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SECURED CLIMATE STORAGE
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| Secured Climate Storage L.P. A Controlled Climate Storage Facility 9311 N. FM 620 Austin, Texas Executive Summary This “State of the Art” facility was voted by the Austin Business Journal as the 2007 Best Real Estate Project Award Winner in the Industrial category. Secured Climate Storage is being built in four stages and will ultimately include 2,191 units. This facility uniquely meets unparalleled technology, security, and pest control features not available from any national, regional or local competitor. Clientele may access the projects’ website at www.securedclimatestorage.com for remote observation and viewing of the project and individual buildings, parking or storage areas. The site is 14.69 acres located on the heavily traveled State Road FM 620 (SH 45) surrounded by multiple luxury apartment projects and just two miles south of central Texas’ largest regional mall. This project is fully entitled by the County, State and City of Austin with water, septic, telephone and trunk station fiber optic telecommunications linkage available at the site. This site is within Austin’s city limits however; the property has “grandfathered development approvals” and is not subject to most of Austin’s stringent environmental, development and building code restrictions. No density, landscaping, impervious cover and building area limitations, right of way dedication or build permit requirements apply to this project. This status offers a rare economic and competitive “market control” advantage not available to the few existing competitors. Austin’s severe environmental and development restrictions coupled with prohibitively expensive land provides a virtual barrier to market-entry by potential national and regional competitors within this coveted demographic area. The “Market Control Development Strategy” is unique in that the developer has developed the entire land parcel to insure the permanent establishment of all entitlements. The site has been completely developed to include the entire site retention pond, the entire site septic and drain-field system, all earthmoving, all foundations, concrete site paving and parking for all existing and future expansion buildings. This “State of the Art” facility will be able to immediately erect, without the need for city issued building permits, pre-engineered buildings in response to self-storage market demand or interim bulk warehouse needs. Uniquely, this posture will be well publicized to notify appraisers and market-study analysts, other developers, lenders and investors that present and future markets will be satisfied by this project. Market response time will be minimal and more importantly the incremental expansion costs will only be a fraction of any potential competitors. Phase 1 of this project is complete and includes the climatized 416-unit Building A, 153-units of non-climatized buildings E through R and 31 rental parking spaces, as well as the full development of the entire site as required for all phases of additional building erection. All site preparation, foundations, utilities, storm drainage & detention, septic/sewer and security are included. The Market Analysis and Unique Strategies
The proposed 2007 Property Tax Valuation for Secured Climate Storage by the Williamson CountyLeander Independent School District valued the project at $11,200,000. Under Texas law, the appraisal was conducted based upon the completed value of the property as of January 1, 2007
The largest property valuation and counseling firm in the United States, Integra Realty Resources, was retained to prepare a Property Appraisal Report and Market Analysis for the proposed self-storage project. This initial report was conducted to satisfy both the value of the property prior to development and confirm the market feasibility.
The Market Analysis Summary Report confirmed the viability for this development and confirmed the proposed rental rates. The current market area only contains a few competitors that offer climate-controlled self-storage. These properties enjoy an average of 95%+ occupancy levels. The highest occupancy levels are 99% and belong to the higher quality projects with the best security features. The market area only includes one comparable project containing 555 units, including climatized units. U-Haul purchased this property from the Private Mini-Storage owner in an effort to penetrate the market. Uncle Bob’s (the national REIT) purchase another property in their effort to enter the market area but it is predominately non-climate controlled property with only limited climate options, at higher rates that Secured Climate Storage and always full. and Integra’s market analysis confirms that this particular market area offers excellent current and future potential. Most of the tenants in this area are single and multi-family dwellers needing additional storage space unavailable in their residences. The commercial demand also continues to grow for file and inventory storage that requires climate and pest controlled facilities. The former president of Shurgard Storage USA that opened their European market expansion visited Austin to perform a limited market assessment of the Secured Climate Storage project. He stated that the concept, design and overall project was the “best project” that he had ever seen. He was particularly complementary of the security, visibility, accessibility, dock-high and grade level loading capabilities for every climate building and the fact that inner property truck turning radii were designed for the largest truck-trailer rigs allowable on U.S. highways. It was truly an institutional quality property that he predicted would reach full build out and absorption within 3-4 years based on area growth and demographics. The future sale to a national company exit strategy is supported with a site layout and building design that mimics and inter-mingles the three major national company’s design and operational features. City of Austin development management officials report the addition of 7,400 new apartment units in this immediate market area. Single-family population is projected to grow by 5,800 persons over the next five years in this market area and the effective buying income for this trade area is 66% higher than the state’s median average. This market area represents the Austin metro area’s 2nd or 3rd highest income demographic profile. Secured Climate Storage is located in the geographic center of a 3.5 mile trade area that has major national and regional retailers violating their own store spacing standards. The Austin hill country topography including area creeks, and Lakes Austin and Travis limit the roadway accessibility in this highly populated and record growth area. The project is strategically located on the only spine road providing north and south access between only two points of east-west access to Austin proper. This constraint forces retailers to scramble for very limited developable land in a sea of environmentally restricted or protected habitat but allows for strategic market share control opportunities.
