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CONTENTS

3txssa.org May/June 2016 Self-Storage News

8 28

24

FEATURES DEPARTMENTS5 President’s Message22 Association News33 Featured Facility35 Legal Update40 On the Spot42 TSSA Networking Luncheons45 Managers Corner47 Bulletin Board49 Newsmakers52 Industry News53 My Perspective54 New Members

8 Development Do It Right or Go HomeBuilding a facility can be a daunting task, with lots of obstacles—some you know about, some you don’t. Our experienced members give invaluable advice on getting in the game.by Karen Aroian

20 Development Cost WorksheetThe cost of development varies greatly from facility to facility. These variances should be evaluated during the conceptual and feasibility phase. This worksheet will give you an idea of what to expect.provided by James Bratton

24 Special Finance SectionNeal Gussis with CCM Commercial Mortgage and Terry Campbell with Live Oak Bank share what you need to know.by Neal Gussis and Terry Campbell

28 Feasibility StudiesThe feasibility of a project can only be determined by calculating the returns.

feasibility study and a market study.by RK Kliebenstein


PRESIDENT’S MESSAGE


S pring is here! This is my favorite time of year. I am a huge basket-ball fan and I absolutely love the NCAA tournament. I love the up-

sets that happen every year. I wonder what Baylor thought (sorry Baylor fans) when they were upset by Yale; or what Michigan State felt like getting beat by Middle Tennessee. (I know that messed up a lot of brackets!) That’s what I love about college basketball—the little guys can beat the big boys—it happens every year in the tournament. And it happens in the self-storage world every day as well—the little guys can com-pete with the big boys. There are many tools available now that were not avail-able 10 or 15 years ago. We will never

big guys have—but we can compete. Take advantage of the educational

-tion. Be the Yale or Middle Tennessee of your market.

This month’s issue is focused primarily on new development; which hits very close to home for me at the moment. We are in the process of developing three facilities near down-town Dallas; which feels like a lot. I heard Paul Darden’s presentation at the December TSSA Dallas luncheon in which he said there were approximately 100 new developments in some sort of development stage in the Dallas-Fort Worth area. I know DFW is big; but that

is a lot of new supply coming into the market. I also know that there are many new developments happening in Aus-tin, Houston, San Antonio and Waco as well. There will be some markets that get over-built—it happens every cycle. My hope is that most developers are doing their due diligence before starting a new development. There are several

help you if you need help with your due diligence. Trust me, the few thousand dollars you spend on a feasibility study is well worth it. The last thing any developer wants is to invest millions of dollars on a deal and then not be able

read RK’s article on feasibility in this month’s issue.

Design is important too. We are no longer just building ugly metal boxes. The new developments are giving much more attention to architectural detail; which is not only being required by some cities, but smart developers are spending a few more dollars to give their developments a better street ap-peal. You can also get an idea on what your development will cost by look-ing at James Bratton’s cost analysis worksheet.

Paul Glover

Development in a Thriving MarketNew developments across Texas, plus a focus on innovative building designs.

Self-Storage News May/June 2016 txssa.org6

In 2015, the Argus Texas Broker Network’s aggregate sa es an s ngs ex ee e 125 Million! We represent self-storage Buyers and Sellers in every Texas market. Our Argus network’s na onal pla orm e uals unrivaled exposure and pri ing. et us help you determine the value of your proper es so you an maximi e the return on your investments, nd more to

uy and to assist with future site sele on.

Visit www.argus-selfstorage.com for more details, or contact us directly:

TEXAS BROKER NETWORK

David EtzoldEtzold & [email protected]

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Representing Central & South Texas

Representing West Texas

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TheSelf-Storage Broker in Texas

Self-Storage News® is published by the Texas Self Storage Association, Inc. (TSSA), 595 Round Rock West Dr. #503, Round Rock, TX 78681.

© Copyright 2015 Texas Self Storage Association, Inc. For additional copies, contact TSSA.

Material published in Self-Storage Newsthe views and opinions of the contributors and is not necessarily endorsed by TSSA. Seek legal counsel for individual circumstance(s).

EDITORJennifer Taylor, TSSA

PUBLICATION DESIGNAndrea Exter, Monarch Media & Consulting, Inc.

EDITORIAL INQUIRIESArticles from the membership are welcome. Send news items or topics of interest to TSSA members to Texas Self Storage Association, Inc., 595 Round Rock West Dr. #503, Round Rock, TX 78681, or [email protected].

ADVERTISING INQUIRIESAdvertising space is available. For advertising in-formation, contact TSSA at [email protected].

Texas Self Storage Association, Inc.595 Round Rock West Dr. #503, Round Rock, Texas 78681

(888) 259-4902 / (512) 374-9089

Fax (512) 374-9253

txssa.org

2015 TSSA BOARD OF DIRECTORS

EXECUTIVE COMMITTEE President ...................... Paul Glover, Dallas (214) 651-3023

Vice President ...... Clint Wynn, San Antonio (210) 225-3053

Treasurer ..................... Chris Martin, Waco (254) 299-7588

Secretary ...............April Young, Fort Worth (940) 329-0729

Past President...Amy Nolan, Corpus Christi (361) 688-7848

DIRECTORS

Bill Bellomy, Austin (512) 501-1604

Jill Holbrook, Fredericksburg (830) 990-5777

Ricky Jenkins, Houston (713) 622-6688

Robert Loeb, Victoria (361) 485-2223

George McCanse, Austin (512) 828-8156

Lisa Meylor, San Antonio (210) 237-8652

Bill Roberts, Austin (512) 615-9850

Blair Valk, Dallas (214) 478-7500

PAST PRESIDENTS (EX OFFICIO)Mark Skeans, San Antonio (210) 771-5307

Mike Gately, San Antonio (210) 684-4300

TSSA STAFFExecutive Director ...........................................Ginny Sutton

Director of Communications & Marketing ..... Jennifer Taylor

Director of Education ........................... Sonnia Montemayor

Director of Membership .......................................Kay Davis

Member Services & Events Coordinator ............... Holly Barr

Administrative Assistant ................................. Mallory Scott


by Karen F. Aroian

Getting in the Game? Advice from Experts


O ne of the many ways we build bridges across the newcomer divide and, in turn, help our industry

advance, is our willingness to mentor, to share lessons learned, and to wave

self-storage developers and contrac-tors deal with what Robert Loeb, owner and developer of Sure Point Self Storage, calls the invisible “rocks in the river”—and some rocks are bigger and tougher to navigate than others. Still, those who have been successful in self storage love what they do, and they want newcomers to love it too.

“You can want to get into storage because you decide it’s a good asset class, and I think it is,” Loeb advises newcomers. “Having said that, it’s about putting the right product in the right market. You’ve got to have good supply and demand. That’s critical. Do all the studies about the asset through third-party people to make sure you’re

land that is basically the right price, the right shape, and has the ability for entitlement. All of that is fairly cumber-some and complicated. If you decide you want to get into this business, then get experienced people to help you

make your business decisions.”If, at the outset, newcomers can jus-

tify demand for a new self-storage facil-ity and ultimately can provide consistent second-to-none customer service, then they have the potential to attain lasting customer satisfaction and real suc-

Gordon Swanson, owner of Aaron’s Self Storage, says that customer service, convenient location, curb appeal, cleanliness and good management are the factors which separate the level of players in the self-storage industry.

However, newcomers face a multi-tude of steps and missteps from here


ALWAYS ASK THE EXPERTS If you decide you want to get into this business, then get experienced people to help you make your business decisions.

– ROBERT LOEB, Sure Point Self Storage

to there. What are they? How do new-bies learn about them? Listening to the lessons learned by experienced and successful self-storage contractors, developers and owners is an invaluable

WHERE DO I BEGIN? Swanson, who’s been in self storage since 1987, currently has a 145,000 square foot facility under construction in Waco. He entered self storage as the owner of a successful medical equip-ment company and admits he “went

selling that location to U-Haul and subsequently constructing his own self-storage operations.

was in 1995—285 units on 1.8 acres of land with a manager’s residence,” Swanson recalls. Located on the growth corridor of Waco, he had 95

Swanson quickly realized he should have purchased a larger tract to phase in more units or looked into a multi-

nine acre tracts on my other facilities. I no longer have manager residences and prefer sites that will allow 600-750 units.”

Like most self-storage experts, Swanson believes that beginning with the input of trusted experts is vital.

-ing surveys and due diligence. Building involves relationships with architects as well as mechanical, civil and structural engineers.”

After 29 years in the business, Swanson still attends six to eight conferences and gatherings a year,

enjoys walking away from association roundtables and lectures with a nugget or two he can bring back to his team. He advises newcomers to attend “as many self-storage meetings and con-ventions as you can. You’ve got to get out and attend all these meetings and workshops—and absorb.”

Like Loeb and Swanson, Rick Jones, principal of Advantage Self Stor-age Advisors, LLC, believes “it all starts with market research and understand-ing the amount and type of storage

demand.” Jones shares an example of one lesson learned to support this conviction. “I learned the hard way that building in ‘green’ growth areas can be risky,” he says. “With lots of undevel-oped land in green markets, supply can come behind you and swamp the mar-ket. Also, an overall economy can stall or reverse population growth in green areas. I’ve made that mistake.”

CAN I BE MY OWN GC? Naturally, new self-storage owners are curious about the pros and cons to consider when entering self storage, particularly if they might save time and money by being their own general con-tractor. Most professionals respond with a resounding no, with a few caveats.

Ted Culbreth, VP of Sales and Mar-keting for SBS Construction, approach-es this question pragmatically. “If you’re talking about [building] big self-storage projects—and most of our storage con-struction is probably 80,000–120,000 square feet—it’s almost impossible for the owners of those to be their own general contractor,” he says.

“First, those people have business-es to run,” Culbreth states, “which is not general contracting. They just don’t have the time or expertise to do it.

available that will allow you, as a bor-rower, to be your own general contrac-tor on a project.”

Pat Nolan, co-owner of The Storage Place, echoes the point. “This industry has changed quite a bit in 20 years. In this environment, banks are tightening up on their lending practices.”

Culbreth concedes that on some smaller self-storage projects, in which owners are either adding a building to an existing facility or building a very small facility, it may be acceptable to be your own general contractor. He quickly

adds this caveat: “What I tell people is that if being your own general contrac-tor takes away from what you normally do for a living, then it’s probably not a good idea for you to be the general contractor because you’re much more

everybody do what they’re good at and go on down the road.”

Most experts agree that anyone building storage today should employ a general contractor, and none believe this more strongly than Loeb. He and his partners, who share 15-20 years in the business, build multistory self-storage buildings. He estimates general contractors will “charge anywhere from 7-10 percent on top of general costs.”

While that sounds like a big hit, Loeb shares how these experts can save you money in the long run. “They have relationships with the suppliers. I think they have better pricing with sup-pliers and better history with suppliers. You’re also getting their knowledge in building storage. I’m a big believer in having a general contractor, and I build storage with contractors who specialize in storage.

“Having said that, if someone has a building background, and he can say, ‘I can do that myself,’ and he has the expertise and the comfort, then that’s

-tains. “I like to work with people who have expertise.”

Nolan urges newcomers to look at the size of their planned facility. “If you’re trying to build something in Houston, Austin, San Antonio, Dal-las, or even Corpus Christi, where city municipalities are a big part of the construction process, I would advise that you not try to general contract it yourself. If you’re building in a little town and you’re just doing a small non-


climate facility that’s just concrete, then it’s probably not that big a deal but, in general, I suggest you not do that.”

Rachel Parham, President of Development for NDS Construction, a Parham Group Company, believes that even if a newcomer has a construction background, they should still hire a de-veloper or general contractor. Every city, county, homeowner association (HOA), and municipal utility district (MUD) has

and code amendments. Parham says local professionals best know the ins and outs of each jurisdiction.

“Self storage, in particular, still seems to have a bad rap in most Texas cities, so hiring someone with experi-ence will help you get through the bureaucratic nonsense much quicker,” she says frankly. “If you think you can save time and costs by being your own

project, you might be mistaken. If this is

facility, please hire an experienced developer. Your developer should be involved in the entire development pro-cess from beginning to end.”

A development team, according to Parham, is able to determine the mar-

ket and economic feasibility of a proj-

property purchase, public approvals, design team coordination, construction costs, construction management and the opening of the facility. She cautions, “After going through the entire devel-opment process, which can be very overwhelming, you may come to the realization that you could have saved more money and time just by hiring an experienced developer or general con-

seen it all, so utilize their knowledge and experience.”

