Update 8/24/21 – Shurgard has released financial results for the quarter that ended June 30. In general, the company showed gains in key areas, particularly in operating revenue and net operating income (NOI), according to a press release.

Highlights include an operating-revenue growth at constant exchange rate (CER) of 8.4% for the second quarter. Same-store revenue grew 6.2% using CER. All stores’ NOI increased 9.1%. Same-store NOI margin grew .7% to 67.1%. Adjusted earnings on the European Public Real Estate Association Index were €36 million for the quarter, up 15.3% using CER.

Of the seven European markets in which Shurgard operates, the United Kingdom showed the largest same-store, year-over-year revenue gain at 10.9% using CER. The Netherlands was second at 7.8%, followed by Denmark at 7.6%. Same-store locations in Germany and France performed the weakest, with revenue up 2.8% and 3.3%, respectively.

Shurgard has 12 development projects scheduled to open this year and another seven slated for 2022. Spread across France, Germany, the Netherlands and the U.K., the projects will add approximately 80,200 square meters to the company’s portfolio.

“The strong results are in comparison to the lockdown-affected growth of last year, but were additionally underscored by a very active property market, which has spurred demand and occupancy,” said CEO Marc Oursin. “People are finally feeling able to make the life decisions that had been put on hold last year, and the result is rising demand for storage. Growth accelerated from the first to the second quarter, and we ended the first half of 2021 with demand even ahead of 2019, before the pandemic changed the social and economic landscape.”

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8/3/21 – Shurgard Self Storage Europe SARL, the European affiliate of U.S.-based real estate investment trust Public Storage Inc., will issue its quarterly and half-year earnings through June 30 at 7 a.m. CET on Aug. 19. The company will conduct a conference call to review financial results at 10 a.m. CET that same day.

Participants for the live call must sign up to receive a registrant ID at https://bit.ly/3ih9SVy. A digital replay will be accessible two hours after the completion of the call by clicking on the “Reports & Presentations” section of the Investors tab at corporate.shurgard.eu. The conference ID number is 81921.

Shurgard operates 245 self-storage facilities comprising 1.2 million net rentable square meters in Belgium, Denmark, France, Germany, The Netherlands, Sweden and the United Kingdom.

Headquartered in Glendale, California, Public Storage has interests in 2,563 self-storage facilities in 38 states, with approximately 176 million net rentable square feet. It holds a 35% interest in Shurgard.

Source:
Shurgard, Interim H1 2021 Results

The pandemic has imparted many modern survival lessons to just about every type of business, including self-storage. The industry is still ripe with opportunity, but for an operation to succeed, it needs the right employees. And to win top talent, you need to offer a competitive benefits package.

While it might seem like the current unemployment rate will make hiring easy, you’ll likely discover that desperation for a paycheck is outweighed by the need for affordable healthcare. Now more than ever, people understand the importance of having good benefits. At the end of 2020, online job board Indeed surveyed 1,000 U.S. employment seekers to learn more about their motivations. The poll found that health insurance and other company perks became more important last year, with 35% of respondents saying they’d switch jobs for a better compensation package.

However, offering health benefits isn’t always affordable for a self-storage operation. Nor is it easy to implement and manage a program. If you’re a small to mid-sized company, a professional employer organization (PEO) can help you provide competitive healthcare or inexpensive, voluntary ancillary benefits.

What Is a PEO?

A PEO is an outsourced solution for human resources (HR), payroll, benefits, compliance, and risk and safety. When you enter a relationship with a PEO, you share employee-related responsibilities and liabilities, but you retain complete ownership of your organization.

Smaller businesses that outsource their back-office to a PEO are enfolded into its network, which includes other small and mid-size businesses and their worksite employees. In terms of benefits procurement, the result is enhanced buying power akin to that of a Fortune 500 company. Smaller businesses can then offer affordable healthcare and ancillary benefits they’d never be able to access otherwise.

The other big advantage is benefits administration. Not only can a PEO save you money on quality benefits, it can help mitigate year-over-year rate increases and handle all related plan administration. This even includes reporting on the Affordable Care Act to ensure you remain compliant with the law. With little effort on your part, you can offer a competitive benefits package, not to mention retain an entire team of professionals dedicated to helping your self-storage business thrive.

The Options

If you want to hire and retain employees who not only have the poise and professionalism to market and operate your self-storage facility but also the grit needed for some of the tougher aspects of the job like rent collections and maintenance, you’ll need to offer comprehensive, affordable benefits. Your business size will play a part in determining the options available to you.

For example, if you have more than five employees interested in employer-sponsored medical coverage, a PEO can likely offer you several plan options from top carriers with competitive life- and health-insurance rates. They’ll vary by region, but the affordable price on top-tier options will be quite an incentive to staff.

If you’re a small self-storage operator with only a few employees, keep in mind that most healthcare plans have minimum participation requirements. A PEO can still work with you to ensure your staff us covered, if that’s their wish. Voluntary, ancillary benefits are especially attractive in this situation and might include:

• Dental
• Vision
• Life
• Disability
• Critical illness
• Accident coverage
• Telehealth
• Pre-tax flexible spending and health-savings accounts

The process of shopping for the best ancillary benefits can be time-consuming and complicated. Instead researching several carriers and bringing the different pieces together to form a cohesive plan for you and your staff, why not outsource this to a PEO? It can do all the hard work for you, keeping all or most of the functions and benefits you desire in-house and on the same invoice, and then overseeing administration, too.

A PEO is already set up with your self-storage business in mind. It’ll have customizable healthcare offerings that can adapt to your budget, staff needs, location and size. Even if you have few employees, it can shop around for all the services you need and ensure that your time and financial investment is minimal, while your benefits remain enticing and affordable to job candidates.

