Opportunities in Self Storage Investing

Monte Fe Self Storage searches through many different resources for self-storage facilities that are for sale.  We are real estate investors and business acquistion managers.  We are not real estate agents or brokers; nor are we promoting securities.  The following are a few of the opportunities that we are currently considering, performing due diligence on, or may have under contract.

INTERESTED? Please send an email to bizmgr@montefeselfstorage.com.
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Self Storage Investing in Texas

Established facility with 323 units under roof + 5 acres for expansion.  MFSS is raising $450K for the owner’s equity.  This is a Qualified Investor opportunity with equity position or a Private Lender option.  In addition, another $250K from an investor or private lender could be utilized for immediate development of the 5 acres to increase income.

Small facility with 64 units under roof + space for outdoor parking.  Facility is close to a lake in a community.  This is a 40% equity position for an investment of $75K.  Good “starter” position to get into the self storage industry.

Transfer & Storage business with real estate, 6000 Sq. Ft. Warehouse on 1.92 acres.  Warehouse is certified DOD (Department of Defense) storage facility for military individuals or families on deployment or between transfers.  Transfer business with Premium Carriers on military contract.  Expansion space for building under roof units, portable storage or outdoor parking.  High demand market area, low competition.  Purchase includes two trucks for local moving.  Investment partner opportunity for 10% equity position with an investment of $250K.  Would also consider private money lender.

Established facility with 225 under roof units and 97 outdoor parking on 6.84 acres in prime market area. Includes a 2 bed/1 bath trailer home and two offices, all currently leased. $450K Qualified Investor opportunity with equity position or a Private Lender option.  Historically 95% occupancy.

We are also buying land located in strong markets within, or close to large metropolitan areas for building new facilities.  We also consider warehouses, industrial buildings, or large abandoned retail locations for self-storage conversions.  Contact us if you would be interested in an evaluation of your property for these purposes.  bizmgr@montefeselfstorage.com.

Credit Card Borrowing

Is Now a Good Time to Get Started with Credit Card Borrowing?

With an improvement in the current economic outlook and market liquidity conditions, banks are now looking at growth options to increase their earnings. As a response to greater competition and changes in risk appetite, banks and federal associations have eased underwriting standards to expand their loan portfolio and achieve expansion. This spells good news for start-ups or small businesses looking for funds, as availing finance just got easier.

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The Perfect Storm – Self Storage Investing

Self-storage is a very interesting industry.  It is one of the few that has remained immune to economic downturns. Not many industries out there have a track record of such stability, particularly within real estate.

The History of the Self-Storage Industry

This industry came into being in the US post-World War II period. Since then, it has grown astronomically and with no signs of slowing down. As of 2014, there are 51,475 self-storage facilities in the U.S. alone. That’s about 2.63 billion square feet of self-storage in our nation! So do we need more self-storage facilities?

Facts & Stats – Self Storage

The self storage industry in the United States generated $27.2 Billion in annual U.S. revenues (2014). The industry has been the fastest growing segment of the commercial real estate industry over the last 40 years and has been considered by Wall Street analysts to be “recession resistant” based on its performance since the economic recession of September, 2008. The industry pays more than $3.25 billion each year in local and state property taxes. — from Self Storage Association, national organization of self storage owners, developers and industry vendors

2015-16 SELF STORAGE INDUSTRY FACT SHEET  (as of 07/01/2015)

  • The self storage industry has been one of the fastest-growing sectors of the United States commercial real estate industry over the period of the last 40 years
  • There are now over 48,500 “primary” self storage facilities in the United States as of year-end 2014; another 4,000 are “secondary” facilities (“primary” means that self storage is the “primary” source of business revenue – US Census Bureau)
  • There are approximately 60,000 self storage facilities worldwide as of Q2 – 2015; there are more than 3,000 in Canada and more than 1,000 in Australia.
  • Total self storage rentable space in the US is roughly 2.5 billion square feet [more than 210 million square meters].  That figure represents more than 78 square miles of rentable self storage space, under roof – or an area well more than 3 times the size of Manhattan Island (NY)
  • U.S. self storage facilities pay a total of more than $3.25 billion in property taxes to local government  jurisdictions.
  • The distribution of U.S. self storage facilities (Q2-2015) is as follows:  32% urban, 52% suburban and 16% rural.
  • The average revenue per square foot varies from facility to facility; however, here are the data for Q2 2015:  $1.25 PSF for a non-climate controlled 10 x 10 unit and $1.60 PSF for a climate controlled 10 x 10 unit.
  • Occupancy rates for self storage facilities as of Q2 2015 were 90% (percentage of units rented per facility) up from 86.8% at year-end 2013.
  • In fact, about 9.5% of all American households currently rent a self storage unit (10.85 million of the 113.3 million US HHs in 2013; that has increased from 1 in 17 US HHs (6%) in 1995 (20 years ago).
  • U.S. self storage facilities employed more than 170,000 persons, or an average of 3.5 employees per facility.
  • The average (mean) size of a “primary” self storage facility in the US is approximately 56,900 square feet.
  • Of over 10,000 facilities surveyed, approximately 6,000 are single-story facilities and approximately 4,000 are multi-story facilities.
  • Of over 10,000 facilities surveyed, the mean facility size is 546 units and the median facility size is 517 units.
  • Of over 10,000 facilities surveyed, 18.7% offer Boat / RV parking and/or storage.
  • Of over 10,000 facilities surveyed, 31% offer truck rental.
  • The top-6 self storage companies, including 5 real estate investment trusts (Public Storage, Extra Space, National Storage Affiliates Trust, Sovran and CubeSmart) plus U-Haul (a public company / non-REIT), own, operate and/or manage some 5,800 self storage facilities, or about 12% of all US facilities.  Several public companies are now offering third-party management of facilities owned by other investors.  Hundreds of facilities are now being managed by the three public companies that have moved into this service area.
  • In addition to the public companies in the industry (above), there are more than 150 privately held firms that own and operate 10 or more self storage facilities.  In addition, there are some 4,000 firms that own and operate from 2-9 self storage facilities.  Lastly, there are more than 26,000 firms that own and operate just one facility.
  • There is a total U.S. self storage space capacity of about 21 sq. ft. per American household.
  • There is 7.3 sq. ft. of self storage space for every man, woman and child in the nation; thus, it is physically possible that American could stand – all at the same time – under the total canopy of self storage roofing.
  • About 13% of all self storage renters say they will rent for less than 3 months; 18% for 3-6 months; 18% for 7-12 months; 22% for 1-2 years; and 30% for more than 2 years.
  • Some 68% of all self storage renters live in a single-family household; 27% live in an apartment or condo.
  • Some 65% of all self storage renters have a garage but still rent a unit; 47% have an attic in their home; and 33% have a basement.
  • Some 47% of all self storage renters have an annual household income of less than $50,000 per year; 63% have an annual household income of less than $75,000 per year.
  • More than 1.5 million self storage units nationwide are rented to military personnel (6% of all units); however, in communities adjacent to domestic US military bases, military occupancy can be from 20% to 95% of all rented units.
  • It took the self storage industry more than 25 years to build its first billion square feet of space; it added the second billion square feet in just 8 years (1998-2005).
  • 83.9% of all US counties (or 2,634 out of 3,141) have at least one “primary” self storage facility.