General Storage Co. Pte. Ltd. (GSC), which operates four self-storage facilities in Singapore under the Lock+Store brand, has purchased four storage properties in Hong Kong from The Store House for approximately $12.12 million SGD. Three of the facilities are on Hong Kong Island and one is in the New Territories region, according to the source.

The acquisition is part of GSC’s strategic expansion plan, CEO Helen Ng said. The company announced plans in April to double its Singapore footprint as well as open its first asset in a foreign market with a location in Malaysia. The Malaysian facility is scheduled to open this fall, according to the source.

Ng told the source GSC will look to expand The Store House’s footprint as opportunities arise. Self-storage consumer market penetration in Hong Kong is similar to that of Singapore, although Hong Kong facilities are typically smaller, owned by franchises and built near rapid transit, she said.

Rising property prices and development issues in Singapore and Hong Kong are limiting expansion possibilities, according to Ng. “In both Singapore and Hong Kong, the self-storage industry has great growth potential with rising consumerism and affluence. However, there are risks on the horizon,” she told the source. “In Hong Kong, there is limited supply of industrial buildings in established populated catchment areas, as Hong Kong allows industrial buildings to be converted into commercial buildings such as hotels. More buildings are being converted, as their value can sometimes quadruple overnight. This, coupled with the fact that no new industrial buildings are being built, has resulted in a diminishing supply of buildings for industrial use.”

GSC is owned by Singapore Post Ltd. (SingPost), the national postal-service provider in Singapore. SingPost acquired the storage company last year.

D&A Properties & Self Storage LLC has opened a new storage facility in Fairmont, Minn., with a single building comprising 44 units. The facility will be built out in phases, with the company already in the process of adding a second 44-unit building, according to owner Danny Klous. "We just finished, and we have another slab for a second building, the same as this one," he said.

Klous bought the property last year and also owns a parcel across the street that may eventually be used for outside RV storage, he said. "I have room to build five buildings, but I'm building for the demand as the demand starts coming in, hopefully by the end of the year," Klous said.

D&A Properties decided to build a self-storage facility to meet unmet demand in the community, Klous said, particularly for residents who need a place to store large seasonal items like boats, motorcycles and snowmobiles.

Olson Rentals Inc. is the only other self-storage operator in the city, according to the source. The company operates three equipment-rental facilities in Fairmont that also offer self-storage, and two in nearby Blue Earth, Minn.

"There's always been [a need for storage] or we wouldn't have as many [sites] as we do," owner Dave Olson, told the source.

Olson Rentals has offered self-storage services for 24 years and is considering expanding its offerings by adding climate-control units, which are not currently available in the area, the source reported.

Reprinted with permission from "The Storage Facilitator" blog.

By Janet Haney

Entrepreneurs Alex Rozkin and Vitali Barkouski recently seized an opportunity to create a self-storage facility surrounded by a million-dollar view. The two Russian immigrants and longtime friends knew there was a shortage of truck and bus parking in the San Francisco Bay Area, so they leased some land on the manmade Treasure Island, smack-dab in the middle of the Bay Bridge.

“One of our key business points is that when we started Island Park Storage, we called up a whole bunch of storage yards and most of them were sold out,” Rozkin said. “We’re capitalizing on the lack of capacity.”

They’re also capitalizing on the scenery and proximity of two major U.S. cities. Island Park Storage’s setting boasts breathtaking views of the San Francisco skyline and the entire San Francisco Bay. It’s just seven minutes from downtown San Francisco and 15 minutes from downtown Oakland, making it appealing to thousands of customers. Of course, those time estimates don’t account for the frequent traffic jams that snarl the highly congested bridge, which carries about 270,000 cars a day.

Still, the outdoor, drive-in location might be ideal for some. Plus, Rozkin said, Island Park Storage is less expensive than its competitors. “First thing we did was figure out how much everybody else charges,” he said. “We realized right away that we could be a bit cheaper than the companies in San Francisco and more expensive than companies in the East Bay. Our real estate here is cheaper, too.”

