traffic congestion and emergency-vehicle access, since the street dead-ends at the building site.

To show his opposition to the project, neighboring resident Stewart Dohrman has erected a 55-foot-high sign in a tree next to his house demonstrating the height of the proposed facility. “Everyone here knows this is zoned for some type of commercial development. That’s not necessarily the problem,” he told the source. “The problem is the zoning change they’re requesting would allow not only a self-storage facility, but other types of what are called ‘deleterious uses,’ including adult entertainment and storage of huge motor coaches.”

Alderman Julian Miller, who represents an adjacent district, has indicated he’ll vote against the zoning change. “The real issue is all kinds of development is coming to that corridor, regardless of whether this project goes through or not,” he told the source. “There needs to be a more comprehensive overall plan to deal with it.”


4/13/17 – Savannah officials and residents continue to debate the merits of a zoning-change petition submitted on behalf of 31 North Real Estate Investors, which would provide a path for a five-story self-storage facility on Limerick Street. The developer’s most recent application seeks entirely new zoning, which is expected to be voted on by the city council on April 27. Despite the lack of support in previous related votes from the zoning board of appeals and the Metropolitan Planning Commission, the council appears to favor the plan, according to the source.

Alderman John Hall is among the councilmembers who plan to approve the zoning change. “[The self-storage facility] would bring a needed service to this area more so than anything else; and if there are a dozen people or a half-dozen people employed at this facility, that’s more people working,” Hall told the source.

Resident Michael Hough also supports the project. “I think the point that this is private property is the big issue,” he said. “It’s all about letting a property owner do what they want as long as they are within the guidelines.”

Palumbo continues to lead residential opposition to the plan. His neighborhood group, Smart Growth Savannah, has started a GoFundMe campaign to raise $3,500 to hire an attorney to fight the development, the source reported. As of April 12, the campaign had raised more than $1,100.


11/28/16 – The Metropolitan Planning Commission last week denied the zoning-change petition submitted on behalf of 31 North Real Estate Investors, which would have provided a path for a self-storage facility on Limerick Street. The commission voted 10-3 against the request, agreeing with a new staff report, which indicated the proposed district could enable developments inconsistent with the comprehensive land plan, such as student dormitories or adult-entertainment businesses, according to the source.

Palumbo was among several residents to speak against the zoning petition and urged the commission to note that no community members had spoken in favor of the self-storage project. However, McCorkle presented three letters of support from residents that he said live closest to the site. He argued most residential opposition had come from people who live outside the neighborhood. “It’s not a towering inferno as it has been depicted in some places,” he told the commission.

The developers can still appeal the decision in front of the Savannah City Council.

In a related move, the commission approved a separate request filed by McCorkle to amend the Tri-Centennial Comprehensive Plan Future Land Use Map. The update will change the future land-use category from General-Residential to Commercial-Suburban, the source reported.


11/2/16 – After more than an hour of discussion and public comment, the Metropolitan Planning Commission postponed its vote yesterday on the zoning-change petition submitted on behalf of 31 North Real Estate Investors. The commission voted 7-3 to delay its decision on the self-storage plan to allow further investigation on how the zoning change would affect other districts, according to the source. It will be reviewed again on Nov. 22.

About a dozen community members in opposition to the zoning change and Limerick Street storage project attended the meeting, with six providing public comment. The board also received seven letters of opposition prior to the meeting, the source reported.

Commission staff has recommended the board approve the zoning change, noting in its findings that the “collector street or greater” classification specifically targeted by the change permit was established without discussion or explanation, according to the source. The city began setting zoning restrictions in relation to self-storage in the 1990s.


11/1/16 – A new petition filed on behalf of 31 North Real Estate Investors seeks to amend the Savannah Zoning Ordinance by removing the “collector street or greater” requirement from being applied to all future self-storage developments. The Metropolitan Planning Commission staff has recommended the board approve the petition. If the board follows the recommendation at its meeting tonight, the zoning change would allow self-storage developers to forego asking for the specific variance and effectively clear a path for the Limerick Street project to move forward, the source reported.

Residential opposition is expected to be vocal again during tonight’s meeting. “I believe that the opinion voiced by residents in March of this year still command the respect of our development process,” Palumbo said. “Amending our zoning code for a solitary developer fails to meet the needs of the public or future investors in our community.”

The latest petition was filed on behalf of the investor group by attorney Phillip McCorkle.


