E-SoftSys, a provider of management software and other products for the self-storage industry, has hired Jim DiNardo as vice president of operations for its self-storage software division. In this position, DiNardo will direct large implementations, manage division growth, and oversee sales and marketing efforts to grow the companys market share.

DiNardo has been in the self-storage industry since 1989. He was operations manager and partner of The Storage Depot until the company was sold to Extra Space Storage in 2004. Since then, he has worked as an industry consultant. He currently serves on the boards of directors for the national Self Storage Association and the Massachusetts Self Storage Association.

"We are delighted to have Jim on our management team, said Kat Shenoy, president and CEO. He's an industry veteran, with 22 years of self-storage operating and consulting experience that will be valuable in further enhancing our products and providing superior customer support and implementation services to our client base.

E-SoftSys provides products and services including Self Storage Manager management software, which has been implemented by companies worldwide, and e-CRM, a customer-relationship management module designed specifically for multi-facility operators. The company also offers add-on modules such as an interface for INSOMNIAC self-storage kiosks, an interface for QlikView business intelligence and analytics, a tablet-based site-audit and walk-through application, and others. A Microsoft Gold Certified Partner, E-SoftSys provides 24/7 customer support.

The U-Haul Co. of North Indiana and South Cook County has expanded the U-Haul network of self-storage locations with its purchase of Simply Self Storage at 16643 Kedzie Ave. in Markham, Illinois. The facility, which will be rebranded as U-Haul Moving and Storage of Markham, is a two-story structure with 700 self-storage units, 470 of which are climate-controlled.

The property also features eight office suites for lease as well as outdoor, drive-up storage and boat/RV storage. Other amenities include electronically controlled access, digital video surveillance, free use of storage carts, and more. The site will offer a variety of environmentally friendly packing supplies including boxes made out of recyclable materials, 100 percent biodegradable packing peanuts, and moving pads made from recycled denim.

Also on site will be a Take a Box/Leave a Box display, which allows customers or anyone in the community to leave moving boxes or unwanted electronics boxes for another customer to reuse for free, instead of throwing them away or recycling them.

"We are excited to be expanding our presence in Markham and look forward to continuing our long-standing relationships with local communities throughout Illinois," said Craig Wilson, president, U-Haul Co. of North Indiana and South Cook County.

Established in 1945, U-Haul has a network of more than 16,300 locations throughout the United States and Canada. The company offers more than 36 million square feet of self-storage space at nearly 1,100 facilities throughout North America.

A self-storage operator in Hope, Ark., reported a break-in last week.

Police were called to Advantage Self-Storage, 3010 Bill Clinton Drive, in the early morning hours Friday. At least nine locks had been cut off storage units. An employee of the self-storage company was alerted by police.

No other information about the break-in was available. Police are encouraging anyone with information to call the department.

A company in Brantford, Ontario, Canada, has purchased a 160,000-square-foot building with plans to renovate it for self-storage.

The building at 100 Elgin St. was formerly occupied by Storimage, a company that designs store layouts for major retailers.

The renovated facility by Brantford Self Storage Co. will include self-storage space and workspace for small-businesses owners. Units in a variety of sizes will be available. The company aims to attract entrepreneurs, home-based businesses and independent contractors.

MinkerTrahant & Associates, a real estate brokerage firm based in Fort Worth, Texas, has been acquired by CASE Commercial Real Estate Partners of Dallas. MinkerTrahant partners Richard Minker and Tyler Trahant will operate the CASE Forth Worth office, with Trahant as managing director and Minker as senior broker.

MinkerTrahant specializes in office and industrial tenant representation, project leasing and broker services. It is also affiliated with the Argus Self Storage Sales Network and provides self-storage brokerage in North Texas.

Minker was founder and principal of Richard D. Minker Co. in 1986. In 2009, Trahant returned to the Minker Co. as managing director and took over day-to-day operation. Trahant became a principal, and the firm's name was changed to MinkerTrahant.

Minker told the Fort Worth Star-Telegram that the merger was necessary for the firm to grow. "As our client base grew, so did the ancillary services required to meet its needs. CASE provided a solution by offering additional services such as property management, lease administration and construction among others. They offer a midsize firm atmosphere with large firm capabilities and global reach."

Formerly GVA Cawley, CASE was founded in 1986 and provides tenant representation, global corporate services, property management and leasing, lease administration, construction and project management, investment sales, development advisory, and sustainable workplace services. It also has offices in Austin and San Antonio, Texas. CASE is part of the TCN Worldwide organization of independent commercial real estate firms.

Texas Gov. Rick Perry signed a bill that modernizes the states 30-year-old self-storage lien law on Friday. The Texas Self Storage Association (TSSA) played an active role in this years legislative session to support changes to the Chapter 59 foreclosure process affecting self-storage operators in the state.