Open Space for Storage

Launched in January, Island Park Storage already has tour buses, shuttles, limos, RVs, cars and outdoor storage containers of various sizes dotting the 2-acre strip of land. Pricing ranges from $90 for a basic car to $280 for a big bus.

“The open space on Treasure Island is one of the biggest advantages,” Rozkin said. “Other bus-parking lots don’t have this kind of space. It’s much more compact. Other people don’t have a 40-foot pullout like we have.”

The facility also offers self-storage containers measuring 8 feet wide and ranging from 10 to 40 feet deep. The compartments start at $150 a month and go up to $330 a month. Rozkin said the outside storage containers are waterproof, despite sitting on the grass. “We have a 50-50 mix between residential and business customers,” he said.

Island Park Storage relies on a blend of inbound and outbound marketing to attract customers, including being active on Facebook, Google and Yelp. “We’re cold-calling a lot of companies and sending out direct mailers, too,” Rozkin said. “Our biggest expense is advertising right now.”

A Treasured History

One thing is for sure: You can’t put a price tag on the island’s rich history. Treasure Island was completed in 1937, soon after the Bay Bridge opened in November 1936. The island got its name from the legend that the San Francisco Bay’s mud was filled with gold. It originally was a site for the 1939-40 San Francisco’s World’s Fair and later became a naval base and satellite air facility.

“What attracts businesses to Treasure Island is the affordable rent, location and the view factor,” said Mirian Saez, director of operations for the island.

Island Park Storage likely sits on land that was a training classroom for a school, Saez said. Nowadays, wineries, artists, nonprofits and entrepreneurs mingle with the 2,000 residents of the 365-acre island, which also is home to buildings in various stages of decay.

Get Your Motor Running

Island Park Storage isn’t only used for storage, though. The San Francisco Police Department (SFPD) has an agreement to train its motorcycle cops on the leased land. The department was using the vacant space before Island Park Storage opened. The facility has a cement lane running in between two wide strips of grass, where the stored commercial and private vehicles park. SFPD uses the cement lane for training drills.

“This is a 40-mile-an-hour braking course,” said Officer Steve Glickman, one of the department’s state-certified motorcycle instructors. “They have to show the proper braking and bike control in 83 feet. Proper braking means no locking up, no skidding, no crashing. This is an on-duty facilitating course.”

Looking Ahead

As for the future of Island Park Storage, Rozkin said he and Barkouski plan to replace the locked perimeter fence with an automatic gate and hope to lease more land across the street. They’re also working on getting approval for a carport. And the self-storage containers may provide a dual purpose down the line—as rooftop organic gardens.

For now, Rozkin and Barkouski will continue to field requests—no matter how strange they are—about their unique storage facility. “A guy from Australia wanted to park his RV and live here for a month. He didn’t understand why he couldn’t,” Rozkin said.

Janet Haney is a freelance writer, editor and publicist in the San Francisco Bay Area. Her previous experience includes jobs at Loomis Group, Applied Materials and MarketWatch. She also writes for The Storage Facilitator. Read the original article here.

Inside Self-Storage (ISS) recently released its 2014 Boat/RV Digital Issue, which includes in-depth articles about building, operating and marketing a vehicle-storage business. Available for free download, the PDF publication addresses topics including:

• Storage structure types and building designs
• Property amenities and security
• Legal issues surrounding vehicle storage
• Marketing strategies for boat/RV-storage operations
• Specialized insurance coverages

The issue can be downloaded from the ISS Resource Center at www.insideselfstorage.com/digital-issues.aspx. Other digital issues may be downloaded through the same page.

For nearly 25 years, ISS has provided informational resources to self-storage owners, managers, developers and investors. Its educational offerings include a monthly magazine, annual conferences and tradeshows, an extensive website, an online store, and Self-Storage Talk, the industry’s largest online community.

