New Storage Coming Near Milwaukee

Benchmark Secured Storage plans to build a 399-unit self storage facility in Hartland, Wisconsin. The facility will be 47,000 square feet spread across five buildings. It will mix climate controlled and ambient self storage units.

The property will be operated by Doug Hafemann, the developer, and a partner of Benchmark.

The development has received a conditional use permit from the village of Hartland. Construction is expected to begin in October and be completed in the spring of 2018. Kahle Builders, LLC, the construction firm of Benchmark partner Aaron Kahle, will serve as the general contractor.

So far Benchmark has raised $1 million in its private equity round for the facility.

Santa Fe Planners Approve More Storage

Santa Fe’s Planning Commission has approved a new self storage facility at the site of a former car dealership.

Cerrillos Self Storage, LLC plans 104 storage units in eight separate buildings on the almost four-acre parcel. The facility will be at the site of a former Honda-Subaru dealership at Santa Fe Auto Park.

Metro Storage International Announces JV

Metro Storage International (MSI) has entered a joint venture with Mr. Bodeguitas International, the holding company for Mr. Bodeguitas, Central America’s leading self storage operator.

Headquartered in Guatemala, Mr. Bodeguitas has 10 facilities in Guatemala, El Salvador and Costa Rica. MSI’s investment is expected to enable Mr. Bodeguitas to continue its store expansion within its current markets as well as future growth outside of Central America.

“Mr. Bodeguitas was founded by leading Guatemalan business people who have successfully built the best self storage platform in the region,” said Matthew Nagel, chairman of MSI.

The partnership was celebrated Oct. 3 in Guatemala City at the grand opening party for Mr. Bodeguitas’ 10^th store and 6^th in Guatemala City.

Metro Storage LLC is a privately owned, fully integrated real estate operating company specializing in the development, acquisition and management of self storage facilities nationwide. It is headquartered in Lake Forest, Illinois, with over 125 stores in 14 states. MSI is a wholly-owned subsidiary that has been investing in international self storage platforms since 2013.

Two San Antonio-Area Facilities Sell

Bellomy & Co. has sold the two-property portfolio called Ten Oaks Self Storage in central Texas.

Ten Oaks Self Storage Boerne is located on 7.5 acres and has 756 units. Boerne is 30 miles northwest of San Antonio. Ten Oaks Self Storage Helotes is also near San Antonio and has 467 units. The facilities have a combined 186,859 net rentable square feet.

Bellomy & Co. is based in Austin, Houston and Atlanta with a team focused on self storage. Bill Bellomy, Michael Johnson and John Arnold represented the seller.

SkyView Advises on Two Sales to National Storage Affiliates

ACE Storage in St. Louis and Security Storage in Hollywood, Maryland, have sold to National Storage Affiliates. Ryan Clark, director of investment sales at SkyView Advisors represented both sellers.

ACE Storage is a storage portfolio consisting of six properties located in the St. Louis MSA. The portfolio has a total of 440,059 net rentable square feet. The six facilities comprise 750 climate-controlled units and 2,246 non-climate-controlled units and 331 parking spaces.

Security Storage is situated on 4 acres with a total of 46,932 net rentable square feet. The property has 388 non-climate-controlled units.

SkyView Advisors is based in Tampa and represents self storage owners in the sale of their property or portfolio and provides debt and equity solutions.

Marcus & Millichap Arranges Multiple Sales

Marcus & Millichap, a leading specialist in commercial real estate investment sales, financing, research and advisory services, has advised on the following self storage property sales:

Hartland Self Storage, a 59,680-square-foot facility in Hartland, Wisconsin, and owned by a private investor, has sold to another private investor. The facility is on 4.3 acres with 337 units.

Stockton Self Storage in Stockton, California, has sold to an out-of-state private investor. Stockton Self Storage has 53,425 square feet on 6.6 acres. It has 409 non-climate-controlled units and 225 covered board and RV parking spaces.

Stor-House Self Storage in Richland, Washington, has sold to a Washington-based buyer. Stor-House Self Storage is a 308-unit facility built in 2004 built on 3.69 acres. It includes 49,795 rentable square feet. The seller completed a reverse 1031 exchange. The property sold for $5.65 million.

Tampa to Benefit from Storage Demand

STR, a leading research provider to the self storage industry, has determined that Hurricane Irma in September has likely caused a slowdown in Florida’s development activity. The Tampa area may see a favorable short-term operating environment due to a spike in demand and lower than average existing inventory.

The Tampa MSA grew 8.9 percent from 2010 to 2016. But square footage per person in Tampa is below the national average. STR is currently tracking 333 existing self storage facilities in the Tampa MSA with 58 percent being chain-affiliated and 42 percent managed independently. There are 34 projects currently underway with an average facility size of 75,000 NRSF.

Due to the reallocation of labor for rebuilding efforts and higher cost of building materials as a result of the hurricane, STR expects delays in construction for most of these developments.

Argus Releases State of Industry Report

In its Market Monitor, The Argus Self Storage Sales Network estimates 750 storage facilities were built in the US last year. The network expects 953 “new starts” in 2017.

The Dallas market has by far the most activity with 164 new storage projects expected by the end of 2017. That figure represents 17 percent of all new starts among 35 markets studied. It also represents 9 million square feet of new supply.

Miami was the second most active market with 21 projects planned, 35 under construction and 14 in lease-up. New York was third with 16 planned, 27 under construction and 11 in lease-up.

Four markets – Atlanta, Austin, Denver and Nashville – are expected to move to oversupplied this year.

New Storage in Central Massachusetts

Sugarloaf Storage is expected to open in November in Sunderland, Massachusetts.

The facility includes 175 storage units on 4.5 acres. The project is owned by Rick and July Strong, who own the 190-unit Sunderland Self Storage in town.   

Strong received a special permit from the Sunderland Zoning Board of Appeals in 2015 for the project.

Jernigan Makes Louisville Investment

Jernigan Capital, Inc., has closed a $9.9 million investment in a proposed climate-controlled self storage project in Louisville, Kentucky. The 725-unit, 74,174 NRSF facility will consist of two climate-controlled buildings.

Construction is expected to begin immediately and be completed in the fourth quarter of 2018. Storage Development Partners, LLC. headquartered in Memphis, Tennessee, is the developer. This is the third development in which Jernigan and Storage Development have co-invested.

Jernigan Capital Inc., is a NYSE-listed REIT that provides debt and equity capital to private developers, owners and operators of self storage facilities.