Apple Self Storage, which operates 36 locations in New Brunswick, Nova Scotia and Ontario, Canada, and its affiliate Apple Suites received the Community Influencer/Leadership Award from the Aurora, Ontario, Chamber of Commerce. The companies were honored on June 10 during the chamber’s 2021 Business Excellence Celebration, according to a press release.

The event recognized local businesses that “demonstrate a passion for excellence, a commitment to their community and a strong entrepreneurial spirit,” the release stated. Other nominees in Apple’s category were Aurora Restaurants & Food News Group, Coconut Village Nails Spa and The Partnership Network.

Apple was founded by brothers Jeff, Phil and Scott Allen, who have advocated company involvement in community initiatives as part of its business model. “The leadership provided by Phil, Scott and Jeff has helped the entire Apple Self Storage and Suites organization understand how important it is to get involved in our local communities and give back however we can,” company officials said. “Our leaders truly walk the walk and lead by example.”

In February, Apple donated $20,550 to The Able Network, a nonprofit dedicated to helping young adults with intellectual disabilities. It was the fifth consecutive year Apple held a company-wide fundraiser to benefit the charity.

“It is an honor to be recognized by those in our community, and we look forward to continuing to support our wonderful communities,” Apple officials said.

Family-owned and -operated, Apple opened its first facility in 1975. Its properties comprise more than 1.2 million square feet of rentable space. The company offers standard and premium storage units, mailbox rental, package acceptance, hold-key service, and packing and moving supplies. Affiliate Apple Suites, which offers flexible office space, opened its first location in 2010. Three of its four sites are in conjunction with Apple self-storage locations.

Source:
PR Web, Apple Self Storage & Suites Receives Community Influencer/Leadership Award

Self-storage operations teams are often comprised of savvy go-getters with too much to do and not enough time in which to do it. When you’re so busy, it can be difficult to really think through your digital marketing, including which tactics are actually generating leads, and which are simply adding to your to-do list.

These days, to attract more prospects to your business, you need to connect with people where they are—online! So, busy or not, you’ll need to invest at least a little time and effort into your digital-marketing strategy this year. Let’s take a look at four things you should try to better connect with potential customers. If you’re already doing these things, you’ll get tips to improve results.

Must-Do 1: Search Engine Optimization (SEO)

This seems basic in 2021, but I’ll say it: Your self-storage facility needs a website! And that website needs to be tailored to current SEO practices. Search engines like Google are constantly updating their algorithms, which essentially look for certain qualities within websites to determine if those sites will answer a searcher’s questions.

Keeping your website up to date with proper SEO shows search engines that, yes, your website will answer customer queries. Plus, adhering to best practices means the engines are more likely to recommend your website on their search engine results page (SERP). When someone sees your website listed and clicks on it, we call that “organic traffic.” We love this because it’s free—there’s no cost to your company if someone clicks on your link here.

Of course, you have to invest time and, therefore, money upfront to tailor your website to comply with SEO best practices. It’s a long-game tactic. It can take months to be considered trustworthy within your area of expertise and to be served up in top slots on SERP. This is why it’s important to pair strong SEO with other marketing tactics.

Must-Do 2: Digital Advertising

SEO sets a strong foundation for digital advertisements. Why? Because it ensures a website contains what searchers think they’re going to find. There’s nothing more frustrating to a user than clicking on an ad for what appears to be exactly what they’re looking for, only to land on a clunky, unhelpful website.

With digital advertising, companies pay to show their ads to internet users on various networks such as Google and Microsoft, and on social media platforms like Facebook and Instagram. For now, we’ll stick with search and display ads and get into social media a bit later. On the Microsoft and Google advertising networks, we can broadly categorize digital ads into two groups:

Paid search is served up at the top of the SERP, typically above the organic results. This prominent location helps your self-storage website stand out. Every time a searcher clicks on your ad, you’re charged. This is why you’ll often hear paid search called pay-per-click. The cost for each click depends on keywords, location and other parameters of your digital ad campaign.

Display ads show up in website banners and sidebars. According to Google, its display network advertises on more than 2 million websites and reaches more than 90% internet users. The game-changer is, when paired with data science and technology, your marketing spend can be allocated to the highest performing campaigns and advertising channels. This takes the guesswork out of getting the most from your self-storage marketing budget.

Must-Do 3: Reputation Management

When we talk about reputation management, we mean online reviews, such as those found on your self-storage facility’s Google My Business listing. According to a 2020 survey from marketing firm BrightLocal, the average consumer spends 13 minutes and 45 seconds reading reviews before making a purchase decision. As we vote more and more in our digitally distracted world with our time and attention, this stat speaks for itself—customers care about reviews. Moreover, Google does, too.

