Construction, Development, Real Estate & Finance Track

Is Now the Time to Buy or Build? Project Feasibility for Self-Storage

Monday, March 14, 9-9:50 a.m.
Location: Versailles Ballroom
Speaker: Jim Chiswell, president, Chiswell & Associates LLC

While the economic conditions of the nation continue to improve, one of the major obstacles to the ability to build or buy a self-storage facility continues to be financing. Without a detailed feasibility study of the proposed acquisition or development, the chances of getting your deal funded are dramatically reduced. Drawing on his years of industry experience, Jim Chiswell will review the necessary aspects of conducting feasibility using a case-study approach. He'll review site selection, demographic consideration, traffic concerns, unit-mix design, competition evaluation and pro forma projections. If you're thinking about building or buying a self-storage facility, this is a must-attend session.

You will learn:

A complete overview of the feasibility process
How to evaluate a location's demographics and potential for success
How to design a unit mix for your facility
Factors you must examine when reviewing your market-area competition
How to review your due diligence (checklist provided)

Self-Storage Facility Valuation: Understanding the Worth of Your Investment

Monday, March 14, 10-10:50 a.m.
Location: Versailles Ballroom
Speaker: Charles Ray Wilson, president, Self Storage Data Services Inc.

This seminar is jammed-packed with the most current operating performance data that impacts the value of your self-storage investment. You'll be guided through the valuation process and learn what to expect from the lender's appraiser. Our speaker will provide detailed descriptions of the data elements required by lenders and appraisers so you are more prepared to "speak their language." You'll also learn how to prepare your facility before the appraiser arrives and how to gather the right information to ensure a fair valuation. Finally, you'll gain insight on current operating-performance trends and how they compare historically.

You will learn:

An overview of current performance trends
How to value your facility and evaluate your lender's appraisal
What information can hurt or help your valuation
How to prepare an estimate of value that your lender/appraiser will acknowledge

Creating the Most Effective Site Design and Layout for Self-Storage

Monday, March 14, 11-11:50 a.m.
Location: Versailles Ballroom
Speaker: Jamie Lindau, national sales manager, Trachte Building Systems

In self-storage, a proper site layout represents the delicate balance between maximizing the land and meeting the market’s needs while turning a healthy profit. This seminar takes a close look at how to capitalize on your site’s potential. You’ll learn alternative layout methods as well as how to determine when to incorporate features such as multi-story, climate control and drive-up access. Our presenter will look at ways to analyze demand and economic feasibility. He’ll also address classic mistakes made in facility design and how to avoid them. Finally, he’ll examine specific site challenges, such as drainage and accessibility, and explore ways to overcome them.

You will learn:

How to identify a site’s design constraints and economic feasibility
To determine the maximum layout for a site and how you can fill it
How the constraints of the city approval process affects overall design
The effects of grading/drainage on layout
Design mistakes to avoid and ways to overcome challenges

Buying Self-Storage and Conducting Due Diligence

Monday, March 14, 1-1:50 p.m.
Location: Versailles Ballroom
Speaker: RK Kliebenstein, president, Coast-To-Coast Storage

Interested in purchasing a self-storage facility but not sure where to start? Want to take advantage of all-time low prices but not sure how to assess the investment risks? In this session, you'll get the tools necessary to understand true cash flow and become an informed buyer. Our speaker will walk you through the process of making a sound purchase decision, including how to complete property audits and onsite inspections, save money through service bundling, make sense of zoning reports, and more. Vetting out every detail of a detail will give your bank and investors confidence. This comprehensive look at due diligence walks you through the essential process of property evaluation.

You will learn:

How to identify the risks and rewards of a purchase
Due-diligence best practices
When to buy and when to walk away
How bundling services saves you money
How to collect the right information
How to decipher zoning reports

Self-Storage: State of the Industry 2011

Monday, March 14, 2-2:50 p.m.
Location: Versailles Ballroom
Speakers: Christian Sonne, senior managing director, and Greg Wells, director, Self Storage Industry Group of Cushman & Wakefield

In this detailed session, our speakers will examine current market conditions and trends for the self-storage asset class in 2011, including investment criteria and new and old investors to the segment. They’ll provide data on income and vacancy, and explain how self-storage fared in the recession. They’ll look at market conditions in specific cities, financing trends and availability, and the impact on capitalization rates and facility values. Finally, they’ll show that capital is returning to self-storage from equity and lending, and why interest in this asset class is increasing from institutional investors. If you’re a self-storage investor or potential investor, you don’t want to miss this “big picture” outlook on the industry for 2011.

