Casino Self Storage in Moorpark sells for $10.5 million

Bancap Self Storage Group Brokers Another Lender-Owned Storage Property.

Bancap has successfully brokered the sale of the Casino Self Storage property located in the city of Moorpark in Ventura County, California. I was the exclusive listing agent and sole broker in the transaction. The sale was facilitated by special servicing company LNR Partners, LLC on behalf of a CMBS fund that had foreclosed on the property earlier this year. The buyer was Public Storage, a publicly traded REIT, which will re-brand the property with its name.

This is a classic example of a very desirable first class property that was just over-leveraged in a very difficult economic climate. It is the nicest storage facility in the city and it should perform very well in the long run.

The property sold for $10.5 million on an “all cash” basis. This was much less that the property’s outstanding debt at the time of foreclosure. Although physical occupancy was over 85%, economic occupancy was approximately 66%, offering further upside potential to the buyer. The facility’s gross potential income at the time of closing was approximately $1,078,000 per year.

Casino Self Storage contains nearly 85,430 net square feet of self storage space divided into 822 units, including 91 climate controlled units. The attractive two-story project was built in 2005 and is located on Los Angeles Avenue (also known as State Highway 118) on a highly visible corner in retail and commercial oriented location. The buildings are constructed of concrete block and stucco with metal partitions, roofs and doors.

There have only been a handful of foreclosed storage properties listed for sale in Southern California in the past few years and we have been the exclusive listing broker for most of them. There are plenty of buyers looking to “steal” lender owned properties, but we have been able to obtain very good and fair prices for the sellers – usually millions of dollars more than the “direct offers” received from potential buyers and other brokers before our listing and marketing of the property. Self storage is such a unique property type and it takes a specialist with proven expertise and experience to maximize value for sellers in this unique property niche.

If you have a self storage property that you may be interested in selling for maximum value, please contact me!

Bancap Self Storage Group Selected To Market Lender-Owned Self Storage Property In Southern California

Casino Self Storage in Moorpark, California is Listed for $11.5 Million.

Bancap Self Storage Group has been selected as the exclusive broker for a lender owned self storage property in Ventura County, California. The firm will handle the marketing and sales activities for the Casino Self Storage property located in Moorpark, California. The property has been listed for sale with an asking price of $11,500,000.

Casino Self Storage is an attractive, well designed and nicely constructed “Class A” self storage project. The project shows very well and enjoys good corner visibility and easy access on State Highway 118 / West Los Angeles Avenue with an average daily traffic count of approximately 32,500 vehicles per day.

The two-story facility offers over 85,000 net square feet of self storage space demised into 822 units, including 91 climate controlled spaces. The buildings are concrete block, stucco and metal construction with metal interior partitions, roofs and doors.

“There have been very few properties of this quality available for sale in Southern California,” said Dean Keller, President of Bancap Self Storage Group. “This is a rare opportunity to purchase a first class facility in a very desirable market, with tremendous upside potential.”

The city of Moorpark is nestled in a flourishing valley near the larger cities of Simi Valley and Thousand Oaks. The area boasts spacious mountain views, a perpetual vacation climate, historical western charm, beautiful residential neighborhoods, outstanding schools, an exceptional college, fruit stands, cultural arts, fantastic shopping and a variety of restaurants. Moorpark is the perfect blend of country and city living. It is a family-oriented community with abundant open space, hiking & equestrian trails, world famous golf courses and incredible sunsets.

The property was recently obtained through foreclosure and the foreclosing lender/owner is represented by LNR Partners, LLC as the special servicing agent for the original loan. LNR Partners has also engaged Platinum Storage Group to provide professional property management services for the property.

Bancap Self Storage Group is the top selling broker of self storage facilities in California with over $900 million in completed sales. The company has specialized exclusively in self storage properties for over 25 years. The firm has recently brokered several lender-owned “REO” properties, as well as several first-class high occupancy properties that were very profitable. The firm has also facilitated numerous self storage portfolio sales in the state.

For more information contact me at (949) 888-5355 or visit the company web site at www.bancapselfstorage.com

Over $900 Million in Self Storage Sales

Bancap Self Storage Group, the “#1 Self Storage Broker in California,” recently announced that it has completed over $900 million of successful self storage sales transactions. The firm achieved this major milestone with recent sales in Long Beach and Hawthorne in Los Angeles County, California.

“Although we are not a household name, virtually every self storage owner knows about us,” said Dean Keller, President of Bancap Self Storage Group. “We are the only brokerage firm that can honestly boast the #1 track record in the state with over 25 years experience in brokering self storage properties exclusively.”

Bancap Self Storage Group has recently brokered several lender-owned “REO” properties that were foreclosed on by lenders, as well as first-class, high occupancy properties that were very profitable. The firm has also facilitated more self storage portfolio sales in the state than any other broker. Additionally, the company was responsible for the record-setting sale of a single self storage property in California at over $31 million.

