These days, it seems like you can't turn on the TV or open a newspaper without getting more bad news about rising gas prices or the unstable economy.  This is a difficult time for business owners who need to remain competitive in the face of economic uncertainty.  That's why we've developed the Annual Facility Checkup - an evaluation tool that helps you keep tabs on your competitive marketplace and how your facility stacks up against the rest.  With a possible recession looming, you'll want to do everything you can to make sure your facility is the best that it can be!  Click here to read an instructional article and run the checkup for yourself.  When tough times come, you'll be glad you did!

Amy

Amy Hitchingham is Vice President of the Argus Self Storage Sales Network.  She can be reached at 303-317-4232 or via e-mail at amy@argus-realestate.com.

New Argus Listings

• Cabot, AR:  $1,300,000; 35,319 RSF.  Contact Broker Affiliate Mike Procter at 405-503-9055.

• Camden, AR:  $621,000; 14,000 RSF.  Contact Broker Affiliate Mike Procter at 405-503-9055.

• Greeley, CO:  $1,830,000; 33,370 RSF.  Contact Broker Affiliate Joan Lucas at 720-855-6587.

• Mason City, IA:  $1,350,000; 64,238 RSF.  Contact Broker Affiliate Bob Randklev at 319-533-6927.

• Antioch, IL:  $2,300,000; 25,820 RSF.  Contact Broker Affiliate Bruce Bahrmasel at 312-518-3550.

• Kankakee, IL:  $2,000,000; Development Site, 4.25 acres.  Contact Broker Affiliate Bruce Bahrmasel at 312-518-3550.

• Belton, MO:  $1,990,000; 46,150 RSF.  Contact Broker Affiliate Larry Goldman at 816-931-3101.

• Abilene, TX: $1,860,000; 3-Property Portfolio, 66,288 RSF.  Contact Broker Affiliates Barry Comiskey & John Owens at 806-797-3231.

• Lubbock, TX:  $902,500; 2-Property Portfolio,  57,420 RSF.  Contact Broker Affiliates Barry Comiskey & John Owens at 806-797-3231.

• Nash, TX:  $675,000; 22,500 RSF.  Contact Broker Affiliates Richard Minker & Tyler Trahant at 888-764-6537.

• Princeton, TX:  $695,000; 18,000 RSF.  Contact Broker Affiliates Richard Minker & Tyler Trahant at 888-764-6537.

To view information on all of our nationwide self storage listings Click Here

Property Pick

Belton, MO
$1,990,000

• Rentable SF: 46,150

• Units: 256

• Land Area: 3.04 acres
   

• Excellent location in rapidly growing suburb of Kansas City, MO

• Strong U-Haul rental business provides additional income

• Climate control conversion possible

• Upside potential with conversion of underutilized space

For more information on this opportunity,
please contact Argus Broker Affiliate
Larry Goldman at
816-931-3101 or send an
Email Request

Financing Focus

by Steve Clifford
NorthMarq Capital, Inc.

2008 started out with uncertainty and tightening credit standards in the capital markets.  As of today, not much has changed.  Non-distressed sellers are unwilling to sell properties at higher cap rates, drastically reducing the number of properties trading in recent months.  Compounding that phenomenon, difficult times persist in the lending market, as tighter underwriting standards continue to present borrowers with a challenging credit environment. 

As we head into the summer months, a few observations may be noted as far as capital sources are concerned. Some life company lenders continue to lend albeit at conservative levels, typically in 60% to 65% leverage range.  Still, many life companies continue to sit on the sidelines; those that are actively lending are looking to larger Class A transactions with little to no hair on them.  Typical life company pricing ranges from 240 basis points to 275 basis points over the 10 Year Treasury (currently at 3.84%) resulting in rates from 6.25% to 6.60% on a 10 year loan. 

CMBS lenders are still effectively out of the market, but recently a balancing of the CMBS market has lead to rumors of a return by mid summer 2008.  We are starting to hear from CMBS lenders that indicate minimum pricing on Class A properties would be in the range of 250 to 275 basis points over swaps (currently at 4.40%) resulting in overall rate of 6.90% to 7.15%.  Caution continues to be the theme on the CMBS side, with many speculating that the more stringent underwriting required by the CMBS lenders as they return to the marketplace will result in loan-to-values equivalent to life company levels, but priced at higher rates. 

Banks have consistently been filling the gap caused by the current market conditions.  We have seen a great increase in the number of transactions completed with banks which, by comparison to the permanent lenders, can offer more competitive rates, higher leverage and more flexibility.   While this gap has allowed the banks the opportunity to increase their real estate portfolios, the increase in real estate exposure has caught the eye of bank regulators.  More and more banks are beginning to identify exposure issues as it relates to real estate and individual credit limits.  While the banks still have the ability to provide competitive financing on strong credit, we are seeing a bit of a pull back and more time being spent on cleaning up their existing portfolios to keep regulators at bay. 

Opportunities abound for investors with capital.  We have seen a good amount of note sales as well as cash strapped owners looking to sell assets on which they cannot find financing.  I anticipate that as banks continue to analyze their portfolios, they will look to borrowers with exposure issues to pay down their debt, often times resulting in the sale of an asset at a discount.  NorthMarq continues to see a good amount of business, and through our long standing relationships with capital sources we are poised to find the most competitive financing available in today’s difficult market environment. 

NorthMarq Capital, Inc., a national real estate investment banker headquartered in Minneapolis with 28 regional offices coast-to-coast, provides commercial real estate debt and equity financing and commercial loan servicing. NorthMarq Capital provides more than $13 billion in annual production volume and services a loan portfolio of more than $34 billion. NorthMarq also provides real estate investment consulting services for public and private clients nationally through its consulting group, NorthMarq Advisors, LLC.  Steve Clifford, Assistant Vice President, can be reached at 303-225-2100.  For more information, visit www.northmarq.com.
 

Industry Insights

Extra Space Inc. Announces Launch of Public Offering of Common Stock. 
CNNMoney.com - USA, May 12, 2008. 
Net proceeds to be used for debt repayment and general business purposes including potential property acquisitions.

U-Store-It Trust Reports Operating Results for the Three Months ...
CNNMoney.com - USA
"Our self-storage facilities are looking their best and our people and our systems are fully prepared heading into our prime rental season," said Dean Jernigan, President and Chief Executive Officer of U-Store-It.

Sovran Self Storage Reports First Quarter Results: Revenues Increase 11.7%
Business Wire via Yahoo! Finance Wed, 30 Apr 2008 1:05 PM PDT
BUFFALO, N.Y.----Sovran Self Storage, Inc., a self-storage real estate investment trust , reported operating results for the quarter ended March 31, 2008.