A Stable Work Environment

In addition to increased salary and health benefits, 76% of respondents to the Indeed job-seeker survey referenced above said that having a secure, stable form of employment would be one of their top priorities this year. While nothing is ever guaranteed, there are ways you can invest in your current and future employees, especially if you outsource your HR, payroll and benefits to a PEO. When choosing a partner, make sure you’ll be able to:

Offer a 401(k) plan. Most PEOs offer retirement-savings plans for an affordable, per-head administration fee, which covers compliance and record-keeping. It’ll also likely charge a nominal administrative asset fee that’s based on the total dollar amount of the plan. Typically, these plans are inexpensive when purchased as part of your PEO service.

Build an employee-wellness program that suits your budget. Some PEOs may have one already in place that can be easily and quickly adapted to your company and employee needs. Most can help you customize a companywide program from scratch, too.

Provide access to an employee-assistance program (EAP). Most PEOs should offer your organization an EAP service at no additional cost to you or your staff. After an unprecedented year of fear and change in 2020, mental wellness and financial fitness are two areas where employees and their families could use some professional insight. Free access to counselors and money-management experts should be highlighted among your available benefits. The peace of mind an EAP can offer is a tremendous selling point after a year of hardship and uncertainty.

Put money back in employees’ pockets with perks and rewards. Many well-established PEOs will offer some sort of perks program that gives you and your employees access to exclusive discounts and cash-back incentives with popular participating vendors. It’s a great way to add value to your benefits package.

In addition to helping you attract and retain an all-star team of professionals, a PEO can help you build an exciting and engaging company culture that further demonstrates your commitment to employee health and wellbeing. Best of all, you’ll have plenty of time and energy available to dream up the next big project for your self-storage business.

Brett Brown is the director of benefits administration for G&A Partners, a professional employer organization that has been helping entrepreneurs in all industries grow their businesses for more than 25 years. To reach him, call 866.497.4222; email bbrown@gnapartners.com.

Update 8/20/21 – Janus has closed on its acquisition of DBCI, which will continue to operate under its own name as a Janus subsidiary. Janus expects to grow its customer base through direct access to DBCI’s core general contractor and distributor network, while DBCI customers will gain access to Janus’ broader platform of solutions, according to a press release.

“We are very pleased to have successfully closed our acquisition of DBCI,” Jackson said. “As we integrate our two organizations, we anticipate that the multiple synergies we share will drive enhanced cost savings and a stronger platform to better service and supply our combined set of customers.”

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7/28/21 – Janus International, a global manufacturer and supplier of building components and security technology for the self-storage industry, has signed an agreement to acquire DBCI, a manufacturer of steel roll-up doors and building products for the commercial and self-storage industries. The companies will benefit from an expanded geographic and regional sales footprint, according to a press release.

“This synergistic combination advances Janus’s strategy of focusing on a niche value proposition and enhances our ability to better serve the needs of our customers by broadening our platform’s range of solutions,” said Ramey Jackson, CEO of Janus. “Given our complementary business lines, the acquisition presents appealing cost-savings and scale/procurement benefits, along with the ability to integrate operations, cross-sell existing products and services, and expand our pool of talent and personnel.”

The transaction is scheduled to close during the third quarter, subject to certain customary closing conditions, the release stated.

“DBCI has been on our radar since Clearlake acquired Janus three years ago, and we’re pleased to have helped bring these businesses together,” said José E. Feliciano, chairman of the Janus Board of Directors and co-founder and managing partner at Clearlake Capital Group L.P. “With DBCI, Janus will look to accelerate the growth of its Nokē Smart Entry wireless management technology as it accesses a greater breadth of customers. We also expect Clearlake’s O.P.S. (Operations, People and Strategy) framework to help Janus integrate DBCI in order to better serve our industry customers.”

Headquartered in Douglasville, Georgia, DBCI is a division of Cornerstone Building Brands. Its product line includes steel roll-up doors and sheets. The company employs 240 people, with manufacturing plants in Arizona, Georgia and Texas. As of April 3, it generated trailing 12-month revenue of $85 million.

Headquartered in Temple, Georgia, and founded in 2002, Janus is a global manufacturer and supplier of turnkey commercial, industrial and self-storage building solutions including roll-up and swing doors, hallway systems, relocatable storage units, and facility- and door-automation technologies. The company operates out of several U.S. locations and six international offices.

Source:
Business Wire, Janus International Announces Closing of Acquisition of Building Components Manufacturer DBCI

SmartStop Self Storage REIT Inc., which operates facilities in 19 U.S. states and Toronto, is in talks with underwriters about potentially listing an initial public offering (IPO). Though no decisions have been made, an IPO could occur sometime this year. The company could also decide to remain a self-managed real estate investment trust. If it pursues an IPO, proceeds would most likely be used to fund future growth, according to a report from Bloomberg.

SmartStop officials haven’t commented publicly. The company reported second-quarter earnings on Tuesday, indicating record occupancy and an active pursuit of acquisition opportunities. “Our acquisition pipeline remains healthy,” said H. Michael Schwartz, chairman and CEO.

In June, the company acquired Full House Self Storage in Las Vegas and Super Storage in Riverside, California. The former transaction was made by Strategic Storage Trust VI Inc. (SST VI), a private REIT sponsored by a SmartStop affiliate. In April, SmartStop purchased Access Storage in Oakville, Ontario, Canada, while SST VI announced its intention to develop a six-story facility in the Weston neighborhood of Toronto.

SmartStop ranked No. 11 on the 2021 Inside Self-Storage Top-Operators Lists, reporting an owned portfolio of 166 facilities comprising more than 12.7 million rentable square feet.

Publicly traded U.S. self-storage REITs CubeSmart, Extra Space Storage Inc., Life Storge Inc., National Storage Affiliates Trust and Public Storage Inc. are all trading at or near 52-week highs, Bloomberg reported.

