"America's Premier
Self Storage Brokers"
November 2004
2953 S. Peoria Street
Suite 207
Aurora, CO 80014
1-800-55-STORE
At this time of year it is very easy to get distracted by the season's hurried pace. I encourage you to take a few moments each day to remember the things for which you are grateful. Thanksgiving is a time to ponder the gifts we have received throughout the year. For each of us, these gifts are different. It could be our health, our family or simply the new day. For others it might be the fattened bank account or the joy of retirement. Some of us have had a good year, and some of us may have experienced loss or hardship. No matter what this year has brought so far, we all have something to be thankful for - if we are willing to look deep enough. Thank you all for making the Alert successful by your readership and content contribution. I wish you and your families a Happy and Healthy Thanksgiving!
Melanie
Melanie R. Aaron 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 melanie@argus-realestate.com.
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Blytheville, AR: $165,000; 17,980 RSF. Contact Broker Affiliate John Raines at 731-855-2192.
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Oakdale, CA: $1,100,000; 19,000 RSF. Contact Broker Affiliate Ron Largent at 530-941-0444 .
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Sandwich, IL: $1,375,000; 43,280 RSF. Contact Broker Affiliate Bruce Bahrmasel at 312-518-3550.
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Rogersville, MO: $900,000; 29,960 RSF. Contact Broker Affiliate Larry Goldman at 816-931-3101.
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Albuquerque, NM: $695,000; 20,731 RSF. Contact Broker Affiliate David Laney at 505-855-7600.
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Jackson, TN: $1,825,000; 38,250 RSF. Contact Broker Affiliate John Raines at 731-855-2192.
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Savannah, TN: $350,000; 10,200 RSF. Contact Broker Affiliate John Raines at 731-855-2192.
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Marble Falls, TX: $2,126,000; 67,523 RSF. Contact Broker Affiliate Mark Keys at 210-366-8817.
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Mineral Wells, TX: $919,000; 36,250 RSF. Contact Broker Affiliate Richard Minker at 888-7-MINKER.
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Bedford, VA: $800,000; 29,700 RSF. Contact Broker Affiliate Kathleen O'Brien at 703-538-2382.
Check out all of our Current Listings
Don't miss the next Market Monitor! It will be mailed in mid-December. If you requested a Rental Rate Survey in June, you won't want to miss the year-end updates.
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Dale C. Eisenman, CCIM, an Argus Broker Affiliate, has
been appointed to the South Carolina SSA Board. He also serves on the
board of the North Carolina SSA. Dale, a licensed broker in South
Carolina, North Carolina and Georgia, specializes in representing self storage
clients. Dale can be reached at 843-342-7650 or via e-mail
dale@midcoastproperties.com.
WELCOME!
Argus is pleased to welcome new Broker Affiliate, Roxana Baker.
Roxana is a Senior Associate with Grubb & Ellis in San Jose, California and
has nearly 25 years of commercial real estate experience. She will
represent Argus in Northern California - Bay Area and Central Coast.
Roxana can be reached at 408-453-2311 or via e-mail
roxana.baker@grubb-ellis.com.
Welcome, Roxana!
www.selfstorage.com
Announces Release of Online
Reservation Notification System
The self storage industry's leading website has announced the addition of an online reservation notification system. This new feature is available to all Premier Webpage customers at no additional cost. The system sends an e-mail notification to the facility when a reservation is requested by a potential renter. The system can be easily and seamlessly integrated with a facility's current management software.
To list your facility or for more information on the reservation system, please call 1-888-414-7871. Just one new rental covers the cost!
Low Cost ~ Easy to Update ~ No Long
Term Contract
Mention the Alert and we'll waive
the set up fee.
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Inside Self Storage Expo, February 23-25, 2005 in Las Vegas. For more information or to register, visit the ISS website at www.insideselfstorage.com/expo.
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SSA Spring Conference & Tradeshow, March 16-19, 2005 in Philadelphia. For more information, visit the SSA website at www.selfstorage.org.
