Governor Arnold Schwarzenegger signed into legislation this week a bill amending the California self storage lien law. The legislation (AB 655) was championed by the California Self Storage Association with significant funding support from the international Self Storage Association. The law addresses the "Declaration in Opposition” provision of the lien law resulting in a more cost-effective process and eliminating the number of baseless "declaration” scenarios. It also provides for a more reasonably-priced lien notification method. Storage operators will need to revise their current lien procedures by the law's January 1, 2011 effective date.
"We believe that the updates to the law will create a more efficient and cost effective process for operators and their tenants to communicate when customers have fallen behind in their rent,” says Shelley Geiler, president of the CSSA, board member of the SSA and a partner of SoCal Self Storage and SSA board member. "We could not have been successful in this endeavor without the joint effort of the national self storage association and the incredible support we received from our membership.”
Previously self storage lien circumstances where the "declaration” had been employed were settled in superior court creating a lengthy and expensive legal course of action. The new law enables self storage operators to resolve lien and auction disputes in small claims court. Taking into account the typical number of lien situations each year, the potential savings from the new process will be thousands of dollars for each facility and millions annually throughout the state. Also under the new law, verification of delivery of lien notices can be satisfied through certificate of mailing rather than certified mail, a much more costly method.
"We congratulate our partners of the California Self Storage Association for all of their hard work in streamlining that state's lien law,” said Michael T. Scanlon, Jr., president & CEO of the SSA. "The national SSA is working from state-to-state to modernize many of the lien laws so that they are fair to storage operators and take advantage of today's more efficient technologies.”
According to Jim McNamee, president of West Coast Self Storage and past president of the CSSA, "It was a lengthy three year battle for these common sense changes to become law; however it was well worth it. The passage of this bill is a win-win, and will save self storage operators and their customers time and money.”
Friday, October 1, 2010
Thursday, September 30, 2010
The Self Storage Sales Market is Hot Again
The Self Storage Sales Market in California is Hot Again!
Over the past couple months, there has been a dramatic improvement in the self storage sales market! Specifically for institutional quality properties in primary market areas, there has been a significant increase in activity.
Here is what we are seeing now:
A pent-up demand for quality properties.
Ample equity capital that needs to be invested.
Lenders are becoming more active with funds to lend.
Interest rates at or near all time lows.
Buyers are getting more aggressive.
Cap rates are coming down again.
Bidding wars on available self storage offerings.
Although buyers are still primarily interested in only purchasing based on "real" current income, they are becoming more aggressive in what they are willing to pay for that income stream.
PROPERTIES ARE SELLING AGAIN!
We Have Motivated Buyers!
We Have All Cash / Quick Close Buyers!
We Have 1031 Exchange Buyers!
We Need More Good Properties to Sell!
I encourage owners of "investment grade" self storage properties in California to call us today for a free "No Obligation" analysis of the value of your self storage property.
Over the past couple months, there has been a dramatic improvement in the self storage sales market! Specifically for institutional quality properties in primary market areas, there has been a significant increase in activity.
Here is what we are seeing now:
A pent-up demand for quality properties.
Ample equity capital that needs to be invested.
Lenders are becoming more active with funds to lend.
Interest rates at or near all time lows.
Buyers are getting more aggressive.
Cap rates are coming down again.
Bidding wars on available self storage offerings.
Although buyers are still primarily interested in only purchasing based on "real" current income, they are becoming more aggressive in what they are willing to pay for that income stream.
PROPERTIES ARE SELLING AGAIN!
We Have Motivated Buyers!
We Have All Cash / Quick Close Buyers!
We Have 1031 Exchange Buyers!
We Need More Good Properties to Sell!
I encourage owners of "investment grade" self storage properties in California to call us today for a free "No Obligation" analysis of the value of your self storage property.