 

Storrage Inc., an app-based startup business specializing in valet self-storage services in Seattle, has partnered with Value Village, a Savers brand thrift retailer, to divert unwanted items away from landfills. Customers can use the Storrage app to schedule a pickup or delivery of items and earmark gently used clothing and household goods to be delivered as donations to a Value Village store.

Donations will be used to benefit the retailer’s Seattle-area nonprofit partners, including Northwest Center, an organization that works with children and adults with developmental disabilities; SightConnection, an outreach group that works with people suffering from vision loss; and Big Brothers Big Sisters of Puget Sound, according to a press release.

“Convenience is often times the No. 1 factor for people who donate clothing and household goods, and we continue to look for new ways to make the process easier,” said Ken Alterman, president and CEO of Savers.

The Value Village business model is to purchase, resell and recycle secondhand merchandise. The retailer diverts more than 650 million pounds of goods from landfills each year, company officials said. The partnership with Storrage adds a free, home pickup option for collecting donations, according to the release.

“We are focused on creating an ecosystem that makes it easier for people to care for their belongings, whether it’s through our unique storage solution or through partnerships like this with Value Village that remove barriers to the donation process,” said Terry Drayton, Storrage CEO.

Value Village is part of the Savers family of thrift stores. Savers operates nearly 340 retail locations and has 20,000 employees in Australia, Canada and the United States. The company partners with more than 150 nonprofit organizations and pays them for donated goods.

All aspects of the Storrage pickup and delivery service are managed through a mobile app available for free on Apple and Android devices. When the company receives a storage request, it delivers 17-gallon, commercial-grade containers in which customers store their items. Customers also have the option of taking photos with their smartphone, so they can remember exactly what they stored and request delivery of only the items they need. In February, the company announced plans to launch a franchise program that would expand its service outside of Washington.

By Chester Gilliam

There are a lot of new security products and services available to meet the needs of self-storage facilities. Whether you’re looking to upgrade or repair an existing system or just find something new, security manufacturers are there to help. Here are some exciting new products that can enhance your site.

Wireless Loop-Detection Systems

One of the biggest security problems I see at self-storage facilities relates to gate safety and free-exit loops. The gate area gets a lot of traffic, and the pavement is prone to cracking, regardless of whether it’s asphalt or concrete. In the past, facility operators were left with little remedy for damaged loops. They often had to wait until repairs were made to the driveway before they could replace a loop. There’s now a wireless solution for this very common problem.

Access One Technologies offers a wireless loop-detector system that consists of a battery-powered driveway “puck” and a receiver mounted in the gate operator. The puck only requires a two-foot hole and has a battery life of two years. You simply drill a hole in the drive, drop in the puck, seal over the hole, and then add the receiver to the gate operator. As many as four pucks can report to a single receiver, making it possible to accommodate safety loops and free-exit loops.

Fence-Line Protection

When it comes to securing your property, the fence line is critical. While we can use photo beams and sophisticated camera systems, these are expensive and sometimes a real challenge to install and maintain. Integrated Security Corp. has developed a cost-effective solution: its HYDRA system, which consists of battery-powered detection units that report via wireless transmission to a control panel. It can then can be programmed to do any number of things, such as interface with an alarm system, set off sirens, turn on lights, or notify you of an attempted break-in.

What makes this system unique is it uses two technologies to determine if there’s a security breach, and it can be easily installed requiring no infrastructure. The units are mounted on the fence sections and use a motion-detection and vibration-monitoring system to help eliminate false alarms. Both have to be activated before the system goes into alarm mode. You can protect as much of your fence line as necessary and easily expand the system at any time by simply adding more sensors.

Fence Lighting

Another product that can enhance your perimeter is a low-voltage lighting system. In the past, these consisted of cheap units that gave a slight glow at best. Cast Lighting LLC has now engineered an impressive system made from cast aluminum. The lights that are durable, offer a large lighting pattern, and are designed to be spaced along a fence line at 20- to 30-foot intervals. The system uses a low-voltage transformer just like landscape lighting. Each light has to be wired into the system, but this isn’t a deal-killer, as the system is easy to install.