SmartStop is headquartered in Ladera Ranch, California. Through its indirect subsidiary SmartStop REIT Advisors LLC, it sponsors other self-storage programs, including SST VI. It has approximately $1.7 billion of real estate assets under management.

Source:
Regina Leader-Post, SmartStop Self Storage REIT Is Considering an IPO

Update 8/20/21 – Governor Newsom this week declared a state of emergency for El Dorado County due to the Candor Fire, which has burned 6,500 acres in the state. The county is also under a consumer alert for price gouging. Eleven counties are now under these protections, according to a legislative update from the California Self Storage Association.

Two Fire Management Assistance Grants from the Federal Emergency Management Agency have been awarded to support the state’s response to the Monument Fire in Trinity County and the Dixie Fire in Lassen County. The state previously received grants to battle the River Fire and Lava Fire.

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8/10/21 – Governor Newsom declared a state of emergency for three additional counties last week due to active wildfires in the state, and California Attorney General Rob Bonta issued a consumer alert about price gouging. The state of emergency is now in effect for Siskiyou County in response to the Antelope Fire, plus Nevada and Placer Counties for the River Fire, according to a legislative update from the California Self Storage Association.

The counties under a consumer alert for price gouging also include Alpine, Butte, Lassen and Plumas, which were placed under a state of emergency on July 23. Collectively, these fires have burned thousands of acres, destroyed homes and caused the evacuation of thousands of residents.

“Severe wildfires are impacting thousands of Californians and have forced evacuations. As families worry about their safety, they shouldn't have to worry about being illegally cheated, too,” Bonta said in a press release. “California law protects people impacted by an emergency from illegal price gouging on housing, gas, food and other essential supplies. If you see price gouging or if you've been the victim of it, I encourage you to immediately file a complaint with my office online at oag.ca.gov/report, or contact your local police department or sheriff’s office.”

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6/15/21 – Gov. Newsom has reduced some of the pricing restrictions that were put in place during the 2020 wildfires. Limitations have concluded in some counties and will end in others in September and December, according to a June 14 newsletter distributed by the SSA to its members.

Restrictions ended on May 22 for Del Norte, Glenn, Humboldt, Lake, Madera, Mariposa, Mono, Nevada, Plumas, San Bernardino, San Diego, San Mateo, Santa Clara, Sierra, Tehama, Tuolumne, Yolo and Yuba Counties. They’ve been extended to at least Sept. 22 for Fresno, Lassen, Monterey, Santa Cruz, Shasta, Siskiyou, Solano, Trinity and Tulare Counties. Finally, restrictions dating back to the 2017-19 wildfires will remain in place until at least Dec. 31 in Butte, Los Angeles, Mendocino, Napa, Sonoma and Ventura Counties.

The state’s remaining 25 counties don’t have any pricing restrictions applicable to self-storage, according to the SSA.

The 2020 wildfire season was the state’s most destructive in history, with nearly l0,000 fires burning 4.25 million acres and destroying or damaging more than l0,000 structures, including 5,000 homes, according to the governor’s order.

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1/6/21 – Gov. Newsom has extended the price-gouging restrictions that were established in 2017 due to the wildfire crisis to Dec. 31. The executive order applies to six counties: Butte, Los Angeles, Mendocino, Napa, Sonoma and Ventura. Self-storage operators in those areas may not raise their rental rates more than 10 percent above the prices that were in place prior to the emergency.

In addition, new price-gouging restrictions that were put in place last year due to the coronavirus pandemic have been extended until at least March 25. A full county-by-county breakdown is available via the California Governor’s Office of Emergency Services website.

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3/10/20 – Newsom declared a state of emergency in California on March 4 in response to the outbreak of novel coronavirus, known as COVID-19. The move prompted Attorney General Xavier Becerra to issue a statement reminding products and service suppliers that price-gouging laws are now in effect until Sept. 4. The law prevents self-storage operators from raising rental rates more than 10 percent while the state of emergency is active, according to a March 9 newsletter distributed by the Self Storage Association (SSA) to its members.

As of March 4, there were 94,000 confirmed cases of COVID-19 globally, including more than 3,000 deaths. U.S. cases totaled 129 nationally, with 53 in California. More than 9,400 Californians were being home-monitored due to possible travel-based exposure to the virus, according to the governor’s declaration.

“Communities throughout our state are working to prevent and treat this public-health threat,” Becerra said. “Californians shouldn’t have to worry about being cheated while dealing with the effects of coronavirus. Our state’s price-gouging law protects people impacted by an emergency from illegal price gouging on medical supplies, food, gas and other essential supplies.”

Penalties for violating the statute include up to one year in county jail and/or a fine up to $10,000. Violators are also subject to civil-enforcement actions, including civil penalties up to $2,500 per violation, injunctive relief and mandatory restitution, according to the attorney general’s office.

The SSA has created a document summarizing laws in all 50 states and Washington, D.C., that apply to raising prices during states of emergency. All but 16 states have applicable laws. “Although few businesses would intentionally raise their rates because of a natural disaster, the laws may affect [operators’] ability to implement even standard rate increases during a state of emergency,” SSA officials said.

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1/3/20 – An affiliate of self-storage real estate investment trust and third-party management firm Public Storage Inc. was charged $140,000 in penalties last month for violating California’s price-gouging restrictions in the aftermath of the October 2017 wildfires. Now governor Gavin Newsom has extended the state’s price-gouging protections for another year, which can affect the pricing of self-storage and other services in several counties.

Newsom signed an executive order on Monday extending emergency regulations that began after the North Bay fires in 2017. The order prohibits price increases of more than 10 percent until Dec. 31 in Butte, Los Angeles, Mendocino, Napa, Santa Barbara, Sonoma and Ventura Counties. It applies to rental housing, food, medical or emergency supplies, building materials, gasoline, and various repair services, according to the source.