Online reviews make up 15% of local pack ranking factors, according to Moz, a marketing company that specializes in SEO. The local pack is a Google SERP section found on the first page of results for searches deemed to have local intent. Its prominent real estate encourages searchers to look there first when seeking businesses in their area.

If you weren’t convinced already, review ratings are the biggest driver of clicks in local SERP, BrightLocal reports. While your self-storage business might not necessarily feel “local” to you if you operate multiple sites, most of your customers will consider it as such. They’re looking for a facility that’s conveniently located in their city or neighborhood. They aren’t thinking of your portfolio as a whole but of an individual site.

The core tenant of online reviews is to respond to every single one. Reply with empathy and in a timely manner. Customers want to feel heard and to know that you care. How you handle reviews can build trust and fix problems, or make customers feel they should take their business elsewhere. Plus, if you resolve a customer complaint, they’ll often remove or edit any negative post. This not only keeps customers satisfied, it ensures reviews don’t harm your local SEO strategy.

Must-Do 4: Social Media

Social media and reputation management go hand-in-hand. As a result of the pandemic, people are spending more time on social platforms. Worldwide, we average 2.3 hours per day, according to Statista, which specializes in market and consumer data. Wow. For this reason, a portion of your digital budget could be designated to social media advertising.

According to industry data, the average self-storage customer journey is about 10 days. So, based on the above statistic, advertising on social media gives your property 23 hours of chances to connect with potential renters. Simply put, social media isn’t just a channel to see cute puppy videos or share moving tips. It could also be an excellent way to help increase rentals.

Marketing your self-storage business has never been more complex. By following the four strategies above, you can build a solid foundation that’ll get your self-storage business noticed online.

With nearly eight years of experience in the areas of account management and customer success, Adam Mackie has helped organizations improve their cross-departmental alignment to create a more customer-centric approach. As the senior director of the self-storage vertical at G5, he drives the operational efficiency and effectiveness of the sales and account-management organization to ensure self-storage operators use the full potential of the company’s products and services to meet their business objectives. For more information, call 800.554.1965.

The owner of MyStorage, the first self-storage facility in Ho Chi Minh City, Vietnam, recently appeared on the reality-TV program “Shark Tank Vietnam” to request funding for business expansion, marketing and technology. The show features six investors who help startups raise capital in exchange for a percentage of business profit. Aric Austin appeared in season four, episode eight, requesting about $175,000 for a 10% share of the company.

To demonstrate how quickly a small apartment can become cluttered, Austin filled the presentation area with furniture, clothing and other items, then invited the “sharks” to attempt to get comfortable in the space. He explained how self-storage can benefit people who live in small homes as well as those undergoing a renovation or launching a business. He closed by explaining the services MyStorage offers, including traditional self-storage and valet storage.

Following some discussion, Pham Thanh Hung agreed to invest the requested amount in exchange for a 25% share of MyStorage profit.

MyStorage opened in a refurbished building of District 2 in 2019. The business later opened two sites dedicated to valet-style pick-up and delivery services.

Austin moved to Vietnam from Germany about three years ago to pursue business opportunities, he told the investors. He began researching self-storage after he was unable to secure a place in Germany to store his own belongings. He shared his story in an article titled “Blazing a Trail in Southeast Asia: The Launch of Vietnam’s First Self-Storage Provider,” published by Inside Self-Storage in February.

While perhaps no one would compare it to a fast-growing Sun Belt city, as a self-storage market, Providence, R.I., definitely punches above its weight class. This New England town of nearly 180,000 people is the capital of the nation’s smallest state and home to institutions such as Brown University and Providence College. The area has also seen a recent boom in self-storage construction, with more than 1 million square feet added.

Last year alone, new supply increased by 11 percent, bringing its total market to 5.9 million square feet of storage, according to Radius+, a company that specializes in self-storage data, analytics and location intelligence. Yet, surprisingly, rental rates in Providence and throughout the state have remained relatively stable, hovering around $130 for a 10-by-10, climate-controlled unit.

Price Stability

One reason why there hasn’t been a big dip in rental rates despite the added supply is because the Providence/Warwick metropolitan market has traditionally been underserved, with self-storage square footage per capita at less than 4 percent. By comparison, the nation’s average penetration rate is about 5.8 percent.

In addition, the population has been slowly growing as people priced out of nearby Boston and New York markets look for less expensive housing in smaller Northeast cities. The bottom line is self-storage demand has increased enough in recent years to absorb the new supply.

“It’s not a super high-growth market, but it’s a very solid market,” says Cory Sylvester, a principal at Radius+. “It’s been very resilient based on the amount of new supply it’s seen. Rates are still healthy.”

