Category: Finance News

Self Storage Industry Reaches Point of Over Capitalization

As unprecedented amounts of capital flow into the self storage industry, many investors are expressing concerns that the industry has reached a point of over capitalization. In other words, an overabundance of capital relative to the number of investment opportunities has turned capital deployment into a daunting task. As market competition intensifies, some investors are exploring smaller market strategies, which begs the question: is this a last-ditch effort or a logical capital deployment strategy? Self storage is fueled by necessity driven demand that transcends market size, geography, income, etc. The…

Decoding the Mystery of the Self Storage Cap Rate: How and Why It’s Used to Assess Facility Value

If you’re planning to sell or purchase a self storage facility, your real estate broker will talk to you about value in terms of capitalization (cap) rates. If you’re an owner looking to refinance, your appraiser will also use a cap rate to determine value. As an owner, it’s important that you understand this metric! To help you get a firm grasp, let’s explore the ins and outs of the cap rate, including what it is, how it’s calculated and how it’s used in self storage. What Is a Cap…

Janus International Completes Merger to Become Public Company

Janus International Group, a manufacturer of doors and other products for self-storage and industrial facilities, has joined the small cadre of publicly traded companies in the self storage industry. Janus’ stock started trading June 8 on the New York Stock Exchange. The stock opened the day at $14 per share and closed at $13.89 per share. In December, Janus executives estimated the stock listing would lead to a market capitalization of $1.4 billion and an equity valuation of $1.9 billion. A ‘blank check’ merger Temple, GA-based Janus went public through…

The LeClaire-Schlosser Group of Marcus & Millichap Brokers the Sale of Dona Ana Storage in Las Cruces, New Mexico

The LeClaire-Schlosser Group of Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Dona Ana Storage, a 35,525 square foot storage facility located in Las Cruces, New Mexico, just north of El Paso, Texas. One challenge to this deal were the 40+ storage units used by the seller on a complimentarily basis. During escrow, the seller vacated most units which were soon re-rented to new customers which speaks to the strong spring leasing…

CARES Act and Economic Aid Act Information to Remember

A lot has transpired over the past 14 months as it relates to the CARES Act and Economic Aid Act. Below are some important notes to keep in mind as you navigate your SBA loans. For complete details, please refer to SBA Procedural Notices 5000-20079 and 5000-20095. Round 1 Section 1112 must be completed before Round 2 payments can begin. Round 1 Section 1112 payments are not capped at $9,000 per month, including loans that are eligible to begin receiving Round 1 payments after deferment. Borrowers are responsible for paying…

JLL Sells Two-Property Portfolio

JLL Capital Markets announced today that it has closed the sale of a two-property self storage portfolio totaling 1,603 units in the Houston and Chicago MSAs. JLL worked on behalf of the seller, a private equity real estate fund advised by Crow Holdings Capital. National Storage Affiliates Trust acquired the assets. The portfolio comprises the 857-unit Sugar Land Self Storage in Richmond, Texas, and the 746-unit Crestwood Self Storage in Crestwood, Illinois. Sugar Land Self Storage is a well-maintained, stabilized asset that features a mix of climate-controlled and drive-up units,…

Lender Lesson: Making the Deal Work

With the recent SBA 504 25-year fixed rates near historic lows (3.08% in April) along with allotted loan payments being covered by CARES Act stimulus payments, the 504 loan program has become a popular financing solution. Each loan file brings unique challenges. The primary goal of the 504 loan program is to encourage economic development by enabling small businesses to create or retain jobs within their communities. The challenge, sometimes, with self storage is they create few, if any, jobs. When the job creation requirement is not met, the only…

The LeClaire-Schlosser Group of Marcus & Millichap Sells Minikahda Storage and Excelsior Tech Center in Hopkins, Minnesota

The LeClaire-Schlosser Group of Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Minikahda Storage and Excelsior Tech Center, a multi-story mixed-use facility with 186,777 net rentable square feet located in Hopkins, Minnesota. Charles “Chico” LeClaire, Executive Managing Director Investments, and Adam Schlosser, Senior Vice President Investments, in Marcus & Millichap’s Denver, Colorado office, and Chris Kampmeyer, Investment Associate, in the firm’s Minneapolis, Minnesota office had the exclusive listing to market the property…

Invesco Real Estate Lends $116M on National Self Storage Portfolio

Invesco Real Estate has provided a $116 million loan to ASB Real Estate Investments (ASB) and The William Warren Group (WWG) on a portfolio of 10 self storage properties spread across five states. The debt was structured as a three-year, floating-rate loan, according to information from Washington, D.C.-based ABS, which executed the loan on behalf of its $7.3 billion Allegiance Real Estate Fund. The deal closed on April 8th. “This loan is representative of the Invesco debt platform’s focus on high-quality real estate and best-in-class institutional sponsorship,” Justin Chausse, senior…