and
 

New Argus Listings

• Mobile, AL:  $5,250,000; 75,420 RSF.  Contact Broker Affiliate Bill Barnhill at 251-432-1287.

• Moulton, AL:  $986,500; 41,000 RSF.  Contact Broker Affiliates Bill Barnhill & Stuart LaGroue at 251-432-1287. 

• Ashdown, AR:  $750,000; 42,300 RSF.  Contact Broker Affiliate Mike Procter at 405-503-9055. 

• Mt. Olive, IL:  $599,000;  15,584 RSF.  Contact Broker Affiliates Bruce Bahrmasel & Sheldon Johnson at 312-518-3550 or 314-862-3000.

• New England 10-Property Portfolio:  $28,000,000; 358,833 RSF.  Contact Broker Affiliate Joe Mendola at 603-668-7000.

• Branson, MO:  $2,250,000; 46,178 RSF.  Contact Broker Affiliate Larry Goldman at 816-931-3101.

• Kansas City, MO:  $1,800,000; 20,733 RSF.  Contact Broker Affiliate Larry Goldman at 816-931-3101.

• Greenville, MS:  $151,000; 3,400 RSF.  Contact Broker Affiliate Mike Procter at 405-503-9055. 

• Starkville, MS:  $1,423,000; 10,061 RSF.  Contact Broker Affiliates Bill Barnhill & Stuart LaGroue at 251-432-1287. 

• Texas 5-Property Portfolio:  $4,958,000; 202,165,000 RSF.  Contact Broker Affiliates Richard Minker & Tyler Trahant at 817-335-5600.

• Lubbock, TX:  $1,700,000; 66,360 RSF.  Contact Broker Affiliates John Owens & Barry Comiskey at 806-797-3231.

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

Property Pick

Mobile, AL
$5,250,000

• Rentable SF: 75,420

• Total Units: 623

• Climate Controlled Units: 361

• Land Area: 8.05 Acres +/-

• Year Opened: 2000

• Class "A" facility with 41,820 SF of climate controlled storage

• Great location near major traffic artery

• Lighting, surveillance cameras and electronic gates provide excellent security

• Additional land for expansion

For more information on this opportunity,
please contact Argus Broker Affiliate
Bill Barnhill, CCIM at
888-801-4534 or send an Email Request

Financing Focus

by Steve Clifford
NorthMarq Capital, Inc.

The New Year is beginning much like the past year ended…with volatility, uncertainty, and caution.  2007 proved to be one of the most tumultuous years in the past decade.  The onslaught of defaults in the sub prime residential real estate market created havoc in the capital markets ultimately resulting in write downs estimated at $100 billion.  In an effort to digest their exposure and limit further losses buyers of commercial backed paper flocked to the sidelines resulting in a lack of liquidity and increased pricing.  The stock market has reacted with major banks losing billions of dollars in market capitalization.  A flight to the security of US Treasuries has pushed the 10 Year benchmark to it’s five year low of 3.62% (as of January 17, 2008). 

As the first quarter of 2008 opens, many experts predict that the current state of the market will continue through the entire first quarter at the very least.  By way of highlights that means the following;

• Many predict that 2008 CMBS loan originations are going to be $80 to $100 billion, less than 50% of the $228 billion in 2007 originations,

• Life company allocations for the first quarter have come out and have been reduced by as much as 30% while several life companies continue to sit on the sidelines, 

• Given the smaller supply of capital as outlined above, expect tighter underwriting standards on all property types, with shorter amortizations (minimal amount of interest only periods are now available), higher debt ratio requirements and a limited amount of loan structuring available in the markets,

• As of January 2008 loan pricing on Life company money is averaging 225 basis points over the 10 Year Treasury while loan pricing on the CMBS side is a full 50 basis points higher at 275 over the 10 Year.

• Commercial Real Estate fundamentals remain strong with low delinquencies in almost every property class.  Many believe that the market is going to be experiencing a downturn with an increase in delinquencies brought on by aggressive underwriting.  In addition, expect an increase in cap rates resulting from an increase in the cost of capital and falling rents and increased vacancies (brought on by a slow down in the economy).

Despite the doom and gloom reported in the media on a daily basis, competitive commercial loans are being closed.  While there has been a significant increase in the spreads on commercial loans, the decline in Treasury yields has helped to offset the increase and help to keep overall loan rates at competitive levels.  Current 10 Year Treasury is hovering around 3.65%, a full 105 basis points less than the 4.70% average at the same time last year.  Combined with the pricing outlined above, sub 6% loans are currently being quoted. 

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 Affiliate to the
Argus Self Storage Sales Network!

Dave Smith, CCIM is the Broker/Owner of RE/MAX Commercial Midwest in Omaha, NE and will represent Argus in the state of Nebraska.  Dave is familiar with the Omaha business climate, geographic features, and lifestyles, and is determined to provide his clients with the best service possible.  Dave has experience with many different property types including commercial space, investment properties, and tax deferred exchanges.  He is a member of the CCIM Institute as well as the Omaha and National Board of Realtors.  Dave can be reached at 402-614-9660.

Industry Insights

Public Storage Considers Sale of Shurgard Europe:  01/9/2008 Public Storage, the nation’s largest self-storage operator, has reached a preliminary agreement to sell a 51 percent stake in its Shurgard Europe division in a private transaction. The company did not disclose the buyer or sale price, Read Full Article

PODS Sold to Bahrain-Based Investment Firm for $430:  12/5/2007 Clearwater, Fla.-based PODS Enterprises Inc. has been purchased for $443 million by a Bahrain-based company, Arcapita Inc. Arcapita, stakeholders in Caribou Coffee and Church's Chicken, is the U.S. arm of Bahrain-based Arcapita Bank.  Read Full Article

Judge Overturns Ruling On Self-Storage Sales Tax:  12/31/07 Lawyers for the State of South Dakota are studying whether to appeal a judge's ruling that the owners of a Sisseton self-storage property don’t have to pay state sales tax. The judge's ruling earlier in December overturned the decision of a state tax complaint review official. Read Full Article