Market Dynamics

One downside to Providence, R.I., is the high barrier to entry due to strict zoning laws and the high cost of land, according to Thomas Palumbo, senior director at Sitar Realty Co. But that doesn’t necessarily outweigh its pluses, which include a well-regarded education system, high median household income ($68,498), and proximity to Boston and New York. Together, these factors make it an attractive market for new residents and a favorable playing field for self-storage investors. “The key is: If you can get into the market, it’s a very good place to invest,” says Palumbo.

Frankly, the entire state, which has 1 million people living in relatively dense communities, is attractive to self-storage renters, owners and investors. For example, the scenic city of Newport, at the southern mouth of Narragansett Bay, has rental rates hovering around $1.80 to $1.90 per square foot, according to Sylvester.

“We just love Rhode Island,” says Sarah Harris, director of acquisitions for Bluedog Capital Partners, which owns two storage facilities in the towns of Cranston and Wakefield. “It’s still an undersupplied state, and there’s strong demand.” Not surprisingly, the Ocean State has become more competitive, even attracting the major real estate investment trusts, Harris notes.

Among those building is Utah-based Wasatch Storage Partners, which is developing a nearly 70,000-square-foot facility in Providence. “To us, it looks like an attractive market,” says Parley Vernon, an investment associate at Wasatch.

Outlook

As the Providence market grows in popularity and population, the question is whether it’s perhaps becoming too well-liked. Based on history, that doesn’t appear to be the case. Rhode Island was hit hard by the 2008 Wall Street meltdown and subsequent recession, and it took years for the region to recover. Little to no new self-storage construction occurred in the area in the last decade, at least not before 2017. Then things changed, with the fourth quarter of 2020 alone culminating in 450,000 square feet of completed developments, according to data. Still, the market experienced a 3.1 percent year-over-year gain in rental rates.

As for future development, current owners can breathe a sigh of relief—for now. Facilities under construction will boost the city’s overall self-storage supply by only 1.8 percent, according to Sylvester, and that’s a manageable increase for competitors.

Monty Spencer is CEO of The Storage Acquisition Group, which specializes in acquiring off-market self-storage facilities and portfolios nationwide. The company also offers market-analysis reports, underwriting and closing support. For more information, call 757.867.8777.

Update 6/23/21 – Self-storage properties are constantly changing hands, and Inside Self-Storage is regularly notified of these market transactions. Here’s an overview of additional activity happening in June 2021.

All Star Mini Storage and Puro Mini Storage in Peoria, Illinois, were sold to out-of-state investors. Together, they comprise 73,740 square feet. All Star at 7028 W. Plank Road contains 270 units and 36 vehicle-storage spaces, with half an acre for expansion. Located a mile east at 6014 W. Enterprise Road, Puro encompasses 26,940 square feet in 153 traditional units, plus five commercial units. The buyer and the seller, a private investor, were represented in the transaction by Marla Čolić and Anne Williams, investment specialists for Marcus & Millichap (M&M), a commercial real estate investment firm with offices throughout Canada and the United States. They were assisted by fellow M&M Broker Steven Weinstock.

Andover Properties LLC, which operates the Storage King USA brand, purchased Arcadia Storage in Milton, Florida. Built in 1993 on 9.8 acres, the facility on Highway 90 comprises 52,400 net rentable square feet. It was expanded in 2004, and Andover intends to double the footprint. This was the company’s sixth acquisition in Greater Pensacola and its 26th in Florida. Established in 2003, New-York based Andover owns and manages 88 storage properties in 16 states, comprising more than 6.8 million square feet across 49,900 units.

Attics Storage in Newnan, Georgia, sold to a regional buyer. Built on about 2 acres at 554 Corinth Road, the facility offers 248 units, plus vehicle storage and mailboxes. The seller was represented in the transaction by Michael Morrison, a broker with Midcoast Properties Inc., a commercial real estate brokerage focused on self-storage in Alabama, the Carolinas and Georgia.

Bryan Street Storage in Shawnee, Oklahoma, sold. The facility at 526 N. Bryan Ave. comprises 47,640 feet in 296 units and 31 vehicle-storage spaces. The seller was represented in the transaction by The Hatcher Group of M&M.

Cajun Storage in Lake Charles, Louisiana, sold to a limited-liability company. The facility at 2255 LA-397 comprises 61,590 square feet. The buyer was represented in the transaction by Dave Knobler, senior vice president of investments, and Mixson Staffel, associate, for M&M. Knobler also represented the seller, a private investor, assisted by fellow broker Chris Shaheen.

Ceres Self Storage in Ceres, California, sold to Heritage Self Storage, a Burbank, California-based operator, for $3.15 million in an off-market deal. Built on 1.64 acres, the five-building facility at 2105 Fairview Drive comprises 37,126 net rentable square feet. It was 99% physically occupied at the time of sale. The buyer owns a second facility in Ceres, only about 400 yards away. The seller was represented in the transaction by Bobby Loeffler, president, and Tyler Skelly, national director, of the Loeffler Self-Storage Group Inc., which specializes in self-storage real estate in California and Nevada.

