Since 1996, Sterling has delivered 90+ percent occupancy rates at both our mini-storage facilities, despite severe economic challenges of the 2010+ era. They also did the feasibility study, start-up, and fill-up within one year of our latest project.
I partnered with Sterling to acquire a underperforming project in Port St. Lucie. Sterling had the skill to bring the project into peak performance quickly. We sold the project in 2002 and earned a handsome ROI together.
Iâ€™ve done business with Sterling principals since 1984, and partnered with them on several projects since 1997. Three words say it all: Trustworthy, Smart, Results.
Sterling managed six self-storage projects my partners and I acquiried through bankruptcy in the late 1980's. Sterling took 40% non-performing projects and turned them into 95%+ profit centers within one year. Sterling ran the projects for 6 years until we sold them. Sterling not only made us money in all of these projects, they achieved results far beyond our wildest expectations.
In 1994, my company partnered with Sterling to develop a full-service record storage center, Sterling Records Management, Inc. My partners and I feel that Sterling principals are outstanding business people, and our relationship has proven to be extremely profitable, even beyond our greatest expectations.
Since the inception of Storage King, Sterling Management has been an invaluable asset. Their expertise in the storage industry has been key to the success we have experienced and their diverse and creative way of thinking has helped us through the economic decline.
I hired Sterling to open our 80T sq. ft. project in Seattle in 1996. They achieved stabilized occupancy within a year, and have since maintained in excess of 90% occupancy even in the most of difficult economic times. We are now expanding and trust Sterling to achieve the same results. We are also developing a new site and will look to Sterling's leadership to achieve RESULTS. I trust Sterling.
Sterling Management Services has performed dozens of due diligence studies for prospective buyers since 1984.
STORAGE FACILITY DUE DILIGENCE
Our facility due diligence study provides critical information to Buyers of existing Self Storage projects. Typically sales price is determine by a market cap rate that equates to a percentage number of Net Operating Income (NOI). Market Cap Rates fluctuate based upon demand.
That Cap Rate can range from 7 to 11 depending upon the strength of the economy, availability of product (are there a lot of self-storage on the market or are they hard to find), and condition of the facility. As an objective third party, our detailed, yet concise study validates to your investors and financial institutions that your purchase is viable, the marketplace stable, and pricing has been based upon reliable NOI numbers.
The Study Includes:
Competition Analysis - Information collected in the study includes specific data pertaining to competitive facilities within the market area, for example:
Location: Specific conditions affecting the proposed site
Pricing - The study will include a complete rate survey along with an average rate by unit size in the subject market. Sterling will then recommend pricing for the subject site to create a Gross Potential Income for the site. This information can then be used to create pro forma projections by the developer and/or will become the basis of the pro forma created in the Business Plan.
Site Audit - Physical inspection of the site and records to include:
Financial Review - Review financials provided by Seller to determine if NOI is a reasonable reflection of on-site records and operational history (from on-site audit).
© Copyright 2013 Sterling Management: Consulting, Asset & Self Storage Management Company. - All Rights Reserved.