
StoreSmart Self Storage ("StoreSmart"), is a national developer and asset manager of premier self storage properties. StoreSmart represents the formalization of the collaboration since 2004 of Lewis G. Pollack and W. Bradford Sherman. The company has been named one of the Top Self-Storage Operators in the U.S. by Inside Self-Storage Magazine.
StoreSmart's goal is to acquire and/or construct Class A self storage facilities in strategically located and underserved market areas across the U.S. utilizing strict budget controls and efficient execution. StoreSmart’s facilities are managed by its affiliated property management company, Reliant Real Estate Management, LLC (“Reliant”), utilizing the most modern technology and time tested methods to drive efficiency and profitability. Reliant manages StoreSmart’s portfolio and performs third party self storage management services to other owners of self storage facilities.
Georgia, South Carolina, North Carolina and Virginia are preferred markets for their higher than average household income, substantial and underserved population of residential and commercial users, with marked shortage of Class A self storage capacity in many areas. Florida, historically one of the strongest self storage markets in the U.S., has also been one of the hardest hit by the economic downturn, providing distressed purchase opportunities. These characteristics combined offer attractive submarkets for self storage. StoreSmart has developed 9 facilities in the southeastern region, operates another 8 facilities in these markets, and is actively seeking sites or properties in various first, second, and third tier markets in these states.
Sample Transaction
Where StoreSmart finds existing self storage properties, with some occupancy, that are in excellent locations but suffer from substantial deferred maintenance or are antiquated, or do not offer Class A amenities, StoreSmart redevelops such facilities as Class A facilities. Such an example is StoreSmart’s project in Rock Hill, SC. This facility was an antiquated, Class B-/C property in an excellent location, and offered no climate controlled units. StoreSmart redeveloped this facility, completed in August 2012, by demolishing a portion of the existing project and constructing a new climate controlled building, along with renovating the overall facility. Pre-redevelopment and post-redevelopment pictures have been included below.
Investment Approach
StoreSmart’s investment strategy entails one of four scenarios. The first of these scenarios is the acquisition of existing fully-occupied facilities that include additional land, in markets that evidence pent-up demand for additional storage space. StoreSmart then develops such additional space to maximize the operational efficiency and value of such facilities. The second development scenario utilized by StoreSmart is the acquisition of existing, antiquated or Class B or C self storage facilities, with some existing occupancy, and to redevelop such facilities as Class A facilities. In this transaction, StoreSmart is utilizing this investment approach. The third development scenario is the acquisition of undeveloped sites in the most underserved regions across the U.S and the development of self storage facilities to serve these markets. The fourth development scenario involves the redevelopment of retail “big box” tenant spaces in strong locations into self storage facilities.
StoreSmart develops all of its projects with a view toward long-term ownership but has agreed to sell certain of its facilities where advantageous due to price, local market conditions or otherwise. In any event, if StoreSmart does not plan to own a prospective facility long-term, it is not a suitable project for StoreSmart.
Site Selection and Analysis
StoreSmart has established a network of strategic alliances with commercial realtors, consultants and competitors across the U.S. The purpose of this network is to provide a steady stream of potential sites and existing facilities in StoreSmart’s target markets for feasibility evaluation. Once a target site or existing facility is identified by StoreSmart, the site selection process typically takes from 30 to 180 days, including contracting for the site, entitlement and site plan approval, environmental and geo-technical review, and all other actions necessary to commence construction of a self storage project thereon.
StoreSmart performs extensive due diligence in connection with analyzing the feasibility of a potential project and accurately interpreting the competitive climate, including, without limitation, the evaluation of the occupancy, location, unit size, unit mix, layout, deferred maintenance and management of every competitor within the market area of the proposed site, as well as the evaluation of relevant demographics within the market area. When StoreSmart is evaluating the purchase of an existing self storage facility, it performs extensive due diligence including, which includes the analysis of deferred maintenance of the facility and the unit mix currently occupied.
The most accurate measure of the demand for additional storage inventory in a given market is the current level of occupied space within existing facilities in that market. No matter how small a community’s population, high rates of occupancy within a market area indicate pent-up demand for additional storage in general, or of a specific unit size or type. Lower occupancy levels are not necessarily indicative of low demand. Instead, they may mask pent-up demand under any, some, or all of the following circumstances: poor management, the unit mix of the area’s inventory may not match the sizes customers want or need; even with appropriate sizes, competition may suffer from a bad location or deferred maintenance; there may be a need as yet unrecognized in the market area. StoreSmart uses all the tools at its disposal in evaluating its relevant market area, competition and feasibility of development.
Keys to Success
- Careful identification of target self storage markets in underserved regions across the U.S. meeting consistent, established market criteria
- Location of sites in outstanding locations within target markets
- Construction and acquisition of only institutional grade, Class A facilities with appealing architectural and amenity-rich designs
- Staffing with well trained and experienced management professionals
- Efficiency in scheduling and execution in the entitlement and construction process, when applicable
- Stringent cost controls, resulting in the minimization of overhead costs associated with the development process
- Maintaining stringent development cost standards
- Identification and maximization of profit centers complimentary to self storage
- Management of entire self storage portfolio to maximize profitability
- Development and maintenance of beneficial strategic alliances

Address: | 5607 Camden Road Fayetteville, NC 28306 |
Year Built: | 1995 |
Current Occupancy: | 72.0% |
Net Rentable Area: | 168,540 square feet |
Total Units: | 1,242 total units 1,107 non-climate and parking units 135 climate controlled units |
Street Frontage: | Approximately 1,000 feet |
Daily Traffic Count: | 17,000 |
The property consists of typical storage units and climate controlled ("CC") storage units of the following sizes.
UNIT TYPE | TOTAL UNITS | SF | TOTAL SF |
---|---|---|---|
5x5 | 75 | 25 | 1,875 |
5x5 CC | 16 | 25 | 400 |
5x10 | 196 | 50 | 9,850 |
5x10 CC | 12 | 50 | 600 |
5x15 | 141 | 75 | 10,575 |
5x15 CC | 20 | 75 | 1,500 |
5x20 | 5 | 100 | 500 |
10x10 | 259 | 100 | 25,900 |
10x10 CC | 17 | 100 | 1,700 |
10x15 | 21 | 150 | 3,150 |
10x15 CC | 30 | 150 | 4,500 |
10x20 | 244 | 200 | 48,800 |
10x20 CC | 7 | 200 | 1,400 |
10x25 CC | 19 | 250 | 4,750 |
10x30 | 114 | 300 | 34,200 |
10x30 CC | 14 | 300 | 4,200 |
10x40 | 15 | 400 | 6,000 |
Outside Parking | 36 | 8,640 | |
TOTAL | 1,242 | 168,540 |
In addition to the storage units, the property has a business center, which is a two-story brick veneer mixed-use office and apartment building. The building is 2,400 gross square feet, with the square footage split between the uses vertically - 1,200 SF per floor with the apartment upstairs. There are 24 buildings total on the property, and two are labeled as climate controlled storage. The storage structures are all single story, pre-engineered metal buildings.
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