City Storage in Idaho Falls, Idaho, sold. Built in 1990 on about 7 acres, the self-storage facility at 1445 N. Woodruff Ave. comprises 77,238 net rentable square feet in 752 units. It was built in multiple phases, with the last completed in 2004, plus there’s room for expansion. The buyer and the seller were represented in the transaction by Jordan Farrer, investment associate, and Adam Schlosser, senior vice president of investments, for the LeClaire-Schlosser Group of M&M.

Andover Properties acquired a CubeSmart facility in Phoenix. The multi-story structure at 7090 N. 19th Ave. opened in September and comprises 72,388 net rentable square feet. Self-storage real estate investment trust (REIT) CubeSmart owns or manages 1,244 U.S. facilities.

Haggar Group, which operates 27 facilities in the Southwest under the StorWise Self Storage brand, acquired Dona Ana Storage in Las Cruces, New Mexico. The facility at 5540 Vanegas Drive comprises 35,525 square feet in 273 units. The seller was represented in the transaction by Thomas Parsons, senior investments associate, and Schlosser. They were assisted by Matthew Reeves, senior associate for M&M.

Interstate Mini Storage in Gainesville, Florida, sold. The 12-acre property at 2707 S.W. 40th Blvd. contains 21 buildings comprising 106,883 square feet in 831 units and 63 vehicle-storage spaces. The buyer and the seller were represented in the transaction by Gabriel Coe, Nathan Coe, Brett R. Hatcher and Meir D. Perlmuter, investment specialists with M&M. Ryan Nee, Florida division manager and M&M broker, assisted.

The four-property JMC Self-Storage portfolio in Southern Maine sold. Three of the sites are within 20 miles of Portland, Maine. The portfolio comprises 92,275 net rentable square feet in 793 units. The seller, a limited liability company, was represented in the transaction by Coe, Coe and Hatcher, investment specialists with The Hatcher Group of M&M. They were assisted by M&M Broker James Koury.

Montgomery Self Storage, which operates six locations in Greater Houston, purchased My Storage Locker at 14545 Highway 105 W., Unit B, in Conroe, Texas, and Stuff Hotel at 33319 Bear Branch Lane in Magnolia, Texas. The company plans to add a multi-story, climate-controlled building to the Magnolia property.

Secure Indoor Storage in Strongsville, Ohio, sold. Converted from a pre-existing structure last year, the self-storage facility at 12878 Pearl Road comprises 35,083 net rentable square feet in 313 units and has room for expansion. The seller was represented in the transaction by The Hatcher Group of M&M.

SouthPoint Storage in Terre Haute, Indiana, sold. Built in 1995 on 4.58 acres, the facility at 9022 Bono Road contains seven buildings comprising 24,300 square feet in 104 units. The buyer and the seller, a private investor, were represented in the transaction by Čolić and Williams. M&M Regional Manager Josh Caruana assisted.

Springwood Self Storage in Austin, Texas, sold to Wasatch Storage Partners LLC, a Utah-based real estate investment firm specializing in self-storage acquisitions and development. Built in 2017 on .89 acres, the three-story facility at 9206 Anderson Mill Road comprises 426 climate-controlled units. The seller was represented in the transaction by Steve Mellon and Brian Somoza, managing directors with JLL Capital Markets, a full-service global provider of capital solutions for real estate investors and occupiers. Wasatch operates six self-storage facilities in Massachusetts, Minnesota and New York under various brand names.

Andover Properties purchased Storage 365 in Garland, Texas. Opened in 2018, the multi-story facility at 2404 E. Centerville Road comprises 80,250 net rentable square feet.

Storage Authority in Mulberry, Florida, sold. Opened in 2019 at 6615 N. Church Ave., the facility comprises 82,850 net rentable square feet in 659 units. The seller was represented in the transaction by Coe, Coe, Hatcher and Pulmuter. M&M Division Manager Ryan Nee assisted. Co-founded by Marc Goodin and Scott House, Storage Authority launched its franchise model in 2015.

Stor-Yor-Stuf in Transfer, Pennsylvania, sold to a private buyer. The facility at 3502 N. Hermitage Road comprises 32,900 net rentable square feet in 204 units. The property was built in several phases beginning in 1995, with the most recent completed in 2015. The facility was more than 90% physically occupied at the time of sale. The seller was represented in the transaction by Investment Real Estate LLC (IRE), a provider of brokerage, construction, development and management services to self-storage owners and investors since 1998.