The executive order follows Assembly Bill (AB) 1482, a rent-control bill Newsom signed in October that limits price hikes to 5 percent plus the local rate of inflation. That bill took effect on Jan. 1 and expires in 2030.

More than 250 price-gouging complaints were filed after the 2017 fires, the source reported. Sonoma County District Attorney Jill Ravitch issued a consumer alert in November to remind businesses that her office is still pursuing grievances.

Sources:
SSA Magazine Weekly 1/4/21, California Prohibits Price Gouging in Six Counties Through End of 2021
Office of Governor Gavin Newsom, Executive Order N-85-20
California Governor’s Office of Emergency Services, Price Gouging
SSA Magazine Weekly 3/9/20, California Operators: Increases Limited During State of Emergency
Office of Governor Gavin Newsom, Proclamation of a State of Emergency
California Department of Justice, Attorney General Becerra Issues Consumer Alert on Price Gouging Following Statewide Declaration of Emergency for Novel Coronavirus Cases in California Communities
The Press Democrat, California Governor Renews Protections From Price Gouging Put in Place After 2017 North Bay Wildfires
SSA Magazine Weekly 6/14/21, “Governor Newsom Narrows Pricing Restrictions in California”
California Department of Justice, Attorney General Bonta Issues Consumer Alert on Price Gouging Following State of Emergency Declarations in Siskiyou, Nevada, and Placer Counties Due to Fires
Office of Gavin Newsom, Governor Newsom Proclaims State of Emergency in Siskiyou, Nevada and Placer Counties due to Fires
Office of Gavin Newsom, Governor Newsom Proclaims State of Emergency in El Dorado County Due to Caldor Fire
 

Guardian Storage, which operates self-storage facilities in Colorado and Pennsylvania, has added a colorful mural to its property in the Shadyside neighborhood of Pittsburgh. The artwork at 5873 Centre Ave. spans 1,600 square feet across the loading-area wall. It’s meant to serve as a “thank you” to the community and a symbol representing the diversity of the region that hosts Guardian’s first site and corporate office, according to a press release.

The project began last year when Guardian commissioned Pittsburgh-based artist Maria DeSimone Prascak of Maria’s Ideas to bring its vision to life. Though COVID-19 created some obstacles, the mural was officially completed in July 2021. The community response has been overwhelmingly positive, the release stated.

“We are always focused on providing a great customer experience and adding value to our communities. The mural contains positive messages and vibrant imagery designed to be uplifting for our customers and the community as a whole,” said Steven Cohen, Guardian CEO and president. “We hope all of our customers can see themselves in this mural; it so beautifully represents the diverse community from which Guardian has grown.”

Cohen, a Pittsburgh native and entrepreneur, has expanded Guardian into a 31-property portfolio that remains locally owned and operated. An integral part of his strategy has been to build a strong brand known for quality properties and exceptional customer service, according to the release.

“We wanted the mural to be something everyone could enjoy, so we installed roll-up doors with windows to ensure the mural is visible to employees and passersby,” Cohen said. “It’s been great to see the smiles and energy it brings to the property.”

Guardian has long been dedicated to giving back to the communities in which it operates. The mural is the latest venture in its Guardian Gives program, a series of long-term commitments to support three key areas referred to as “Educating Our Youth,” “Neighbors in Need” and “Green Communities.” The self-storage operator has sponsored neighborhood gardens through the Western Pennsylvania Conservancy, supported food-insecurity programs, and hosted charity drives with partners Knock Knock Give a Sock and One Warm Coat. For the past six years, it has also worked with The Education Partnership and Kids In Need Foundation to adopt local schools in Colorado and Pittsburgh, providing supplies to help students in underserved areas.

“We’re always trying to be better than we were the day before,” Cohen said. “Our customers deserve that commitment. The mural is another way to strengthen our community ties and thank everyone for their support over more than three decades.”

Established in Pittsburgh in 1987, Guardian operates 20 locations in Greater Pittsburgh and 11 in Greater Denver.

Public Storage, a self-storage real estate investment trust (REIT) and management company, announced the passing of co-founder and chairman emeritus B. Wayne Hughes on Aug. 18. He was 87.

Hughes died at his home at Spendthrift Farm, a thoroughbred-breeding ranch in Lexington, Kentucky. He’s survived by his wife, Patricia, and children Wayne Hughes Jr. and Tamara Gustavson.

Hughes and business partner Kenneth Q. Volk Jr. founded Public Storage in 1972. Hughes served as president and co-CEO from 1980 to 1991. He then became chairman and CEO until his retirement in 2002.

Hughes, whose first name is Bradley, was born on Sept. 28, 1933, in Gotebo, Oklahoma. His family moved to Southern California when he was a child. It was there he was introduced to horse racing by his father. He received a scholarship to the University of Southern California, where he graduated in 1957, and later became one of the school’s largest donors. Hughes also served in the Navy, and founded American Homes 4 Rent, a Calabasas, Calif-based REIT that invests in single-family rental homes.

Hughes purchased the 700-acre Spendthrift Farm in 2004 and re-established its horse-breeding program. One of its stallions, Cloud Computing, was the winner of the 2017 Preakness Stakes, an annual thoroughbred horse race held in Baltimore. Another horse, Authentic, won the 2020 Kentucky Derby and Breeders’ Cup Classic.

“Wayne was my mentor in every sense of the word. His practical, no-nonsense approach to business and natural ability to ‘think outside the box’ were the keys to Public Storage’s success,” said Ron Havner, company chairman of the board of trustees. “He continually pushed us to innovate, so we made lots of mistakes; but we learned, kept growing and improved the business.”

