Illinois Self Storage – Glendale Heights, Illinois

Illinois Self Storage-Glendale Heights, Illinois

By: The Storage Acquisition Group

z7NbOR1I

The Storage Acquisition Group is pleased to announce the closing of 325 Army Trail Rd in Glendale Heights, IL. Storage World has a total building size of 75,000 square feet and offers 313 units of both climate and non-climate-controlled storage space. It is conveniently located inside a shopping center and is surrounded by multiple retail shops.

The transaction was negotiated by David Spencer, Vice President and Senior Advisor with The Storage Acquisition Group and Executive Advisor with Spencer Commercial Group based in Decatur, Georgia, and The Storage Acquisition Group CEO & President Monty Spencer.

The Storage Acquisition Group specializes in purchasing storage facilities and portfolios nationwide. Uniquely, they allow owners to sell direct without having to list their facility. With their four-tiered approach, Market Analysis, Acquisitions, Underwriting, & Closing Support, The Storage Acquisition Group can help owners navigate a simple sales process while netting the highest possible profit.

Massachusetts Self Storage – Swansea, Massachusetts

Massachusetts Self Storage-Swansea, Massachusetts

By: The Storage Acquisition Group

default

The Storage Acquisition Group is pleased to announce the closing of a CubeSmart managed self-storage facility in Swansea, Massachusetts. The facility is located at 262 Swansea Mall Drive, Swansea Massachusetts and offers 68,155 NRSF across 717 units of both climate and non-climate-controlled space. This facility is conveniently located beside Swansea regional shopping mall and just off I-195.

Thomas Palumbo, an affiliate agent at The Storage Acquisition Group, & Bill Sitar, Jr Esq., affiliate agent at The Storage Acquisition Group and Vice President at Sitar Realty Company based in Iselin, NJ, represented the seller of this facility and Monty Spencer, CEO of The Storage Acquisition Group represented the buyer.

The Storage Acquisition Group specializes in purchasing storage facilities and portfolios nationwide. Uniquely they allow owners to sell direct without having to list their facility. With their four-tiered approach, Market Analysis, Acquisitions, Underwriting, & Closing Support, The Storage Acquisition Group is able to help owners navigate a simple sales process while netting the highest possible profit.

Williamsburg Self Storage – Williamsburg, Virginia

Williamsburg Self Storage-Williamsburg, Virginia

By: The Storage Acquisition Group

pic 2

The Storage Acquisition Group is pleased to announce the closing of 7521 Richmond Road in Williamsburg, VA. This multi-use facility offers 89,352 NRSF across 670 units of both climate and non-climate-controlled space, 81 boat and RV units, and 52,360 NRSF of commercial space. This facility is conveniently located within a mixed-use retail marketplace.

The transaction was negotiated by Monty Spencer, CEO of The Storage Acquisition Group. Spencer has received the Power Broker Award as the top producing agent in Hampton Roads for the past 10 years.

The Storage Acquisition Group specializes in purchasing storage facilities and portfolios nationwide. Uniquely, they allow owners to sell direct without having to list their facility. With their four-tiered approach, Market Analysis, Acquisitions, Underwriting, & Closing Support, The Storage Acquisition Group can help owners navigate a simple sales process while netting the highest possible profit. The Storage Acquisition Group

Kentucky Self Storage – Louisville, Kentucky

Kentucky Self Storage-Louisville, Kentucky

By: The Storage Acquisition Group

960x540

The Storage Acquisition Group is pleased to announce the closing of 6500 Jefferson Blvd., Louisville, Kentucky.  This facility offers 107,000 NRSF across 1,071 units of both climate and non-climate-controlled space. This facility is conveniently located on Jefferson Blvd., and is less than 15 minutes from Louisville International Airport.

The transaction was negotiated by David Spencer, Vice President and Senior Advisor with The Storage Acquisition Group and Executive Advisor with Spencer Commercial Group based in Decatur, Georgia, and The Storage Acquisition Group CEO & President Monty Spencer.

