Five Star adds 14^th store

Five Star Storage purchased a facility in October in Fargo, North Dakota. The facility has 500 units and eight commercial office suites. The addition brings Five Star Storage to 14 facilities in North Dakota and Minnesota.

Public Storage buys in CO

Public Storage paid $8.85 million to buy a 64,320-square-foot self storage facility in Arvada, Colorado, according to the Colorado Real Estate Journal.

Developer Blue Wing Capital Management sold the 637-unit facility, previously branded under Life Storage, at 14872 E. 69^th Avenue. The facility was completed in 2018.

Adam Schlosser, first vice president investments, and Charles “Chico” LeClaire, executive managing director investments, in Marcus & Millichap’s Denver office listed the property for the seller.

Schlosser said the deal demonstrates that, “Lease-up and certificate-of-occupancy transactions are still working for buyers and sellers under the right conditions."

SkyView advises on NJ, TN, NC sales

SkyView Advisors advised on the following sales:

The Southern New Jersey Portfolio is a three-property collection on 38 acres with 223,100 net rentable square feet. The portfolio has 1,735 non-climate-controlled units. Ryan Clark, director of investment sales at Tampa-based SkyView Advisors, represented the seller.

You Store It is a 247-unit facility in Vonore, Tennessee. Clark and Cameron Vale, senior associate, represented the seller.

The facility is located at 106 Walnut Grove Road and is situated on 6.22 acres of land with 46,700 net rentable square feet.

Big Daddy's Storage in Winston-Salem, North Carolina, has sold with Clark and Vale representing the seller.

Big Daddy's Storage is located at 5272 Germanton Road on approximately 4.17 acres of land. It includes 37,000 net rentable square feet with 174 non-climate controlled units.

Lock America innovates new hasp

Lock America has developed a locking hasp that delivers high security for self storage swing doors and most flat sectional doors. Available with Lock America’s registered high security key or its medium security tubular key, in both cylinder lock or disk lock versions, this patent-pending hasp replaces the traditional clam shell covered padlock, allowing operators to upgrade their security without converting to roll up doors.

“There are many flat swinging door self-storage units around the country, and this hasp enables operators to upgrade their security without replacing their doors,” said Lock America Security Consultant Ronny Ramsay.

2 NorCal projects moving forward

The El Dorado County Planning Commission in Northern California has approved two self storage projects, according to the Mountain Democrat in Placerville, California.

The first project is a new facility to be located in El Dorado Hills on Rossmore Lane. Developers plan construction of a three-story, 120,000-square-foot storage facility plus an adjacent two-story, 3,324-square-foot building with an office on the first floor and a manager’s apartment on the second.

The commission also approved Superior Self Storage off Green Valley Road near Cambridge Road in Cameron Park. The developer plans to demolish  two 11,100-square-foot covered RV structures, remove 72 outdoor RV parking spaces and construct a two-story, 76,000-square-foot self storage building.

Go Store It plans VA project

Go Store It River LLC plans to build a four-story self storage building on property along Belleview Avenue in Charlottesville, Virginia. The Charlottesville Planning Commission approved a special-use permit for the facility and adjacent apartment building on a 2.2-acre site, according to Charlottesville Tomorrow.

The facility will be branded as Rover Self-Storage. Go Store It is an affiliate of Madison Capital Group, LLC.

Marcus & Millichap advises on sales in five states

Marcus & Millichap advised on the following sales:

Airport Road Self Storage, a 44,770-square foot self-storage facility located in Port Angeles, Washington, sold for $4.25 million. Christopher R. Secreto, senior vice president investments in the Seattle office and a senior director of the National Self-Storage Group, had the exclusive listing. The property sold to a California-based investment group.

Airport Road Self Storage is located at 4114 South Airport Road and includes 293 self storage units on 16.5 acres.

Self Storage Center Portfolio, a three-facility self-storage portfolio located in East Greenwich, Rhode Island has sold to a limited liability company. Michael A. Mele and Luke Elliott, investment specialists in the Tampa office, had the exclusive listing to market the property. The buyer was a limited liability company. The portfolio includes 177,575 net rentable square feet.