8/29/16 – A self-storage proposal from developer 31 North Real Estate Investors has been rejected for the second time by the Savannah Zoning Board of Appeals after it removed a variance request from its agenda last week. Although the city’s zoning administrator allowed the petition for a street-classification variance to be heard because it differed from the developer’s requests rejected in March, the board refused to discuss the matter, according to the source. Petitioners are typically required to wait at least 12 months before resubmitting requests.

“If you come and request a variance of some type, you can’t come back and ask for the same thing unless you wait 12 months,” board chairman Thomas Branch said during the meeting.

Development plans for the proposed self-storage facility at 2803 Limerick Street were unchanged from March, the source reported.

More than a dozen residents submitted letters in opposition to the variance, similar to earlier protests by the community.


3/28/16 – Self-storage developer 31 North Real Estate Investors LLC was denied two variances this week for a proposed project in Savannah, Ga. The metropolitan planning commission zoning board of appeals effectively ended the project by rejecting a zoning variance for Limerick Street as well as a variance to reduce the buffer surrounding the edge of the property, according to the source.

The facility would have been built behind the Whole Foods shopping center on Victory Drive. It was opposed by residents, including members of Preserve Savannah, a neighborhood group who argued a self-storage facility didn’t fit the character of the area despite other commercial developments. A particular sticking point was the 50-foot height of the proposed building, the source reported.

“This was a huge win for the community today,” Nick Palumbo, founder of Preserve Savannah, told the source.

Jay Maupin represented the developer during the meeting and argued the storage facility wouldn’t negatively impact the area, in part because the neighborhood is already commercialized.

Part of the residential opposition to the project is an ongoing fight to reduce overdevelopment in the area, according to resident Rob Hessler. “This is a very small victory in the much larger battle against overdevelopment,” he told the source.

The same developer would have to wait one year before resubmitting its variance requests if it wants to continue the self-storage project at the proposed site, the source reported.

Sources:

Rockford Construction Affiliate Acquires Self Storage Downtown GR in Grand Rapids, MI

Article-Rockford Construction Affiliate Acquires Self Storage Downtown GR in Grand Rapids, MI

An affiliate of construction, development and property-management firm Rockford Construction Co. Inc. has acquired a mixed-use development in Grand Rapids, Mich., that includes Self Storage Downtown GR. 7th Street Lofts at the corner of 7th Street and Seward Avenue N.W. also includes 26 apartments and commercial space, according to the source.

The self-storage facility at 769 Seward Ave. N.W. offers interior climate-controlled units, an indoor loading bay and 24-hour access, according to the property website.

Rockford Construction purchased the development after John Wheeler and Gary Postma, executives with Grand Rapids-based Orion Real Estate Solutions LLC, divested their minority stake in the project, the source reported.

“The purchase provided an opportunity to continue to invest in an area of the neighborhood that successfully supports mixed-use buildings on a key corridor,” Mike Mraz, managing partner for Rockford Construction, told the source.

Rockford Construction has been actively acquiring and developing commercial property on the west side of Grand Rapids, near its company headquarters, according to the source. Founded in 1987, the company is licensed in 44 states and has regional offices in the Midwest and Southeast.

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Marcus & Millichap Releases Mid-Year US Self-Storage Investment Forecast Report

Article-Marcus & Millichap Releases Mid-Year US Self-Storage Investment Forecast Report

Marcus & Millichap, a commercial property-investment firm serving the self-storage industry, has released a self-storage investment forecast report for the first half of 2017. The 57-page digital publication offers analytical insight to the sector on a national, regional and local level. Titled “2017 U.S. Self-Storage Midyear Outlook,” the report is produced by the firm’s National Self-Storage Group and released through its research-services division.

“The self-storage industry downshifts from a pace of rampant expansion to a more moderate, sustainable growth trajectory,” the report states. “The underlying demand for storage continues to strengthen; however, mounting supply pressures are a growing concern. Though new supply has not been enough to overwhelm pent-up demand, construction may have a greater impact as we move further in the development cycle.”

The report includes:

  • Industry investment trends
  • An overview of operating performance, nationally and by region
  • Key factors driving self-storage use
  • An outlook for product demand
  • A forecast for occupancy
  • A regional overview of real estate transactions
  • Graphics and summaries on demographic trends, rentals and vacancies in 43 markets

Marcus & Millichap produces more than 2,000 research products each year, according to company officials. Its research-services department offers a range of publications, from national economic perspectives to market-specific analyses. The company website enables users to search for reports by property type, location or keyword.

Founded in 1971, Marcus & Millichap is a commercial property-investment firm with more than 1,700 investment professionals in offices throughout Canada and the United States. The firm closed nearly 9,000 transactions in 2016 with a value of approximately $42.3 billion.