WHAT IF I HAVE A PIECE OF PROPERTY? If an existing piece of property is in hand, a newcomer from a related industry may be prompted to consider the land for a self-storage site. Inevita-bly, they want to know how to use the property to its best advantage, which leads seasoned self-storage experts to

Nolan advises newcomers to use caution. “Probably one of the bigger mistakes people make in the storage business is they say, ‘I have this piece

of land. I think it might be good for stor--

petition in the marketplace is right now. “If you want to be in the storage busi-

for storage in a particular area and then go buy a piece of land. Just the fact that you happen to have a piece of land and you want to try to build storage on it is a really big mistake. A lot of times

up or you can’t get the rents that you were trying to get.”

Jones cautions newcomers to avoid letting construction teams design a facility. “Do market research and seek a good industry professional to help determine market demand and supply characteristics.

He adds that newcomers will save more time and money with a good industry consultant than going it alone on an existing site. “It’s a big invest-ment and there’s too much at risk to let a materials supplier or subcontractor design the facility.” He recommends interviewing and selecting a good general contractor for your team early in the process. “The general contractor will competitively bid with subs. I prefer this to bidding the job with several general contractors and going with the low bid.” A good general contractor will be very helpful early in the process, assisting with design and providing a construction budget. In this market, Jones cautions developers who are considering performing their own con-struction services that subcontractors

and manage. They will provide their best prices and performance to general contractors with whom they have an established relationship.”

From a construction point of view, Culbreth says the many factors

determine. “Often times, I have people

want to buy or they’ve had feasibility studies done that show it’s a good site. But, they don’t have a geotechnical report on the soils for the site. One of the biggest expenses that our custom-ers have in building a site is getting the land prepared and in acceptable condition for a building pad. One of


BUILD YOUR TEAM FIRSTNot all engineers, architects, designers and builders are created equal. Customers need a design/construction team who has experience in their method of construction and is familiar with industry norms, trends and project requirements.

— BRANDON POLK, A-Lert Building Systems

is getting a geotechnical report done. Let us know what the dirt is because

a square foot to get it buildable, well,

portion up front is very important.”On top of that, Culbreth advises

“getting a good civil engineer who can tell you what your property consists of—and by that I mean if there’s set-back requirements, utility easements, restrictions that don’t allow the use of impervious cover, or tree and land-scaping requirements. Find out from a civil engineer exactly what part of your property we can build on. When we get that solved, then we will bring in an ar-chitect, who often times will tell us the best way to utilize what land the civil engineer has told us is available.”

“Get the soil tested,” Brandon Polk, Construction Superintendent for A-Lert Building Systems supports. “Geotechnical engineering reports are generally not very expensive in compar-ison to concrete slab repairs and the lost revenue associated in building re-pair. Many cities require an engineered slab foundation, which more than likely will require detailed information about the existing soil conditions anyway.”

WHAT OBSTACLES CAN I EXPECT?

-rounds a typical city restriction that developers often come across. “We

-tonio in the midst of a vibrant, growing market. The site was centered amongst massive retail, medical centers, multi-family residential and a large 5A high school.

“After preliminary market research and feasibility studies, this site seemed like a home run for self storage. The only problem was space. Out of the

viable for our potential facility. In order to make this homerun property work, we would need to utilize every inch of viable dirt in order to get enough suf-

“Fortunately, our market research showed support for a multi-level facility, but the HOA’s enforced height restric-

tion of 40 feet would only allow the facility to be three stories. With the reduced acreage, this facility would need four stories to maximize square footage, so we designed a four-story facility with a basement. This would not make things easier during construc-

required square footage to make the project feasible.”

Parham supports having a skilled civil engineer, architect, developer and gen-eral contractor on every project working together, not only during construction, but even during the initial design and planning. While engineers and architects “live in a 2D world, general contractors must make their 2D drawing a reality in

aspects will not work once we try to

“As the developer, it’s our job to co-ordinate the professionals and to design a facility that will work for the client, the governing jurisdiction and the future tenants. For this project, we spent lots of time during the design phase and in-cluded the input of the general contrac-tor, as well as multiple other profession-als and consultants. Having their input, early on, helped us not waste time or money during construction and allowed us to build a four-story facility on .87 acres. Team work!”

HOW DO I BEGIN PREPLANNING?Loeb believes that a civil engineer is the

a piece of land, you think it’s good, and you do your own supply and demand, then you’ve got to get a civil engineer

who will tell you what you need in terms of zoning and entitlements. To me, it costs a lot to do these later rather than sooner, so I’d rather know up front. I work with a civil engineer, make sure my supply and demand is good and then we can start the process.

“I was talking recently to a real es-tate guy about a market, I think it was St. Louis, where an enormous amount of downtown apartments were being built. Of the 9,000 units downtown, he said 5,000 units got absorbed imme-

years, they maybe absorbed another -

tors] were OK, but the guys who came later got killed [on the investment].

“The fact is these markets have saturations,” Loeb explains. “You’ve got to prove there’s a need for storage. We satisfy somebody’s needs so you’ve got to build where there is unmet de-mand for your product—that’s critical—and if you don’t do that, you’re going to struggle forever because there’s going to be too much supply there.”

In the preplanning stage, Polk encourages his customers to enlist the help of a design team with industry experience. “Not all engineers, archi-tects, designers, and builders are cre-ated equal. Customers need a design/construction team who has experience in their method of construction and is familiar with industry norms, trends and project requirements. Enlisting the help of your builder early on brings a com-mon sense approach to design. Cost, feasibility and method of construction are elements that many architects and designers may not be aware of.”


HOW MANY UNITS IS TOO MANY?Start by determining supply and demand within a three-mile market area. If you know an area’s supply and approximate physical occupancy, you can get a good feel for demand.

— RICK JONES, Advantage Self Storage Advisors

Nolan says an important question to ask your realtor in preplanning is whether a particular market would even allow for a multistory. He estimates that if your plan is to build a standard climate/non-climate single-story stor-

you’re building a multistory facility, you can cut that down to one to two acres.

“Everything is determined by the rates, by the demand for the product in a particular area and by the price of the product being sold,” Nolan explains. “So, obviously, if a 10’ x 10’ in that par-

relative to the amount of demand and supply in that particular market.”

SINGLE OR MULTISTORY? WHAT ABOUT ADA?Multi-story facilities are everywhere, not only in urban areas but their outlying suburbs and towns, too. Today’s self-storage landscape can seem confusing to a newcomer who’s trying to deter-mine whether to build a single or multi-story facility—and address the Ameri-cans with Disabilities Act requirements.

With 26 years in the self-storage industry, Ricky Jenkins, president of The Jenkins Organization says, “This really will depend on the cost of the land and market rents. Many of the new projects you see today are single building, multi-story facilities. Developers simply can’t

necessary to build a single-story facility.” Others are in agreement. “This is

driven by availability and price of land, and most importantly rental rates,”

Jones explains. “Multi-level construc-tion is much more costly per net rent-able square footage and shouldn’t be

produce the net operating income nec-essary to produce appropriate return on cost.”

Swanson believes the only reason for building multistory is land costs in a Class-A location. “I do own a two-story

self storage. Multi-stories will almost al-

larger elevators. Elevators help allevi-ate the ADA issues along with required ADA entrances, parking and unloading areas.”

Nolan adds, “Any project more than -

pliance. It’s not a single-story or multi-story question, it’s just a question of if your project falls under the guidelines of ADA. In a single-story, ADA is not hard to meet. You have to put pull strings on doors and have the right grade going into a small percentage of units. In multistory, you would have an elevator, so those issues would be answered as well. And, that’s where a good architect comes into play. Even if you’re going to general contract this yourself, one of

demand and know what units are go-ing for—is get hooked up with a good architect.”

Whether to build a single or multi-storied facility relies completely on your market research before you purchase the site, Parham says. “If your site is surrounded by apartment complexes, this would be a safe bet for multistory. Remember that people store the way they live. If you live in an apartment, it’s normal for you to lug your groceries

and furniture up and down staircases or elevators, so you probably have no problem utilizing a storage facility with the same arrangement.”

“There’s really two parts to that answer,” Culbreth says. “Generally, land cost determines whether you go verti-

obviously want to use as little land as

square foot, you can buy as much of it as you would want to [build] out. There is a point at which land cost determines the viability of going up versus out.”

From a marketing standpoint Culbreth agrees with Parham. “Your customers have to be accustomed to

their accountants, doctors or banks. If you’re building in a more remote area, where people don’t use multi-story buildings, he suggests you consider how well your customers will accept going up.

As for ADA requirements, Culbreth says, “If you’re using an architect, which 99 percent of our customers do, then part of the architect’s scope of work is to design the facility to be ADA compliant. Have an acceptable

whatever entity is entitling or permitting you will see that [your facility] has been

ADA compliant, regardless of whether it’s single or multistory.”

HOW MANY UNITS SHOULD I INCLUDE?According to Jones, determining the number, size and type of units to be built on a site is the most critical component of successful development. “Today there is more development activity than I’ve experienced in my career. Overbuilding in major markets is not a question of if, but of when. New would-be developers can get caught up in the euphoria of the development cycle only to be devastated by soft de-mand as the result of oversupply. Also, new operator-owners can be at a great disadvantage competing with larger operators and REITs.

-


you cannot market people into using self storage. They either need it or they

-ceeds demand, the only result possible is physical vacancy. The vacancy oc-curs as a function of competitive facility features, locations, rents, marketing acumen, etc. It’s better not to fall into the trap of thinking that you’re building a better product and will out-compete an oversupply of your competition.”

Start by determining supply and demand within a three-mile market area, Jones advises. If you know an area’s supply and approximate physi-cal occupancy, you can get a good feel for demand. “For instance,” he says, “if supply is 10 square feet per capita and overall average occupancy is 80 percent, then demand is somewhere in the neighborhood of 8 square feet per capita. An even better measurement is units per household. If development of a new facility increases the supply, there will be downward pressure on rents as existing operators scramble to

maintain occupancy.” Culbreth uses a construction for-

mula to determine how many units a site is capable of handling. However, he cautions that just because your site may be “capable,” doesn’t mean that you should construct more than 50 percent on a building footprint. “If you have a four acre site that is approxi-mately 170,000 square feet, we roughly

on half of that or a little less than half of that—about 85,000 square feet of building.

“When you’re looking at a site, that’s a pretty good rule of thumb to deter-mine how much of your land is actually buildable. That gets you gross building square footage. Everything on the con-

of net rentable square footage.

If a building has climate control, then that portion is probably only going to be

75 percent net rentable to gross. That’s a pretty good rule-of-thumb to get from gross to net,” says Culbreth. Because hallways, mechanical closets for air

elevators, lobbies and stairwells are fac-tored in on the construction side, that space is lost when going from gross to net. “So, if you build a 100,000 square feet climate-controlled facility, you’re probably only going to have 75,000 square feet of net rentable.”

“If you are building a non-climate controlled building, then pretty much 100 percent is usable. That gives you the capability, but the question is how do I know how much to build, and the answer to that is simply you need a feasibility study. For a newbie or some-body who is not attuned to analyzing a market area, I cannot stress enough how important a feasibility study is.”

Nolan estimates the cost of feasi-

if you’re merely taking a cursory look at an area on your own, he suggests


getting a list of all storage facilities within a three-mile radius and picking up the phone. To estimate occupancy, sometimes you can look at a facility to see on average how many customer locks versus owner locks a facility has.

talk about how full they are, what kind of rates they have and how strong rates are in the area.

WHAT WILL MY CITY OR COUNTY EXPECT FROM ME? One of the most underestimated and mystifying parts of the construction process for an inexperienced owner or developer is understanding what a city needs you to do in order to build your facility, according to Polk. “Often times a customer has a preconceived notion of what will be required by a city, county or municipality. Many of the answers are readily at your

commercial permit checklist of all requirements to build your project.”

Polk quickly adds, “The old saying,

For example, if the city mandates storm water detention in order to develop your site, it simply must be done. An experienced general contractor, engi-neer and design team in your method of construction (self storage and/or retail space) can help in negotiating how the city or county interprets these

Jenkins puts it simply. “This type of information is typically gathered by the architect and civil engineer in the due diligence process.”

“That’s why you have civil engineers and architects,” Loeb says, expanding on the thought. “We have an archi-

architecture wherever we build. We use local civil engineers, though. When we build in San Antonio; we have a San Antonio civil engineer. When we build in Houston; we actually have two civil en-gineers. One takes care of our projects on the north side, and another takes care of our projects on the south side.

“People say Houston is the easiest place to build, and there are some ad-vantages to developing in Houston, but there are also MUD districts in Hous-ton, hundreds of them, I believe.” As a result, Loeb uses separate civil engi-neers who can tell him what’s going on in the MUD districts from Sugarland through the northwest sector of Hous-

requirements. “Civil engineers have relationships with the municipalities, so they’re going to show you where the rocks in the river are and they’re going to help you get through your share with the municipalities.