Secured Climate Storage has located on either side of its central location: - 2 Super Walmarts
- 2 Super Targets
- 2 HEB Grocery stores including the 157,000 sq. ft. prototype store to compete with Walmart
- 2 Home Depots
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When Carpenter and Associates Inc., an Austin-based brokerage, development and investment firm. began plans for a new development in an enchanting forested area in Northwest Travis County, constructing a sell-storage facility was the last thought that-came to mind.
In fact, the firm's initial plan was to build luxury apartments. Findings from market research. however: altered this plan. Instead. Carpenter and its team of architects. engineers and a general contractor developed a State-of·the-art industrial] facility that filled a gap in the community's resources while overcoming unusual obstacles.
Along RR 620 North in Northwest Travis County sits one of the city' newest and most innovative developments. With next-generation, 24-hour digital security and an on-site staff, Sea1red Climate Storage offers residents a safe place to house their furniture, boats, wine and other valuables.
One of the most innovative features of Secured Climate Storage's facility is its extensive security system.
"What we tried to create was a highly secured compound with multiple levels of security," says Jim Carpenter, president of Carpenter and Associates. Digital cameras film every person who enters and exits the facility, 24 hours a day. The entry gates are key-coded. each door is secured and interior access is restricted.
“We know our clientele from a security standpoint,” Carpenter says.
In addition, the site manager and assistant manager live in on-site apartments built specifically for this purpose. That has proven be an effective approach to security efforts.
"They live there. They take pride in the facility". It's not just a business to them; Carpenter says.
The team faced several obstacles along the way. The land itself was located in an area predominantly inhabited by endangered species and replete with unusual geologic features. Plus. the team learned early on that" they had to hurry because the tract would soon be annexed by the city of Austin. Once that happens. numerous city restrictions will be imposed on the area. creating a barrier to entry for some industrial users.
Finally, the team had to obtain financing for the project Prior to annexation, the project's first phase bad to be completely constructed. Lenders were leery of this approach, but ultimately the project was approved, permitted and successfully developed prior to annexation.
"We broke the mold with this project," Carpenter says.
Five acres of the 16-acre development have been built upon. The remaining acreage holds undisturbed forest, which has been set aside as a permanent reserve". that provides a visually appealing divider between the facility and its surrounding! residential neighbors. Architecturally, the building was designed to blend in with its natural surroundings.
Economically, Secured Climate Storage is surrounded by two Target Superstores, two Wa1-Mart Supercenter stores, two Home Depot stores. two HEB grocery stores and an existing resident base from the neighboring luxury apartments, along with higher-end. single-family homes" - among the highest income demographics in the Austin area.
The goal was to design an institutional quality, industrial-type storage project amid Class-A luxury apartments and higher-end single-family residential subdivisions in an architecturally refined manner, while meeting or exceeding the intent of Travis County and Austin regulations, according to Carpenter and Associates.
The 600 self-storage units now occupy 83,000 square feet. Prices range from $60 per month to $375 per month. Units range in size from 5-by-5 to l0-by-30 feet. The steel has been ordered to construct a four story building for Phase II, which will measure 60,000 square feet.
Temperature-controlled wine-storage units are currently in the engineering phase and will be available by this summer. Also in works is an. addition for recreational vehicles, such as boats; that will include roll-up doors with remote controls and electricity outlets to charge batteries. Among the largest climate-controlled, self-storage facilities in the country, Secured Climate Storage has created a new standard in the industry. As to whether similar projects will be developed in the future, Carpenter and Associates has a second project in the predevelopment phase scheduled for a year-end opening. That storage facility will be built in Spring, Texas in a retail shopping center development.
Despite the unique challenges faced in developing this project it appears to have been an exciting venture for all involved. Carpenter credits Walter Tacquard, senior vice president of Carpenter and Associates Development and Constructions Inc., for an excellent job in building the facility, as well as the entire team for an overall job very well done.
From the architect to the lawyer, I think every body involved thought this was an exciting project to work on," Carpenter says. "It was an exciting project to conceive, develop and construct'" |
Secured Climate Storage Website - www.securedclimatestorage.com
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Secured Climate Storage Secure Documents Contact Darin Walker for full package of information and access to secure documents
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