Thursday, January 21, 2010
Five Star Storage in Vallejo sells for $4.5 million
Bancap Self Storage Group, Inc., the “#1 Self Storage Broker in California,” announced that the firm has successfully brokered the sale of the Five Star Storage property located in the city of Vallejo in Solano County, California. Bancap Self Storage Group, Inc. was the exclusive agent for the property. No other brokers were involved in the transaction.
The property sold for $4,500,000 in an all cash transaction. Both the seller and buyer were private parties in the local area. The sale was the 8th self storage deal in California that Bancap Self Storage Group had completed in the past twelve months, which is several times more than any other real estate brokerage firm had completed during that same time period.
Five Star Storage contains 81,664 net square feet of self storage space demised into 483 units. The single story project was built in 1980 and is located on Lemon Street. The property was approximately 90% occupied at the time of the sale.
Bancap Self Storage Group is the “#1 Self Storage Broker in California” with over $850 million in completed self storage sales, including many lender-owned REO properties, numerous portfolio sales, and a record setting single property sale at over $31 million. For more information, visit the company web site at www.bancapselfstorage.com
The property sold for $4,500,000 in an all cash transaction. Both the seller and buyer were private parties in the local area. The sale was the 8th self storage deal in California that Bancap Self Storage Group had completed in the past twelve months, which is several times more than any other real estate brokerage firm had completed during that same time period.
Five Star Storage contains 81,664 net square feet of self storage space demised into 483 units. The single story project was built in 1980 and is located on Lemon Street. The property was approximately 90% occupied at the time of the sale.
Bancap Self Storage Group is the “#1 Self Storage Broker in California” with over $850 million in completed self storage sales, including many lender-owned REO properties, numerous portfolio sales, and a record setting single property sale at over $31 million. For more information, visit the company web site at www.bancapselfstorage.com
Monday, January 4, 2010
Just Sold: Five Star Self Storage - Vallejo, California
Bancap Self Storage Group just closed the sale of Five Star Self Storage in Vallejo, California. Complete details to follow soon.
Tuesday, December 22, 2009
Bancap Self Storage Group Brokers Yet Another Lender Owned Storage Property
St. Thomas Self Storage in Hesperia sells for $2.775 million
Bancap Self Storage Group, Inc., the “#1 Self Storage Broker in California,” announced that the firm has successfully brokered the sale of the St. Thomas Self Storage property located in the city of Hesperia in San Bernardino County, California. Dean Keller, the firm’s president, was the exclusive listing broker for the transaction. The seller was a regional bank that had foreclosed on the property earlier this year. The buyer was a private REIT with other self storage holdings in the area. It was the third lender-owned storage property that Bancap Self Storage Group has brokered this year.
The property sold for $2,775,000 which was significantly less that the property’s development costs. The seller provided purchase financing to facilitate the sale. Occupancy was approximately 35%, offering further upside potential to the buyer.
Located on nearly 5 acres of land, St. Thomas Self Storage contains nearly 73,000 net square feet of self storage space demised into nearly 500 units. The sale also included about an acre of vacant land located adjacent to the storage property. The attractive single story project was built in 2007 and is located on Yucca Street with signage and additional access on Main Street in a retail and commercial oriented location. The single story storage buildings are constructed of concrete block and metal walls with metal partitions, roofs and doors.
Bancap Self Storage Group is the “#1 Self Storage Broker in California” with over $850 million in completed self storage sales, including many lender-owned REO properties, numerous portfolio sales, and a record setting single property sale at over $31 million. For more information contact Bancap Self Storage Group at (949) 888-5355 or visit the company web site at www.bancapselfstorage.com
Bancap Self Storage Group, Inc., the “#1 Self Storage Broker in California,” announced that the firm has successfully brokered the sale of the St. Thomas Self Storage property located in the city of Hesperia in San Bernardino County, California. Dean Keller, the firm’s president, was the exclusive listing broker for the transaction. The seller was a regional bank that had foreclosed on the property earlier this year. The buyer was a private REIT with other self storage holdings in the area. It was the third lender-owned storage property that Bancap Self Storage Group has brokered this year.