“Be aware that those MUD districts are also taxing authorities,” Loeb cau-

it’s in and their tax rate. They control the tax rate. I know of two sites in

One has a 78 cent tax, the other has

Loeb advises newcomers to do their

MUD rules and rates before they put

the site under contract.

adds. “Civil engineers are going to be local to the project—they’re going to know the inner workings of the city and what will be required in the process. They walk you through that. The ar-

what the process is for permitting and what is required of the design so that they’re hopefully designing you a facility that will be entitled fairly easily. Some-times that’s not the case, but you go in with the best-laid plans and try to get through as easily as you can.

WHAT ABOUT ZONING? Pitfalls are important. And, zoning can be one of the deepest pits a newcomer can fall into.

“I’m not trying to tell horror stories, but these are the stories you run into,” Loeb says. “One site that we had, we worked with the city for three months to get our zoning right. We were on the city council agenda, and then they came back and said, ‘We’re not going to recommend you,’ and we said, ‘Wait. What did you just say?’ They said, ‘We can’t recommend you because if we give you this [zoning per-mit] and you don’t build, your property could be [used for] a lot of other things that fall into that zoning category.’ And we say, ‘What have we spent all this time talking about? What’s the solu-tion? And they said, ‘You need to be a PDD,’ which is a private district devel-opment, so we said, ‘Let’s become a PDD.’ That took another 90 days.

“Well, time is money, and you dance with them for a long time. At that

with water detention, which is a big deal. You’ve got to be able to release your water somewhere, and we had a neighbor who fought us on letting wa-ter go across his property, so these are the problems you have to face—and there are lots of them. We face them every day.

“I’ll tell you another problem people should know about,” Loeb continued. “In Houston, if the MUD districts do something for you utility-wise, like hook

three times that charge. So, if you have


ACHIEVING THE PROPER ZONINGIn most cities, you can have a predevelopment meeting, where you find out how it’s zoned and whether the city will back you in the zoning.

– Pat Nolan, The Storage Place

had legislation passed giving them the right to mark up 200 percent. You have to be careful. Your budgeting is not going to be right unless you do your due diligence right up front. This is coming from experienced develop-

hard to develop. People think it’s easy, but when you’re dealing with a major municipality…you’ve got a lot of hoops to jump through.”

Swanson also learned the hard way that the land you build on must already have proper zoning or you may be faced with rezoning. Being able to stay calm and maintain your profes-sionalism in meetings with surrounding homeowners associations, community leaders, commissioners and council members is all part of the game.

“The most problematic obstacle for me,” Swanson recounts of his year-long process of public meetings before the planning commission, city council and citizen objections, “was all the time and money I spent just to have my C2 zoning changed to a PUD (planned unit development). I organized meetings with citizens and homeowners as-sociations to review my project mostly before but also during city planning and council meetings.” Swanson supplied drawings in color of how the facility

from lighting, physical features and

studies. The process included months of work to draw the layout of each unit by size and location. After six to eight weeks, the city reviewed and redrew before Swanson eventually returned to the city planning board and council for

have to be OK with “not knowing until

the end if you could win enough votes to get your project passed.”

Nolan shares similar experiences. He says zoning is typically tough on storage because cities sometimes fol-low an old school of thought that wants to put self storage in industrial parks, and that is no longer the self-storage model, at least not in urban areas.

“Austin, for example, is not some-where you want to cut your teeth on

getting someone to have the ability to put storage in there is going to be tough—and the impervious cover is-sues in Austin are crazy.

“In most cities,” Nolan says, “you can have a predevelopment meeting,

whether the city will back you in the zoning. A lot of cities will say, ‘Hey, we’re not going to give you the zoning you need because the zoning you need would allow a bar to come in here’ or something that they don’t want.” Nolan explains how eventually they might allow a special permit for storage, but

is not going to recommend that you get zoning, I’m not going to say always

away because now you have to go to a -

ing denial on a zoning issue. It’s just a tough row to hoe.

“Once you have proper zoning, then you have predevelopment meetings to

-ment will be there, the engineering department will be there, and the plan-ning department will be there. If this is

money and have an architect go with you. All the criteria is to be laid out by the city for you to build your project.

They’re going to tell you whether you

and what kind of building materials you can use. They may tell you need a certain percentage of masonry.”

WHAT REQUIREMENTS AND FEES CAN I EXPECT?Polk encourages independent owners to enlist the help of an expert or go to the city planning department directly for the

“Governing authorities may have non-negotiable architectural require-ments or fencing to shield your location from a residential area,” Polk states. “Some of the more challenging require-

overhangs, lighting, landscaping, para-pet walls, horizontal or vertical articula-tions and windows. All of these items can impact your project depending on the governing municipality.”

Impervious Cover

“You’ll be told the impervious cover requirements in your predevelopment meeting. If you’re going to have a gate,

the gate width needs to be. All of the city departments will be there to review your plans prior to you submitting them—and some things may be a deal killer for you.”

“Impervious cover restrictions can vary widely—50-60 percent down to 5-10 percent on the low side,” Nolan says. “Depending on what you’re pay-ing for dirt, that can be a huge issue. If

has to be grass versus 90 percent of it being buildable, it can really drive up the cost of your project.”

When speaking of typical landscap-ing requirements, Parham notes, “San Antonio just started requiring a land-scape architect for every development. This architect must submit a formal landscaping plan for approvals.”

Landscape “Landscape requirements are vastly

that is very, very restrictive to some-place like Houston, that is not so much,” Culbreth says. “If you’re build-ing on a site that’s more industrial, the


landscape requirements are generally a lot less than if you’re building in a really nice retail area that may be in the middle of a subdivision where we’re obviously going to have more land-scape requirements. Again, the civil engineers and their relationships with landscape architects are going to solve all your problems upfront by knowing what you’re up against before you ever really get into it.

Tree Ordinances “You’re going to have to either protect or replace foundational trees that are above a certain size,” Culbreth says. “If that’s the case, and you have to take out a 20” tree, then you cannot really go back and plant a 20” tree, but they will

inch trees to balance what you took out. So, tree ordinances are a big deal.”

Architectural Parham doesn’t mince words when it comes to architectural requirements, “HOA and/or any city association may

no sense and serve no purpose. These are called architectural features, meant to beautify the city or help your facility blend in with the overall city appearance. These features are annoying, but make sure you budget accordingly for these last-minute ‘beautifying’ changes.”

Facilities in high-end retail areas tend to have extremely stringent archi-tectural requirements. Culbreth says some buildings require all masonry or

-ponents on the exterior. “We build facili-ties for guys who are getting ahead of the curve by building out in areas that have not yet been built up but are bet-ting that they will be built up shortly so they are ahead of any requirements.”

“Architecture costs can range from

project. That’s a big variance in cost per square foot. The high side of that would be in metropolitan areas,” Nolan says.

Signage Culbreth says much of the time, sig-nage is limited to size, color and loca-tion. Signage is a topic owners should learn about early on. “The best signage for self storage is the actual roll-up doors. When you’re driving down the

road and you see a roll-up door, well, you know that is a self-storage facility. But in a lot of places, we can’t show the exterior doors on certain sides of the building. It’s relegated to the back or to a nonvisible side of the building, so we have to incorporate in the archi-tectural features of the building some-thing that either looks like doors or reminds people of a door. Often times in multi-story facilities what we’ll do

in the building so people can see the doors inside the building through the glass, which is not controlled as much if we can get away with using metal doors as our signage.

Fire Code Nolan warns of constant new criteria,

stringent on having sprinkler systems. “That can mean a quarter of a million dollars or more just to add a sprinkler

Nolan says. “If you’re building a mul-

quarter of a million dollars isn’t that big of a deal. But, if you are going to build a single story and your overall develop-

-development meeting is where you, your architect and your engineer sit down

problems prior to spending the money to get your full architecturals done.”

Parham advises you to stay current

building code and amendments your governing jurisdiction adopts. “Based on the type of construction, building

distance, you may be required to have an automatic sprinkler system. Most cities are moving to the 2015 Interna-tional Building Code and International Fire Code,” she says.

Impact Fees Cities and counties typically charge development fees including zoning application fees, impact fees, tap fees, building permit and inspection fees, according to Jones.

Nolan notes a wide range on fees. “In Corpus Christi, for example, the impact fees are nominal for tie-ins to

sewer and water. But when you go into Harris County or Fort Bend County, they can be horrendous. You also deal with MUDs, especially in Houston markets. These are private entities providing the sewer and the water, so those develop-ment impact fees can be huge as well.”

HOW MUCH IS THIS VENTURE GOING TO COST? “My fees and development costs be-fore I turned dirt on my current project

construction cost for 145,000 square feet of rentable space with 70 percent climate controlled,16 total buildings, and an all-concrete drive was ap-

included). City fees for the PUD were

actual building permit for my 700-plus -

son says.Nolan says not including the land,

foot, which is a huge variance. “In our industry, it’s so varied. You can almost liken it to home building. You can build

how nice it is, what’s inside of it and the area you’re building in.

In a downtown area, you may pay

statistical area, would not be where a

upside of building in a downtown area is if you are able to build it, the bar-rier to entry for someone to come in right next to you is going to be pretty

WHAT MISTAKES DO NEW DEVELOPERS MAKE?Parham and Loeb both agree that mis-takes happen when developers don’t do their homework. “They purchase the property before feasibility, zoning, etc., is completed. They underestimate their construction costs,” Parham says.

“Or, they try to build it on the cheap,” Loeb continues. “They skip the general contractor or instead of getting a full set of architectural plans, they go with a design set of plans, which have less detail. We do full architectural


AVOID OVERBUILDINGCommon mistakes are focusing on the physical development and making broad and sometimes misguided assumptions about the market. No level of excellence in design and building can compensate for a grossly overbuilt market.

– RICK JONES, Advantage Self Storage Advisors

plans and drawings. There is a less expensive way of doing it, but honestly, design plans have less detail. Archi-

115,000 square foot architectural plan

dollars. Designers can draw it up that

going to include all the pages or specs.“The most common mistakes I see

today relate to unit mix and project size,” Jenkins says. “Many developers are building way too many small units because the higher rent per square foot helps their pro forma and they are building way too much total square footage to make their numbers work.”

“Additional common mistakes are focusing on the physical development and making broad and sometimes mis-guided assumptions about the market,” Jones says. “No level of excellence in design and building can compensate for a grossly overbuilt market.”

“One, not having their design team early on. Two, not realizing how long this process actually takes,” Culbreth says. “It’s not unusual for us to start construction 18 months to two years after someone starts deciding that ‘hey, this is the site I want to use.’ It’s not uncommon for our construction to take 10 months, so you’re looking at, in real-

ity in some areas, 2 1/2 years from the

to actually opening the doors. Most

the overall realization of the schedule

Inexperienced developers underes-timate city project design requirements, market sustainability and construc-tion schedules, Polk says. “Ignoring new design, construction and industry trends based upon the success of previous construction projects can potentially mean missing the boat on substantial savings in the future.” Polk points to the example of both LED lighting and alternative storm water de-tention solutions as advancements that can minimize maintenance costs and increase storage space respectively. “Again, enlisting the help of your gen-eral contractor early on in the design phase can minimize setbacks.”

timer,” Nolan says, “you don’t hire a contractor who specializes in build-ing convenience stores because the misconception is we are a simple product, but there are little nuances that

doing construction. So, somebody who builds self storage on a daily basis will be better equipped to handle that.

“Each project has its own night-mare, whether it’s zoning or sprinklers. I’m not trying to be all doom and gloom, but something will usually come up to bite the butt of a developer and after building 10 of these, it’s never the same thing over and over. It’s more like,

impact fee,’ or ‘Oh, I didn’t realize I had

to put a sprinkler system in here until

or ‘Oh, I didn’t realize it was going to take eight months to get zoning.’ Not to be negative, but some things on one

else bites you.“Become as educated as you pos-

sibly can in this industry before you even jump into it. Spend three days at a TSSA conference, sit in on seminars and classes, and understand some of the things you don’t know.”

BOTTOM LINE?“The moral of the story,” Loeb says, “is that development is not easy; it needs to be experienced. Of the four big public REITs—Public Storage, Sovran, CubeSmart, ExtraSpace—only one of them has developmental bones and that’s Public Storage. The rest of them rely on other people to do that because they don’t want to be in that game. They would rather have local develop-ers, who know the business, assume all those risks. Development is tougher than it used to be because land is more expensive.” Loeb says, adding that cities also have more entitlements,

Having a project budget in hand from the outset and being able to pay your bills are the bottom line. “There are three major costs of construc-tion. You’ve got your land costs, your construction hard costs and soft costs, which includes development fees, ar-chitects, civil engineers, permitting fees and interest-bearing fees.”

Besides having the total project cost in hand, newcomers need to under-


EXPERIENCE MATTERS MOST The moral of the story is that development is not easy; it needs to be experienced.

