The owner of Fort Knox Drive-Thru Self-Storage, which recently opened in Roanoke, Va., intends to revive a community market on the facility grounds. Happy’s Flea Market operated for years on the 11-acre site at 5411 Williamson Road but closed in 2016. Developer Jim Cherney, CEO of Cherney Development Co. Inc., hopes to re-open the event next month under the new moniker “Happier Days,” he told the source.

“At one point in time, there were over 400 vendors here; and on a given weekend afternoon, there would be 1,100 shoppers here visiting this site,” Cherney said.

Cherney acquired the property in 2017 for $950,000. The self-storage project included conversion of a pre-existing 90,000-square-foot structure to drive-through, interior self-storage. The flea market will be hosted on the back four acres of the site, the source reported.

“We’re hoping to have 400 folks that are interested in moving their goods through the flea-market system and hopefully introducing another 1,000 people a weekend to visit and take advantage of the goods and wares that they can get nowhere else in Roanoke,” Cherney said.

The storage facility also offers office space for rent and will be home to the Williamson Road Area Business Association. “I think that once we shine a lot on the economic opportunities that are afforded to, not just this neighborhood, but this site, we’ll have a dynamic response,” Cherney told the source.

The developer is also converting a former Kmart in Danville, Va., to another Fort Knox location. Based in Roanoke, Cherney Development specializes in commercial-property conversions and multi-family housing. Cherney has developed 14 self-storage facilities in North Carolina and Virginia.

Source:
WDBJ, Old Happy’s Site Set to Bring Back Flea Market

In an ideal self-storage world, you’d work in a heavenly management office with no problems. Your coworkers would be angelic; your customers would pay on time and come in with a smile every day. Instead of a golf cart on its last legs, Pegasus would fly you on his back across the property. In my version, Jerry Garcia would be hanging out, riffing on the guitar. Everyone would get along and laugh. No conflict at all!

Let’s drop back down to earth now. Disharmony is often inevitable in the workplace. Employees and customers come from different backgrounds, geographical areas, mindsets and perspectives. While some will mesh great, others might struggle to get along. If tension is left to fester and build, it could lead to situations from which staff won’t be able to back pedal.

“Conflict is inevitable, unfortunately. No one is immune to coworker drama. Learning how to de-escalate conflicts and help others work through them are the best tools organizations can give leaders,” says Kathleen Harvey, a human resources (HR) administrator for Amazon.

Any discord among your self-storage team should be managed in a proactive manner. Following are some tips for recognizing and averting potential issues and finding resolutions when you can’t.

3 Types of Conflict

While conflict can arise from anywhere, in a self-storage office setting, there are generally three primary triggers. Any of them can cause high levels of tension, and tempers will flare if the situation isn’t addressed.

One employee isn’t pulling his weight. Perhaps he isn’t helping to clean the property, follow up with leads, perform marketing tasks or maintain the rental truck. When a coworker doesn’t complete his assigned tasks, it affects others who must pick up the slack. The property could also suffer, resulting in bad facility audits, unhappy tenants, negative reviews and more.

Personalities clash. For example, an extroverted, service-oriented manager may get frustrated with his introverted, quiet coworker, and vice versa. The situation can quickly get messy if not handled with care.

There’s poor communication. At a self-storage property, employees often don’t work together every day. A customer-service or maintenance-related issue might easily arise when only one of them is on site. If the on-duty manager fails to leave notes or other communication to update his coworkers, there will be problems—not only among staff, but with customers.

Resolving Disputes

The first step to resolving any discord is to acknowledge your role. Conflict is never 100 percent on one person and zero percent on another. Take a step back and figure out the part you’ve played in the problem. What could you have done differently?

The next step is to learn what’s going on with your coworker. For instance, if a dependable employee is suddenly distracted or struggling to complete tasks, find out if there’s a reason.

In an article on “CNBC Make It,” former Navy SEAL commander John “Jocko” Willink advised, “Instead of assuming that they’re lazy and they’re a bum, you assume that they’ve got something going on in their life that is interfering with their work.” He suggests approaching the person and asking if you can help. You’ll recognize if he’s is taking advantage of your concern or genuinely appreciates the support.

If your coworker is completely fine but perhaps lacks inspiration, recognize what motivates him to do a good job. Is it words of affirmation? If so, let him know how well he did when he sold those extra boxes or when he cleaned that unit after a vacate. If he’s the rebel type, instead of telling him what tasks to complete, ask him what he wants to do. Giving him ownership of his decisions makes him feel he’s in control.