The property sold for $2,775,000 which was significantly less that the property’s development costs. The seller provided purchase financing to facilitate the sale. Occupancy was approximately 35%, offering further upside potential to the buyer.
Located on nearly 5 acres of land, St. Thomas Self Storage contains nearly 73,000 net square feet of self storage space demised into nearly 500 units. The sale also included about an acre of vacant land located adjacent to the storage property. The attractive single story project was built in 2007 and is located on Yucca Street with signage and additional access on Main Street in a retail and commercial oriented location. The single story storage buildings are constructed of concrete block and metal walls with metal partitions, roofs and doors.
Bancap Self Storage Group is the “#1 Self Storage Broker in California” with over $850 million in completed self storage sales, including many lender-owned REO properties, numerous portfolio sales, and a record setting single property sale at over $31 million. For more information contact Bancap Self Storage Group at (949) 888-5355 or visit the company web site at www.bancapselfstorage.com
Tuesday, December 8, 2009
Global Self Storage (Lender REO) in Victorville, California Sells for $4.5 Million
Bancap Self Storage Group, Inc., the “#1 Self Storage Broker in California,” recently announced that the firm has successfully brokered the sale of the Global Self Storage property located in the city of Victorville in San Bernardino County, California. Dean Keller, the firm’s president, was the exclusive listing agent and sole broker in the transaction. The seller was a regional bank that had foreclosed on the property earlier this year. The buyer was the real estate affiliate of U-Haul which will re-brand the property with that name.
“This is a classic example of a first class property that just opened up for business at the wrong time,” Keller said “The effects of the economic downturn and the temporary overbuilding in these areas have really hurt owners in outlying markets like this.”
The property sold for $4.5 million which was significantly less that the property’s development costs. The seller provided purchase financing to facilitate the sale. Occupancy was approximately 43%, offering further upside potential to the buyer.
Located on nearly 7.5 acres of land, Global Self Storage contains nearly 87,000 net square feet of self storage space demised into nearly 600 units. The property also has 150 exterior RV & boat storage spaces, including many covered storage spaces. The attractive single story project was built in 2007 and is located on Palmdale Road in a retail and commercial oriented location. The single story storage buildings are constructed of concrete block and metal walls with metal partitions, roofs and doors.
“There has only been a handful of foreclosed storage properties listed for sale in Southern California this year and we have been the exclusive listing broker for most of them,” Keller said. “There are plenty of buyers looking to “steal” lender owned properties, but we have been able to obtain good and fair prices for the sellers. The key is to hire a true self storage broker with a proven track record of getting the highest and best price possible. Self storage is such a unique property type and most real estate brokerage firms do not have specialists with the expertise and experience it takes to maximize value for the sellers in this unique property niche.”
Bancap Self Storage Group is the “#1 Self Storage Broker in California” with over $850 million in completed self storage sales, including many lender-owned REO properties, numerous portfolio sales, and a record setting single property sale at over $31 million. For more information contact Bancap Self Storage Group at (949) 888-5355 or visit the company web site at www.bancapselfstorage.com
“This is a classic example of a first class property that just opened up for business at the wrong time,” Keller said “The effects of the economic downturn and the temporary overbuilding in these areas have really hurt owners in outlying markets like this.”
The property sold for $4.5 million which was significantly less that the property’s development costs. The seller provided purchase financing to facilitate the sale. Occupancy was approximately 43%, offering further upside potential to the buyer.
Located on nearly 7.5 acres of land, Global Self Storage contains nearly 87,000 net square feet of self storage space demised into nearly 600 units. The property also has 150 exterior RV & boat storage spaces, including many covered storage spaces. The attractive single story project was built in 2007 and is located on Palmdale Road in a retail and commercial oriented location. The single story storage buildings are constructed of concrete block and metal walls with metal partitions, roofs and doors.