– ROBERT LOEB, Sure Point Self Storage

stand there is a lengthy timeline from land search to lease up. Loeb put that timeline between three to four years. By the time the facility is full—and most experts put that between 85-90 percent—a newcomer must know, bottom line, that the risk was worth the reward. Does their stabilized net

satisfy having taken the risk? To learn, grow, sustain and survive

in the self-storage industry, know how much net operating income the prop-erty will produce. “That’s the numera-tor,” Loeb explains. “Then you divide that by your total investment, your denominator, and that will tell you how

The bottom line is that if you decide to build, you need to go in with your eyes wide open. You need to be fully aware of the risks and obstacles you face. You have to do your homework and be prepared to do it right, or go home.

Karen Aroian ([email protected]) writes and edits marketing content for the self-storage industry and their thought leaders. She owns Aroian Editing and Communica-tions, which works strategically with indus-try leaders and agented authors to develop content that matters in their market space.

FOUR OF OUR INDUSTRY’S BEST KEPT SECRETSby Karen F. Aroian

E very industry has things that take time to learn, practice and experience. Sometimes the best things we can learn through the experiences of others are

in the “Oh, by the way” moments that linger at the end of a conversation. We call these: best-kept secrets.NOLAN: “Most cities won’t tell you this but the reality is they’d rather take a two acre tract and put an Academy Sporting Goods on it so a portion of that sales tax goes back to the city. We don’t generate any sales tax for the city, so they’re hesitant, even if they don’t have a problem with it being a storage facility, to let the property go be-cause, at least at this point, they won’t collect any sales tax on it. They’ll get property tax on it, but most of that goes to the county, not the city.

“That’s another issue with the MUDs. A lot of times the MUDs have their own tax, based on your valuation, but you really need to understand fully all your expenses past pay-roll and electricity, water, bank fees or what municipal fees are out there. Some areas have property taxes that are un-der 2 percent, some are more than 3 percent and it makes a

PARHAM: “If you are looking for property, understand that

across my desk and maybe one or two will move forward in the development process. That’s the nature of the game. The biggest and most successful players in this industry

are those who didn’t get discouraged by this tedious pro-cess, but instead just kept moving forward. They became successful because they did their homework and didn’t force a property or pro forma to work.

funding, even before you break ground, to get you through the feasibility and approvals process. This process can be lengthy and costs can add up.”POLK: “Careful planning and preparation are key to project success. Customers need to understand the true cost of construction, from the initial design stages of a project to the moment they are handed over the keys to their new facility. It can be frustrating for customers who receive quotes from manufacturers who do not educate the cus-tomers on true construction costs. Developing long-term relationships based on honesty, reality and a commitment to providing the best possible service at the best possible

-tomer service after the project is completed is important to project success.JENKINS: “Asking and published rents are often much higher than average achieved rents. Be very careful when

based on the time of year. As an example, rents peak in the summer. If you are shopping competitors’ rates in the summer, you will be overstating projected rents as you will not be able to obtain these rents year round. The opposite is true if you shop in the winter.”


B I L L B E L L O M Y832 623 1690

M I C H A E L J O H N S O N713 775 6478

J O H N A R N O L D940 312 3942

HOUSTON, TEXAS UNPRICED742 UNITS

858 UNITS

5,115 UNITS

674 UNITS

748 UNITS

567 UNITS

611 UNITS

607 UNITS

351 UNITS

6oo UNITS

631 UNITS

456 UNITS

352 UNITS

6o5 UNITS

146 UNITS

575 UNITS

408 UNITS

445 UNITS

239 UNITS

414 UNITS

319 UNITS

458 UNITS

146 UNITS

242 UNITS

282 UNITS

206 UNITS

198 UNITS

193 UNITS

203 UNITS

202 UNITS

116 UNITS

86 UNITS

49 UNITS

60 UNITS

34 UNITS

SAVANNAH, GEORGIA

NEW ORLEANS, LA

LEAGUE CITY, TEXAS

DALLAS, TEXAS

DICKINSON, TEXAS

SPICEWOOD, TEXAS

SOUTHLAKE, TEXAS

CEDAR PARK, TEXAS

ATLANTA, GEORGIA (CO)

BLUFFTON, SOUTH CAROLINA

OMAHA, NEBRASKA

KILLEEN, TEXAS

SAN ANTONIO, TEXAS

OMAHA, NEBRASKA

TAYLOR, TEXAS

JACKSON, MISS ISS IPP I

HOT SPRINGS VILLAGE, ARK

LAGUNA VISTA, TEXAS

LAREDO, TEXAS

VIDOR, TEXAS

HOT SPRINGS VILLAGE, ARK

PINEHURST, TEXAS

MABANK, TEXAS

CABOT, ARKANSAS

SPRINGDALE, ARKANSAS

WICHITA FALLS , TEXAS

BEAUMONT, TEXAS

LAKE HAMILTON, ARKANSAS

BESSEMER, ALABAMA

TAYLOR, TEXAS

NEDERLAND, TEXAS

NEW CANEY, TEXAS

AUSTIN, TEXAS

ARP, TEXAS

UNPRICED

UNPRICED

UNPRICED

UNPRICED

UNPRICED

UNPRICED

$14 ,000 ,000

UNPRICED

$9 ,000 ,000

$7 ,500 ,000

$5 ,500 ,000

$2 ,900 ,000

$5 ,000 ,000

$2 ,500 ,000

$4 ,500 ,000

$2 ,550 ,000

$3 ,200 ,000

$2 ,100 ,000

$3 ,100 ,000

$1 ,850 ,000

$3 ,100 ,000

$1 ,850 ,000

$1 ,600 ,000

$1 ,600 ,000

$1 ,500 ,000

$1 ,300 ,000

$1 ,050 ,000

$975 ,000

$800 ,000

$645 ,000

$450 ,000

$450 ,000

$450 ,000

$350 ,000

E XC L U S I V E O F F E R I N G S from


DEVELOPMENT COST WORKSHEET“PRICES VARY GREATLY,” says James Bratton, owner of MST Constructors, Inc. “During the conceptual and feasibil-ity phase, these variances should be evaluated with city requirements and planning. The target budget will get

level of planning has its own cost and

expenses. For example, a soils report -

lish products and site foundation costs.

shows easements. It helps provide the

rentable, conceptual drawings, city plan-ning meetings and feasibility studies and

million dollar mistake.”Depending on whether you build a

single story or multistory facility, how much square footage you have and many other factors, your costs can vary widely. The following is a list of items you will need to budget for.

TOTAL DIVISION 1 (Ave. $650 per day)*

$

DIVISION 2: SITESite Demolition

Building Demolition

Clearing & Grubbing

Earthwork

Driven Piles

Paving

Striping

Erosion Control

Sanitary Sewer

Storm Sewer

Water

Fireline

Miscellaneous - Site Utilities

Site Electrical

Site Concrete

Site Masonry

Fences & Gates

Landscaping

On Site Painting

Miscellaneous Site Costs

TOTAL DIVISION 2 (range $250,000 - $850,000)*

$

DIVISION 3: CONCRETEConcrete Slabs

Slab Accessories

Basement Wall

Concrete Decks

Miscellaneous Concrete items


$

PROJECT:

LOCATION:

SIZE:

UNITS:

DIVISION 4: MASONRYBlock/CMU

Stone

Brick

Miscellaneous Masonry Items

TOTAL DIVISION 4 (range $0 - $340,000)*

$

Steel Erection no deck

Structural Steel

Metal Fabrications

Miscellaneous Steel Items


$

DIVISION 6: WOOD & PLASTICSRough Carpentry

Architectural Woodwork

Casework

TOTAL DIVISION 6 (range varies)*

$

DIVISION 7: THERMAL & MOISTURE PROTECTION

Insulation

Walls

Roof Specialties & Acc.

Flashing & Sheet Metal

Sealants & Caulking


$

DIVISION 8: DOORS & WINDOWSMetal Doors & Frames

Wood & Plastic Doors


Roll Up Doors

Specialty Doors

Hardware

Glass & Glazing


$

DIVISION 9: FINISHESGypsum Board Systems

Ceilings

Stucco

Cement Wall Panels

Flooring

Tile

Painting/Wall Covering

Miscellaneous Finishes


$

Toilet Partitions

Toilet Accessories

Miscellaneous


$

Security

Signs

Wine Room

TOTAL DIVISION 11 (range $0 – 22,000)*

$

Mini Blinds

TOTAL DIVISION 12 (range varies)*

$

Pre-Engineered Structures

Corridor System

Corridor Accessories

Secondary Steel Framing

M Panel Unit Partitions

Non-Structural Unit Partitions

Purlins

Misc Items


Elevators


$

Fire Protection

Facility Plumbing

HVAC

TOTAL DIVISION 15 ($0 - 210,000)*

$

Building Electrical

Site Electrical

Fire Alarm System


$

TOTAL COST (range $1 million - $3.5 million)*

$

CONTRACTORS INSURANCE (range $0-$265,000)*

$

PROJECT TOTAL (range $1 million - $4 million)*

$

COST PER BUILDING SQUARE FOOT (range $38.46 - $58.20)*

$

ALTERNATESARCHITECTURAL ENGINEERING (range $0 - $90,000)*

$

*Range of costs is based on construction bids for three facilities in the last six months. 1.) A single-story

gross 27,200 square foot non-climate metal facility with concrete parking lots. 2.) A three-story gross

47,100 square foot progressively framed project with a single-ply roof. 3.) A single-story gross 64,850

square foot facility with masonry exterior, high percentage climate control, expansive soils, fire-

sprinklers throughout with storm drainage.

James Bratton has 37 years of experience as a self-storage builder and developer, consulting with and advising developers throughout the U.S.

ASSOCIATION NEWS


SAVE THE DATE

The Woodlands, The Marriott Woodlands Waterway

TSSA ANNUAL CONFERENCE

How Has TSSA Made a Difference in Your Business?MEMBER CONTESTTo celebrate TSSA’s 30th anniversa-ry, we are looking for your member-ship stories. How has TSSA made a

Please take a couple of minutes to

form telling us how TSSA has helped your business. Please add enough information to make your entry stand out and we’ll contact you to follow up. Don’t worry, you don’t have to be the next great novelist to win. TSSA

category and follow up with you to pen your story.

A winner will be chosen from each category for a chance to win their

registration, a 2017 legal seminar reg-

CATEGORIES: Under 200 units

201-500 units

More than 500 units

CONTEST RULES:Entries due by June 15. The top three

TSSA members will vote on the

will be open to members and will end no later than July 15. The winner in each category will be announced in the August newsletter.

ELIGIBILITY AND LIMITATIONS: Must be a current TSSA member (owner or operator).

RELEASE: By participating in the contest, you are allowing TSSA to use your story to promote membership in TSSA.


FINANCE SECTION


A fter several years where relatively few new projects came out of the ground and construction loans were hard to secure, once

again more and more owners are able to obtain construction loans and new facilities are popping up throughout Texas. With little new supply and the major Texas metros all showing strong economic and geographic growth, most Texas self-storage owners have been able to achieve high occupan-cies while increasing rents. The values have not only increased because of

compression of cap rates have further increased values. In many instances,

self-storage facilities are being sold well in excess of replacement cost. For all these reasons stated, the market is ripe for new development to take place.

Ron Havner, CEO of Public Stor-age, stated on the last quarterly analyst call that he “estimates 1,000 to 1,200 properties are in some stage of development in the U.S. representing possibly 2% to 2.5% of current supply.” That being said, knowing the activity in Texas, it is quite possible that 20%

place in Texas alone.Whether you are an experienced

important to understand the informa-

tion you will need to supply lenders for a self-storage construction loan.

EXAMINING THE LENDING LANDSCAPELocal and regional banks are the most common sources for construc-

equipped to understand the local real estate market’s dynamics and therefore can become comfortable with many of the localized risks which out-of-town lenders may not be able to understand or may be unwilling to accept. Regional bankers are most often an alternative for larger and experienced opera-tors. Many times they already have an

Your Quest to Secure Construction FinancingWhat You Need to Know to Obtain a Self-Storage Construction Loan

by Neal Gussis


established relationship and proven track record with a developer and are willing to follow their banking customer to a broader footprint. Also, often these projects are relatively larger and may be a better match because the regional lenders comparable may have a larger lending capacity to one borrowing relationship.

You can likely expect construction loans to be structured at 65 percent to 75 percent loan-to-cost and no more than 70 percent of stabilized value and have a two-to three-year initial term. The loan will be funded through draw request throughout the construction period, and then may also provide for the funding of operating shortfall and interest-carry through lease-up break-even. A construction loan will be re-course which requires personal guaran-tees. These loans are often structured to convert to an amortizing schedule

“burn-down” or be reduced at certain occupancy or operating performance hurdles. The majority of construction loans are based on either a Prime Rate

-ing the interest only period.

