Featured Broker: Spencer Molnar

Spencer is an experienced associate providing research based and data driven investment solutions to buyers and sellers throughout the self storage industry. Prior to joining the Storage Exchange team, he worked as an advisor for LevRose Commercial Real Estate, specializing in sales and leasing of office, flex and industrial assets throughout the Scottsdale and greater Phoenix markets. Spencer attended Arizona State University where he earned a BS in sports journalism with an emphasis on marketing management and strategic communications. Contact Spencer at spencer@storageexchange.com

SmartStop Self Storage REIT, Inc. Closes Acquisition of Strategic Storage Growth Trust II, Inc. in Stock-for-Stock Transaction

SmartStop Self Storage REIT, Inc., a self-managed and fully-integrated self storage company, and Strategic Storage Growth Trust II, Inc. (SSGT II), a private REIT sponsored by an indirect subsidiary of SmartStop, announced today that the companies have closed their previously announced merger, in which SSGT II will merge into a newly-formed subsidiary of SmartStop in a stock-for-stock transaction that values SSGT II’s real estate portfolio at approximately $280 million. The combined companies will have a portfolio of 152 wholly-owned operating properties, representing approximately 11.7 million net rentable square feet and…

ULLICO Lends $69 Million Loan on NYC, NJ Self Storage Portfolio Buy

Alan Mruvka’s StorageBlue has landed $69 million of first-mortgage financing for its purchase of a three-asset self storage portfolio in the New York City metropolitan region. Union Labor Life Insurance Company (ULLICO) supplied the first-mortgage loan for Mruvka’s acquisition of three self storage properties in New Jersey and Staten Island from American Self Storage. Herb Kolben and Kevin Smith of ULLICO spearheaded the deal. Solaris Capital also provided $14.3 million in preferred equity in a transaction overseen by Anthony Manno. Neptune Capital Partners also kicked in $13 million of additional…

Recent Closings: 5.31.2022 – 6.06.2022

Property: Value Store It Self Storage Location: Worcester, MA Brokers and Brokerage: Nathan Coe, Brett Hatcher, Luke Dawley and Gabriel Coe of the Hatcher-Coe Group of Marcus & Millichap NRSF: 30,393 Unit Count: 440 Highlights: Recently Renovated Self Storage Facility Seller Added 140 Units in Early 2021 Nearly Doubling the NRSF Recent Capital Improvements: Painted Entire Interior, Replaced the Roof, Repaved Parking Lot, Added Keypad Access and Doubled the Number of Security Cameras Worcester Is New England’s Fastest Growing City and Home to Eight Colleges Undersaturated Self Storage Market High…

504 Loan Structuring

With the current rising interest rate environment, now is a good time to lock in debt for as long as possible. One option is the SBA 504 program where anywhere from 35-40% of the loan package has a 25-year fixed rate. The maximum amount from the CDC/SBA 25-year rate is $5 million (unless you pursue the “Green” program when it would become $5.5 million). The bank who holds onto the first mortgage can go up as high as they are comfortable with allowing borrowers to receive loans in the $15-$20…

Augusta Considers New Use for Former Kmart Building as Demand for Self Storage Rises

An increasing demand for places to stow personal items and equipment is driving a proposal to convert the vacant former Kmart building, and its parking lot, on Western Avenue into self storage space. The effort is part of a larger trend of repurposing large box stores that were driven out of business into storage facilities. I appreciate the concept, I think repurposing these types of large box retail spaces — since retail is being done differently these days, thank you Amazon — is something that needs to be done.” Several…

First Quarter Results for Absolute Storage Management

Absolute Storage Management (Absolute), a leading third-party management company for self-storage facilities in the United States, announced operating results for the three months ended March 31, 2022. 2022 Highlights for Three Months Ended March 31, 2022: Increased same-store revenue by 18.3% vs. the same period in 2021. Maintained Square Ft. and Unit Occupancy vs. the same period in 2021. Ended the period with 21% increase in GPI vs. the same period in 2021. Acquired nine (9) management contracts: four (4) operating facility and five (5) facilities at the completion of…

Recent Closings: 5.24.2022 – 5.30.2022

Property: Public Storage (Managed) Location: Birmingham, AL Broker and Brokerage: Ashley Compton of Colliers Self Storage Group NRSF: 102,292 Unit Count: 834 Acreage: 8.82 Properties: Two Development Sites Closing Price: $4.9 Million Location: Winston-Salem, NC Buyer: SROA Acreage: 5.2 Property: Storage and Retail Property Closing Price: $3.9 Million Location: Frederick, VA Buyer: Frederick Pike Holdings, LLC. Broker and Brokerage: Jamie A. Scully of Cushman & Wakefield NRSF: 27,000 (Storage) and 21,322 (Retail) Property: My Space Indoor Storage and Retail Location: South Bend, IN Brokers and Brokerage: Hunter Sells, Scott Schoettlin…

$5 Million Self Storage Facility Coming to Lansing, MI

The incoming owners of property currently occupied by Zap Zone, an indoor amusement center, have plans to invest more than $5 million to turn the existing building and space around it into a large self storage facility with space for recreational vehicle parking. As that project moves ahead, Zap Zone will leave the building on Mall Drive East and move to a now-vacant building in the Lansing Mall, said Jacob Rosberg, an associate with Cohn Commercial Properties. The agency is representing Zap Zone in the sale of its current building,…

Construction on 1,562 Self Storage Units Underway in South Texas

A partnership between San Antonio-based Bakke Development Corp. and Batson-Cook Development will, together, work on two separate self storage facilities. The two projects, one in Brownsville and the other in McAllen, are mirror-images of each other. They will both comprise 781 units and 87,000 feet of rentable space. Alamo Architects is the architect for both facilities and Independent Contractors Inc. is the general contractor. Both projects are expected to be completed by the middle of next year. Source