The new law, which becomes effective Jan. 1, will:

• Allow the use of verified mail or e-mail instead of the currently required Certified Mail to send the required foreclosure seizure/claim notice.
• Require specific notice to military customers asking them to identify themselves as active duty, thereby providing additional safeguards for service members.
• Incorporate special foreclosure processes for vehicles and boats into Chapter 59 instead of the current separate section of the property code subject to changes intended for mechanics liens.

Senator John Carona (R-Dallas), chairman of the Senate Business and Commerce Committee, filed Senate Bill 690. State Representative Sid Gill (R-Stephenville) also filed an identical companion bill in the House, House Bill 1259. Both worked with TSSA to ensure passage of the bill, with some amendments along the way.

This is the first time in more than 15 years that TSSA has actively stepped into the legislative fray to lobby for a specific bill. The associations legislative role has mainly been as a watchdog and to actively lobby against harmful legislation. Connie Heyer of Niemann & Heyer LLP routinely monitors all bills that may have a potential impact on self-storage operators, working at the Capitol with bill authors when amendments are needed. When necessary, the association rallies members to contact their representatives and help prevent onerous bills from becoming law.

The process of this bill was relatively smooth, the TSSA reported in a press release. One stumbling block appeared early on when the newspaper lobby came out in opposition to a portion of the bill that would have eliminated required newspaper advertising. This section was eventually eliminated from the bill.

There is definitely success to be claimed, and joy in doing something that helps members run their businesses more efficiently, said TSSA Executive Director Ginny Sutton. Board President Robert Loeb praised everyone involved in the process and hailed the signing of the bill as a good day for TSSA, our customers and our industry.

The TSSA was established in 1986 as non-profit trade association dedicated to enhancing the quality of the self-storage industry in Texas. It provides opportunities for members to increase their knowledge through education, research, discussion and information exchange.

The former business manager of a self-storage facility in Pensacola, Fla., was arrested Monday and charged with stealing money from her employer.

Tracie Barrett, 40, is suspected of stealing $65,619 from University Self Storage, 8802 N. Davis Highway. The theft occurred between January 2009 and December 2010, according to a report from the Escambia County Sheriffs Office.

The theft was discovered when the self-storage owner, Wetzel Bias, conducted an audit and found discrepancies between bank statements and internal finance reports.

Bias reported the theft to the Escambia County Sheriffs Office Jan. 5. The charges include larceny and fraud. Barretts bond has been set at $250,000.

Storage Pros Management LLC (SPM) hired John D. Price III as senior vice president and chief financial officer. Price is a former treasury and finance executive at GMAC Inc., Ford Motor Company and Comerica Bank.

The new hire, along with that of Jeff Skogen last year as director of operations and sales, rounds out the restructuring and enhancement of SPMs senior management team. Skogen is a former senior Ford marketing and training executive. Company co-founders David M. Levenfeld, president, and Ian Burnstein, chief operating officer, remain in key management roles for SPMs self-storage property management and asset management functions.

SPM was recently hired to manage self-storage facilities in five states for a variety of clients, including public and private institutional owners, private individuals and lending institutions. The company is now accepting private equity investment for accelerated growth through joint-venture acquisitions.

Prices 20-year career includes corporate finance and treasury functions, with an emphasis on forecasting, budgeting and debt sourcing. His most recent position was executive director, cash forecasting and liquidity management for GMAC. Hell have overall responsibility for SPMs lender relations, cash management, accounting, insurance and financial reporting.

Storage Pros also hired Ben Handelsman as director of marketing and facility maintenance. Handelsman has a varied management and marketing background, including most recently having served as marketing director for 1-800-Mini-Storage. His marketing responsibilities will focus primarily on Internet-based advertising and social media. He will also coordinate all repairs and maintenance for the Storage Pros portfolio.

Adding John, Jeff and Ben provides us with a range of experience and competence that assures our ability to integrate substantial growth in an orderly fashion, Levenfeld said. We are confident that SPMs clients, partners and investors will be pleased with these key additions to our management team. 

Founded in 2007, Storage Pros Management LLC and its affiliated companies specialize in the acquisition, development, improvement, management and disposition of self-storage facilities. The company owns 10 properties in Massachusetts, Michigan and Rhode Island.

In this article, real estate experts from the U.S. north-central region discuss the state of self-storage, commenting on the market in their areas and their thoughts on how the industry will perform moving forward. The contributors are:

• Bruce Bahrmasel, Landstar Realty Group, Chicago
• Larry Goldman, RE/Max Best Associates, Overland Park, Kan.
• Chris Hitler, Investment Real Estate Specialists, Mequon, Wis.
• Greg McDonald, Magnum Real Estate, Minneapolis
• Jim Soltis, Preview Properties.com, Brighton, Mich.