Lending resources have expanded -

der the SBA. The SBA programs have opened up the opportunity for smaller

is now a lender, Live Oak Bank, which has a specialized vertical dedicated to self storage. Jernigan Capital also represents a new lending source that is specializing in providing higher leverage

non-recourse post construction and operating. Jernigan Capital looks to fund projects that would be consid-ered institutional quality and requires state-of-the-art industry management,

management companies.A well prepared loan package

serves as your sales document to the bank. It is imperative that this pack-age includes all the information that will

make their decision to approve your loan an easy one.

Banks lend on the premise of a

relationship. That is to say, initially, the lender will look at the strength of the ownership before they will even start underwriting and evaluating the viability and strength of the development proj-ect. The banker will initially focus on the individual(s) making up the ownership. You should be ready to provide the lender with the following information: Bio for all key individuals/principals Name(s) of the loan guarantors with approximate net worth and liquidity for each

Background and experience for key entities and vendors involved in the project including: sponsor entity, management company, general con-tractor, and architects and engineersNext, you need to provide the

information for the lender to understand the physical aspects of the proposed development. Among the items that you will need to provide related to the actual property are as follows: Survey Site plan showing placement of planned improvements

Floor plans Elevations Renderings, if available Municipal approvals, permits and zoning information

Project schedule – target funding and construction schedule

-nents that need to be presented which support the construction costs and projected lease-up of the project. The lender will want to see the following: Schedule of total project costs – soft costs, site work and construction budget hard costs.

Land value and support for such value

Proposed unit mix Pro-forma operating Income and Expenses

Monthly thru construction and Lease-up thru stabilization

Annually – 5-year projection Existing debt Information – if applicable

EXAMINING THE MARKET All of this information addressed already is great, but doesn’t mean a thing unless the market will support the project. Given the amount of new con-

struction in many of the Texas markets, it is essential to understand the current supply, as well as which projects are slated to be built. It is essential to show the lender that the local market and sub-market can support and absorb new supply and that pro-forma rent projections and lease-up schedules are viable. A feasibility study should

or, in instances where the developer is experienced, an internal documented feasibility study should be completed. At a minimum, a feasibility study should address the following issues: Zoning – any variances needed mile markets, also addressing geo-graphic and demographic patterns, competition, size, location, quality and rental rates

Supply and demand and absorption analysis

Market pricing – will the market sup-port pro-forma assumptions?

Construction costs – projected costs compared to industry averages or standards.Some developers utilize the ser-

vices of a mortgage broker to assist

best loan terms and interest rates. A mortgage broker works as an advocate

You can expect a mortgage broker

package and market and negotiate to their network of lenders as well as the

Undoubtedly, securing a site, put-ting together the ownership group and the development team, obtaining the necessary permits and approvals, and

of heart. However, given that you have done your homework and the project is a success, the rewards of your time and hard work will be well worth it.

With more than 23 years of experience as a national self-storage mortgage broker and advisor, Neal Gussis is a Principal at CCM Commercial Mortgage, where he specializes in securing debt and equity for self-storage owners nationwide. He can be reached at (224) 938-9419 or [email protected].

FINANCE SECTION


Why the 7(a) Loan Program May Be Right for Your BusinessThe Small Business Administration + The Self-Storage Industry

S mall businesses are critical to

Business Administration was established to strengthen the

nation’s economy. The SBA focuses on owner-occupied businesses and cash

guarantees bank loans to small busi-nesses that meet their standards.

Self storage has always been a prof-itable industry, but it took 57 years for it to become eligible for the SBA’s lending

program. In 2010, owners with busi-

became eligible to qualify for loans partially guaranteed by the govern-ment. The industry can use SBA loans for ground-up construction projects, property expansion and rehab, debt

acquisition, working capital and equip-ment.

It’s important to know that 7(a) loans are not without rules and regulations.

both SBA lending and the industry. Many banks have SBA divisions but

focuses on these types of loans.

SBA VS. CONVENTIONAL LENDING

this loan program and conventional loans. Conventional loans have always been the primary way for self-storage

by Terry Campbell


need in the industry. However, the SBA 7(a) program is a viable program that can help many soon-to-be self-storage owners achieve ownership.

loan program for self-storage own-ers. This program allows you to get started with minimal cash up front, so you can keep money in your pocket for operating expenses and invest it back in your business. It is also possible to have a new construction loan with a 10 percent equity injection versus the 20

loans require. In addition, these loans allow additional working capital to be rolled into the loan. For a potential self-storage owner to get through a period of increasing occupancy, working capital is essential. A working capital

gap until break-even occupancy and ultimately stabilization.

Additionally, 7(a) loans can be

business because low monthly pay-

are no balloons or fees that occur in

conventional loan. Traditionally, small businesses have

faced challenges securing conventional loans. A potential borrower should expect to give a bank several years’

a history of steady growth when apply-ing for a conventional loan. Because

work history, these factors will drasti---

between revenues and expenses a

business incurs at any given period. If there’s more cash coming in than going

-es are higher than revenue, the cash

applying for an SBA loan.

loan can be paired with a piggyback conventional, or you can utilize the 504 Loan Program depending on the use of proceeds. A 504 Loan consists of the relationship between the SBA, the lend-

Company). Although a viable option, the 504 loan program cannot be used for working capital needs, repaying or

WHAT A LENDER LOOKS FOR IN A BORROWERSBA lenders look for many of the same traits in borrowers as conventional lenders do, often referred to as the 5 Cs: credit, character, commitment, col-

lenders prefer to see a credit score of over 700 and a detailed track record of the borrower’s spending habits.

Character is apparent through a borrower’s historical working accom-plishments and his or her plan for the overall success of the business.

Commitment is how involved a borrower is with the project and is frequently determined by his or her willingness to put cash in the project.

Collateral is measured with the number of assets a borrower has to

secure the loan and their saleability

of SBA 7(a) loans is that they are not collateral driven.

factor for lenders. The bank will

determine whether the business can

expenses and new loan debt. Some of the basic requirements of the SBA are:

The loan request must be a good credit (as determined by the bank).

You cannot be on probation or parole.

You cannot be in default on any other government debt obligations.

You must be a US citizen or a legal resident alien.

Having both your business and -

cally increase your chances of getting a loan.

WHY THE SBAFrom ground-up construction to con-versions, the SBA 7(a) loan program is an excellent option for the self-storage

driven lending, borrowers can feel secure in their business decisions. Live Oak specializes in loans to the industry and has structured our lending and funding solutions around the industry’s

Terry Campbell joined Live Oak Bank with over 21 years of experience in the self-stor-age industry. Terry previously held various roles with a leading self-storage supplier. Starting as a drafter/estimator, he advanced to Vice President of Sales and Marketing and Executive Vice President of Operations. He has been part owner and managing member of a 76,000 square-foot self-storage facility in Northern Virginia. Terry has also served on the Editorial Advisory Board for the ISS Magazine and the Board of the North Carolina Self Storage Association since its formation. He is a frequent pre-senter at industry events and trade shows as well as a writer for industry publications.

DO YOUR HOMEWORKBecause 7(a) loans are based off cash flow and work history, these factors will drastically affect your ability to secure financing... Knowing where you stand with cash flow is critical when applying for an SBA loan.


…he is like a man building a house, who dug deep and laid a foundation on the

shake it, because it had been well built. “But the one who has heard and has not acted accordingly, is like a man who built a house on the ground without any foun-dation; and the torrent burst against it and immediately it collapsed, and the ruin of that house was great.” Luke 6:48

O k so it may be a bit of a stretch that feasibility studies are Bibli-

There is great logic in basing the

platform. Knowing what is ahead of you will help you to understand the risks in self-storage development and when storms occur, you may be well pleased that you dug deep and found a solid tie point to build upon.

FEASIBILITY STUDY VS. MARKET STUDY

-though a comprehensive feasibility study will include a market study. A market study may be a place to start, but the decision to move forward with the devel-opment should go much further.

A good market study will inform the reader of past, current and predic-tive market conditions. The author will inform how the subject property is positioned in the market based on the data presented. The market study will be used to create the assumptions and draw the conclusions stated in the fea-sibility study (which cannot be properly prepared without a market study).

A good feasibility study will concen-trate on the econometrics of the deal

focusing on internal rates of return, developer’s yields and return on cost. The feasibility of a project can only be determined by calculating the returns. If they are acceptable, the project is feasible. It is entirely possible to have a very strong market, and a market study recommendation that is an absolute “yes,” but if the project cannot produce

then it is not feasible to build.The most critical elements are:

Cost assumptions Land, entitlements, soft costs

Lease up Time, marketing costs, negative

Critical Questions That Must Be Answered in a Feasibility Study:1. At what percent occupancy is the project stabilized, and how long will it take?2. How long will it take to get entitlements, and how likely are they to be obtained?

Will public hearings be required, and if so, how many and when are the meetings?4. What will be needed to make a formal submission (how much

engineering and architectural design must be completed to obtain approvals?5. What is the current zoning? What zoning classes allow for self storage? What will it take to obtain the approvals?6. What professionals will be required

their lead times and costs?7. that need consideration?8. Are there new projects under consideration?9. How is the project going to be

10. When will they provide a term sheet?11. Who and where is the equity coming from?12. What is the expected return on equity?

When is the expected return of equity?14. Who will guarantee the debt?15. How will the construction loan be taken out?16. Who is going to build the project?

FEASIBILITY STUDIESby RK Kliebenstein

The feasibility of a project can only be determined by calculating the returns. If they are acceptable, the project is feasible.


Copyright 2016 Live Oak Banking Company. All Rights Reserved. Member FDICliveoakbank.com/self-storage

SELF-STORAGEGROUND UP CONSTRUCTION | ACQUISITION | REFINANCE | RENOVATION

NATIONWIDE FINANCING FOR

Terry Campbell General Manager

Over 21 Years of Self-Storage Industry Experience

[email protected]

17. Type of contract for construction (G-Max/Cost Plus)?18. Who will the general contractor be, and how much self-storage experience does he have?19. When can they deliver a schedule of values?20. Who is going to manage the project?21. What is their experience with lease up projects?22. What is their assumption for absorption per month?

How will they execute a lease-up strategy?24. How were the rent projections determined?25. What resources were used to determine occupancy and rental rates?

a. REIS?b. Storetrack?c. Self-storage data specialists?d. Field corroboration?

26. Who are the competitors and how

27. How do the hypothecated expenses match up against reality, and how was reality determined?28. Are there “if then” scenarios?

What if:a. Interest rates rise?b. Cap rates rise?c. Lease-up is protracted?d. Existing competitors drop rates?e. A recession occurs?f. What if the market or feasibility study is wrong?

29. Does the preparer of the study have

a. Is the preparer insured against errors and omissions? Professional liability?

interest?c. What is their relation to the borrower? Developer? Owner? Operator? How is demand for more square

footage in the market calculated? a. Is the preparer more concerned with supply than demand? What is the exit strategy and when?

a. At the time entitlements are obtained?

c. At stabilization?

These are just a few of the consid-erations for determining the feasibility of a self-storage project. It is a complex process and can be a daunting task for the unprepared. A good preparer will gladly share a copy of their work prod-uct with you when you are considering hiring them. Ask for references—not the ones they want to give you, but for the last three studies completed. Call the re-cipients and discuss the project and the report. Was it on time? What was the total cost? What were the conclusions?

Finally, the feasibility should be part of the foundation upon which the proj-ect is built. A good and accurate study will be like the rock the foundation is imbedded in—strong and durable.

RK Kliebenstein is the Vice President of Acquisitions for Metro Storage. A former consultant who has prepared thousands of studies, RK no longer performs the service, and believes he can provide an objective analysis of the process, with no ulterior motives or interests. Just the facts!