You will learn:

How self-storage survived the recession
The forces driving market conditions for the self-storage asset class
How self-storage compares with other real estate over the past five, 10 and 15 years based on data from the National Association of Real Estate Investment Trusts
Why cap rates are rapidly declining
Investment criteria from institutional players and the impact to individual assets and portfolios
Forecast for market conditions in the year ahead

The Self-Storage Investment Transaction Marketplace

Monday, March 14, 3-3:50 p.m.
Location: Versailles Ballroom
Moderator: John Gilliland, CEO and founder, Investment Real Estate LLC
Panelists: Marc Boorstein, principal and co-founder, MJ Partners Real Estate Services; Shawn Hill, principal, The BSC Group; Neal Gussis, principal, The Corvus Group

The self-storage real estate market has changed drastically over the past three years. It has finally bottomed out, and transaction volume is increasing due to mortgage notes coming due, banks pressuring owners to sell struggling assets, and potential cash buyers looking for the right opportunities. Tempering the transaction pipeline is the chasm between seller price expectations and buyer return requirements. This panel discussion will explore the current market for self-storage sales, the transactions closing today, cap rates and price per square foot, as well as the latest financing parameters required by banks and other financing institutions. Our panelists will also discuss short sales, note sales and how bank appraisers are looking at value. If you're looking to buy or sell in the self-storage market, this is a panel you don't want to miss.

You will learn:

The transactions closing today including terms, cap rates and price per square foot
The returns being demanded by buyers
Buyer willingness to pay for pro forma net operating income or additional land and approvals
Short sales and how much of a discount banks are willing to take
Bank notes and sales that have happened recently
How bank appraisers are looking at value and how this affects realized sale prices
Loan amounts and terms banks and other financial institutions will provide today
The outlook for self-storage financing in the near and long term

Boat and RV Storage: Developing and Constructing Buildings for This Profitable Niche

Tuesday, March 15, 8-8:50 a.m.
Location: Versailles 4
Speaker: Caesar Wright, president, Mako Steel Inc.

Will boat and RV storage work as an add-on profit center for your self-storage business? Do you have the land required, and is the product economically feasible for your market? This seminar will help you determine of boat/RV storage is a profitable investment for your specific site, neighborhood and municipality. You’ll learn about options from wide open parking spaces to top-of-the-line storage condominiums. Our presenter will discuss specific building requirements and provide helpful insight to trends and analysis on overall construction costs.

You will learn:

Building requirements for boat/RV storage
Construction costs involved
Current trends in the market
Site design and layout
Amenities to add to a successful site

Solar Self-Storage 101: Technology, Costs, Financial Incentives and More

Tuesday, March 15, 9-9:50 a.m.
Location: Versailles 4
Speakers: Bob Hayworth, owner and CEO, and Matt Harrison, photovoltaic design specialist, Baja Construction Co.

If you’re a self-storage owner or developer interested in the financial and environmental opportunities associated with solar-electric systems and renewable energy, this is the session for you. Our presenters will explain how a solar-electric system works, its basic components, and how it can be adapted to various projects. You’ll learn about federal, state and local tax incentives, utility-rebate programs, and financing and grant opportunities. Case studies of existing projects will be used to demonstrate the costs and potential revenue streams involved. You’ll see a detailed breakdown of costs vs. incentives, as well as a return-on-investment analysis for each project. Reap the benefits of going solar!

You will learn:

What solar electric is and how it works
The basic components of a solar-electric system
How solar-electric systems can be adapted to various projects
Federal, state and local tax incentives
Utility-rebate programs
Financing and grant opportunities
The costs involved
Existing and potential revenue streams

Buying Distressed Self-Storage Facilities: The Basics of REOs, Foreclosures and Short Sales

Tuesday, March 15, 10-10:50 a.m.
Location: Versailles 4
Speaker: Scott Frank, attorney at law, Law Offices of Scott A. Frank P.A.

In today’s distressed real estate market, not all properties (or sellers) are created equal. Between bank-owned properties, foreclosures and over-leveraged sellers forced into short sales, there are opportunities out there for the adventurous and aggressive buyer. This seminar will cover will explore these opportunities and provide techniques for negotiating with players who may not have significant experience with or understanding of storage facilities. You’ll learn about REO (real estate owned) properties and how to negotiate directly with banks. You’ll also learn how to identify short-sale opportunities, how to work with short-sale sellers, and due diligence you can perform before a foreclosure auction. If you’re looking for unique buying opportunities in self-storage, this session will open previously unexplored avenues.

You will learn:

What an REO is
What a short sale is, how to identify opportunities, and the paperwork involved
How to tell who is really running a short-sale deal
How to negotiate directly with banks
What banks often don’t know about the storage facilities they own
How to get the deal done quickly with bank-owned properties
How foreclosures work and what the risks are
Due diligence: ways of learning about a property
Issues and risks involved in bankruptcy sales

A Guide to Selling Self-Storage in Today's Real Estate Market

Tuesday, March 15, 11-11:50 a.m.
Location: Versailles 4
Speaker: Ben Vestal, president, Argus Self Storage Sales Network Inc.

The real estate market has changed dramatically in recent years, and current and prospective self-storage sellers should be aware of the elements that are driving transactions in today's market. Facility values are determined by a number of factors, many of which are out of the seller's control. Ben Vestal will explain how to get the most out of your facility's intrinsic value and minimize the negative impact of market factors that can detract from value. He'll also help you determine a pricing strategy that will invite serious and realistic offers from the growing marketplace of buyers. A successful transaction begins with solid preparation, and Ben will walk through the steps every seller should go through before taking a property to market.