Alert on Self Storage

"America's Premier
Self Storage Brokers"

1-800-55-STORE

January 2007


Argus Sales

Property Pick

New Listings

Argus News

Financing Focus

Vendor View

Industry Insights

Upcoming Events

 

Join Argus and SelfStorage.com
   at the Inside Self Storage Expo in Las Vegas!  Feb. 20-23, 2007

Stop by booth #619 to speak with an Argus broker and learn more about our nationwide property listings.  At booth #738, visit with a representative from SelfStorage.com, the Internet's premier self storage website, to learn how to get the most out of your online marketing dollars!

Click Here for a free Exhibit Hall Pass

compliments of 

and

 

 

Subscribe Today to the Market Monitor Print 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.

 

 Click Here to Subscribe
 

 

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New Argus Listings

  • Mariposa, CA:  $2,250,000; 40,529 RSF.  Contact Broker Affiliates Clifford Crowe or David Anderson at 760-929-9700

  • Delta, CO:  $1,800,000; 41,550 RSF.  Contact Broker Affiliate Joan Lucas at 720-855-6587.

  • Bowling Green, KY:  $1,300,000; 43,140 RSF.  Contact Broker Affiliate Herb Head at 502-253-1811.

  • Stevensville, MT:  $950,000; 26,608 RSF.  Contact Broker Affiliate Larry Hayes at 406-728-0088.

  • Rio Rancho, NM:  $1,143,450; Development Site.  Contact Broker Affiliate David Laney at 505-286-2060.

  • Spartanburg & Taylors, SC:  2-Property Portfolio, call for pricing;  133,750 Total RSF.  Contact Broker Affiliate Dale C. Eisenman at 843-342-7650.

To view all of our nationwide self storage listings Click Here


Property Pick

Mariposa, CA
$2,250,000

  • Rentable SF: 40,529

  • Units: 329

  • Total Land Area: 3.24 acres

  • Year Built: 1985 with phased expansions since 2002

  • Largest storage facility located in Mariposa, CA

  • Exceptionally well-maintained facility with quality long term manager

  • Only on-site managed facility in the area

  • Adjacent land is available and can be developed

  • No rent increases since 2005

For more information on this opportunity,
please call Argus Broker Affiliates

Clifford Crowe, CCIM and David Anderson at 760-929-9700
or send an Email Request

 

Financing Focus

Capital Markets Update:  Partial Recourse Fixed Rate Loans for Properties in Lease Up

by Josh Greer, Capital Markets Specialist for Buchanan Storage Capital

We have started to see some minor pushback in the capital markets from a select group of lenders but other lenders are continuing to be aggressive in order to win a prospective borrowers’ business.  Additionally, there are a handful of lenders who are willing to utilize their balance sheets to provide creative structures including sizing to lower debt service coverage ratios in order to win business.  In these instances, lenders may entertain partial recourse that burns off when certain debt service coverage ratios are achieved. 

This structure is typically utilized on deals that have not reached stabilization and a “securitized reverse earn-out” (also known as a funded holdback) does not meet the borrower’s objective of taking out their existing financing.  Depending on the deal, some borrowers are willing to take on this partial recourse risk when their maturing loan is full recourse and they are confident that their rental income will greatly improve.  The partial recourse will be released upon achieving a stabilized debt coverage ratio in excess of 1.25.  A typical timeframe to meet a lender’s debt service hurdle is within six months of loan closing under this structure.  There may be a slight spread increase for this option since one of the challenges from the lender’s perspective is that they typically do not have the ability to securitize these deals at closing with the partial recourse in place and must hold the loan on book until the partial recourse is released. 

Buchanan Storage Capital is the leading provider of capital to self-storage owners nationwide.  Their customers access competitive debt & equity through proprietary programs like Buchanan Fixed Rate Direct™ and through their advisory services, leveraging off Buchanan’s long-standing relationships with the top storage lenders. The principals of Buchanan Storage Capital, Jim Davies and Eric Snyder, have a $2.5 billion track record in storage financing and the firm closed over $450 million in 2005.  Parent company, Buchanan Street Partners, a leading real estate investment bank, has completed over $10.5 billion of transactions since its inception in 1999. For additional information, please call 800.675.1902 or visit www.buchananstoragecapital.com.


Argus News

We are proud to welcome our newest Broker Affiliates to the Argus Self Storage Sales Network!


Glen A. Quintos, CCIM of Olson Realty, Inc. joins Argus in Benicia, CA where he will represent Argus in Northern California's Bay Area and Central Coast.  Glen has over 20 years experience in the sales and leasing of commercial and investment properties throughout California.  His background includes industrial, land and multi-family property sales.  Glen earned his CCIM designation in 1998.  Glen's professional affiliations include serving on the Board of Directors of the Solano Association of Realtors, and the Private Industry Council.  He has held leadership positions with the Vallejo Chamber of Commerce and the Sutter Solano Hospital Foundation Committee.  Glen values the trust and confidence in the relationship he has with his clients and is dedicated to superior service in meeting his clients' buying and selling needs.  Glen can be reached at 707-246-6020 or by e-mail..

