Unsure of where you stand in the midst of all the current unrest in the financial markets?  Mike McCune's recent Market Monitor article "A View From My Perch" offers a little perspective on the impact the credit crunch is having on interest rates and the market for buying and selling facilities.  Whether you are looking to refinance, sell or hold your investment, you'll want to learn what the future may hold and how you can use the options available to maximize your value.  Click Here to read the full article.              

Amy

Amy Hitchingham is Vice President of the Argus Self Storage Sales Network.  She can be reached at 303-317-4232 or via e-mail at amy@argus-realestate.com.

New Argus Listings

• Pensacola, FL:  $4,200,000; 51,155 RSF.  Contact Broker Affiliate Bill Barnhill & Shannon Barnhill at 251-432-1287.

• Augusta, GA:  $1,250,000; 27,564 RSF.  Contact Broker Affiliate Dale C. Eisenman at 843-342-7650.

• Hiawassee, GA:  $1,200,000; 21,400 RSF.  Contact Broker Affiliate Dale C. Eisenman at 843-342-7650.

• Rabun Gap, GA:  $1,650,000; 42,650 RSF.  Contact Broker Affiliate Dale C. Eisenman at 843-342-7650.

• Esko, MN:  $559,900;  18,700 RSF.  Contact Broker Affiliate Pat Jordan at 612-827-3844.

• Kirbyville, MO:  $675,000; 22,073 RSF.  Contact Broker Affiliate Larry Goldman at 816-931-3101.

• St. Joseph, MO:  $2,250,000; 47,170 RSF.  Contact Broker Affiliate Larry Goldman at 816-931-3101.

• Belgrade, MT:  $975,000; 31,500 RSF.  Contact Broker Affiliate Larry Hayes at 406-728-0088. 

• Drexel Hill, PA:  $1,600,000; 18,160 RSF.  Contact Broker Affiliate Chuck Shields at 610-828-0100. 

• Spartanburg, SC:  $2,500,000; 14,000 RSF, Traditional and Mobile Storage.  Contact Broker Affiliate Dale C. Eisenman at 843-342-7650.

• Spokane, WA:  $1,300,000; 43,830 RSF.  Contact Broker Affiliate Ryan Layton at 509-435-2424.

• Pembine, WI:  $240,000; 10,960 RSF.  Contact Broker Affiliates Peter Hitler & Chris Hitler at 262-236-0612.

To view information on all of our nationwide self storage listings Click Here

Property Pick

New England Portfolio
$28,322,278

• Total Properties: 10

• Rentable SF: 358,850 +/-

• Total Units: 3,109 +/-

• 10-property portfolio with 3 properties in Massachusetts and 7 in New Hampshire

• Locations extend from Cape Cod in MA to the Lakes Region in NH.

• Tenth property is a land parcel that has been approved for self storage development

For more information on this opportunity,
please contact Argus Broker Affiliate
Joe Mendola at
603-668-7000 or send an Email Request

Financing Focus

by Steve Clifford
NorthMarq Capital, Inc.

The lending environment continues to be challenging as we head into the final month of the first quarter of 2008.   Many who believed that a return to normalcy would occur by the end of the first quarter are now saying that a recovery in the capital markets may not occur until well into the second half of the year.  Spreads in the Commercial Mortgage Backed Securities (CMBS) market continue to widen which effectively has rendered the conduit lenders “out of the market”.  The latest reports are that CMBS spreads are out to 460 to 480 basis points over the 10 Year Treasury (currently at 3.67%) resulting in an overall rate of 8.25% to 8.50%.  Initial estimates were that the CMBS volume for 2008 was going to be 50% of the $225 billion done in 2007.  Current estimates put that number as low as $60 billion (30% of 2007 volume).  Many life companies continue to sit on the side lines and/or  are choosing to invest in AAA CMBS bonds.  The risk premium that these life companies require on mortgages results in spreads in the high 300’s again rendering them effectively “out of the market”. 

Despite the state of the market, there are lenders making loans and actively burning through their 2008 allocations.  Many life companies as well as national, regional and local banks are finding that the sun is out and it is their time to make hay.  The days of competing with sub-100 basis points spreads are gone and the active lenders are currently quoting loans in the 200 to 225 basis point range resulting in rates from 5.75% to 6.25% on 10 year terms.  The state of the market is continues to fluctuate, but on a historical basis, rates hovering around 6% are very competitive. 

Borrowers should continue to expect more stringent underwriting guidelines, including lower leverage, higher debt service coverage requirements, and minimal amount of interest only periods even on very low leverage transactions.  Borrowers should also anticipate a longer loan quoting and closing process as the groups actively lending are inundated with loan requests.  NorthMarq continues to see a good amount of business and through our long standing relationships with capital sources we are poised to find the most competitive financing available in today’s difficult market environment. 

NorthMarq Capital, Inc., a national real estate investment banker headquartered in Minneapolis with 28 regional offices coast-to-coast, provides commercial real estate debt and equity financing and commercial loan servicing. NorthMarq Capital provides more than $13 billion in annual production volume and services a loan portfolio of more than $34 billion. NorthMarq also provides real estate investment consulting services for public and private clients nationally through its consulting group, NorthMarq Advisors, LLC.  Steve Clifford, Assistant Vice President, can be reached at 303-225-2100.  For more information, visit www.northmarq.com.

Argus News

We are proud to welcome our newest Broker Affiliates to the
Argus Self Storage Sales Network!  John Behnke and Ed Larkin of Memphis Commercial and Industrial join Argus as our Western Tennessee Affiliates. They can be reached at 901-375-4300.

Ed Larkin has 26 years of experience in commercial and industrial real estate brokerage and has been an affiliate broker with Memphis Commercial & Industrial since 1994.  His primary activity has been providing professional real estate consultation on behalf of privately held companies for the acquisition, leasing and build-to-suit industrial properties. Ed has brokered over $90 million in real estate transactions totaling in excess of 16 million square feet.

Industry Insights

Mobile Mini to Merge With Mobile Storage Group
Portable-storage providers Mobile Mini Inc. of Tempe, Ariz., and Mobile Storage Group Inc. of Glendale, Calif., have entered a definitive merger agreement. Under its terms, Mobile Storage Group will merge into Mobile Mini in a transaction valued at approximately $701.5 million.

Deutsche Bank Downgrades Sovran Self Storage (SSS) to Hold
StreetInsider.com (subscription) - Birmingham,MI,USA February 15, 2008 8:13 AM EST
The firm said its Hold rating on Sovran is based on a lack of near-term catalysts. Deutsche believes Sovran will be able to deliver on its appropriately conservative earnings, but believes that weak housing conditions will not allow the Company to beat expectations.

Sovran Self Storage Reports Fourth Quarter Results: Revenues Increase 12.4%
Centre Daily Times Wed, 13 Feb 2008 1:41 PM PST
Sovran Self Storage, Inc. (NYSE:SSS), a self-storage real estate investment trust (REIT), reported operating results for the quarter and year ended December 31, 2007.

AMERCO Reports Third Quarter Fiscal 2008 Financial Results
CNNMoney.com - USA
Self-storage revenues for the Moving and Storage segment increased 4.7 percent for the third quarter of fiscal 2008 compared with the same period last year.

Virgo Publishing/ISS Acquired by Arlington Capital Partners
Virgo Publishing, parent company of Inside Self-Storage, has been acquired by Arlington Capital Partners, a Washington, D.C.-based private-equity fund with more than $1 billion of committed capital under management.