Another option is to confront your coworker directly and let him know what you’re perceiving and how it’s making you feel. In this approach, active listening is vital. Allow the person to voice his perception and how he feels. Repeat what he says with, “I hear you are saying…” and make sure you’re both on the same page. By airing it out, the conflict may subside, and all will be well.

When to Go to a Supervisor

In a perfect world, conflict resolutions would always work and there wouldn’t be a need to get anyone above you involved. Unfortunately, there may be times when you need help from a district manager, the owner or HR. When all ideas have been exhausted—you’ve adjusted behavior on your end, but your coworker hasn’t—you need support.

The protocol for making a report of this kind should have been shared with you during your initial management training. It should be a priority for everyone to understand the company’s code of behavior. Once a formal report is submitted, it’s best to not discuss the problem with your coworker. Continue to do your work until instructed in how to proceed.

An Ounce of Prevention

Even though conflict will arise in any self-storage workplace, there are ways to prevent and minimize it. One of the most important is to set clear expectations for employee behavior. Everyone should understand and adhere to company policies and procedures. Ongoing training is key.

Another solution is to simply avoid discussing topics that could spark problems: religion, politics, romantic relationships, family issues, your career and personal finances. These can easily cause division between staff. If you want to get to know your coworker, chat about community events, your children and pets, TV shows, movies and music, your favorite restaurants, vacation spots, books, sports, or even the weather. These are fun, easy-going topics that encourage people to be friendly with very little possibility of drama.

Perhaps the best way to prevent and resolve workplace conflict is to simply be the bigger person. Keep your head down and do your work. If tasks pile up—creating an opportunity for tempers to flare—Willink says to stay humble and, “Turn it into an opportunity to get ahead.” By showing supervisors you can handle anything that comes your way, including interpersonal conflict, you’re more likely to be rewarded.

Conflict occurs because humans are, well, human. It’s how you respond that shows your true colors.

Steven Jeffers is the facilities and operations manager for Bee Safe Storage and Wine Cellar, which operates 21 self-storage facilities in the Carolinas, Tennessee and Texas. His experience and knowledge includes local marketing, management optimization and leadership training. To reach him, e-mail sjeffers@cipconst.com.

StorHub, which operates 13 self-storage facilities in Singapore, has installed clean-energy solutions at nine of its locations, including smart air-conditioning, green roofing and solar power. The company will also establish electric-vehicle charging stations at two sites. The efforts are in line with Green Plan 2030, a government initiative to advance the country’s commitment to sustainability, according to a press release.

StorHub has partnered with clean-energy service supplier Sunseap Group Pte Ltd. The air-conditioning and mechanical ventilation systems use smart technology to detect and optimize energy consumption while maintaining building temperature. The green-roof installations are designed to reduce heat transmission by up to 90%. The solar-panel systems are expected to generate a combined 1.8 gigawatt hours of renewable energy each year, the release stated.

“StorHub is pleased to be working closely with Sunseap on various green technologies and solutions by integrating cleaner energy into our business operations, and achieving our goal in reducing carbon emissions and a low carbon footprint toward a greener and more sustainable Singapore,” said StorHub CEO Luigi La Tona.

Sunseap specializes in solar energy. It’s completed projects at more than 1,500 Singapore locations, including commercial and industrial buildings, and public-housing estates, according to its website.

Launched in 2003, StorHub has self-storage facilities across Singapore in Bukit Batok, Changi, Hougang, Kallang, Tampines, Toa Payoh and Woodlands. Its portfolio contains more than 10,000 units.

Source:
PV Magazine, Sunseap to Install Green Energy Systems for StorHub Self-Storage Facilities

Janus International, a global manufacturer and supplier of building components and security technology for the self-storage industry, has expanded its Nokē Smart Entry team. Shane Self has been named director of wireless networks, while Jennifer Shaver will be the training and development manager. The appointments reflect the company’s continued commitment to growing its access-control and technology division, according to a press release.

With a background in solutions architecture as well as planning and network engineering, Self will oversee Janus’ wireless and systems operations, including all wireless-operations managers across the company’s global footprint. He’ll also integrate new products and services into the smart-entry product suite, and serve as the primary liaison for wireless-technology vendor management. Self most recently served as director of the network-engineering team for Boingo Wireless. He’s also worked for the U.S. Department of Defense in Afghanistan, Djibouti, Iraq, Kuwait and Qatar.

Shaver will direct the onboarding, training and development program designed to help self-storage operators use the Janus smart-entry system. She’s been in the storage industry for nearly a decade, serving in various operations, management and training roles.