STUDY ELEMENTS FEASIBILITY STUDY MARKET STUDYCONCLUSION AND FINDINGSAREA CHARACTERISTICS MSAMARKET ANALYSISCITYSUBMARKET CONDITIONSCOMMUNITY:

Overview of storage marketMap of Competitors

Competitor ComparisonRental Rate ComparisonHistorical Rate AnalysisClimate Control Premium

Occupancy Analysis

SITE ANALYSIS & COMPARISON

DemographicsSUPPLY ANALYSIS

SF/CapitaNew Square Footage in MarketExpansion Capability of Competitors

Organic and Land to PurchaseDEMAND ANALYSIS

Consumption MarkerMarket OwnershipPopulation Growth

Housing UnitsHouseholds

Seasonal Conditions

StudentMilitaryVacation/2nd Home MarketDemographic Anomalies

“Soccer Mom” IndexReversion Analysis

METRIC DELTA COMPARISONRESUME OF CONTRACTORRESUME OF DEVELOPERRESUME OF OPERATORRESUME OF ENGINEERRESUME OF ARCHITECTRESUME OF ZONING CONSULTANTRESUME OF PREPARER OF THE STUDYSCOPE OF WORKLIMITATIONS OF THE STUDYSCHEDULE OF VALUESDRAW SCHEDULETERM SHEET FROM LENDER WITH DEBT ASSUMPTIONSNUMEROUS INTEREST RATE SCENARIOS EQUITY EXPECTATIONSFINANCIAL STATEMENTS OF GUARANTORSRENT COMPARABLE ANALYSIS COMPARISON OF PROJECT TO COMPETITORSUNIQUE MARKETING PROPOSITIONEXIT STRATEGYPROJECT SALES COMPARABLESOTHER POTENTIAL LAND OPPORTUNITIESGROWTH PROJECTIONS FOR THE COMMUNITYPOLITICAL CONSIDERATIONSDETAILED CASH FLOW PROJECTIONSNUMEROUS CAP RATE SCENARIOSDETAILED PROJECT DESIGN CONSIDERATIONSUNIT MIX“IF THEN” LEASE UP SCENARIOSDISCOUNT AND CONCESSION DESCRIPTIONS AND PROJECTIONS

ELEMENTS OF A FEASIBILITY STUDY VS. MARKET STUDY


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A Texas Self Storage Association Special SectionUpdate

TSSA Legal

Spring/Summer 2016

IN THIS ISSUE:Online Foreclosure Auctions: Are they Legal?

Goldbook© Changes

Online Foreclosure Auctions: Are they Legal?by Connie N. Heyer, TSSA Legal Counsel

I n the Internet age the question arises more and more: Can I hold my Chapter 59 auctions online? Unfortunately, due to the era in

which the statute was written (well prior to the Internet!) the statute does

detail is outlined below, but in short each business owner simply needs to make a business decision whether he or she believes online auctions are

Chapter 59 of the Texas Property Code outlines the requirements for self-storage lien auctions. Chapter 59 requires a “public sale,” also referred to as a “public auction.” The law also requires the sale to take place “at the self storage facility or a reasonably near public place.” After speaking with several representatives of online auction service providers, they be-lieve that their products satisfy state law because though the bidding is online, a sale does not occur until money is exchanged, and the sale is

at the facility, thus an online

auction is held “at the facility.” (Under their products/bidder rules, the high bidder is required to come to the facility to consummate the sale.)

TSSA members should make their own decisions about Chapter 59 lien sales. In considering online auctions in lieu of in-person auc-tions, relevant questions to consider

may include: (1) will your facility’s sale and disposal legal liability insur-ance cover a sale held by online auction? and (2) would you be com-fortable making the legal argument that an online sale consummated at

the facility” and “at a public place” requirement?

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Self-Storage Legal Q & Aby Connie N. Heyer, TSSA General Counsel

Q: Can or should multiple units be on the same lease, or is it better to have separate leases for each?

A: Ideally, in my opinion, there should be one lease with multiple

1. In a situation where you

each rented space, you may not disable every access code—just the one for the spaces that are delinquent. Obviously, this means that when a tenant is delinquent on only one unit but has multiple units, they cannot be coded out of the facility.

2. This avoids the “shell game” where a tenant pays up on one unit and moves all of his items into that unit before you overlock the others.

For example, if the tenant rented three units from you, all three units would be listed on the lease, and the rent listed in TSSA lease paragraph 4 (and other paragraph 4 fees, as appropriate) would be three times the rent for one unit, or each unit would be listed with their respective rental amounts if they were not all the same.

If all units are on one lease and the tenant becomes delinquent, you may overlock all units. In this situation, the tenant cannot simply write you a note and say “the enclosed check for rent is only to be applied to unit 100.” Rather, the TSSA lease expressly provides that you may apply payments received to any obligation due under the lease, regardless of tenant direction (see TSSA lease paragraph 11). So, in this case, you would presumably split the payment three ways and apply partial payments to each unit.

Q: Is it ok to proceed with eviction or foreclosure if a tenant only provided a P.O. Box for an address?

A: For foreclosure, this is not an issue. The notices must be sent to

the last known address provided to you by the tenant (either in the rental agreement or in a subsequent written notice from the tenant). This address can be a P.O. Box, street address—whatever the tenant has provided to you.

For eviction, you must have a residential street address. This is

petition, the lawsuit must be served (service of process) on the tenant at his residence address. The TSSA Tenant Information Sheet asks for the tenant’s mailing address, and also contains a separate line asking for the tenant’s street address if the tenant’s mailing address is not his residence. This is one of the many

Information Sheet. If you need to evict a tenant and don’t have his

street address through a skip trace service.

Q: We recently became aware that we have a tenant who is storing cooking oil inside the unit. There has been a spill. Can we force them to show us what is inside? If we don’t like what they are storing, can we evict them?

A: Your rights to enter the unit are outlined in TSSA lease paragraph 18. Assuming you are using the TSSA lease, you may enter without notice if you believe there is an emergency situation. You may also make written request to the tenant for entry, and if he doesn’t arrange entry within the time period you give him (you must allow at least 7 days), then you may enter. You may use TSSA Appendix CD form SP-1 “Request for Access to Tenant’s Space” to request entry. It is not legally required but it is best to send the request via a method by which you can prove it was sent

similar method.

Under any circumstances (for any or no reason) you may also provide the tenant a notice of lease

termination. TSSA lease paragraph 9 allows your facility to give any tenant a 15-day notice of lease termination. You may use TSSA Appendix CD form E-1 “15-Day Notice of Termination of Storage Space Rental Agreement” to provide this notice. Again, it is not required, but it is suggested that you send this notice

mailing that provides evidence of

tenant has provided you with an email address).

In circumstances where the need

is better in my opinion to simply give a 15-day notice of lease termination rather than to give a three-day notice to vacate for a breach of the lease. This is because if you give a three-day notice to vacate due to breach of the lease, at the eviction trial you will need to prove up the breach of the lease. It is far easier to take that

judge that you terminated the lease, but the tenant didn’t get out by the end of the 15-day period—there can be little dispute about that.

If the tenant does not move out at the end of the 15-day period,

eviction is outlined in detail behind the TSSA Goldbook© “Eviction” tab.

Q: Step 2 of the regular foreclosure article in the TSSA Goldbook© gives two options to carry out the required “seizure” of the unit. One is “Option 2: Overlock + send Notice of Claim.” How do you provide a description of the contents in the newspaper ad if you don’t cut the lock and view the contents?

A: You will need to cut the lock prior to publishing the newspaper ad. But, you need not cut the lock right away in order to accomplish the “seizure” requirement of the foreclosure steps. Some facilities choose not to cut the lock right away because tenants often pay in full. At

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that point, the facility can just remove their overlock and the tenant doesn’t need to buy a new lock.

In Texas, you really shouldn’t be

at the auction sale. At some point before you publish the newspaper ad, your facility will need to cut the lock in order to publish a general description of the property in the newspaper.

Q: In our auction sales, we occasionally have a situation where no one wants to bid. Our facility at that point bids so we can complete the auction and clear the unit. How low can you bid if no one is bidding? Can we then throw away the unit’s contents?

A: There is no minimum bid

What is key is that you provide all the required notices, including the Notice of Claim and the two newspaper ads. This gives fair notice to the tenant

and the public that this auction will be held. It is not anyone’s responsibility to make people come to the auction or place a bid.

Once the high bidder acquires the contents, he or she can do what he or she wishes with the contents, including throwing them away, giving them to charity or selling them

or the next foreclosure auction (there is no need to go through the auction process again, the contents are now yours to be sold, just like a garage sale). It is not required, but some facilities choose to attempt removal of any items that appear to be personal items, such as scrapbooks, to hold them for the tenant to later pick up.

If there are no bidders, and you do not bid on the unit, you would have to restart the procedure over again, sending out new notices, new newspaper publications, etc. So, if the unit does not sell at the foreclosure sale, the tenant is

just going to get more and more indebted to the facility as the tenant is responsible for all costs of sale under TSSA lease paragraph 4.

Q: Can a tenant abandon a unit via email rather than in an

A: Yes, this is permissible, with a caveat. The key to having a voluntary abandonment is having something

that the tenant is abandoning the contents of the unit and that he wishes to authorize you to enter the unit and dispose of the contents. It is safest to have the tenant do this in a form that has an “ink” signature that matches his signature on the lease as it lessens the ability of the tenant to later try and deny the abandonment. If the tenant sends an email, he could later try and claim someone else got into his email and sent the email without his consent. This is simply your judgment call.

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by Connie N. Heyer, TSSA General Counsel

A s always, the new Goldbook© brought many changes! This article will outline a few of the more important ones.

NEW FORMSThree new forms were added to the Goldbook© Appendix CD. The

Change in Permitted Payment Type.” You can use this form to notify the tenant that certain forms of payment will or will not be accepted going

“Notice of Hot Check” combined with a notice of a change in permitted payment. If you wish to change the modes of permitted payment but it is not in response to a hot check, you may use this new form. Per para-graph 5 of the TSSA lease, the Les-sor may change the permitted mode of payment at any time upon notice to Tenant. Notice can be in person or over the phone, through the mail, or if you have a more current lease, it can be given via email.

The second new form is BUS-21 “Notice of Property Damage and Demand for Payment.” Under TSSA lease paragraph 17, the tenant is responsible for all damages that the tenant or his guests cause at the facility. This form BUS-21 can be used to notify the tenant of an amount due because of damage and to demand payment. You may assess the damage amount to the tenant’s account and your Chapter 59 lien rights extend to damage amounts since facilities have a lien for all amounts due under the lease. Needless to say, you will want good evidence that the tenant, or his or her guest, is the one responsible for the damage in order to assess the damage to the tenant’s account. We also recommend you get a writ-ten estimate for the damage repair. Under TSSA lease paragraph 17, you may deny the tenant’s access to the facility and overlock the tenant’s space until the tenant pays you the

amounts due, and this notice lets the tenant know this.

The third new form is form MISC-7 “Rental Agreement Amendment for Change in Units.” You can use this form if a tenant is moving from one

change the tenant’s unit number in your management software; you also must legally amend the lease. You can use this form to accomplish the amendment. It needs to be signed by both the tenant and a representative of your facility.

REVISED FORMSMany forms have been revised. Some of the most notable revisions are to the Eviction Notice to Vacate

old forms noted the three-day dead-line to vacate. The new forms remind the tenant that not only must the tenant vacate by a certain date but he must vacate by the close of gate hours on that date. Keep in mind that if you mail this notice, three days from the date of mail delivery (or at

delivery) must be given—so plan accordingly and build in a cushion for the days it takes the mail to be delivered.

Form L-6, “Auction Rules” has also been revised to expressly put buyers on notice that once the buyer buys the unit, he is responsible for legally disposing of any contents that contain sensitive personal information.

The TSSA lease has also been revised to allow the tenant to update his or her contact information online if the Lessor provides this option. New language in TSSA lease paragraph

online form or similar option for updating Tenant’s contact informa-tion, Tenant may update contact information in this manner.”

OTHER UPDATESMany legal articles and other Gold-

book© entries have also been up-dated. It is easy to tell what has been updated by going to the Table of Contents behind each tab—the up-dated items are labeled “REVISED” and new items are labeled “NEW.” Even self-storage “old timers” would

Goldbook© and reading what is new and revised! For example, the timeline charts that accompany the step-by-step legal articles on auction procedures have been updated and hopefully made even more user-friendly.

Countless hours go into updat-ing the Goldbook© each time it is

educational articles and new ideas for enhancing forms. Check out what’s new!

Connie Heyer, partner in the law

in Austin, serves as legal counsel for TSSA. Heyer is co-author of the TSSA Goldbook© and current TSSA rental

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Be Prepared

started about two years ago with an idea to build a storage facility and a local friend told us about a TSSA conference in San Antonio. We signed up and went the next week. The help I received from the classes was impres-sive, but we also took a great deal away from listening to the stories of other storage owners. The times we gathered as a group and talked to other veteran owners was the most valuable and informative part of the trip. While

retail supplies throughout the show, and we even became buyers of their products as a result of attending. My advice to someone trying this for the

-pect. We started construction in the early part of 2015 and it seemed to rain non-stop for an entire year. Every time the ground was almost dry enough to start construction again, it rained. This leads to my second point, plan on it costing more than expected. With all our delays we were about 10 percent over budget. My recommendation is to acquire a larger loan than you need up front to cover any unforeseen expenses. Having new friends at TSSA and

owners an enjoyable one.

Mike Hineman, Owner Trailwood Storage, Lufkin

Hire a Good Civil EngineerI would say the most important thing is to hire a good civil engineer to lay out your property and get your permits. This will save you time, and in the long run, money.

Keith Porter, Owner Storage King, Pinehurst

Hire a good civil engineer to lay out your property and get your permits.

Plan for the project to take longer than you would expect.

As a New Developer, What Advice Would You Give Someone Who is Building for the First Time?Three TSSA Members Share Their Experience, Insights and Industry Expertise


Build both your facility and operations model around what will best serve the community.