Bunyan Road Security Storage, a 29,370-square foot self storage facility located in Susanville, California has sold to a family trust based in Oregon. Secreto had the exclusive listing to market the property on behalf of the seller, a local limited liability company.

Bunyan Road Security Storage is located at 1655 Paul Bunyan Road and includes 245 units and sits on one parcel totaling 2.16 acres. It was built in 1996.

Tolleson Self Storage, a 50,450-NRSF self storage facility located in Tolleson, Arizona, sold to a limited liability company. Devin Beasley. Elliott and Mele in the Tampa and Phoenix offices had the exclusive listing. Located at 9620 West Van Buren Street, the facility includes 454 units and was expanded in 2017 to meet market demand.

Safe and Sound Storage, a 37,436-NRSF facility located in Port St. Lucie, Florida, has sold to a limited liability company. On this sale, Elliott and Mele had the exclusive listing.

Safe and Sound Storage is located at 3737 SE Jennings Road and include 746 units and boat/RV parking.

Devon promotes Dodge to oversee construction

Devon Self Storage has promoted Shannon Dodge to vice president – construction. Dodge will oversee all of Devon’s construction activities, including renovations and additions and conversions. Dodge joined Devon in 2015 after working for nine years in construction. Dodge served four years in the United States Marines.

Developer gains approval for Ohio facility

The city council of Mayfield Heights, Ohio, has approved a self storage facility at 1413 Golden Gate Boulevard. Developer John Molchan plans 86,000 square feet of new construction added to a 28,500 square-foot building already on the site, according to Cleveland.com. CubeSmart is expected to manage the facility. Opening is planned for 2020.

New IL self storage approved

The New Lenox Village, Illinois board has approved a 111,810-square-foot self storage facility to be developed by Blue Ribbon Self Storage II, According to The Herald-News of Joliet, Illinois. The facility will be built at the corner of Gougar Road and Haven Avenue. Blue Ribbon Management also plans two 11,000 square foot RV storage buildings on the 11-acre site.

Yardi research reveals drivers for storage demand

A new national self storage report from Yardi Matrix illustrates that fast-growing markets are the principal drivers of demand for new space. Corporate expansions and relocations, solid multifamily development activity and college student enrollment in metros such as Portland, Oregon, Nashville, Tennessee, and Seattle account for much of the nation’s development activity. Those metros, plus Orlando, Florida, and Boston, are the new-supply pipeline growth leaders, according to the report. Units under construction and in the planning stages represent 9.4% of U.S. inventory, a drop from 9.7% in December.

Overall street rate rents for 10x10 non-climate controlled units declined by 1.7% year-over-year in December 2018 while rents for similar-size climate controlled units fell by 1.5%, a normal seasonal occurrence. California metros San Francisco, Los Angeles and San Jose had the nation’s highest street rates that month.

Soesbe named Rosewood general counsel

The Rosewood Corporation has named Sinead Clifford Soesbe senior vice president and general counsel. She succeeds C. Jedson Nau who is scaling back his activities after 35 years with The Rosewood Corporation, including 19 years in the same role. Soesbe joined The Rosewood Corporation in 2018. Previously she was senior legal counsel for Vistra Energy Company in Dallas.

Established in 1976, The Rosewood Corporation is a family-owned company with diverse worldwide operations and investments. The Rosewood Corporation is wholly-owned by the Caroline Hunt Trust Estate.

Talonvest Capital offers 2019 market expectations

Talonvest Capital Markets shared the following predictions for 2019:

Although CMBS spreads have increased by 35 to 45 basis points in the first few weeks of the year, fixed rates are still very attractive as 10-year Treasuries have decreased by 50 bps. Talonvest recently closed a low leverage CMBS loan at 4.5 percent fixed with 10-years interest only.

Construction lenders have become more selective and risk averse. They are engaging in higher level market due diligence and are focused on a borrower’s track record, contingent liabilities and liquidity.

High leverage non-recourse bridge lenders finished 2018 strong as they pushed leverage to over 100 percent LTC on loans that were still very early in lease up. Talonvest is closing higher leverage non-recourse loans with a variety of sources but these lenders have said they are taking a more conservative approach to leverage in 2019.