A four-property U-Store-It self-storage portfolio in New York and Pennsylvania sold to a private buyer. Two of the properties are a two-minute drive from each other on Old Ithaca Road in Horseheads, New York, with the main office at 192 Old Ithaca Road. The third site is on Lake Street in neighboring Elmira, New York. The fourth facility is at 16762 Berwick Turnpike in Gillett, Pennsylvania. Together, the properties comprise 146,023 rentable square feet in 999 units. The seller was represented in the transaction by IRE.

REIT Extra Space Storage acquired a newly built facility in District Heights, Maryland, for $18.2 million. The three-story structure at 7618 Marlboro Pike comprises 110,000 square feet in 900 units. The seller was a joint venture between investment-management firm Big Cypress Capital, through its Headwaters Strategic Operator Platform, and PSG, a Baltimore-based private real estate development firm. Big Cypress acquired the 3.2 acres in 2018 and completed construction this month. The seller was represented in the deal by Cushman & Wakefield, a provider of real estate services including consulting and appraisal, debt and equity financing, and sales and acquisitions. Extra Space represented itself. Headquartered in Salt Lake City, the REIT owns or operates 1,969 self-storage properties in 40 states; Washington, D.C.; and Puerto Rico.

REIT Public Storage acquired a four-property self-storage portfolio in California and Washington from a joint venture between Baranof Holdings and a fund advised by Crow Holdings Capital. Two of the properties are in Southern California, with a third in the San Francisco area. The fourth location is in Seattle. The portfolio comprises about 280,000 rentable square feet in 3,080 units. The seller was represented in the transaction by Luke Elliott, Jim Lewis, Mike Mele and Greg Wells of Cushman & Wakefield. Based in Dallas, Baranof develops, builds and acquires self-storage properties nationwide, and operates 10 facilities in California, North Carolina, Oregon, Texas and Washington. Based in Glendale, Calif., Public Storage has interests in 2,563 self-storage facilities in 38 states, with approximately 176 million net rentable square feet.

SpareBox Storage, which operates 50 facilities in five states, acquired nine properties in the Oklahoma City, Oklahoma, metropolitan area from multiple sellers. Combined, they comprise 420,000 net rentable square feet. The purchases come on the heels of the company’s four-property acquisition earlier this month. Launched last year, SpareBox Storage is sponsored by Rizk Ventures, an operating and investment platform with a focus on healthcare, real estate and technology. The company’s self-storage portfolio comprises about 2.4 million rentable square feet.

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6/11/21 – Self-storage properties are constantly changing hands, and Inside Self-Storage is regularly notified of these market transactions. Here’s an overview of activity happening in June 2021.

A three-property Advantage Storage portfolio in Odessa, Texas, sold. Together, the facilities at 5101 E. 52nd St., 6501 E. Business 20 and 5136 E. University Blvd. comprise 252,506 net rentable square feet in 1,428 units. The 52nd Street location was expanded in 2019 and has room for future development. Advantage operates more than 50 self-storage facilities in Arizona, Colorado and Texas. The seller was represented in the transaction by The Hatcher Group of Marcus & Millichap (M&M), a commercial real estate investment firm with offices throughout Canada and the United States.

Allsafe Self Storage in Cedar Hill, Texas, sold to an out-of-state private investor. Built in 2000 and expanded in 2011, the facility at 611 E. Beltline Road comprises 85,550 square feet in 599 units. The buyer and the seller, a private developer and investor, were represented in the transaction by Kyle Newswanger, an investment specialist with Colliers International, an investment management company with operations in 67 countries.

Amar Road Self Storage in City of Industry, California, sold. Built in 2009, the facility at 15870 Amar Road comprises 48,460 net rentable square feet in 438 units and 28 vehicle-storage spaces. The property had physical occupancy of 96.4% at the time of sale. The seller was represented in the transaction by The Hatcher Group of M&M.

Public Storage, a self-storage real estate investment trust (REIT) and management company, acquired Arbor Town Storage and University Storage in Estero and Fort Meyers, Florida, from Seagate Development Group, which built the properties in 2019 and 2020, respectively. Arbor Town at 20091 Tiburon Way comprises 76,000 square feet in 663 units. The three-story University Storage at 10688 Colonial Blvd. offers 63,275 square feet in 601 units. The transaction was brokered by SW Management & Realty LLC, a Seagate affiliate. Seagate is a development company specializing in construction, custom renovations, interior design, management and leasing.

Andover Properties LLC, which operates the Storage King USA brand, purchased Bagdad Mini Warehouses in Milton, Florida. The property at 4065 Garcon Point Road comprises 37,000 net rentable square feet in 288 units and 97 vehicle-storage spaces. The seller was represented in the transaction by The Hatcher Group of M&M. Established in 2003, New-York based Andover owns and manages more than 75 storage properties in 16 states, comprising 5.7 million square feet across 42,500 units.