The Storage Acquisition Group specializes in purchasing storage facilities and portfolios nationwide. Uniquely they allow owners to sell direct without having to list their facility. With their four-tiered approach, Market Analysis, Acquisitions, Underwriting, & Closing Support, The Storage Acquisition Group is able to help owners navigate a simple sales process while netting the highest possible profit.

Understanding & Calculating the Value of Storage

Understanding & Calculating the Value of Storage

By: Melissa Shandor, The Storage Acquisition Group, Strategic Advisor California and Pacific Northwest

Businessman holding virtual download icon progress for increasing value added to business product and service concept.

The objective of valuation is to determine worth based on unbiased metrics which can be calculated to assign value. Yet with varying approaches, parties cannot always agree.  Owners and investors may assign different numbers, even when researching the same facility.  Understanding the available methodologies and capitalizing on value-add opportunities should be the goal of both owners and investors when determining value. Examination of acceptable forms of valuation allows for an impartial calculation of worth.

Sales Comparisons:

Although familiar to most, when valuing storage, the sales comparison approach will likely be inaccurate.  Sales comps should not be used independently because there is often a lack of comparable sales within an adequate timeframe and/or radius of the subject property.  If comparable sales do exist, the purchase price may be undisclosed; therefore, the average price per square foot could appear considerably lower than the true amount.  Sales comps are able to report the change of ownership, presence of private and/or REIT owners, and, when reported accurately, price per square foot.  Although they do not provide the entire picture, they should be part of the valuation process.

Cap Rates:

Everyone loves to talk cap rates, why?  Because cap rates are a simple way for owners and investors to express value.  Cap rates are market specific and mathematically generate a number linking net operating income to value.  Because they are dependent on reviewing financials, owners should be wary of anyone quoting a specific cap rate if they have not reviewed your P & L.  Evaluators assume reoccurring revenue will be accounted for and expenses accurately reflect current market rates.  Occasionally, financial reports can uncover a discrepancy in expense reporting.  For example, what happens when the owner is performing all of their own maintenance? Or when a manager is being paid double what the other managers in the area are being paid? Both scenarios change the expense report and therefore change the cap rate.  Owners should know their income-to-expense ratio to remain competitive in their market.  Reviewing operating expenses and making necessary adjustments will help maintain the value of the property.  Investors will be critically analyzing expense ratios and applying their own metrics when assessing value.  They will take into account the numbers you provide and then adjust accordingly for any values that do not match up with the market.

Rates & Occupancy:

Rent rates deserve considerable attention for true valuation.  Due to their intimate relationship with cap rates, income, and overall value, examination of rates is a vital part of calculating worth.  Although many owners are not keen to raise rents, it is a necessary step to increase value.  When owners are not increasing rates, the value of their property is negatively impacted.  Rental rates should increase accordingly with your market. Whether your plan is to sell or hold, study the street rates in your market and catch up to them if you are not currently there.

Owners should understand that 100% physical occupancy is not the goal.  In fact, this is often seen as negative by investors when assigning value. Recognizing the difference between physical and economic occupancy is essential.  Value is seen in economic occupancy because it measures total possible income versus the number of filled units.  Hovering around 90% economic occupancy should be the goal of owners hoping to achieve maximum value.  If you are currently at 100% physical occupancy, consider raising rents, this will help the value of the property.

Additionally, capitalizing on square footage and the ideal unit mix for your market is essential for return on investment.  If no one in your market has any 5X5 units available consider if you are able to provide this unit size.  Minor investments in unit mix can create opportunities for increase in value.