“There has only been a handful of foreclosed storage properties listed for sale in Southern California this year and we have been the exclusive listing broker for most of them,” Keller said. “There are plenty of buyers looking to “steal” lender owned properties, but we have been able to obtain good and fair prices for the sellers. The key is to hire a true self storage broker with a proven track record of getting the highest and best price possible. Self storage is such a unique property type and most real estate brokerage firms do not have specialists with the expertise and experience it takes to maximize value for the sellers in this unique property niche.”
Bancap Self Storage Group is the “#1 Self Storage Broker in California” with over $850 million in completed self storage sales, including many lender-owned REO properties, numerous portfolio sales, and a record setting single property sale at over $31 million. For more information contact Bancap Self Storage Group at (949) 888-5355 or visit the company web site at www.bancapselfstorage.com
Tuesday, September 1, 2009
Bancap Self Storage Group Sells Lake Elsinore Self Storage Property
Bancap Self Storage Group, Inc., the “#1 Self Storage Broker in California,” recently announced that the firm had successfully brokered the sale of the Elsinore Valley Self Storage property located in the city of Lake Elsinore in Riverside County, California. Dean Keller, the firm’s president, was the exclusive listing agent and sole broker in the transaction. The seller was the original local developer of the property and the buyer was an affiliate of the Storage Solutions regional chain of storage facilities.
“Although much of the talk these days is about distressed properties, this sale is an example of the fact that our firm still has many qualified and motivated buyers that are willing to pay attractive prices for good properties,” Keller said.
The property sold for $5,280,000 which represented an attractive capitalization rate on the current net operating income. The buyer owns another property in the market area and expects to benefit from economies of scale operating the two properties together. Occupancy was approximately 75%, offering further upside potential to the buyer.
Located on nearly 6 acres of land, Elsinore Valley Self Storage contains nearly 60,500 net square feet of self storage space demised into approximately 435 units. The property also offers 170 exterior RV & boat storage spaces, including over 20 covered boat storage spaces. The attractive single story project was built in 2001 and is located on Central Avenue across the street from a Target – anchored shopping center. The buildings are constructed of concrete block and metal walls with metal partitions, roofs and doors.
“There have been very few non-distressed self storage properties that have sold in Southern California this year” Keller explained “Most owners think they cannot obtain a good price in today’s market, but that just is not the case. We have several motivated buyers that are aggressively looking for stabilized facilities in good markets. The key is to hire a self storage broker with a proven track record of getting the highest and best price possible. Self storage is such a unique property type and most real estate brokerage firms do not have specialists with the expertise and experience it takes to maximize value for the sellers in this unique property niche.”
“Although much of the talk these days is about distressed properties, this sale is an example of the fact that our firm still has many qualified and motivated buyers that are willing to pay attractive prices for good properties,” Keller said.
The property sold for $5,280,000 which represented an attractive capitalization rate on the current net operating income. The buyer owns another property in the market area and expects to benefit from economies of scale operating the two properties together. Occupancy was approximately 75%, offering further upside potential to the buyer.
Located on nearly 6 acres of land, Elsinore Valley Self Storage contains nearly 60,500 net square feet of self storage space demised into approximately 435 units. The property also offers 170 exterior RV & boat storage spaces, including over 20 covered boat storage spaces. The attractive single story project was built in 2001 and is located on Central Avenue across the street from a Target – anchored shopping center. The buildings are constructed of concrete block and metal walls with metal partitions, roofs and doors.
“There have been very few non-distressed self storage properties that have sold in Southern California this year” Keller explained “Most owners think they cannot obtain a good price in today’s market, but that just is not the case. We have several motivated buyers that are aggressively looking for stabilized facilities in good markets. The key is to hire a self storage broker with a proven track record of getting the highest and best price possible. Self storage is such a unique property type and most real estate brokerage firms do not have specialists with the expertise and experience it takes to maximize value for the sellers in this unique property niche.”
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