Douglas Albright of Albright Callister & Associates is located in Las Vegas, NV and will represent Argus in the state of Nevada.  Doug began his real estate career with CB Commercial and was consistently one of the top five salesman in the Las Vegas Office, receiving numerous sales awards.  In partnership with Paul Callister, Doug formed Albright Callister & Associates, LLC in 1997 and the company has quickly become one of the leaders among commercial real estate brokerages in Las Vegas.  Doug has been actively involved in the sales and leasing of investment properties, land, industrial and office properties and has a great reputation as a broker who helps his clients succeed.  Doug can be reached at 702-732-1000 or by e-mail.


Industry Insights

Extra Space Acquires Storage Units
AP via Yahoo! Finance Thu, 14 Dec 2006 1:36 PM PST
Real estate investment trust Extra Space Storage Inc., through its subsidiary, Extra Space Storage LLC, agreed to acquire 13 self-storage facilities from AAAAA Rent-A-Space for about $131.2 million in cash.

Cushman & Wakefield's Self Storage Industry Group has just published its Winter 2007 Business Briefing entitled "New Asset Class Gains Ground: Why the self storage industry has been attracting a growing number of investors." The six-page document briefly summarizes the current state of self storage and highlights market trends in the industry.  To view the Business Briefing, click here. (205K Adobe Acrobat [.pdf] file)

 
U-Store-It added to S&P REIT index
Sharewatch Fri, 15 Dec 2006 12:40 PM PST
Cleveland-based U-Store-It, a real estate investment trust that owns and operates self-storage facilities in more than 25 states, will replace Windrose Medical Properties in the index. Windrose is being acquired by Health Care REIT Inc. in a deal expected to close on or around Tuesday.

 


 

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Argus Sales

Congratulations to:

  • Richard G. Arnold of Arnold/Forcum & Associates on the sale of All Your Treasures Mini Storage in Medford, OR!

  • Dale C. Eisenman, CCIM of Midcoast Properties, Inc. on the sale of a 4-Property Portfolio in North Carolina!

  • Barry Comiskey and John Owens of Westar Commercial Realty on the sale of Keepsafe Self Storage in Lubbock, TX!

  • Frost Weaver of Weaver Realty Group on the sale of All Safe Mini Storage in Macclenny, FL!

  • Mike Procter of JR Fulton & Associates on the sale of U-Stor-It Self Storage in Little Rock, AR!

  • Bill Barnhill, CCIM and Stuart LaGroue of Omega Properties, Inc. on the sale of River City Mini Storage in Greenville, MS!

  • Joan Lucas of Joan Lucas Real Estate Services on the sale of Midpoint Self Storage in Ft. Collins, CO!

  • Clifford Crowe, CCIM and David Anderson of Lee & Associates on the sale of Advanced Stor N Lock in Ridgecrest, CA!

  • Bruce Bahrmasel of Preferred Realty Group on the sale of Simply Storage in Mt. Vernon, IL!

The Argus Self Storage Sales Network
"
America's Self Storage Brokers"
1-800-55-STORE
info@argus-realestate.com

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Vendor View

Company Logo

With over one thousand self storage projects completed, National Sign Network is a leading supplier of signs and service to the self storage industry. National Sign Network offers our established installation and service network of over 2,500 licensed bonded and insured professionals. We offer America's best sign products, manufactured at plants located throughout the United States. Whether your project requires new signs, refacing, service, or monument signs, letters, illuminated awnings, fascia bands, window signs, lightboxes, and banners, National Sign Network has the sign product or services that you need. National Sign Network is ready to go to work for you!


For more information, contact:

800-458-0004
www.nationalsignnetwork.com

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Upcoming Events

SSA Winter Executive Ski Workshop
January 24, 2007
Telluride, CO

visit www.selfstorage.org for more information


California Self Storage Association
Northern Area Luncheon
February 6, 2007
Southern Area Luncheon
February 8, 2007

visit www.cssaweb.com for details


Inside Self Storage
Conference and Expo

February 20-23, 2007
Mandalay Bay Hotel
Las Vegas, NV

visit www.insideselfstorage.com/expo for more information


Self Storage Association
Spring Conference & Tradeshow

March 22-25, 2007
Sheraton New Orleans
New Orleans, LA

visit www.selfstorage.org for more information

List your event for free...
alert@argus-realestate.com

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Put America's Finest Self Storage Brokers to Work for You!

Click Here to Contact Us    Toll Free  1-800-557-8673     Online  www.selfstorage.com

 
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