Havner called Hughes a dedicated family man and generous philanthropist. “His charitable contributions span numerous organizations and beneficiaries, with finding a cure for childhood leukemia as his greatest passion,” he said. “He embodied the American dream—a classic entrepreneur who started with nothing and built several successful businesses in addition to Public Storage. He was iconoclastic.”

“On behalf of the over 5,000 employees of Public Storage, I want to acknowledge Wayne’s invaluable contributions to the company’s success. His legacy at Public Storage lives on through our culture of integrity and our commitment to our customers, our employees and the communities we serve,” said Joe Russell, CEO and president. “We send our deepest condolences to Wayne’s entire family, including his daughter, who serves on our board, and his son, who is a former board trustee.”

Based in Glendale, Calif., Public Storage has interests in 2,895 self-storage facilities in 39 states, with approximately 197 million net rentable square feet. It also holds a 35% interest in Shurgard Self Storage SA, which has 243 facilities in seven European countries, with approximately 13 million net rentable square feet.

Sources:
Yahoo Finance, Public Storage Announces the Passing of Co-Founder and Chairman Emeritus B. Wayne Hughes
Chicago Sun-Times, B. Wayne Hughes, Owner of Kentucky Derby Winner and Founder of Public Storage, Dies at 87

 

 

Update 8/20/21 – 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 August 2021.

Albuquerque Lock Storage in Albuquerque, New Mexico, sold. Built on 7.2 acres, the facility at 10130 2nd St. N.W. comprises 41,150 rentable square feet in 285 units and 177 vehicle-storage spaces. It was 82% occupied at the time of sale. 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.

Bethany Self Storage in Bethany, Oklahoma, sold to a regional operator. The facility at 7133 N.W. 23rd St. comprises 28,650 square feet. The seller, a limited liability company (LLC), was represented in the transaction by Danny Cunningham and Brandon Karr, investment specialists for M&M. They also procured the buyer, which has a presence in surrounding states but will enter the Oklahoma market with this purchase.

Broward County Self Storage in Fort Lauderdale, Florida, sold. The facility at 601 N.E. 11th St. comprises 23,511 net rentable square feet in 242 units. The seller was represented in the transaction by The Hatcher Group of M&M.

Columbia Self Storage in Columbia, South Carolina, sold. Built on 3.2 acres, the facility at 3520 Leesburg Road comprises 14,750 rentable square feet. It was 49% occupied at the time of sale. The property includes a one-bedroom apartment available for rent. The seller was represented in the transaction by The Hatcher Group of M&M.

A Miami self-storage facility managed by real estate investment trust (REIT) CubeSmart sold. The newly built, three-story facility comprises 21,731 rentable square feet in 786 climate-controlled and 135 wine-storage units. It’s across the street from a mixed-use project under development. The seller was represented in the transaction by The Hatcher Group of M&M.

A CubeSmart-managed property in Irving, Texas, sold to Andover Properties LLC, which operates the Storage King USA brand. The facility at 3450 Willow Creek Drive comprises 66,698 net rentable square feet in 609 units. The buyer and the seller, 3450 Willow Creek LLC, were 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. Established in 2003, New-York based Andover owns and manages 96 storage properties in 16 states, comprising 7.3 million rentable square feet across 53,650 units.

Andover also acquired a property in Phoenix managed by REIT Extra Space Storage. The facility on N. 19th Avenue comprises about 55,000 rentable square feet in 670 units. This was the company’s fourth acquisition in the Phoenix metropolitan area and ninth in the state.

Five Mile Storage, a self-storage facility managed by Extra Space Storage in Fredericksburg, Vermont, sold. The 4.58-acre property at 12220 5 Mile Road comprises 50,035 net rentable square feet in 617 units. The transaction was brokered by Cowles M. “Monty” Spencer Jr., CEO and group president of The Storage Acquisition Group (TSAG), and David Spencer, vice president and senior advisor for TSAG, which specializes in acquiring off-market self-storage facilities and portfolios nationwide.

REIT Public Storage purchased Herriman Storage in Herriman, Utah, and Parkway Storage in Orem, Utah. Together, they offer 111,013 net rentable square feet in 834 units and have room for expansion. The Herriman facility was built in 2003, while the Orem property opened in 2004 and was expanded in 2008. The buyer and the seller were represented in the transaction by Jordan Farrer, investment associate, and Adam Schlosser, senior vice president of investments of M&M.

Hwy 6 Storage in Houston, which was managed by CubeSmart, sold to Andover Properties. The multi-story facility at 5905 Highway 6 comprises 49,000 net rentable square feet in 382 units.

Lexington Storage, a CubeSmart-managed property in Lexington, Kentucky, sold. Built on 3.5 acres at 527 Angliana Ave., the facility comprises 54,140 net rentable square feet in 567 units. The seller, Ziff Lexington Storage LLC, was represented in the transaction by Dave and Monty Spencer.

Little Turtle Storage in Fort Wayne, Indiana, sold. Built in 2019 on 1.41 acres, the facility at 5212 Decatur Road comprises 27,055 square feet in 245 units. The seller was represented in the transaction by Gabriel Coe, Brett R. Hatcher and Clint Miller of M&M, who also secured the buyer.

The two-property Meier's Storage portfolio in Hammond, Indiana, sold to an LLC. The facilities at 6809 Columbia Ave. and 1258 Cherry St. comprise 66,701 square feet. The buyer and the seller, also an LLC, were represented in the transaction by Jeffrey L. Herrmann, senior associate, and Sean M. Delaney, senior vice president for M&M. They were assisted by fellow broker Josh Caruana.

A two-property Mini Storage Depot portfolio sold. The Fort Wayne, Indiana, facility at 1121 N. Coliseum Blvd. comprises 72,454 rentable square feet in 604 units and includes a manager’s residence. It was 94% occupied at the time of sale. The Waterford Township, Michigan, property at 2019 Dixie Highway comprises 45,200 rentable square feet in 429 units and 29 vehicle-storage spaces. It was 92% occupied at the time of sale. The seller was represented in the transaction by The Hatcher Group of M&M.