“Although many owners think they cannot obtain a good price in today’s market, that is definitely not the case,” Keller said, “We have several motivated buyers that are aggressively looking for stabilized facilities in good markets. The key for the seller is to hire a self storage broker with a proven track record of getting the highest and best price possible. Self storage is a very unique property type and it takes a very specific expertise with decades of experience to maximize value for sellers in this unique property niche.”

For more information contact Dean Keller, President of Bancap Self Storage Group at (949) 888-5355 or visit the company web site at www.bancapselfstorage.com

Bancap Self Storage Group Sells Two Trophy Storage Properties

Bancap Self Storage Group, Inc., the “#1 Self Storage Broker in California,” recently announced that the firm had successfully brokered the sale of two trophy self storage properties located in Los Angeles County. The two properties were 405 Self Storage in the Hawthorne area of Los Angeles County and El Dorado Park Self Storage in Long Beach, California. Dean Keller, the firm’s president, was the sole broker in the transaction. The seller was a local private party and the buyer was an affiliate of a real estate investment trust (REIT) specializing in self storage properties.

“This was a very rare opportunity to purchase two trophy quality properties in high density coastal L.A. County locations,” Keller said, “These are the types of properties that every self storage investor would love to own – great infill locations, strong markets, good occupancy and first class construction.”

The properties sold for a total price of $26,000,000 which represented an attractive capitalization rate on the current net operating income. The all cash transaction equaled nearly $150 per net rentable square foot.

405 Self Storage in Hawthorne contains just over 87,000 net rentable square feet of self storage space demised into approximately 770 units. El Dorado Park Self Storage in east Long Beach contains over 87,000 net rentable square feet demised into approximately 825 units.

“Other than a couple of portfolio transactions, there have been very few non-distressed self storage properties that have sold in Southern California this past 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 for the seller 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 it takes a very specific expertise with decades of experience to maximize value for sellers in this unique property niche.”

Strategic Storage Acquires Two Properties in Southern California

In an all cash transaction, Strategic Storage Trust, Inc. (SSTI) – a publicly registered non-traded REIT targeting the self-storage market – recently acquired two properties in Long Beach and Hawthorne, Calif., totaling approximately 1,600 units for an aggregate purchase price of $26 million.

The sites will be rebranded under the SmartStop℠ Self Storage trade name.

“These are premium Southern California infill locations that add significant value to our portfolio,” said H. Michael Schwartz, SSTI’s chairman and CEO. “Dense population and newer construction are key attributes to both sites.”

The first property is located at 8150 E. Wardlow Road in Long Beach and contains approximately 87,000 rentable square feet with approximately 830 units on approximately 3.7 acres of land. The facility is located in Los Angeles County with easy access to Interstate 405, Freeway 91 and Interstate 605. Built in 1999, it consists of four buildings, one of which is two stories. Amenities include surveillance cameras, individual locks, climate control, keypad entry and an office for on-site management.

The second property is located at 12714 S. La Cienega Boulevard in Hawthorne, which is also part of Los Angeles County. The building contains approximately 87,000 rentable square feet with approximately 770 units on approximately 1.7 acres of land. It is adjacent to Interstate 405 access and is within one mile of access to Interstate 105. Built in 2004, the facility has one four-level building and another two-level building, along with a basement with ramp access. Amenities include surveillance cameras, individual locks, climate control, keypad entry and office and apartment for management.

“The Hawthorne site stands out due to its close proximity to the 405 Freeway, a dense surrounding population, newer construction and a great location between LAX and Manhattan Beach,” said Wayne Johnson, senior vice president of acquisitions for SSTI. “Both Long Beach and Hawthorne are high quality sites that will carry out our brand well.”

Although the properties were never put on the open market, there was competition from several other potential buyers, said Dean Keller of Bancap Self Storage Group, Inc., who brokered the transaction for SSTI.

“This deal could have easily fallen apart if Strategic hadn’t been such a strong and qualified buyer,” Keller said. “The seller had turned down many compelling offers on these first-class properties, but selected Strategic based on their track record, financial strength and ability to perform. Everybody worked hard – both the seller and the buyer - and it was a very fast close.”

The Los Angeles Metropolitan area is the third largest metropolitan economy in the world, with a population of 13 million and a GDP of over $500 billion.* Major economic drivers include international trade and commerce with an extensive transportation network with Los Angeles International Airport and the shipping ports of Los Angeles and Long Beach.

SSTI also owns a location in Orange County, California at 25650 Baffin Bay Dr. in Lake Forest, which consists of approximately 1,300 units.

Since the launch of SSTI 2.5 years ago, SSTI’s portfolio of wholly-owned properties has expanded to include 43 properties in 15 states (Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Mississippi, Nevada, New Jersey, Pennsylvania, South Carolina, Tennessee, Texas and Virginia) and Toronto - Ontario, Canada.

California Governor Signs Bill Amending State's Self Storage Lien Law

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.”

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.