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Self-Storage Investment Sales Update

The self-storage investment sales market at the end of 2024 is still in price discovery with the bid-ask spread divided based on asset type with the market split into several distinct buckets; core market stabilized, certificate of occupancy/lease-up, small market and development opportunity. Distressed deals have not surfaced in a material way and will likely be limited to a small handful of assets, primarily new construction in oversupplied markets with high levels of non-recourse debt.  A slowing of new development should help stabilize struggling markets in 2025-2026! CORE MARKET –…

5 Questions With… Rona Siegel and Amy Monson of StorQuest

In our “5 Questions With…” conversation, Rona Siegel, National Director of Third-Party Management, and Amy Monson, Business Development Director, from StorQuest shared valuable insights on self-storage investment and operations. They discussed critical factors for buying or developing facilities, common pitfalls for newcomers, and the evolving role of third-party managers. They highlighted industry changes over the past five years, strategies for customer retention, and the importance of digital marketing. They also explored how to future-proof businesses and adapt to shifting customer expectations. Tune into this super insightful conversation!   Connect with…

StorTrack’s National Pricing Trends Report: 3Q 2024

Overview The self-storage market in 3Q 2024 reflected an industry-navigating transition, pressured by elevated interest rates, inflation, and regional oversupply. Average street rates declined 0.9% quarter-over-quarter and 2.3% year-over-year to $1.49/sq ft., while promotional rates dropped more steeply by 10.2% year-over-year to $1.20/sq ft., signalling heightened competition and increased reliance on discounts to maintain occupancy. This competitive pressure stems from oversaturation, driven by a surge in pandemic-era development that left many new facilities struggling to stabilize in overbuilt markets. Despite these challenges, demand for climate-controlled units and premium features remains…

1784 Capital Secures Bridge Loan for SoCal Self Storage in San Gabriel, CA

1784 Capital Holdings has secured a $41.3 million bridge loan for a Class A self-storage project in San Gabriel, Calif. Talonvest Capital Inc. arranged the note provided by a REIT. The bridge loan has a three-year term with two extension options, as well as interest-only payments throughout its duration. Because the self-storage development broke ground in 2022 and is still under construction, the funds from the loan will be used to repay the current construction debt and cover all costs associated with the loan. The development previously became subject to…

Newmark Secures $315 Million Loan for Self-Storage Assets Across 24 Markets in 11 US States

Newmark Group (NASDAQ:NMRK), Inc. has facilitated a $315 million refinancing deal for a national portfolio of self-storage facilities, representing a significant transaction within the alternative real estate sector. The loan was arranged by Newmark’s top executives for TPG Angelo Gordon, in partnership with Andover Properties, and was provided by a consortium of lenders including Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS), and 3650 REIT. The refinanced portfolio comprises 43 properties with over 21,300 units, totaling 3.1 million rentable square feet and operating under the Storage King USA brand. These facilities are…

JLL Capital Markets Led the Sales Effort for the Self-Storage Portfolio in Philadelphia and West Florida

JLL Capital Markets announced today that it has completed the sale of a six-property self-storage portfolio totalling 468,266 rentable square feet in the Philadelphia MSA and the Tampa, Sarasota and Fort Myers areas of West Florida. JLL’s National Self-Storage team represented the seller, a partnership between Metro Self Storage and Heitman, and procured the buyer, Andover Properties. The properties were operated and managed under the Metro Self Storage brand at the time of sale and will be rebranded to Andover’s Storage King USA brand. The portfolio consists of three properties…

Combating Crime: 5 Tools To Protect Your Property And People

Ask anyone in the self-storage industry what their biggest concern is today, and most of us will list break-ins at or near the top of the list after seeing a rise in criminal activity at facilities over the last 5 years. In fact, according to a recent survey by Janus International, 85% of self-storage owner-operators say that theft and break-ins are top of mind, and 57% report that they’re dealing with repeated break-ins. But it doesn’t have to be this way. With cutting-edge technologies and services, you can address vulnerabilities…

SBA 504 Refinance Rule Changes

The SBA’s rule changes, effective November 15, 2024, will help loan clients in a number of ways, including making it easier to refinance debt. Also, the new rule change broadens the way businesses can use funds through refinancing, especially when they’re looking to expand. 1) For Stand-Alone Debt Refinance (Without Expansion): The loan-to-value limit is now up to 90% in all cases including requests for ‘cash out’ for other business expenses and special use properties. In addition, the 20% LTV cap on cash out for other business expenses is GONE!…

Declined?…

‘DECLINED’…few words in the English language create anxiety more than that one. It can be a college entrance application, a new car loan or a mortgage, it’s simply not fun to hear that word. It brings up all sorts of questions, ‘…was it my late library book in 2019, that new computer purchase at the big box store when I got behind in the payments years ago or the recent late on the department store credit card when my dog ate the statement?’ When it comes to mortgage loans, credit…

For What it’s Worth – MAI versus BOV

There are countless reasons why a property owner is looking for a current market value of their real estate asset(s) – many involving life events such as death, divorce, partnership disputes/dissolutions, retirement, wealth or estate planning, debt settlement, default, recapitalization and more. Sometimes it is simply when an owner has decided to sell. Determining a current fair market value can be achieved by working with a specialized real estate broker familiar with the type of property involved or may require engaging a licensed real estate appraiser to prepare a detailed…