Macro & Micro Economy:

We have little control over macroeconomic factors, but grasping the impact of population growth, interest rates, and inflation can help to provide scale in determining value.  Macroeconomics strongly influences the landscape of the commercial real estate market.  As we are seeing in our current economy, rising interest rates are directly impacting the amount buyers can pay for properties.  Investors who require financing are unable to make the same offer they could a year ago.  For owners, it feels like they have somehow lost value, but what has actually changed is the buyer’s purchasing power.  Investors must account for the increased cost of acquisition, and the difference will be reflected in their offer.  To the owner, it may appear as a lower value, but the reality is investors who rely on financing have to cover the cost to borrow funds.

Microeconomic factors such as traffic counts, access to the market, surrounding retail and housing, etc. can greatly alter the valuation of two seemingly similar properties.  Visibility and ease of access directly impact customer preference when choosing a facility.  If your visibility is hindered, invest in a strong digital presence.  As we become an even more digital society, the allocation of funds for digital marketing is essential.  Owners who do not currently have a line item on their expense report for digital marketing should know that investors will add it to their calculations when assigning value.

Owners need to be knowledgeable of approved development projects by local planning boards.  Anytime retail or housing is approved and/or under construction near your facility, it will help value.  Know and understand the impact of local zoning laws and tax changes as they too can alter the value of a property.  An example can be seen in markets with strict zoning regulations for new storage.  This creates value for existing storage.  Owners should ask “what barriers to entry exist in my market?” and “how do they affect the value of my facility?”.

Determining Value:

When calculating value, the best approach for both owners and investors is to do the research.

Owners should review their financials and compare them with their competitors.  Using a critical eye to assign objective, emotion-free values, and making appropriate adjustments are essential.  If owners do not have access to competitor information, they should reach out to professionals willing to share free data.

Investors often are comfortable with performing research but should consider using multiple sources when assigning value.  Access to only one industry platform limits the ability of an investor to assign value.

Values consistently change; therefore, owners and investors should continuously familiarize themselves with changes at the facility level, within the surrounding market, and throughout our country as a whole.

modern business center

Melissa Shandor serves as the Strategic Advisor in California & the Pacific Northwest for The Storage Acquisition Group.  She utilizes her background and expertise in data analytics to acquire self-storage assets and maximize return on investment for sellers.  By supporting owners, investors, and developers in navigating market data, she has developed professional

New Hampshire Self Storage – Manchester, New Hampshire

New Hampshire Self Storage-Manchester, New Hampshire

By: The Storage Acquisition Group

655 S Willow St

The Storage Acquisition Group is pleased to announce the closing of a Life Storage managed self-storage facility in Manchester, New Hampshire. The facility is located at 655 South Willow Street, Manchester, New Hampshire and offers 72,725 NRSF across 888 units of both climate and non-climate-controlled spaces. This facility is conveniently located within a mixed-use retail space in the heart of Manchester’s primary retail corridor.

The transaction was negotiated by Bill Sitar, Jr Esq., affiliate agent at The Storage Acquisition Group and Vice President at Sitar Realty Company based in Iselin, NJ, Thomas Palumbo an affiliate agent at The Storage Acquisition Group and Monty Spencer, CEO of The Storage Acquisition Group.

The Storage Acquisition Group specializes in purchasing storage facilities and portfolios nationwide. Uniquely they allow owners to sell direct without having to list their facility. With their four-tiered approach, Market Analysis, Acquisitions, Underwriting, & Closing Support, The Storage Acquisition Group is able to help owners navigate a simple sales process while netting the highest possible profit.

Florida Self Storage – Oakland Park, Florida

Florida Self Storage-Oakland Park, Florida

By: The Storage Acquisition Group

pic 1 (1)

The Storage Acquisition Group is pleased to announce the closing of Floranada Warehouse & Storage in Oakland Park, Florida. The facility is located at 1100 NE 45th Street, Oakland Park, Florida.  The facility offers 65,962 net rentable square feet across 699 units of both climate and non-climate-controlled space and is conveniently located in Oakland Park, Florida Central Business District.

The transaction was negotiated by Fred Paris, an affiliate agent at The Storage Acquisition Group and Monty Spencer, CEO of The Storage Acquisition Group.