Location, Location, Location...and CommunityAs a developer, you’ll want to take a hard look at the location. Do your research. How many other storage facilities operate within 5 miles of where you are looking

managers about their facilities and secret shop them to see what service level you’ll be competing with.

Then, build both your facility and operations model around what will best serve the community.

As you are breaking ground, be working through your wish list of marketing wants, website design and who will be managing your facility. Getting your domain name and website started will help shorten the time it takes for your website to ap-pear in Google searches rather than waiting until the facility is done.

The manager you hire should understand the importance of marketing the facility, both online thorough the standard channels and social media, but also with boots on the ground visiting local business and organizations that may have need of your services. Apartment communities are a great source of referrals. Join the chamber of commerce in your city/town, visit military installations, moving compa-nies and the like. Referral credits to current customers (word-of-mouth advertising) and online testimonials go a long way in developing credibility. Developing best practices and learning what works and what doesn’t as you go and remembering both is important.

shop, but every month a unit sits empty is not good either. As an independent facility, agility is one of your biggest advantages. We can

can do that much quicker without having to go through any red tape. In addition

customers signing up for auto-pay. Every customer that rents and pays with a credit card is asked “is this the card you would like to use for setting up your account on

us with collections. Currently, 57 percent of our rent roll is on auto-pay and that speaks volumes at the end of the month. We averaged a 1.4 percent delinquency for all of 2015, with December hitting 0 percent for the 4th time in 2015. This year we have started out the 1st quarter with 0 percent delinquency every month and I am shooting for a perfect 2016!

Leasing up takes time, so be patient, and know that consistent hard work

percent and we have gone through all the ups and downs you would expect or may have read about. But at the end of the day, we love what we do.

We don’t gouge our customers, we know them, we enjoy them and understand that this is a relationship of sorts, very much akin to the relationship between resi-dential tenants and landlords. The better the relationship, the longer the tenant is going to stay. The more likely the tenant will refer you to others. And you grow. And grow. And grow.

Paul Smith, Facility Manager and Hugh McCuaig, Owner City Storage, El Paso

Paul managed another facility nearby as City Storage was constructed.

Paul Smith, facility manager (front) with owner

Hugh McCuaig (back)

TSSA NETWORKING LUNCHEONS


Not Pictured:

UPCOMING 2016 AREA LUNCHEONS

NETWORKING LUNCHEON RECAP

MAY

DALLAS

AUSTIN Casa Chapala9041 Research Blvd., Ste 100

Sponsor: Capco Steel, Inc.

Contact: Joe Linsalata (512) 327-5000

FORT WORTHPappadeaux2708 West Freeway

Sponsor: Tarrant Roofing

Contact: April Young

[email protected]

JUNE

17

2DALLAS – Panelists Dana Deason with Deason Financial Group, Neal Gussis with CCM Commercial Mortgage and Chris Jernigan with

Jernigan Capital lead a discussion about current lending terms, underwriting standards and identifying active players in the industry.

5

8

9

14WACO

Please see the website for details on topics and sponsors.

MCALLEN

MCALLEN – McAllen Police Officers David Alvarado and Frank Zapata gave tips on how to prevent crime at your facility during the February

9 luncheon.

HOUSTONSt. Philip Meeting Room4807 San Felipe St.

Sponsor: Mellisa Ray Insurance Agency

Contact: Bill Brownfield (713) 907-6497

AMARILLOYoungbloods Stockyard Café620 SW 16th St.

Sponsor: Global Roofing Company, LLC

Contact: Jonathan Martindale

(325) 669-5619

NEW BRAUNFELSGruene River Grill1259 Gruene Road

Sponsor: Capco Steel, Inc.

Contact: Casi Hinojosa (830) 609-9300

DALLASEl Fenix1601 McKinney Ave.

Sponsor: Tarrant Roofing

Contact: Doug Hunt (214) 742-9499

[email protected]

WACO – Jay Kanter of Realty Tax Consultants, LLC discussed how to navigate the appraisal district process and the best approach to deal

with the assessor-collector when protesting your tax bill during the March 23 luncheon.

TYLER/LONGVIEW – Jonathan Martindale with U-Haul Company shared how to maintain your property with

ease and success during the February 12 luncheon.

FORT WORTH – During the February 16 luncheon Troy Jordeim with Store Here Management/RHW Capital

Group presented “Simple Ways to Spruce Up Your Website.”

LAREDO – Eric Casarez, Inspector for the Laredo Fire Department, talked about fire protection and prevention

at the February 17 luncheon.

Finding out how your business is performing shouldn’t be like searching for intelligent life.

A data analytics company Sales and information: 972-896-1170 or [email protected]

d l iQSTROM, LLC

Image courtesy of ESO/José Francisco Salgado (josefrancisco.org)

Elegant, effective solutions to make your life simpler.

Introducing the District Manager™, an application for SiteLink™ users that:

Eliminates unnecessary discounts and other losses

Audits field locations every two hours 24/7

Automatically provides you with email alerts

Provides site- and enterprise-level performance metrics in seconds

Saves your enterprise valuable time and money!

www.District-Manager.com

“I wanted to give you feedback on the District Manager software that Homeland Self Storage is trying out. Through the demo phase we have implemented a rate increase on our existing tenant base of our 12 storage properties. In the first two months we have increased the rent on approximately 1,000 of our existing tenants. The expected monthly revenue from these tenants is approximately $9,000. We plan to utilize this feature on a monthly basis to manage revenue and I project that we will increase revenue for the next calendar year in excess of $200,000 from our existing customers. The filtering feature on the software allows us to easily filter and sort through the customer base and implement a revenue management program that mimics REIT performance at a fraction of the cost. Combined with the additional features of District Manager, this program is a valuable resource in maximizing the income and value of our self-storage portfolio.”

– John Colclough, Senior Vice President of Operations, Homeland Self Storage Management, LLC

District Manager

Visit us at the TSSA Trade Show, Booth #206

Introducing the District Manager™, an application for SiteLink™ users that:

Eliminates unnecessary discounts and other losses

Audits field locations every two hours 24/7

Automatically provides you with email alerts

Provides site- and enterprise-level performance metrics in seconds

Saves your enterprise valuable time and money!

Visit us at the TSSA Trade Show, Booth #206

MANAGERS CORNER


Share your manager’s expertise and contribute to Self-Storage News. Email the editor, Silvia Pendleton at [email protected] for more information on Managers Corner.

I have been a manager in various industries and capacities for the past 22 years, and in self storage for the past 10. I’m thrilled that a fellow Strake

Jesuit (Houston) graduate brought me into the industry. I like the hours and the freedoms it allows. My previous management role had me working long hours, such as 7 a.m. to 7 p.m. days.

I came back to Texas to help out my parents. They both had to have multiple back-to-back surgeries (each) and I needed to make sure they were going to be alright. They are doing great now.

The interview was funny, I had no experience in this industry, and I couldn’t read the regional manager who interviewed me. I really thought

I was not going to get the job, but he called me the next day and made the

my vast management experience put me over the top for the position.

My previous experience managing all of the Cash America Pawn Shops in Nashville, TN for several years taught me numerous things: striving to be the best; staying engaged at work and in the community; and thinking outside of the box.

I strive to be the best at what I do and never settle for “good enough.” I meet my tenants’ needs by actively listening to them and providing options and solutions which keep both party’s best interests in mind.

I stay engaged on a daily basis by changing my routine. I think outside of the box when marketing, selling and

working my collections. I have found

work for the both of you, they will usually pick one and it’s a win/win. That outside-of-the-box thinking is great when it comes to loss prevention and collections.

Staying engaged in the community is a must. Next month, we are sponsoring the annual Classic Chili Challenge for the 4th year in a row. Ev-eryone in Fort Bend County comes out to donate or support our local police

the Sugar Land Skeeters (Minor Pro League baseball team just down the road). In addition, we are members of the Ft. Bend Chamber of Commerce and I attend monthly networking events to build the business.

We keep the facility fresh and ex-panded our parking when I was hired

an iPad Air for our Blue Moon contracts to save paper and document storage space. There are kiosks in front of all of our facilities for tenants to use outside

payment, rent a unit, get gate code help and buy a lock from the kiosk. We also do some online rentals for the customers’ convenience.

With more and more facilities being built each year, you need to stay competitive.

I strive to be the best at what I do and never settle for “good enough.”

I’m old school. I love muscle cars and working on various vehicle projects and classic car restorations. I like traveling all over and taking long road trips. I have also been a D.J./K.J. (karaoke jockey) for more than 21 years. I have a successful entertainment business that specializes in private parties and corporate events. I love many types of music as well as attending concerts and sporting events. I also enjoy taking my Boston Terrier to the bark park and bowling.

Staying Competitive by Thinking Outside of the Boxby C.W. Walsh, Storage Choice

C.W. WALSHStorage Choice, Sugar Land, TX

Getting to know...

IncreasedGross Pro t:

RentalTruck

MiniMove

Complete Vehicle Rental Program

AncillaryPRODuCTS

OUR PRODUCTS ARE APERFECT FIT

BoxProgram

TenantProtectionProgram

CA Lic #0H93968

BULLETIN BOARD


[email protected]

What is the TSSA Bulletin Board? Bulletin Board is an economic and convenient advertising platform to reach TSSA readers.

A-Lert Building Systems ......................... 56Argus ...................................................... 6Bader Company ...................................... 43Bellomy & Co. ......................................... 19CSD Realty Company .............................. 31CAPCO Steel, Inc. .................................... 23Chateau Products, Inc. ............................ 39Cubby Hole, Inc. ...................................... 47District Manager ..................................... 44

.......................... 7Everbrite ................................................ 32Live Oak Bank ........................................ 30Marcus & Millichap ................................... 2Move It Management .............................. 32OMC Gate Service ................................... 47On the Move ........................................... 46Parham Group .......................................... 4Realty Tax Consultants, LLC .................... 51SBS Construction....................................... 1Self Reliant Solar ................................... 34SiteLink ........................... Inside back coverSite Safe Security ............Inside front coverStorage Treasures .................................. 50Street Smart Solutions ........................... 31Strong Dorety ........................................ 52

...............Back coverTexas Financial Bank .............................. 49

................................. 48Wortham Insurance & Risk Mgmt ........... 31

ADVERTISER INDEXADVERTISE IN SELF-STORAGE NEWSThe Texas Self Storage Association (TSSA) is the largest state

facilities throughout Texas, and in surrounding states, the TSSA membership has both buying power and .

Visit txssa.org today for complete information.

TSSA Bulletin BoardWhat is my Investment?Bulletin Board ads are 2.25” x 2.25”

per insertion for color.

How do I purchase a Bulletin Board ad? Contact TSSA at 888-259-4902 or [email protected].

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With locations in Fort Worth, Austin and Oklahoma City

888-809-9976www.watertightroofinginc.com

“WaterTight’s commitment to excellence is just that - Water Tight!”

Larry EasleyStorage Management Associates, Inc

TSSA Member 1996 - Present

“Cole Garrison was a pleasure to work with and was on top of it from

beginning to end.”

Jay KanterO’Conner Self Storage

TSSA Member 1988 - Present

NEWSMAKERS


For more information contact Stephen Heimbecker at [email protected] or 325.716.7828

Texas Financial BankThe Self Storage Lending Partner

ConstructionRenovation

Cash OutPurchaseExpansion

MEMBERS’ CONTRIBUTIONS AND LEADERSHIP SET THEM APART

>

HONORING FELLOW TSSA MEMBERS

IN MEMORIAM TSSA Remembers Dr. Charles Marion Cocanougher, DVM

TSSA member and owner of DECATUR MINI STORAGE, Dr. Charles Marion Cocanougher, DVM, 84, died Friday, March 25, in Decatur. Cocanougher has been a

conferences and seminars over the years. We will truly miss him and send our sympathy to his family.

Cocanougher started a manufactured housing park, Meadow Lake Village and Decatur Self Storage. After his retirement from his veterinary practice, he contin-ued to manage two businesses.

A prominent Decatur business and civic leader, Cocanougher graduated from Texas A&M School of Veterinary Medicine in 1955. In 2010, Dr. Coca-nougher received the “Outstanding Alumni Award” from the Texas A&M School of Veterinary Medicine.

He started his veterinary practice in Decatur before serving in the U.S Air Force as a captain and base veterinar-ian and in the Air Force Reserve.

Cocanougher was an active mem-ber of his community and his church. He was a lifelong member and held many leadership roles at the First United Methodist Church in Decatur and was president and rodeo secretary

many years.He was instrumental in founding the

Decatur Public Library and served as a board member for many years. He served on the Decatur City Council and was a past president of the Decatur Chamber of Commerce and was instru-mental in bringing the Poco Graphite manufacturing plant to Decatur.