Mountain Creek Storage, a CubeSmart-managed facility in Chattanooga, Tennessee, sold. The 5-acre property at 816 Mountain Creek Road comprises 59,075 net rentable square feet in 685 units and 48 vehicle-parking spaces. The seller was represented in the transaction by Dave and Monty Spencer.

Oakville Self Storage in Alexandria, Virginia, sold to a joint venture between Dahn Corp., Elevation Fund 8 LLC and Potomac Yard Mini U Storage LLC. The three-building, 934-unit facility at 405 Swann Ave. is within the Oakville Triangle, a master-planned, mixed-use development featuring healthcare, residential and retail properties. The buyer, which has rebranded the facility under the Mini U Storage name, intends to pursue significant renovations. The seller, an institutional investor, was represented in the transaction by Craig Childs, director; Steve Mellon and Brian Somoza, managing directors; and Bruce Strasburg, senior managing director with JLL Capital Markets, a global provider of capital solutions for real estate investors and occupiers. Dahn operates more than 45 Mini U locations across 11 states. Elevation Fund 8 is an investment vehicle of Elevation Capital Group, an Orlando, Florida-based real estate investment company with interests in self-storage.

Ring Road Self Storage in Elizabethtown, Kentucky, sold. The facility at 2927 Ring Road comprises 32,600 square feet of self-storage and 11,500 square feet of rentable retail space. The property includes room to add 29,200 rentable square feet in 283 units. Built on 7.3 acres in 1996, the facility was previously expanded in 2004 and 2010. It was 93% occupied at the time of sale. The seller was represented in the transaction by The Hatcher Group of M&M.

Tallahassee Storage, a CubeSmart-managed property in Tallahassee, Florida, sold. The 2.69-acre property offers 54,171 net rentable square feet in 550 units. The seller, Ziff Tallahassee Storage LLC, was represented in the transaction by Dave and Monty Spencer.

Timmus Storage in Ocoee, Florida, sold. Built on 2.2 acres, the newly constructed facility comprises 75,532 rentable square feet in 648 units. The property is surrounded by multi-family and retail development. The seller was represented in the transaction by The Hatcher Group of M&M.

Westside Storage in Odessa, Texas, sold. The facility at 9341 W. University Blvd. comprises 28,965 square feet. The buyer, an LLC, and the seller, a private investor, were represented in the transaction by Karr.

A three-property self-storage portfolio in the Athens, Georgia, metropolitan area sold for $11.4 million to Shoregate Partners LLC, an Easton, Maryland-based investment group. The portfolio comprises 1,130 units. The seller was represented in the transaction by Mike Patterson of Commercial Realty Services of West Georgia. The buyer was represented by Brandon Heaver of SVN-Miller Commercial Real Estate, a provider of brokerage services and property management. Shoregate is actively pursuing self-storage acquisitions in the Mid-Atlantic and Southeast.

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8/4/21 – 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 August 2021.

Absolute Simpsonville LLC, a self-storage facility managed by real estate investment trust (REIT) CubeSmart in Simpsonville, South Carolina, sold. Built on 6.47 acres, the facility at 412 Scuffletown Road comprises 70,455 net rentable square feet in 629 units and 34 vehicle-storage spaces. The transaction was brokered by Cowles M. “Monty” Spencer Jr., CEO and group president of The Storage Acquisition Group (TSAG), and David Spencer, vice president and senior advisor for TSAG, which specializes in acquiring off-market self-storage facilities and portfolios nationwide.

Affordable Secure Storage in Selma, California, sold. The facility at 2118 McCall Ave. comprises 17,000 net rentable square feet in 192 units and three vehicle-storage spaces. It was 99 percent occupied at the time of sale. 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.

American Storage of Rockwall in Fate, Texas, sold to Compass Self Storage, a member of the Amsdell family of companies. Built on 4 acres, the facility at 4100 I-30 comprises 82,794 square feet. The seller was represented in the transaction by Chad Snyder and Tyler Trahant of Dominus Commercial, an affiliate of the Argus Self Storage Advisors, a Denver-based network of real estate brokers who specialize in storage properties. Headquartered in Cleveland, Compass operates 98 self-storage facilities nationwide.

Boyle Street Self Storage in Akron, Ohio, sold. The facility at 313 Boyle St. comprises 25,420 square feet in 148 units. The seller was represented in the transaction by Gabriel Coe, Nathan Coe and Brett R. Hatcher, investment specialists for M&M.

Advantage Self Storage acquired Brach’s Interior Storage, Brach’s Mini Storage and Brach’s Self Storage in Grand Junction, Colorado. The three-property portfolio at 2497 Power Road, No. 20, was owned by Ann and Dave Brach, who built their first facility in 1995. The newest of the facilities, Brach’s Interior Storage, was built in 2019. The two-story, climate-controlled structure comprises about 19,000 square feet. Based in Colorado, Advantage operates 18 locations in Colorado, Florida, Maryland, Massachusetts and New York. It also provides business and property-management services nationwide.

Buncombe Storage, a CubeSmart-managed property in Greenville, South Carolina, sold. Built on 8.5 acres, the facility at 1900 Old Buncombe Road comprises 68,042 net rentable square feet in 782 units and 23 vehicle-storage spaces. The transaction was brokered by David and Monty Spencer of TSAG.

Cherryfield Self Storage in Brevard, North Carolina, sold to an out-of-state operator. The 4.61-acre property at 377 Old Rosman Road offers 37,350 rentable square feet in 377 storage units. The seller was represented in the transaction by Dale C. Eisenman, president, and Robert Moss, broker, for Midcoast Properties Inc., a commercial real estate brokerage focused on self-storage in Alabama, the Carolinas and Georgia.