As the economy and real estate market start to recover, should owners consider selling, buying or holding their properties? How is recovery progressing in the major market areas in your state? 

Bahrmasel: As with any major change, self-storage owners should be guided first and foremost by personal goals. That said, the current economic climate is proving to be a good time for buying and selling. Interest rates remain quite low, enabling buyers to lock in rates that are favorable and give a good long-term return on investment. This condition is also helpful for sellers who wish to get the best price. Theyll probably be able to get in the near term, but as interest rates go up, investors will be forced to pay less for a project. In the greater Chicago area and surrounding markets, the economic recovery remains tenuous.

Goldman: Interest rates are still low, which really enhances investment value for buyers and helps sellers get better prices. As inflationary pressures surface in the not-so-distant future, we will be looking back at 2011 as a year of great opportunity. Furthermore, many facilities are seeing significantly improved performance, as consumers are under less financial pressure than during the worst of the recession.

Hitler: The Wisconsin market has heated up in the last couple months. For the past two years theres been a dearth of reasonably priced properties. Owners had been reluctant to sell given the perception of declining storage-facility values and limited investment options for their sale proceeds; but enough time has passed that sellers can no longer postpone the selling decision.

In addition, interest rates are still historically attractive, allowing buyers to give reasonable offers. The economy in Wisconsin has held on for the past couple of years. The state generally does not experience the economic swings of other states. Operators still averaged 90 percent occupancy throughout 2009. But things could be better, and like operators everywhere, they want the economy to get fully on track so concessions are minimal and rent increases are easier to pass on to customers.

McDonald: Operators in the larger Twin Cities region are only cautiously optimistic that a recovery is on the way. The owners of properties in smaller submarkets have only read that the economy and the real estate market are improving, but they are lagging behind.

For owners in major Twin Cities, markets that can afford to hold; I recommend they do. If their properties are operating at high economic occupancy, they should consider selling because there are plenty of buyers looking for a true and stable 9 percent to 10 percent return. Owners in the smaller second-tier markets should not hold out expecting to sell their property at a later date at an 8 percent cap rate because thats never going to happen. These owners should be happy to sell their properties if they can yield a true verifiable 9.75 percent to 11 percent cap rate.

Soltis: In Michigan, theres been a definite increase in activity in the number of sales. The decision to sell, buy or hold is individual in nature and dependent on both non-economic as well as solid economic factors. Properties that are well-maintained, well-located and have decent cash flow are trading in todays market. Most of the buyer interest seems to be in class-A and -B-plus properties. Were several years away from an economic turnaround in the Michigan market. We are rebounding, but not as quickly as other markets.

With the improvement in the market and strong performance of the self-storage sector during the recession, will we see new development of properties in 2011 and 2012?

Bahrmasel: It will be several years before we see new projects come on line. We still havent worked through the overbuilding that occurred in the last decade, nor are there a lot of banks willing to finance new, unproven projects. Acquisitions will probably be how the big guys get bigger for the next several years. Any construction in this industry may come in the form of expanding current proven locations rather than banks looking to finance new and untested projects.

Goldman: Were already seeing a couple of new projects in Kansas, but very little development activity elsewhere. In a way, this is good for the industry, as overbuilding was one of the most serious threats to storage investors throughout the country. The threat of overbuilding has been replaced by the threat of underperformance due to inflexible, weak management. This is a business that requires focus, discipline and flexibility, as competition has increased due to consumer belt-tightening. Thats to say were now threatened by reduced demand as opposed to increased supply, and that theme will probably continue at least through 2012.

Hitler: I suspect new developments will be difficult to fund unless youre an existing operator with a substantial net worth and strong banking relationships. The economy is still fragile, and banks want substantial assurance the business can support the additional debt from adding more units. Expansion of existing facilities will be more prevalent for the foreseeable future.

McDonald: It will be at least 2013 before we see any new self-storage development in Minnesota, with only strong infill locations as an exception. The self-storage industry did better than many real estate sectors, but its not immune to problems. Furthermore, new construction requires two years just to break even, which is not appealing to banks. If banks counter by requiring more cash up front, it will dilute returns and limit new construction. Thats an appropriate check and balance at this stage in the game.

Self-storage is now a matured industry with too much inventory in many markets. Most markets dont need more buildings, but rather they need the economy to continue to recover so tenants have more discretionary income and can lease the vacant space before we consider putting more supply into the market. I would advise investors not to build, but be patient and look for existing properties to buy at a reasonable price.

Ben Vestal is president of the Argus Self Storage Sales Network, a national network of real estate brokers who specialize in self-storage. Argus provides brokerage, consulting and marketing services to self storage buyers and sellers and operates SelfStorage.com, a marketing medium and information resource for facility owners. For more information, call 800.55.STORE; e-mail bvestal@argus-realestate.com.