How We Do it
Urban Storage implements a proven acquisition, development, construction and management strategy to create institutional quality self-storage product in urban core markets at below replacement value. By focusing on urban markets where rent, occupancies and valuations are the highest, Urban is able to leverage its expert local market knowledge and development expertise to efficiently and effectively locate and develop new self-storage properties. The fund utilizes this market-driven data to determine the most optimal construction methodology to achieve its core objective; either through the conversion of existing structures and/or the construction of new purpose built facilities.
- Value-priced re-use opportunities exist for big box retail, commercial and industrial buildings that are vacant or functionally obsolete.
- Local zoning perspective on self-storage is changing from “don’t want it” to “desired use”, thus shortening the entitlement process.
- Lower retrofit and conversion costs allow for the creation of institutional product at below replacement cost.
- Conversion opportunities are scarcer than purpose-built opportunities.
- Purpose built product is in strong demand by the most aggressive public and private buyers. Therefore, the inclusion of some purpose built product in a portfolio serves to compress the whole-portfolio disposition cap rate.
- Economies of scale are achieved among local development resources by creating a purpose built development pipeline – more of these opportunities exist.
- Few operators are scaled, capitalized and experienced to complete the complex and technical ground up construction process, leaving significant value creation opportunities for those willing and able to take the process on.
Sourcing & Delivery Process
- Create strong local relationships with brokers, property owners, municipalities, and professional services company principals.
- Conduct local zoning research and tax map analysis cross-referenced with tax incentive opportunities to identify qualified investment prospects.
- Source qualified acquisition prospects through assemblage, air right acquisition, and negotiation to secure under contract.
- Employ proven local development team to underwrite, entitle, and deliver self-storage opportunities on budget and on schedule.