Transactions and Deals: November 8, 2018
posted on 11/8/2018 8:45:00 AM
Houston-area storage sold by Bellomy
Preferred Storage in Conroe, Texas, has sold. Conroe is one of the fastest growing cities in the country and is 40 miles north of Houston. Located at 4300 W. Davis St., the facility has 572 units in 52,815 NRSF. The facility was built in 1995 and 1997 and expanded in 2017.
Bill Bellomy and Michael Johnson of Bellomy & Co. represented the Houston, Texas based seller, Copra Holdings LLC. Bellomy & Co. is an Austin and Houston commercial real estate firm.
10 Federal buys in SC
10 Federal has acquired the Ft Mill Biz Center self storage facility located at 1691-A Katy Lane, Fort Mill, South Carolina.
This acquisition marks the 8th self storage facility acquired by the 10 Federal Self Storage Acquisition Company 1, LLC.
10 Federal will deploy its suite of technologies to support unmanned operations, which includes the installation of a kiosk rental center, model unit, proprietary overlock system and extending 10 Federal's call center services to this facility.
Pennsylvania passes tenant insurance law
Self storage owners and their employees and company representatives can now get a limited license authorizing them to sell tenant insurance in the state of Pennsylvania. House Bill 504 was signed into law in October by Gov. Tom Wolf establishing the provision. The law goes into effect on Dec. 24.
A self storage owner only needs one license to sell insurance in the state, though the application must include a list of all facilities operated. The business must also notify the insurance commissioner within 30 days of any new Pennsylvania locations or facility closures. The law requires that storage owners maintain a registry of employees who have been certified to sell insurance and are eligible to act as agents.
The bill was supported by the Pennsylvania Self Storage Association (PASSA) and national Self Storage Association (SSA). SSA officials credited PASSA president and SSA board member Alyssa Quill and former PASSA board member Mike Rhoads as being “instrumental in securing passage of the bill,” in an Oct. 29 newsletter to association members.
Indiana gets new facility
Affordable Self-Storage has opened in Woodburn, Indiana, according to The West Bend News. The facility includes three storage buildings at Webster/Old U.S. 24 with 96 units. The facility is owned and operated by Kevin and Monica Gingerich.
Jernigan Capital names new CEO, CIO
Jernigan Capital has named John A. Good Chief Executive Officer and Jonathan Perry President and Chief Investment Officer. The promotions follow a two-year period of succession planning. Founder and Chairman Dean Jernigan will continue as Executive Chairman of the company and his active involvement with the company’s investment activities.
“We are very fortunate to be able to execute a senior executive succession plan with two people who have the self storage knowledge, experience, wisdom and judgement that John and Jonathan have,” said Jernigan.
Good has been president and COO since 2015. Perry has been executive vice president and CIO since June.
Tobacco warehouse becoming storage
Ziff Properties Inc. has acquired the former Golden Burley Tobacco Warehouse in Lexington, Kentucky, and plans to convert the building to self storage.
Mount Pleasant, SC,-based Ziff bought the 3.5-acre property at 574 Angliana Ave.
and intends to create 103,000 square feet of storage. CubeSmart will provide management.
Ziff is also converting a former US Golf & Sports Centers Inc. retail store in Knoxville, Tennessee, to 65,000 square feet of storage space.
Metro developing near NYC
Metro Storage LLC plans to develop a 75,000-square-foot self storage facility in South Brunswick, New Jersey, according to Commercial Property Executive.
The facility will include 668 units. It is located at 3963 U.S. Route 1, southwest of New York City.
Construction is scheduled for completion by the third quarter of 2019. The development will mark Metro Storage’s 10th facility in New Jersey.
Talonvest arranges construction loans
Talonvest Capital, Inc. recently negotiated $48 million of construction financing for two clients. The first assignment was a $20 million loan for William Warren Group on a development site located in Hawthorne, California. The second was a $28 million construction loan on behalf of Leon Capital Group for the development of three Class-A self storage facilities located in the Portland-Vancouver MSA. The financings were negotiated with two separate national banks.
William Warren Group is building a 4-story, 113,625 net rentable square foot, facility at 4959 W 147th street in Hawthorne. Talonvest secured a 54-month, 75% loan-to-cost, interest only loan for this in-fill development located near LAX airport.
In a separate assignment, Talonvest negotiated a $28 million construction loan for Leon Capital Group’s development of three multi-story, class-A, 100% climate-controlled self storage facilities totaling 315,251 NRSF on two sites located in Portland, Oregon and another in Vancouver, Washington. This financing is a LIBOR based, floating rate loan with a 36-month term, a 12-month extension option, and a mini perm option.
Talonvest Capital is a boutique real estate firm providing advisory services to self storage and commercial real estate investors, owners and developers nationally.