Colonnade LLC, a CubeSmart-managed self-storage facility in Central, South Carolina, sold. Built on 10.2 acres, the property at 1737 Old Central Road comprises 71,010 net rentable square in 782 units. The transaction was brokered by David and Monty Spencer of TSAG.

A Brentwood, Tennessee, self-storage location managed by CubeSmart sold to a New York-based private equity firm. Built on 1.9 acres, the four-story facility at 263 Wilson Pike Circle comprises 71,956 square feet. The seller, BBDB Investments LLC, was represented in the transaction by James Ashley Compton, national director of the Self Storage Group for Colliers International.

A Chattanooga, Tennessee, self-storage facility managed by CubeSmart sold. Built on 1.7 acres near an Amazon fulfillment center and a Volkswagen manufacturing plant, the multi-story facility comprises 100,980 square feet in 781 units. The buyer was represented in the transaction by Michael Morrison, a broker with Midcoast Properties.

D&J Storage in Madisonville, Texas, sold to an individual/personal trust. The facility at 1900 E. Main St. comprises 41,740 square feet in 292 units. The buyer was represented in the transaction by Jordan Farrer, Charles LeClaire and Adam Schlosser, investment specialists for M&M. The seller was represented by Dave Knobler, senior vice president of investments for M&M.

Eagle Mountain Self Storage in Azle, Texas, sold to a limited liability company (LLC). The facility at 1250 Sandy Beach Road comprises 68,200 square feet. The seller, a private investor, was represented in the transaction by Danny Cunningham, first vice president of investments, and Brandon Karr, senior vice president of investments, for M&M, who also secured the buyer.

Andover Properties LLC, which operates the Storage King USA brand, purchased HH & H Mini Storage in Fuquay-Varina, North Carolina. Built on 6.5 acres, the facility at 204 Scholl St. comprises 43,250 net rentable square feet in 331 units and has room for expansion. Andover intends to renovate the property, moving the management office to a more accessible location. This was the company’s fifth acquisition in the Raleigh, North Carolina, metropolitan area and ninth in the state. Established in 2003, New-York based Andover owns and manages 94 storage properties in 16 states, comprising more than 7.1 million square feet across 52,700 units.

The two-property Kutztown Self Storage portfolio in Kutztown, Pennsylvania, sold to Budget Store & Lock Self Storage, which operates 15 locations in the state. The facilities at 50 Apple Alley and 164 W. Walnut St. comprise 22,243 net rentable square feet. The sale included land for a third site with approval to build 56,950 net rentable square feet. The buyer and the seller were represented in the transaction by Coe, Coe and Hatcher for M&M. They were assisted by M&M Regional Manager Sean Beuche.

Lake Keowee Storage in Six Mile, South Carolina, sold to an out-of-state development company. The 10.5-acre property at 3376 Walhalla Highway contains 155 enclosed vehicle-storage spaces. The seller was represented in the transaction by Eisenman and Morrison of Midcoast Properties.

Premier Boat & RV Storage in St. Augustine, Florida, sold to Compass Self Storage, a member of the Amsdell family of companies that operates nearly 100 facilities nationwide. The facility at 3316 Agricultural Center Drive comprises 91,098 square feet in 204 vehicle-storage spaces, 54 of which are covered. The buyer and the seller were represented in the transaction by Coe, Coe and Hatcher of M&M. They were assisted by M&M Division Manager Ryan Nee.

A joint venture between private investment company Centerbridge Partners, Singapore sovereign wealth fund GIC Private Ltd. and self-storage real estate firm Merit Hill Capital has purchased 57 self-storage facilities from Prime Storage Holdings LLC for $636 million. The properties will be managed by self-storage real estate investment trust (REIT) Extra Space Storage and branded under its name. Built between 1960 and 2014, the facilities comprise 4 million square feet in 26,700 units. They’re in or near 23 metro areas across more than a dozen states, including Maine, New Jersey, South Carolina and Virginia.

Andover Properties acquired Space Self Storage in Corpus Christi, Texas. The facility at 2902 S. Padre Island Drive comprises 41,000 net rentable square feet in 300 drive-up units. The buyer and the seller, Divisidero Property LLC, were 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.

Starpoint Storage, a self-storage facility managed by REIT Public Storage Inc., in Chapel Hill, North Carolina, sold. Built on 8.5 acres, the facility at 2000 Ashley Wade Lane comprises 64,788 net rentable square feet in 781 units and six vehicle-storage spaces. The transaction was brokered by David and Monty Spencer of TSAG.

Storage Partners-Greenville, a CubeSmart-managed self-storage property in Greenville, South Carolina, sold. Built on 3.1 acres, the facility at 450 Haywood Road comprises 61,163 net rentable square feet in 774 units and eight vehicle-storage spaces. The transaction was brokered by David and Monty Spencer of TSAG.

Australia-based REIT Abacus Property Group is purchasing a five-property portfolio in Sydney from Storage King Funds Management Limited for AUD 160 million. The facilities are in the suburbs of Artarmon, Chatswood, Dee Why, Pymble and St Leonards. Together, they comprise 269,097 square feet. The transaction is expected to be complete this week. Abacus is a diversified property-investment group with interests in office, residential and retail in addition to self-storage.