Black Box Self Storage in Tanner, Alabama, sold. Built in 2016, the facility at 20285 Huntsville Brownsferry Road comprises 75,225 net rentable square feet in 388 units and 51 vehicle-storage spaces. The seller was represented in the transaction by The Hatcher Group of M&M.

The three-property Cornerstone Storage LLC portfolio in Council Bluffs and Omaha, Nebraska, sold to Missouri- and Pennsylvania-based buyers. Together, the facilities at 1911 Rue St. in Council Bluffs, and 8787 S. 192nd St. and 6100 S. 72nd St. in Omaha comprise about 45,000 net rentable square feet in 309 units. The seller was represented in the transaction by Bill Bellomy and Michael Johnson of Bellomy & Co., a commercial real estate firm with offices in Austin and Houston, Texas. Bellomy and Johnson also procured the buyers.

A newly constructed self-storage facility managed by REIT CubeSmart sold in Stratford, Connecticut. Built on 1.25 acres, the four-story building at 225 Lordship Blvd. comprises 84,555 net rentable square feet in 914 units. The facility received its Certificate of Occupancy in April. The seller was represented in the transaction by Matt Davis, vice president, Thomas K. Gustafson, national director, and Enzennio Mallozzi, managing director, of the Self Storage Group for Colliers International.

Envy Self-Storage & RV in Gilbert, Arizona, sold for $17.5 million to Arizona-based JLL Arizona Self Storage LLC. The facility at 18612 S. Lindsay Road comprises 127,745 net rentable square feet in 757 units. The property is in the middle of expanding to include an additional 39 covered and three uncovered RV-storage spaces. The seller, Arizona-based 202 Storage LLC, was represented in the transaction by Denise Nunez, managing director, and Victoria Filice, associate, for NAI Horizon, a member of NAI Global, a managed network of independently owned commercial real estate brokerage firms.

Strategic Storage Trust VI Inc. (SST VI), a private REIT sponsored by an affiliate of SmartStop Self Storage REIT Inc., acquired Full House Self Storage in Las Vegas. Completed nearly a year ago, the facility at 8570 S. Durango Drive comprises 52,200 square feet in 335 units. It’s the third acquisition for the newly formed SST VI and the 10th property owned or managed by SmartStop in the Las Vegas market. Based in Maryland, SST VI invests in self-storage and related real estate investments in Canada and the United States.

Interstate Mini Storage in Gainesville, Florida, sold. The facility at 2707 S.W. 40th Blvd. comprises 106,883 net rentable square feet in 831 units and 63 vehicle-storage spaces. It includes a manager’s residence. The property had physical occupancy of 83% at the time of sale. The seller was represented in the transaction by The Hatcher Group of M&M.

A joint venture between Blue Vista Capital Management LLC and Montfort Capital Partners LLC acquired a San Antonio facility that’s managed and branded by REIT Life Storage Inc., which will continue to oversee it. The property at 12991 Potranco Road comprises 79,810 square feet in 694 units. The seller was represented in the transaction by Jon Danklefs, an investment specialist with M&M, who also procured the buyer. Based in Chicago, Blue Vista is a real estate investment management firm. Montfort is a Dallas-based firm that invests exclusively in self-storage nationwide. The purchase is Montfort’s eighth in Texas.

Londonderry Storage in Middletown, Pennsylvania, sold. Built in 1999 and expanded onto an adjacent parcel in 2003, the facility at 4043 E. Harrisburg Pike offers 49,250 net rentable square feet in 371 units. The seller, a limited-liability company, was represented in the transaction by Gabriel Coe, Nathan Coe and Brett Hatcher, investment specialists with The Hatcher Group. They were assisted by M&M Broker Sean Beuche.

Meadows Self Storage in Castle Rock, Colorado, sold to a joint venture between Invesco Real Estate and Westport Properties, which operates the US Storage Centers brand. Built in 2018, the facility at 4395 Regent St. comprises 54,102 rentable square feet in 472 units and vehicle-storage spaces. The seller was Castle Rock Development. Invesco is the global real estate investment-management arm of Invesco Ltd. It invests in direct property and publicly traded real estate securities. Founded in 1985, US Storage Centers has more than 10 million rentable square feet under management.

Storage Express, which owns and operates 114 properties in Indiana, Illinois, Kentucky, Ohio and Tennessee, acquired Mt. Tabor Storage in New Albany, Indiana. The two-year old facility at 614 Mt. Tabor Road comprises 40,000 square feet in 370 units. The buyer and the seller were represented in the transaction by Hunter Sells, a senior associate with SkyView Advisors, a Tampa, Florida-based commercial real estate brokerage firm that specializes in self-storage.

