"America's Premier
Self Storage Brokers"
January 2006
2953 S. Peoria Street
Suite 207
Aurora, CO 80014
1-800-55-STORE
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"America's Premier January 2006 |
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2953 S. Peoria Street |
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Come to the BEST ADDRESS in the industry!
Sign up today... your potential customers are ready to rent! Call 1-888-414-7871 |
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Check out all of our Current Listings
Orange Park, FL
For more information on this
opportunity, Argus Broker Affiliate Richard D. Minker receives local Realtor Honor:
Join Argus at the Inside Self-Storage EXPO in Las Vegas! Don't miss the industry's largest tradeshow at the Mandalay Bay Hotel and Convention Center from February 28-March 3, 2006! Argus will be at Booth #431 - come by and check out all of our current properties for sale or speak with an Argus representative. The Expo Hall will be open on March 2 and 3. Also, you won't want to miss Argus President Mike McCune's presentation on "The Three Greatest Risks to Your Value" which will offer important insights that every owner or developer will want to hear! Visit www.insideselfstorage.com/expo for details and registration. Subscribe Today...for a new year of the Market Monitor Newsletter! Make sure you stay on top
of industry trends, self storage real estate opportunities and great events
with this free must-read publication. The Market Monitor
is mailed 10 times per year and arrives full of great information for your
self storage business whether you are a current owner or a prospective
buyer/developer.
This is the first in a series of three loan case studies provided by Collateral Mortgage Capital, LLC. For more information, visit www.collateral.com. Loan request: A $2,025,000 bridge loan with proceeds used to acquire a newer 278-unit, two story self storage facility with both climate controlled and non-climate units. The location was a bedroom community of a major metropolitan area. The site included enough ground to double the size of the facility and this had already been zoned. Occupancy was 60% at the time. There was a sixty day time frame to close the transaction, with the buyer having thirty days of due diligence followed by a thirty day period in which the closing had to occur.
Plan:
Borrower believed there was significant value to be created on the property.
Due diligence showed market occupancies were approximately 20% higher than
the subject, while the subject’s rents were higher than most of the
competing properties and the unit mix was inefficient. Management personnel
on site were capable but were not supported by the existing owners. Also,
visibility from a major traffic artery was blocked by trees, and an adjacent
property was covered with tall weeds. The borrower proposed the following
action plan: Loan Terms: The loan was placed with Collateral’s affiliated federal savings bank. The $2,025,000 was approved with an initial three year term, plus two one-year options for a fee. The principals provided partial recourse. The loan also included the ability for the borrower to fund construction of the second building, subject to occupancy, loan-to-value, debt service coverage and loan-to-cost ratios. The loan was interest only for the first two years then amortizing over a twenty-five year schedule, floating over LIBOR. It included an interest reserve, re-calculated quarterly to help fund debt service during the re-positioning of the property. What Made It Work: This was the fifth loan Collateral arranged with this borrower, but the first that required such a significant re-positioning. The loan approval was based in part upon the borrower’s twenty-five years of experience in the self-storage industry, the sharing of considerable due diligence information on the property, and the detailed re-position plan supported by the market. Third party reports (appraisal, Phase I and Property Condition) were ordered during the last half of the due diligence period to facilitate closing. Footnote: In less than ten months from closing, the property’s economic occupancy has risen from 60.5% to 75.1%, and the gross monthly rental income has increased from $13,000 to $17,000.
MiniCo Announces Publication of the 2006 Self-Storage Almanac:
The Self-Storage Almanac is the self-storage industry’s most
comprehensive statistical reference guide. First published in 1992, the
Self-Storage Almanac has become a highly respected resource for
investors, developers, operators, financial institutions, real estate
brokers and other business publications worldwide. The 2006 Self-Storage
Almanac offers detailed industry information, economic data and analysis
by respected professional business writers. The annual reference guide is
published each year by MiniCo, Inc., publisher of the self-storage
industry’s leading trade magazine, Mini-Storage Messenger. For
additional information or to purchase the 2006 Self-Storage Almanac,
visit
www.MiniStorageMessenger.com or call 800-352-4636. |
Argus Sales
The Argus Self Storage Sales Network b b b
Kiwi II Construction Founded in 1982, Kiwi II Construction was formed solely to serve the self storage industry. Our unique formula for success is largely due to our "In House" company-trained installation crews. Features include: -
In-House Engineering & Design 877-465-4942 b b b “The Building Blocks of Self Storage”
Call 1-800-356-5824
or visit online Alabama Self Storage Association EXPO -
Birmingham, AL
Arizona Mini Storage Association Regional Seminar
- Tucson, AZ
Inside Self-Storage EXPO - Las Vegas, NV Visit www.insideselfstorage.com/expo for details and registration
Self Storage Association Spring
Conference and Tradeshow - Chicago, IL Visit www.selfstorage.org/education for details and registration List
your event for free... b b b
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Put America's Finest Self Storage Brokers to Work for You! |
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Click Here to Contact Us Phone 303-785-6085 Toll Free 1-800-557-8673 Online www.selfstorage.com |
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Amy Hitchingham
is the Director of Marketing & Operations for the Argus Self Storage
Sales Network and www.selfstorage.com. She can be
reached at 303-785-6086 or via e-mail at
Richard
D. Minker,