The Storage Acquisition Group specializes in purchasing storage facilities and portfolios nationwide. Uniquely they allow owners to sell direct without having to list their facility. With their four-tiered approach, Market Analysis, Acquisitions, Underwriting, & Closing Support, The Storage Acquisition Group is able to help owners navigate a simple sales process while netting the highest possible profit.

Massachusetts Self Storage – Bourne, Massachusetts

Massachusetts Self Storage-Bourne, Massachusetts

By: The Storage Acquisition Group

image (4)

The Storage Acquisition Group is pleased to announce the closing of a CubeSmart managed self-storage facility in Bourne, Massachusetts. The facility is located at 170 Clay Pond Road, Bourne, Massachusetts and offers 111,653 NRSF across 1,033 units of both climate and non-climate-controlled space. This facility is one of the largest facilities on Cape Cod and is conveniently located within a mixed-use retail marketplace.

The transaction was negotiated by Bill Sitar, Jr Esq., affiliate agent at The Storage Acquisition Group and Vice President at Sitar Realty Company based in Iselin, NJ, Thomas Palumbo an affiliate agent at The Storage Acquisition Group and Monty Spencer, CEO of The Storage Acquisition Group.

The Storage Acquisition Group specializes in purchasing storage facilities and portfolios nationwide. Uniquely they allow owners to sell direct without having to list their facility. With their four-tiered approach, Market Analysis, Acquisitions, Underwriting, & Closing Support, The Storage Acquisition Group is able to help owners navigate a simple sales process while netting the highest possible profit.

Massachusetts Self Storage – NewBedford, Massachusetts

Massachusetts Self Storage-New Bedford, Massachusetts

By: The Storage Acquisition Group

image (1)

The Storage Acquisition Group is pleased to announce the closing of an Extra Space managed self-storage facility in New Bedford, Massachusetts. The facility is located at 969 Shawmut Avenue, New Bedford, Massachusetts and offers 58,665 NRSF across 532 units of both climate and non-climate-controlled space. This facility is conveniently located near Alfred M Bessette Memorial Hwy.

The transaction was negotiated by Bill Sitar, Jr Esq., affiliate agent at The Storage Acquisition Group and Vice President at Sitar Realty Company based in Iselin, NJ, Thomas Palumbo an affiliate agent at The Storage Acquisition Group and Monty Spencer, CEO of The Storage Acquisition Group.

The Storage Acquisition Group specializes in purchasing storage facilities and portfolios nationwide. Uniquely they allow owners to sell direct without having to list their facility. With their four-tiered approach, Market Analysis, Acquisitions, Underwriting, & Closing Support, The Storage Acquisition Group is able to help owners navigate a simple sales process while netting the highest possible profit.

Rhode Island Self Storage – Cranston, Rhode Island

Rhode Island Self Storage-Cranston, Rhode Island

By: The Storage Acquisition Group

image

The Storage Acquisition Group is pleased to announce the closing of a CubeSmart managed self-storage facility in Cranston, Rhode Island. The facility is located at 1500 Elmwood Avenue, Cranston, Rhode Island and offers 82,085 NRSF across 798 units of both climate and non-climate-controlled spaces. This facility is conveniently located off US Hwy 1 and stands between multiple retail shoppes.

The transaction was negotiated by Bill Sitar, Jr Esq., affiliate agent at The Storage Acquisition Group and Vice President at Sitar Realty Company based in Iselin, NJ, Thomas Palumbo an affiliate agent at The Storage Acquisition Group and Monty Spencer, CEO of The Storage Acquisition Group.

The Storage Acquisition Group specializes in purchasing storage facilities and portfolios nationwide. Uniquely they allow owners to sell direct without having to list their facility. With their four-tiered approach, Market Analysis, Acquisitions, Underwriting, & Closing Support, The Storage Acquisition Group is able to help owners navigate a simple sales process while netting the highest possible profit.