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Self-storage
Class B Self-Storage Facility
Fayetteville, NC
Completed Equity
100% funded
...
Class B Self-Storage Facility
Fayetteville, NC
All Investments > Class B Self-Storage Facility
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Overview
Class B Self-Storage Facility
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Details
For more information, view the Sponsor's Investment Memorandum.
Estimated Hold Period 5 to 10 years
Investment Strategy Value-Add
Investment Type Equity
Sponsor Documents
The offering documents above have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
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Management
For more information, view the Sponsor's Investment Memorandum.
StoreSmart Self-Storage

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
Management Team
Management
W. Bradford Sherman - Managing Principal

W. Bradford Sherman operates the Carbondale, Colorado office of StoreSmart, and has primary responsibility over StoreSmart’s legal, investment and finance matters. Mr. Sherman, a real-estate and corporate lawyer for over 25 years, was formerly a partner with the Little Rock, Arkansas law firm of Gill Elrod Ragon Owen & Sherman, P.A. For much of his tenure with the firm, Mr. Sherman ran the firm’s real estate development group, representing real estate developers nationwide. Mr. Sherman has over 20 years of experience of investment in, or development of numerous retail and single family real estate developments. Mr. Sherman is a frequent speaker and writer on real estate development and finance topics, and has served on the Board of Editors of Retail Law Strategist, a publication of the International Council of Shopping Centers. Mr. Sherman is a graduate of Washington University in St. Louis, and holds a law degree from University of Arkansas. Mr. Sherman is a member of the Arkansas Self Storage Association.

Management
Lewis G. Pollack - Managing Principal

Lewis G. Pollack operates the Boca Raton, Florida offices of StoreSmart and Reliant, and has primary responsibility over StoreSmart’s operational matters, including without limitation - site identification, competitive analysis, absorption analysis and construction associated with StoreSmart’s projects. Mr. Pollack, a long-time corporate executive and entrepreneur, has been involved in the development and management of self storage in excess of 30 years. Mr. Pollack is a graduate of Franklin and Marshall College, Trenton State College, and holds a Ph. D. (ABD) from University of California at Los Angeles. Mr. Pollack is serving his second term as a Trustee of the Florida Self Storage Association.

Management
Todd Allen - Vice President

Todd M. Allen is Vice President of Operations of StoreSmart, and operates the Atlanta, Georgia office of Reliant. Mr. Allen is primarily responsible for site identification and initial evaluation, project feasibility and analysis and preparation of preliminary pro forma analyses, as well as all operations matters of StoreSmart.

Prior to joining StoreSmart, Mr. Allen served as Director of Analyses for O.B. Companies, the largest privately held self storage operator in the world. Prior to his employment with O.B., Mr. Allen has served as Vice President of Operations for Meridian Storage, Inc., a regional self storage developer and as a Regional Manager for Sterling Management, a regional self storage and multi-family developer. Mr. Allen is a graduate of Clemson University. Mr. Allen is a member of the Florida Self Storage Association and the Indiana Self Storage Association.

Property
For more information, view the Sponsor's Investment Memorandum.
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.

Current Rent Roll
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.

Financials
For more information, view the Sponsor's Investment Memorandum.
Disclosures
RM Securities, LLC and its Affiliates Compensation

RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.

For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

No Approval, Opinion or Representation, or Warranty by RM Securities, LLC

Sponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.

Sponsor’s Information Qualified by Investment Documents

The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.

Risk of Investment

This investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.

No Reliance on Forward-Looking Statements; Sponsor Assumptions

Sponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.

Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.

No Reliance on Past Performance

Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.

Sponsor’s Use of Debt

A substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.

Sponsor’s Offering is Not Registered

Sponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.

No Investment Advice

Nothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

1031 Exchange Risk

Internal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.

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