“We believe that implementing innovative, smart access-control technologies across the self-storage space will transform the future of the self-storage industry, improving the experience for customers and increasing security and convenience for owners and operators,” said Christine DeBord, president of Nokē. “We are thrilled to welcome Shane and Jennifer to the Nokē team, and look forward to their support in our efforts to advance our best-in-class, award-winning, smart-access offering and help self-storage operators implement this game-changing product in facilities across the globe.”

Headquartered in Temple, Ga., and founded in 2002, Janus is a manufacturer and supplier of roll-up and swing doors, hallway systems, relocatable storage units, and facility and door automation technologies. It operates out of several U.S. locations and six internationally. Clearlake Capital Group, L.P., a California-based private-equity firm, is the company’s largest shareholder.

Source:
Business Wire, Clearlake Capital-backed Janus International Expands Nokē Smart Entry Team to Support Continued Growth and Accelerate Future Development

 

Dean Jernigan, the founder of Jernigan Capital Inc. (JCAP), a merchant bank and advisory firm that also owns self-storage facilities, has sold his waterfront mansion on the Venetian Islands in Miami for $18.35 million. The seller was 1325 NV Way LLC, which is managed by JCAP, according to the source.

The home at 1325 N. Venetian Way comprises 6,964 square feet. Constructed in 2017 on a 12,250-square-foot lot, it has five bedrooms, five and a half bathrooms, a balcony, a boat dock, fitness and movie rooms, plus a pool, fire pit and summer kitchen. Everything was custom-built, according to Julian Johnston, a real estate agent with the Corcoran Group, which represented Jernigan in the transaction.

The buyer, 1325 Venetian Land Trust, worked with Oren Alexander, co-founder of The Alexander Team for Douglas Elliman Real Estate. Attorney Eric A. Jacobs was the trustee.

Jernigan’s self-storage career spans more than 35 years. He began as founder of Storage USA Inc. in 1984. In 2006, he became CEO of U-Store-It Trust Inc. and ushered the company through a change in branding to CubeSmart, a self-storage real estate investment trust (REIT) that owns or manages 1,244 self-storage facilities nationwide. He retired from the REIT in 2014 and launched JCAP the same year. He stepped down from his position as CEO in 2018, but continued to serve as executive chairman on the board of directors.

JCAP is a publicly traded REIT listed on the New York Stock Exchange. It provides financing to private developers, operators and owners of self-storage facilities, offering funds for acquisition, ground-up construction, major redevelopment or refinancing. The firm was acquired last year by an affiliate of NexPoint Advisors L.P., an investment advisory firm, for $900 million.

Source:
South Florida Business Journal, Firm of Jernigan Capital Founder Sells Miami Mansion for $18M

We may be living in the #MeToo era, but some people simply haven’t learned the lesson. One self-storage manager and her co-worker are fed up with harassment from a tenant who refuses to accept that neither want to date him. They’ve both been clear with their refusals, but he isn’t heeding the message. He’s even accused them of turning him down because of his race.

In this thread on Self-Storage Talk, the industry’s largest online community, members are offering their support and suggestions for tactfully handling the problem. Have you ever received unwanted attention from a tenant? How did you cope with the situation? Join this timely and important discussion.

With a new White House administration in place, tax planning is becoming increasingly important to self-storage owners and investors. It’s critical to pay attention to newly proposed policies that could affect your business assets.

President Joe Biden’s tax plan was published as a component of the platform for the Democratic Party and will need to be passed by the U.S. Congress. It’ll likely include extensive amendments before it’s finalized. However, it’s clearly taking aim at high earners and has many components that’ll have a meaningful impact on real estate investing.

Below I’ve summarized some of the proposed modifications. Just bear in mind that I’m not a certified public accountant, so speak with your tax advisors to ensure you fully grasp the new policies before making any adjustments to your investment strategy. Obviously, everyone’s situation is different.

Long-Term Capital Gains

Capital gains are the taxes you pay on the value you’ve earned on an asset, such as a self-storage property, at the time you transfer the deed to a new owner. The proposed change is a massive increase in long-term capital gains, from 20% to the ordinary income level of 39.6% for adjusted gross income over $1 million.

Typically, long-term capital gains are taxed at a top bracket of 20%, depending on the amount. The $1 million limit may sound large, but with today’s average price of a self-storage asset hitting $2.8 million-plus (and growing rapidly), these gains aren’t hard to find. In a time when we’re seeing a lot of longtime owners/developers reaching retirement age, longevity of ownership may have less reward than we once thought.