Additionally, if you buy the kits, they include everything you need. While the lights are intended to be mounted on a chain-link fence, they’re easily adaptable to any type of enclosure. These are commercial-grade units, not the cheap ones found at your local DIY store.

Wireless Freedom

One of the biggest improvements in security systems is wireless transmission, and this carries over to cameras as well as other products. In the not to distant past, wireless-camera systems were not only cost-prohibitive, they offered poor image quality. With the decreasing cost of IP cameras and radio systems, it’s now feasible to install quality cameras and send video back to the office via wireless radio.

This type of system can actually be created at less cost than a wired version. You can keep your existing hardwired cameras and use the same digital video recorder (DVR), and then add another recording device called a network video recorder. Another option would be to change to a newer system using a hybrid recorder, one that can handle analog and IP cameras.

If you’ve wanted to add cameras to your site but don’t have conduits in place, all is not lost. Wireless radio allows you to add cameras without sacrificing performance. You can choose from a variety of cameras and systems, and even if you don’t have a power source where you want to place your cameras, you can add a solar-power unit. These systems have become more affordable and reliable, and they give you flexibility in terms of placement.

These are only a few of the many new products that are exceptionally well-suited for the self-storage industry. Just as with all other aspects of your site, you need to keep up with what’s available and will enhance your business to prospective tenants. Don’t let your customers or competition stay ahead of you. Contact your security-systems integrator and ask for a site overview.

Chester A. Gilliam is the owner of Wizard Works Security Systems Inc. in Castle Rock, Colo. He holds certifications in the design and installation of automated-gate systems as well as numerous certifications in video-system and access-control system design and installation. To reach him, call 303.798.5337; e-mail wizard-works@att.net.

In this issue:

• Building Boat/RV Storage: Get insight on structure type and design for building a new facility or expanding an existing operation.
• Operating a Facility: Learn how focusing on property amenities and top-notch security will drive demand and create customer loyalty.
• Legal Matters: Attorney Jeffrey Greenberger discusses significant legal issues surrounding vehicle storage including the rental agreement, value limitations and lien sales.
• Marketing Your Facility: Try these proven marketing strategies to gain new rentals for your boat/RV-storage business.
• Marketing Tips From an Owner: The owner of Action Indoor RV & Boat Storage in Los Angeles offers insight on how he markets his property in a competitive market.
• Boat/RV Owner Profile: An entrepreneur shares his journey to becoming the owner of Tucson RV Storage in Arizona.
• Insuring Boat/RV Storage: Find out what unique coverages you may need when purchasing insurance to protect your business.

CubeSmart, a self-storage real estate investment trust, recently acquired three self-storage facilities in Palm Beach County, Fla., for a combined total of $35 million. The facilities were purchased from companies led by Bruce D. Manley of Blue Bell, Pa., according to the source. Manley owned the facilities for six years and sold them at a 71 percent premium to their combined purchase price, the source reported.

CubeSmart paid $15 million to Storage Partners of Delray East, $11 million to Storage Partners of Royal Palm and $9 million to Storage Partners of Boynton.

The properties are:

• 2512 N. Federal Highway, Del Ray Beach, Fla. – Built in 2006, the facility encompasses 141,758 square feet of storage space.
• 8970 Belvedere Road, West Palm Beach, Fla. – Built in 2003, the property includes 135,439 square feet of storage space.
• 3010 S. Congress Ave., Boynton Beach, Fla. – The facility encompasses 95,478 square feet of storage space and was built in 2005.

CubeSmart owns or manages 545 self-storage facilities across the United States and operates the CubeSmart Network, which consists of more than 800 additional self-storage facilities. Since 2012, the company has acquired 24 properties in South Florida, the source reported.