TSSA Member Serves on Salvation Army Board in Corsicana

Member Charles Irvine, owner of MINI-WEST STORAGE in Corsicana, second from right, joined the board of directors

for the Salvation Army on March 24. Congratulations to Charles for working to help his community.

NEWSMAKERS


TSSA member THE JENKINS ORGANIZATION acquired

The properties total more than 640,000 square feet and were

of The Jenkins Organization, states, “All seven properties are well located in high growth areas with excellent demograph-ics. Houston continues to be a good market for us, despite the energy downturn. Same store sales are up over the same period last year.”

ARMOUR SELF STORAGE Builds New Facility in El Paso

Member Reg Cooper with ARMOUR SELF STORAGE is building a new four-story, 95,000 square foot facility in El Paso. Entitlement took more than four years to procure, ac-cording to company president John Cooper. Construction is slated to begin on Sept. 1. Congratulations also to CAPCO Steel Inc., which has been selected as the general contractor for the project.

ADVANTAGE SELF STORAGE Plans Mixed-Use Project in Flower Mound

Rick Jones of ADVANTAGE SELF STORAGE and his partners won unanimous approval of site plans for a mixed-use project which will include 650 self-storage units ranging in sizes from

NEW DEVELOPMENTS, ACQUISITIONS & EXPANSIONS

Do you have member news to share with TSSA members? Please email your news release to [email protected].

INDUSTRY NEWS

SITELINK, provider of web-based software for managing self-storage operations, reports a record number of its clients processing rentals and reservations on websites and from call centers.

technology since 2008 at no extra charge,” said Markus Hecker, SiteLink’s

4,700 users, or half of all SiteLink Web

reservation and payments online and at call centers.”

The launch of SiteLink eSign™, a free built-in service to electronically sign and store leases, letters and forms, has spurred the acceptance of online move-ins. SiteLink eSign lets tenants complete leases electronically online, by phone, by email and at stores. Ten-ants can sign using a mouse, key-

tablet or smartphone.

“SiteLink eSign is the best option for signing and storing leases,” said Jay Allardt, owner of Community Storage.

other ‘add-on’ electronic signature services that are harder to launch and manage.” SiteLink’s lease auditing

data for each electronic lease, includ-ing the street rate, tenant rate and any variance between the two.

“More than 1,200 stores have executed nearly 200,000 documents with SiteLink eSign’s electronic sig-nature feature,” said Jim Ferguson, SiteLink’s National Accounts Manager. “Single and multi-store owners alike use SiteLink’s built-in tools to compete with and beat even the largest storage companies.”

SiteLink ESign™ interfaces with the TSSA Forms Software program by Blue Moon to allow for integrated leasing using the TSSA contract.


Do you have industry news to share with TSSA members? Please email your news release to [email protected].

Sale of Two Houston-area Self-Storage Facilities

BELLOMY & CO. announced the sale of Eldridge FM 1960 Storage in Houston and the sale of My Attic Self Storage in Tomball.

The Class “A” facility in Hous-ton sits on nearly seven acres and consists of 587 climate, non-cli-

77,000 NRSF. Built in 2008, the property is located in one of the fastest growing areas of Houston.

The Class “A” facility in Tom-ball consists of 626 climate and

NRSF. My Attic Self Storage will be rebranded as Mini U Storage Tomball.

For more information, please call Bellomy & Co. at 512-501-

com. To learn more about Bellomy & Co., visit bellomyco.com.

MY PERSPECTIVE


Do your homework up front. Interview as many customers of your developer and/or general contractor as possible before making a decision.

2. process. If bad things are happening before you even break ground, they are only going to get worse over time.

3. Set expectations for yourself and the developer early on and don’t compromise on what you are looking for in a partner.

4. Be onsite. A developer and general contractor should embrace a customer being a part of the process and understanding what is going on.Understand what you are getting yourself into. I’m pretty stubborn, but there were times I questioned if it was worth all the stress and sleepless nights.

LESSONS LEARNED

Saving the Environment One Tenant at a TimeInterview by Jennifer Taylor

SHAWN SHARP Green Storage Plus, Spicewood, TX

Shawn Sharp something new everyday. While his day job remains in the tech

industry, he started his real estate investment portfolio with residential properties and has now expanded into self storage.

“I have wanted to build a self-storage facility for at least 15 years.

TSSA: Why did you get into the self-storage industry?

SHARP: Rents are higher per square foot than residential. It scales very well. Storage also does well in both good times and bad.

TSSA: your facility?

SHARP: We built a modern, high-end facility that fit our surrounding community while emphasizing Green Energy initiatives. We have a large solar panel array, rainwater collection systems, an on-site well and many other environmentally friendly features.

We also place a big emphasis on safety and security with full-length glass doors, HD security cameras, security mirrors at every corner, intercoms throughout the facility and more.

We all need to do our part when it comes to how we impact the environment, so we made that a priority from day one. If we can power the facility using solar energy instead of pollution-contributing sources like coal and gas, then I believe we should take the more responsible route.

It’s also a good differentiator. Rental rates at Green Storage Plus are competitive so tenants don’t have to pay more to help save the environment.

Our plan is to monitor our energy needs for the first year and then expand the number of solar panels to generate all of the electricity we need to power the facility throughout the

year. Once we complete that expan-sion, we could be completely off the grid for all services except Internet.

It’s also financially sound. The ROI for solar power is typically 6–10 years depending on rebates and incentives. Even if we sold the facility tomorrow, it would be a good investment.

TSSA: Should you be your own general contractor?

SHARP: Being your own developer might work if you’ve built at least one or two facilities. As for being your own general contractor, you are only as good as the people you hire and it can take a lot of experience to build a port-folio of companies you can count on. Either way, you should learn as much as you can about the sub-contractors and have good communication with them. Even if you hire someone else to be the general contractor, you should still be involved. I also suggest talking to the companies that have worked with the general contractor before mak-ing your selection. It’s important to have a partner who knows their limitations and understands their weaknesses.

TSSA: How long should people expect the process to take from beginning to end?

SHARP: Ten times what you think it will take. Finding a piece of land can take a year or longer. Developing a plan, securing a bank loan and raising other capital can take another year. You can then spend another year or more going through the building process. So, that’s about three years already, without

factoring in other unforeseen delays

permitting issues, etc. You need to be

those delays (both increased expenses and/or delayed revenue).

5

NEW MEMBERS


DEVELOPERSJoel Azeta izentex SOLUTIONS Houston, TX Member referral (Lone Star FM 529)

George Brewer LaCarte Enterprises, LLC Highlands, TX

Toby Brodie Granderson Development, LLC Austin, TX Member referral Monty Rainey

BCR Ventures Austin, TX Member referral Gargoyle Steel Structures

Green-Bunn-Herrington, LLC Texarkana, TX

Craig Calley Craleco Investments, LP Wimberley, TX Member referral (Mike Holbrook)

Rush Claxton Double C Development, LLC Palacios, TX Member referral (Betco)

Rance Clouse MadNic Construction Austin, TX

Joseph Esch Missouri City, TX

Evetts Properties–Texas, LLC San Antonio, TX Member referral (Mitch Stephens)

George Kaldis Gentek Investments, Inc. Houston, TX

Jose Antonio Milke Magnolia, TX

Bill Moist Professional Equities, Inc. Southlake, TX

Sean Musick San Antonio, TX

Mark Naugle Hurst, TX Member referral (Bill Moist)

Thomas Norlander Norlander Industries, LLC Sugar Land, TX

Ralph Pearce Seasons Self Storage, LLC The Woodlands, TX

Ronald Rhodes Rhodes Properties, LLC Garland, TX Member referral (Jerry Mull)

Michael Sawilowsky Kobi International Burleson, TX

Thomas Schultz Trademark Real Estate Services, LLC Marble Falls, TX

OWNERS/MANAGEMENT COS.Mark Anderegg Storage Source, LLC Odessa, TX Member referral (SiteLink)

Jarrod Anderson Century Tower Parking Beaumont, TX

Kristy Anderson Rosewood Storage Big Sandy, TX

Amanda Winn

Gaurab Basnet Yeti Investment, LLC Kiranna 101 Princeton, TX

Milos Bednar Free Eagle Storage Conroe, TX

Web Self Storage

Blacklock Storage, LLC Fort Worth, TX

Arrowhead Self Storage Fredericksburg, TX Member referral

David Briggs Charter Oak Properties, LLC Pipe Creek, TX

Charter Storage Fredericksburg, TX Member referral (Robert Jacks)

Josh Bull Lake Livingston Boat & RV Storage, LLC Livingston, TX

Bryan Crossin

TCM Heritage Inc. Toy Box Storage Killeen, TX

Jimmy Dent RV and Boat Storage Azle, TX Fort Worth, TX

Boat Club Road SS

Udo Joe Ditges Clear Creek Interests, Inc. Clear Creek Storage Fredericksburg, TX


Doug Dutton Canton Marketplace Management Canton Self Storage Canton, TX

James Easley Easy Storage Solutions, LLC Caddo Mills, TX

Easy Storage Royse City, TX

USI Storage Graham, TX

Adam Haby Boat and RV Storage Helotes, TX San Antonio, TX

Hillary Property Mgt., LLC Rattlesnake Self Storage Georgetown, TX Member referral (Chuck Richey)

Curtis Jackson

Quinlan, TX Greenville, TX

Kangerga Self Storage, LLC Westside Self Storage Henderson, TX

JCK Ventures S.J. Storage McAllen, TX

Mary Lenamond RV Etc. Storage Houston, TX Hockley, TX

Terri McPherson Fayette Country Hills Fayetteville, TX

ERP-M, LLC Absolute Nationwide Storage Midland, TX

Paul Michna Bay Front RV Park/Marina and Storage Magnolia, TX Palacios, TX

Jahvid Motaghi Zeba, LLC Airline Padre Self Storage Corpus Christi, TX

Adam Nesloney Cove Harbor Boat & RV Storage Rockport, TX

Anthony Newberg 2490 Storage, Inc. Waco, TX China Spring, TX

Phil Ayers

Ondrey Commercial, LLC - Sanger Secure Storage Series Sanger Secure Storage & Carports Sanger, TX

Jordan with U-Haul

Tammera Park Under Cover Weatherford, TX

Richard Pietila ETC Custodian FBO Richard Pietila, IRAH Hoarders Heaven Decatur, TX

Penny Posey Three Ps Gainesville, TX AA Storage Brownwood, TX Member referral (Rexter’s Storage)

Laverl Smith Store All Self Storage Greenville, TX

Chad Stewart Redford Industries, LLC Expressway Storage Rosharon, TX

Robert Stroud Granbury Meadowlark Storage Fort Worth, TX Granbury, TX

Lucia Vianey Suarez Octo Properties, LLC Grand Prairie, TX Coupland, TX

Jennifer Welp Welp, LLC Corpus Christi, TX Member referral (Lone Star Storage)

Reed Williams TX Quality Storage, LLC Brady, TX

Damon Willis Back Acres Mini Storage Kerrville, TX Member referral (Lynn Bolton)

Reid Wilson Wilson Master Investments, LP Houston, TX Rocket Self Storage Bulverde, TX

Earl Woodward Woody’s Lindale, TX

Shahnshah Zaidi Bay City Storage Corporation Bay City Mini Storage Bay City, TX

VENDORSBilly Bray Wells Fargo Insurance Houston, TX

Jon Danklefs Marcus & Millichap San Antonio, TX

Garry Duke ReRoof USA Villa Rica, GA

Storage Structures

Ronnie Garner Garner & Associates, Auctioneers Waco, TX

Chris Martin

Gesch Auction Services, LLC Round Rock, TX

Kathy Hall

Toni Hennigan JDog Junk Removal & Hauling Tarrant County Colleyville, TX

Danny Leverett

Dallas, TX

Scott Meyers Self Storage Investing Indianapolis, IN

L e a r n m o r e a b o u t S i t e L i n k e S i g n To d a y!h p go.sitelink. om Site ink-eSign

919- 1 [email protected]

www.sitelink.com2011 2012 201201 2015

acility of the ear Winners trust Site ink

SiteLink eSign™ Fully IntegratesIndustry-First!

with the Blue Moon lease!Capture electronic signatures & archive Blue Moon leases in SiteLink - Automated lease population from Site ink move-in screen

- Tenant signs lease from anywhere we site, call center, email, in-store

Cloud Storage - Site ink eSign securely stores leases up to years a er tenant vacates

Manage - Track leases out for signature, completion status, resend and even reprint

Audit - The ease Audit eport uickly displays all form- eld data for each lease

o paperless and save me and money - lease and lease audits, le ers, tenant pictures and more

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From this: To this:

Documents

DEVELOPMENT - Amazon S3...Danny Cunningham Associate Fort Worth Ofﬁce (817) 932-6141 [email protected] To access the largest exclusive inventory of properties,