Step-Up Basis

The new administration proposes to eliminate the step-up basis for inherited property. This has long been the self-storage owner’s solution to avoiding capital-gains taxes. It adjusts the cost basis for accounting purposes from whatever the original owner paid for the property to the property’s value at the time of their death.

For example, let’s say your parents own a self-storage property. They paid $1 million for it 25 years ago, and today it’s worth $5 million. Under the current law, if they were to pass that property to you, the cost basis would step up to the current value. If you were to sell it, you would only owe capital-gains tax on any amount over $5 million you receive. Under the proposed plan, you’d pay capital-gains taxes on the $4 million of appreciation that has taken place over the last 25 years. Obviously, the devil is in the details; but these round numbers are meaningful and shouldn’t be taken lightly.

Lower Estate-Tax Exemption

Currently, there’s a 40% tax on estates valued above $11.58 million. The first $11.58 million you inherit is tax-free. If you inherit more, the estate tax kicks in. The new administration aims to increase the estate tax to 45% and, more important, to reduce the exemption from $11.58 million to $3.5 million. Using the example above in which your parents bought a self-storage property for $1 million and it’s now worth $5 million, it isn’t such a big leap to see how an estate can grow to more than the proposed $3.5 million exemption.

Clearly, this is a long-term estate-planning topic, but with the rapid appreciation self-storage properties have experienced over the last 10 years, this should be front of mind for long-term owners and investors. In fact, the three topics addressed above are only a fraction of the proposed new tax policies. They have yet to be signed into law. As stated, they’re clearly taking aim at investors and high earners. While it’s extremely unlikely that they’ll be implemented in their current form, it’s important for self-storage owners and investors to familiarize themselves with potential outcomes, then take the necessary steps to mitigate any negative impact on their investments.

Ben Vestal is president of the Argus Self Storage Advisors, a national network of real estate brokers who specialize in self-storage. Argus provides brokerage, consulting and marketing services to buyers and sellers via an extensive marketing platform for self-storage properties. Property listings and informational resources can be found at. For more information, call 800.55.STORE; e-mail bvestal@argus-realestate.com.

Michael Edwin Grant, 52, has been arrested and charged with murdering his father, 72-year-old Michael Grey Grant, on Thursday at Speedy Self Storage in Winchester, Tenn. The shooting occurred at 11:13 a.m. at 911 S. College St., while the elderly Grant sat in the cab of his 18-wheeler truck. The two men reportedly had an argument before the younger Grant allegedly shot his father with a handgun, according to the source.

The victim often parked his truck at the storage facility, according to Winchester Police Chief Ritchie C. Lewis. The younger Grant went to his mother’s house after the shooting and confessed to killing his father, the source reported. His mother called the police to tell them what had occurred and informed the dispatcher that her son would turn himself in at the police station; however, Grant was arrested en route.

The incident remains under investigation. Grant has been charged with criminal homicide and is being held at Franklin County, Tenn., Jail.

Source:
The Manchester Times, Winchester Man Charged in Shooting

Arson is suspected after a four-alarm fire on Monday destroyed about 25 units and caused an estimated $3 million in damages at Airport Self Storage in Salem, Ore. No injuries were reported. Tristan Sillman, 22, was arrested on multiple charges of second-degree arson and first-degree criminal mischief, according to a source.

Firefighters responded to the blaze at 2142 Turner Road S.E. about 6 p.m., but it took several hours to extinguish. A witness told police he had observed Sillman shoot a flare into the air. After the witness confronted him, Sillman allegedly fired another flare toward the storage units. The flare landed in a unit through a void near the roof, a source reported.

Following witness interviews and crime-scene processing, police found Sillman on Tuesday at Cascades Gateway Park near the storage facility. Investigators believe he was living in the park.

The suspect told police he purchased a flare gun from Walmart several days before the fire, but a loss-prevention officer at the store told investigators the man was captured on video stealing a flare gun and cartridge refill. Sillman later admitted to police that he fired the flare gun toward the self-storage facility, according to a source.

Sillman was arraigned on Wednesday. Bail was set at $20,000. He’s next scheduled to appear in court on May 17.

Airport Self Storage is locally owned and managed by Vancouver, Wash.-based Cedartree Management Co. The facility offers zero-contact online rentals and is open seven days per week.

Sources:
Statesman Journal, Man Faces Arson Charges After Allegedly Firing Flare at Storage Units Near Salem Airport Causing $3 Million in Damages
KOIN, Arson Suspect Arrested Following Storage Facility Fire in Salem