On behalf of the Argus Self Storage Sales Network and all our Broker Affiliates, we wish you a very happy Thanksgiving holiday!  Thanks to all of our clients, affiliates and business partners for making 2007 a successful year!
 

New Argus Listings

• Pine Bluff, AR:  $550,000; 24,500 RSF.  Contact Broker Affiliate Mike Procter at 405-503-9055. 

• New Orleans, LA:  $2,700,000;  73,758 RSF.  Contact Broker Affiliate Jack Stumpf & Jon Cerruti at 504-366-6800.

• Baltimore, MD:  $2,900,000; 103,200 RSF Conversion Site.  Contact Broker Affiliate Grady Riggs at 301-468-0606.

• Tecumseh, MI:  $550,000; 18,240 RSF.  Contact Broker Affiliate Charlie Hill at 269-375-9000.

• Ypsilanti, MI:  $4,750,000; 24,400 RSF.  Contact Broker Affiliate Charlie Hill at 269-375-9000.

• St. Paul, MN:  $950,000; 11,800 RSF.  Contact Broker Affiliate Pat Jordan at 6112-827-3844.

• Ozark, MO:  $540,000; 17,184 RSF.  Contact Broker Affiliate Larry Goldman at 816-931-3101.

• Carlsbad, NM:  $548,000; 9,000 RSF.  Contact Broker Affiliate David Laney at 505-286-2060.

• Fort Edward, NY:  $650,000; 11,000 RSF.  Contact Broker Affiliate Guy Blake at 845-338-5000.

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

Property Pick

Albany, GA
$2,675,000

• Rentable SF: 56,600

• Total Units: 382

• Climate Controlled Units: 202

• Land Area: 3.36 Acres

• Year Opened: 2003

• 2 climate controlled buildings, 4 non-climate buildings and a freestanding rental office

• Recently expanded facility with growing occupancy

• Land available for expansion

• Newer facility built in 2003

For more information on this opportunity,
please contact Argus Broker Affiliate
Dale C. Eisenman CCIM at
843-342-7650 or send an Email Request

Financing Focus

by Steve Clifford
NorthMarq Capital, Inc.

Get ready for a long rollercoaster ride in the commercial mortgage market as we approach the holiday season.  The Commercial Mortgage Backed Security (CMBS) market is in turmoil again after seemingly settling down in September and October.  Spreads have widened within the past two weeks to near record levels, as pools have had to make large price adjustments to clear the market.  Perceived economic weakness is keeping investors on the sidelines, and nervousness throughout the marketplace has flooded the secondary market with paper. Investors are especially weary of any 2007 vintage CMBS paper, concerned that deals were underwritten too loosely, with high leverage and low Debt Coverage Ratios.  Spreads on CMBS have run the gamut in the past two weeks, with some lenders bumping spreads from 200 basis points to north of 300 basis points, afraid that things could get worse before they get better.  CMBS production will see major cutbacks in 2008, moving back to 1998-1999 production levels, with significantly less aggressive underwriting. 

Life company allocations are drying up for 2007, with life lenders being more quality driven than ever for their remaining 2007 funds.  Spreads on the life side have increased rather significantly in recent weeks, with the average spread moving up 30 basis points or so to around 170 to 200 basis points over the 10 year treasury for a 10 year deal.

Good news in all this is that the flight to quality (and less risky assets), has pushed down treasury yields to their lowest level this year, insulating some of the spread premiums from affecting overall rates.

As the new year approaches, we are still seeing upward pressure on cap rates from buyers unable and unwilling to pay the high prices demanded by sellers, increasingly resulting in a stalemate and deals falling out of contract.  This stalemate will likely continue well into 2008, with cap rates moving up slightly as sellers become more motivated.

All in all, while the markets continue to have their ups and downs, overall rates are still at their lowest levels in years.  While everyone is reluctant to accept anything less than the best deal, now is still a good time, historically speaking, to finance any type of commercial real estate asset.

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!

Ron Henderson, of J. Ronald Henderson Real Estate, has been active in the development, management and marketing of commercial/industrial real estate in Northeast Oklahoma since 1978.  He holds a degree in Business Administration from Oklahoma State University and is a retired Major in the US Army Reserves.  He has been active in promoting the economic development of Tulsa, Oklahoma over the past 35 years.  Ron will represent Argus in the State of Oklahoma and he can be reached at 918-585-1030.

Industry Insights

U-Store-It Trust down after missing Q3 earnings estimates
By Will Atkinson
U-Store-It Trust (NYSE: YSI) shares are down after the real estate investment trust and operator of self-storage facilities recorded a third-quarter net loss of $4.1 million, or $0.07 per share, worse than analyst estimates of $0.01 per ...
SmallCapInvestor.com - http://www.smallcapinvestor.com/

Sovran Self Storage Reports Third Quarter Results: Revenues ...
Business Wire (press release) - San Francisco,CA,USA
As opportunities arise, the Company may acquire self-storage facilities with high growth potential for its own portfolio, and may sell certain facilities ...