SmartStop Self Storage, which operates 154 properties in 19 states and Ontario, Canada, acquired Super Storage in Riverside, California. The facility at 6637 Van Buren Blvd. comprises 69,800 square feet in 379 units and 71 vehicle-storage spaces. SmartStop has $1.7 billion of real estate assets under management including 11.8 million rentable square feet of self-storage.

iStorage Self Storage purchased Union Road Self Storage in White House, Tennessee. The 6-acre property at 2979 Union Road comprises 74,270 net rentable square feet in 362 units. The facility was built in 2004 and expanded in 2017. The buyer and the seller were represented in the transaction by Coe and Hatcher. They were assisted by M&M Regional Manager Jody McKibben. iStorage, which operates facilities in 13 states, is owned by National Storage Affiliates Trust, a Maryland REIT specializing in self-storage.

SpareBox Storage, which operates 41 facilities in five states, acquired four properties in Niceville, Florida, and Edmond, Oklahoma, from multiple sellers. Combined, they comprise 306,000 net rentable square feet and more than 2,000 units. Launched last year, SpareBox Storage is sponsored by Rizk Ventures, an operating and investment platform with a focus on healthcare, real estate and technology.

Andover also acquired a five-property self-storage portfolio in Aubrey, Crowley and Wylie, Texas. Together, the facilities comprise 278,840 rentable square feet in 1,736 unit and 329 vehicle-storage spaces. The sale included extra land for expansion. The Dallas-based seller was represented in the transaction by Bellomy and Johnson of Bellomy & Co., who also procured the buyer.

New Sources:
Boston Real Estate Times, Marcus & Millichap Arranges the Sale of a 92,000-SF Self-Storage Portfolio
Business Wire, SpareBox Storage Acquires Nine Stabilized Self Storage Properties in Oklahoma
Community Impact, Montgomery Self Storage Acquires, Plans to Expand Magnolia, Conroe Properties
Commercial Observer, Extra Space Storage Acquires DC Metro Self-Storage Facility for $18M
PR Newswire, Big Cypress Capital and PSG Complete $18.2 Million Sale of DC Metro Self-Storage Facility to Extra Space Storage
PR Urgent, Self Storage in Newnan, GA, Sold By Midcoast Properties Inc.
REBusiness Online, LeClaire-Schlosser Group Brokers Sale of Dona Ana Storage Facility in Las Cruces, New Mexico

Previous Sources:
Business Observer, Developer Sells a Pair of Self-Storage Facilities
Business Wire, Strategic Storage Trust VI, Inc. Acquires Recently Developed Storage Facility in Las Vegas, NV
Business Wire, SpareBox Storage Announces Acquisition of Stabilized Self Storage Properties in Oklahoma and Florida
Fort Worth Business Press, Colliers Makes Self Storage Facility Sale
Multi-Housing News, Denver-Area Self Storage Changes Ownership
REBusiness Online, Colliers Arranges Sale of 599-Unit Allsafe Self-Storage Facility in Metro Dallas
REBusiness Online, Marcus & Millichap Brokers Sale of 371-Unit Self-Storage Facility in Middletown, Pennsylvania
The Argus Press, SmartStop Self Storage REIT, Inc. Acquires Self Storage Facility in Riverside, California

When it comes to accounting and taxes, self-storage owners and investors should keep a few planning strategies and reporting considerations in mind, particularly around items like depreciation, cost segregation and income reporting. Let’s dive into a few important concepts of which you should be aware. These will help you make the most of relevant tax laws, possibly even potential savings.

Depreciation

Depreciation refers to the amount an asset decreases in value over time. This reduction is due to wear and tear from typical use. In an accounting context, depreciation is estimated by considering the generally accepted useful life of an asset. For example, let’s say you bought a townhome. You can’t take the full purchase price as a deduction all in year one. Rather, you have to spread the cost, or depreciate it, over 27.5 years. Here are some other examples of specific items and their typical time for depreciation:

• Residential building: 27.5 years
• Commercial building (including self-storage facilities): 39 years
• Gate or fencing: 15 years
• Landscaping: 15 years
• Gate system: Five to seven years
• Security cameras: Five to seven years
• Kiosks: Five to seven years

Assets that depreciate over five to 15 years are generally eligible for something called “bonus depreciation,” which means you don’t have to write them off over their useful life. Thanks to the Tax Cuts and Jobs Act of 2017, you can take 100% bonus depreciation in the year you acquire the assets.

Cost Segregation

Cost segregation is a strategic tax-planning mechanism that allows a company to increase immediate cash flow. How? By accelerating depreciation to defer federal and state income taxes. It puts as much depreciation on an asset as possible during the first year. Self-storage facilities are among those that may be able to take advantage of cost segregation. Owners and investors may be eligible to leverage this strategy if they’ve recently constructed, purchased, expanded or remodeled a facility.

