January 6, 2011 10:38 AM
As we all have realized, the recent recession has left much of the country financially crippled. And with that, the rate of foreclosures has risen, especially in Florida and Michigan. Florida self storage companies are now feeling the force of foreclosures as people are downsizing and needing storage space. But the good is sometimes followed by the bad. People, specifically in hard-hit southwest Florida, are finding it hard to pay the bills for their self storage units. [More]
July 7, 2010 3:21 PM
The nation is slowly coming out of the recession, and unemployment rates are starting to drop. But many people, even after getting a new job, are struggling to catch up on their debts -- especially back mortgage payments. Bankruptcy rates are slowly rising. All too many families, seeking bankruptcy protection or trying to avoid foreclosures, have fallen prey to financial scams. One common scam occurs when a company takes money from a family, agrees to make arrangements for a mortgage loan modification with the bank or lender, and then does nothing, letting the property go into foreclosure. Ironically, some people have gone into foreclosure or bankruptcy right after becoming employed again. Many such families have turned to self storage facilities at the last minute, storing their possessions while looking for a place to live. [More]
March 24, 2010 9:01 AM
Foreshadowing the current commercial real estate foreclosure crisis by several centuries, Polonius advised in Shakespeare's Hamlet: "Neither a borrower nor a lender be." He might as well have added, "Be an investor instead." Polonius' words put most of the analysis of commercial real estate industry experts, reflecting on the state of the industry in major newspapers all over the country this weekend, into a nutshell. [More]
February 12, 2010 5:42 PM
Tenants who stopped by Overland Self Storage, in Morgan Hill, California, were startled this week to find that Overland's normal security gate had been disabled and that the facility was apparently being foreclosed on by a lender. Overland had a steel gate that was usually kept closed and locked, and could only be opened by customers or staff members who knew the electronic code. But this Tuesday, it was locked open instead of closed. Renters who went in to check on their self-storage units found that nobody was in the office, and instead a sign taped to the door read, "Closed! This is now the bank's property." The note did not say which bank now owns Overland, and did not list any contact information. In one exterior wall, a space that once held a window is now covered with a loose piece of plywood. Signs on the building's remaining windows said that the building is now "for lease." Overland's listed phone number is out of service. [More]
December 10, 2009 12:31 PM
One of the earliest indicators that the economy is beginning to improve may be that foreclosed upon self-storage businesses are beginning to sell – and to sell quickly. Early in December, Bancap Self Storage Group brokered the sale of Global Self Storage, located in Victorville in San Bernardino County, California, for $4.5 million.
Global Self Storage had been foreclosed upon early in 2009. It contains 600 self-storage units, which make up nearly 87,000 net square feet of space. The facility is located on nearly 7.5 acres of land and also includes 150 exterior RV and boat storage spaces.
“This is a classic example of a first class property that just opened up for business at the wrong time,” said Dean Keller, Bancap’s president, who brokered the deal. “The effects of the economic downturn and the temporary overbuilding in these areas have really hurt owners in outlying markets like this.” [More]