Lately, the real news in the capital markets has more to do with creative loan structures than any significant changes in interest rates. Yes, the 10-Year Treasury is currently trading at approximately 4.00%, having drifted down from roughly 4.75% in early June due primarily to lackluster employment growth, inflationary uncertainty, and most recently, spiking oil prices. While the current favorable interest rate environment remains tenuous, storage owners are more impacted at present by increasingly flexible loan structures offered in the capital markets.
Lenders are competing heavily for self-storage financings, going after properties that have yet to stabilize with a variety of features that benefit self-storage owners. Many in the capital markets will provide long-term fixed rate loans while a property is still in lease-up. It is increasingly common for lenders to underwrite the most current month of income on an annualized basis to size a loan if the property has maintained a strong lease-up rate.
Some lenders have gone so far as to only require that the current month’s net operating income generates a “break even” debt coverage ratio, provided the stabilized net operating income will generate a 1.25 debt coverage ratio within three to six months of loan closing. Separately, if a property has six months or more to stabilize, lenders may provide the option to obtain a loan leveraged at 80% of stabilized value by securing the “shortfall” of current net operating income with a letter of credit. This is a major deviation from traditional underwriting that required the trailing 12 months of income and expenses to generate a 1.25 debt coverage ratio. Both of these options make it possible to secure a fully-leveraged loan at today's rates, rather than taking interest rate risk upon stabilization in the future. However, it is important to realize that lenders will take 60 to 90 days to fund a loan and will expect an increasing income stream during this time frame.
Finally, it is important to stress that these aggressive loan structures are mostly available for A-quality developments in premier locations where the lease up has been strong and consistent. It is difficult to obtain this type of financing if leasing performance has struggled or there are plans for new self-storage developments in the immediate market. Still, the aggressive posture taken by the capital markets to finance less-than-stabilized facilities has a profound impact on the favorable financing structures available today.
For more information or assistance contact Eric Snyder, Buchanan Storage Capital, at 1-800-675-1902 or via e-mail at eps@buchananstreet.com. You may also visit the Buchanan Storage Capital website at www.buchananstoragecapital.com.
Congratulations to Argus Broker Affiliates
Richard Arnold
of Arnold/Forcum & Associates on the sale of
Devil's Lake Storage in Lincoln City, OR!
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Clifford
Crowe & Michael McVay
of Lee & Associates on the sale of
Added Value Self Storage in Palm Springs, CA!
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David Laney
of Argus Investment Realty on the sale of
Available Self Storage in Moriarty, NM!
~~~~~~~~~~~
John Raines
of The Real Estate Connection for representing the
buyer of
Second Street Self Storage in Greenfield, TN!
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The Argus Self Storage Sales Network
"
1-800-55-STORE
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U-Store-It Purchases $184 Million Portfolio. U-Store-It Trust has completed a $184 million acquisition of a 2.6 million square foot portfolio from Metro Storage LLC. U-Store-It recently went public and now plans to spend over $2 million to renovate all of the properties in the portfolio. The portfolio includes 42 properties in Florida, Illinois, Indiana, Ohio and Wisconsin. The acquisition brings the Company's portfolio to 197 facilities totaling 12.5 million square feet in 21 states.
- Shurgard Announces Third Quarter Results.
The Company reported net income during the third
quarter 2004 of $18.2 million, compared with $12.5 million for the same
period in 2003. Shurgard attributes part of the increase to a $4.3
million gain realized on the sale of two properties. Same Store
income rose 15.9% over the same quarter 2003. Net income during the
first nine months of 2004 was $38.7 million, compared with $34.6 million
recorded in the same period in 2003.
Full Press Release
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 its established installation and service network of over 2,500 licensed, bonded and insured professionals. National Sign Network is a full service national sign firm offering America's best sign products, manufactured at plants located throughout the United States. Whether your project requires new signs, refacing, service, cleaning or repair of pole 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!
Visit their website www.nationalsignnetwork.com or contact Joe Arkeder at 1-800-458-0004 or via e-mail joe@nationalsignnetwork.com.
Put America's Finest Self Storage Brokers to Work for You!
Click Here to Contact Us Phone 303-785-6085 Toll Free 1-800-557-8673 Online www.selfstorage.com