Cost segregation is a specialized service. Once you reach out to a provider, a representative will visit your facility and segregate all your assets. Essentially, they’ll break everything down, so a commercial building that would be depreciated over 39 years is instead depreciated over five to 15. This allows you to take bonus depreciation on these smaller assets.

Using this strategy potentially saves you tax dollars and puts more money immediately into your pocket; but to be clear, it doesn’t stay there forever. When you eventually sell your self-storage facility, you’ll recapture the depreciation. This means you’ll have a bigger profit on the books on which you’ll have to pay capital-gains tax. It’s important to understand that cost segregation only defers taxes. Though there are other strategies you can use to keep delaying them, they’ll never completely go away. Still, in the meantime, the money you saved can be used for other investments.

There are some drawbacks to cost segregation. First, it isn’t free. The typical fee is around $3,000 and could be as high as $5,000. If a provider quotes you more than this, reach out to a few more suppliers. They should be able to quote you their fee plus an estimate of how much depreciation they can create and how many tax dollars you’ll be able to save.

There are also some scenarios that would diminish the benefit you would receive from cost segregation. Before we jump into this, however, it’s important to understand that there are two types of income: active and passive. Self-storage facilities generate passive income, so you can’t use cost segregation to offset active income. Additionally, depending on the size and cost of the storage facility, you may not have enough assets to segregate. Or, you may not be able to create a loss big enough to save sufficient tax dollars, or even to offset the cost-segregation fee.

Because of cases like these, it’s important to talk with your tax accountant or certified public accountant (CPA) before a cost segregation. These professionals can help you determine whether it would be beneficial in the way you’re anticipating.

Tax Reporting

One of the most common tax mistakes self-storage owners make is to report activity from their company on Schedule C (Profit and Loss From Business) rather than Schedule E (Supplemental Income and Loss). Again, this comes down to understanding the differences between active and passive income. Here are a few things you should know:

• Again, income from a self-storage facility (rental income) is considered passive.
• Active income is reported on Schedule C, while passive income is reported on Schedule E.
• If you report you income on Schedule C, you’re paying unnecessary taxes!
• Active income is subject to self-employment tax, while passive income isn’t.

To further drive the point, let’s look at self-employment tax. If you’re a W-2 employee, 7.65% of your income is automatically withheld from your paycheck by your employer for Medicare and Social Security. You may not know this, but your employer has to match this amount. When you start your own business, the Internal Revenue Service considers you both the employer and the employee, so you have to pay both sides of this equation. Remember, though, this tax is only applicable to active income.

There are whole bunch of tax considerations that relate to self-storage businesses, so speak with your CPA or accountant to determine what’s right for you. While there are some tax-planning strategies that work for all facilities, many will vary in effectiveness based on your company’s individual circumstances.

Martha Anderson is a marketing account manager at Easy Storage Solutions, a provider of Web-based management software for small- to mid-sized self-storage operations. She works every day to help facility operators build visible websites with search engine optimization in mind. Connect with her on LinkedIn. For more information, call 888.958.5967.

Even though the information is in your rental agreement and you went over it during move-in, you’ll always have self-storage tenants who miss the rent due date and fail to pay on time. The reason why doesn’t really matter … Payment was expected and not received. So, what’s your move? It was once common practice for managers to make rounds of collections calls; but times are changing, and many are exploring new ways to deal with past-due accounts.

In this thread on Self-Storage Talk, the industry’s largest online community, members are debating the merits of reminder phone calls and other methods they now use when a payment is missed. See what they say and add your opinion.

 

Officials in Beaumont, California, are expected to lift an emergency moratorium on self-storage development next month and adopt new standards for future building requirements. Enacted in October 2019 and extended last fall, the ban curtailed new self-storage construction as well as the expansion of existing facilities, but was also broadly applied to any business that makes use of a storage yard, such as lumber companies and propane distributors, according to the source.

The new ordinance, aimed specifically at self-storage, is expected to address guidelines for landscaping and other visual buffers as well as security standards. It’ll preserve land zoned for residential use, but will allow storage businesses to be located nearby, Community Development Director Christina Taylor told the source. In addition, the city will look favorably at storage projects intended for irregular parcels where topography and environmental concerns prevent the construction of traditional, square buildings. City officials are mainly keen to prevent stored equipment and containers from being stacked taller than an 8-foot height restriction, Taylor said.

During a public hearing on June 15, Mayor Pro Tem Lloyd White told councilmembers he didn’t want the city to become too restrictive and discourage prospective businesses from coming to the area. The council unanimously adopted the ordinance on its first reading during the meeting, but the full process requires a second public hearing and reading before final passage.

Source:
Record Gazette, Beaumont Moves Forward to Relax Moratorium on Storage ‘Facilities’