A fund sponsored by CBRE Global Investors acquired four recently constructed StorQuest Self Storage facilities in Bothell and Lake Stevens, Washington; Boulder, Colorado; and Vista, California. Together, the properties comprise 296,286 square feet in 3,746 units. The Bothell location at 21008 Bothell Everett Highway comprises 74,805 square feet in 1,155 units. The Boulder facility at 4790 Pearl St. offers 69,115 square feet in 772 units. The Vista property at 943 S. Melrose Drive is 74,416 square feet in 899 units. The Lake Stevens asset at 1113 WA-204 comprises 77,950 square feet in 920 units. It was purchased by Lake Stevens Storage Owner LLC, an affiliate of StorQuest parent company William Warren Group (WWG), a privately held real estate company. The seller was WWG affiliate 1113 State Highway 204 SP LLC. WWG is expected to continue managing at least the Lake Stevens property. Founded in 1994 and based in Santa Monica, California, WWG acquires, develops and manages more than 200 self-storage facilities in 16 states. The CBRE fund now owns 19 self-storage facilities nationwide.

FollettUSA, which operates the 32 Storage Star brand, acquired a StorQuest facility in Tomball, Texas. The 5.49-acre property at 11133 Spring Cypress Road contains two buildings comprising 70,100 net rentable square feet in 597 units and 71 vehicle-storage spaces. The seller, a family trust, was represented in the transaction by Dave Knobler, senior vice president of investments, and Charles "Chico" LeClaire, executive managing director of investments for M&M. Founded in 1989 and based in California, FollettUSA is a boutique real estate firm that acquires, develops and manages residential, self-storage and other investment properties. Its facilities comprise 3 million rentable square feet in more than 18,500 units.

Team Storage in Green Bay, Wisconsin, sold. The facility at 114 N. Military Ave. comprises 116,038 net rentable square feet in 472 units. The seller was represented in the transaction by Bruce Bahrmasel, Jesse Luke and Scott Rihm of EquiCap Commercial, an Argus affiliate.

Texas Moving & Storage in Lufkin, Texas, sold to a local investor who also owns another self-storage facility in the market. Built in 2008, the property at 2425 Brentwood Drive comprises 22,630 square feet in 223 units. The seller, a private investor, was represented in the transaction by Knobler of M&M, who also procured the buyer.

Three Rivers Self Storage in Cleves, Ohio, sold to iStorage, which operates more than 240 locations nationwide. The facility at 4015 E. Miami River Road comprises 56,100 net rentable square feet in 278 units. Built in 1998, it’s been expanded several times, most recently in 2016. The seller was represented in the transaction by The Hatcher Group. iStorage is a participating regional operator of National Storage Affiliates Trust, a Maryland REIT specializing in self-storage.

Cinch Self Storage, which operates six locations in England, acquired a facility in Brighton, England. The property at The Depository, South Road comprises 12,500 square feet. Financing was provided by Lloyds Bank. Cinch operates locations in Bicester, Chippenham, Huntingdon, Letchworth and Leighton Buzzard.

Global investment firm KKR entered the self-storage market with the purchase of three properties in Austin, Texas, and Nashville, Tennessee, from two sellers for $36 million. Built in 2019 and 2020, the facilities offer 1,800 storage units. KKR has $28 billion in real estate assets across Asia-Pacific, Europe and the United States.

SpareBox Storage, which operates 62 locations, acquired five facilities in Arkansas and Texas, adding more than 500,000 net rentable square feet to its portfolio. Launched in 2020, SpareBox is sponsored by Rizk Ventures, which owns and operates commercial and healthcare properties in eight states as well as Colombia, South America.

Pogoda Cos., which operates 58 locations in Michigan, acquired five facilities in the state from different owners. All have been rebranded as National Storage Centers. The purchase included two sites in Comstock Park. The property at 4000 Alpine Ave N.W., which the company had managed since 2106, comprises 48,760 square feet in 314 units. The three-story property at 4150 Alpine Ave N.W. was formerly managed by REIT CubeSmart. Built in 2020, it offers 79,225 square feet in 754 units. America’s Budget Storage at 40671 Joy Road in Canton comprises 59,400 square feet in 460 units. Eight Mile Self Storage at 31465 Eight Mile Road in Livonia, the company’s third in the city, contains 26,161 square feet in 236 units, with room for expansion. Ironwood Self Storage at 1140 Wilson Ave N.W. in Grand Rapids offers 72,695 square feet in 538 units. Based in Farmington Hills, Michigan, Pogoda manages more than 3.7 million square feet of storage.

New Sources:
MarketScreener, Jones Lang LaSalle Incorporated: Self-Storage Facility Near Washington, D.C. Sells
Multi-Housing News, JV Acquires 934-Unit Metro DC Self Storage
StreetInsider.com, SVN-Miller Commercial Real Estate Represents Buyer in Multi-Property Self-Storage Acquisition Outside Athens, GA

Previous Sources:
Business Wire, SpareBox Storage Acquires Five Stabilized Self Storage Properties in Arkansas and Texas
Business Wire, KKR Acquires Three Self-Storage Facilities in Austin and Nashville
Commercial Observer, Citi, JPMorgan, Goldman Sachs Lend $468M for Self-Storage Portfolio
Daily Journal of Commerce, Self-Storage Properties Trade for Over $64M
Global Legal Chronicle, Abacus Property’s $160 Million Acquisition of Five Storage King Sites
Insider Media Limited, Self Storage Firm Secures Bank Backing for Expansion
Marcus & Millichap, Marcus & Millichap Arranges Sale Of 91,098sf Self-Storage Facility
Multi-Housing News, KKR Enters Self Storage Market With $36M Buy
PR Urgent, Self Storage in Six Mile, SC Sold By Midcoast Properties Inc.
REBusiness Online, CBRE Global Investors Buys Four Self-Storage Facilities in Colorado, California, Washington Totaling 3,746 Units
REBusiness Online, Marcus & Millichap Brokers Sale of 292-Unit Self-Storage Facility in Madisonville, Texas
RE Journals, Pogoda Companies Adds Five Properties to its Self-Storage Portfolio
The Business Times, Colorado Firm Purchases Brach’s Storage