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Henry Clark
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Self Storage Day to day Constructing a new facility

Henry Clark
Pro Member
#1 Commercial Real Estate Investing Contributor
  • Developer
Posted Jul 16 2020, 11:15

Day in the life- Constructing a New Facility location

23 June 2020, 08:39 
We are starting our 8th and final storage location. I will try to give an update as we go through construction. Although this will be instructional, you will probably also get to see the "thinking" and "concerns" about the project from my viewpoint at different stages. Things I would forget to tell you, if you said tell me about building a location.  330 unit drive up facility.

8th and final-
A. As you build each location, you have to put in so much equity up front. Could be 10%/15%/25%/40%. At some point you ask yourself how much do you want to extend yourself., We are expanding at such a fast rate, that we have not let the prior Storage location's equity buildup to support these final projects for collateralization.
B. Even though we have a very efficient system to handle multiple locations, at some point you tap the point of enough is enough., We run all of our business through one phone. Its not that bad once you are rented up, but can be a little hectic during the rent up stages.
C. Not to get into specifics but we also have other Life ambitions and other Financial alternatives we are looking at, to both diversify our assets (Teak Trees) and to enjoy different aspects of our lives.

Before Dirt Work Started-
A. Looked for a site that was "SAFER" from other competitors storage expansion. This location was under a "Planned Community" (PC) zoning, which I normally would not have known to look at. Luckily the realtor knew about the Special Condition/Use permit potential for Storage.,
B. The hilly topography doesn't lend itself to storage. There are only two more locations that are flat enough and they both have issues with them.
C. Engineering costs- We spent far more on engineering than expected. We were working around the lay of the ground for drainage and trying to fit as many units as possible to justify the project. $$$$
D. Hidden items- These were issues staring me straight in the face, but I didn't "See" them. The Fire hydrant on the property was a private hydrant for the property attached to the North, that could not be used. Originally both properties were owned by the same person. Plus the city requires all road side properties that don't have water to put in a line along all of the roadside. $$$$$$
E. Hidden items- The soft wet spot in the middle of the field was the hillside pushing water to the surface at the base of the hill. Although not a Spring, it is still too wet to build on top of. We will need to put a series of Drain Tiles underneath to take the water away. $$$$$

Day 1 of Dirt Work:
A. Contractor called the day before and said he was ready to start. Waited for him for 5 months to finish a large government project. He was both going to be available, cost was lower than other competitors and I know him professionally and personally.
B. Pulled up with 2 Scrapers and hopped the curb. This is a major Bike path and dog walking sidewalk. 3,000 vehicle per day traffic count, off major artery. So we decided on one construction entry spot. That way if we broke the sidewalk, we would have only one spot to fix and one issue with the path users. Our actual facility entry way is further east on the road. But we don't want to use it, otherwise we will bust up all of our concrete roads after we pour them.
C. Went to pull Dirt Permit and State Storm drain permit, the dirt contractor will need to do it and show them their license. About $3,000 for permit.
D. To build Office, the General Contractor who is building the pads and buildings will need to submit his license.
E. The final Building prints are not approved. I just had to give them a letter saying I would put Wainscot on the street visible side of the buildings. This was part of the agreement with the Planned Community zoning. They are also requiring Barred fence, versus chainlink fence.
F. Stopped off at the General Contractors office to start the order for 5 of the buildings. We will build these late in the fall after we can't put anymore pads in (before the ground freezes). We will put the office in, right off the bat, so the Electrician, Plummer, Security and Construction crews will have a place to stub all of the main controls and also have a warm bathroom to use.
G. These 5 buildings touch the fence line. So I want them built so we can put the fence in around the construction site for safety.
H. Stopped at the Retaining Wall group. We have two retaining walls to help with Dirt elevation. We did not want to haul any dirt off the location, so it was cheaper to build retaining walls in key spots and use the dirt there to flatten the site. Both the Retaining wall company and the dirt work company need to work hand in hand. The retaining wall company needs the dirt cleared about 8 feet back from the wall. This is so they can use Geogrid fabric as a Deadman to keep the wall from pushing out. So the Dirt company doesn't have to move the dirt twice, he needs to know to keep it back and also to clear out the dirt for 8 feet.
I. Attached are some pictures of Day 1. Should have a dry day tomorrow, then rain.
J. Using Scrapers versus Bulldozers. Bulldozers can only push dirt, Scrapers can carry it. Far more efficient to carry the dirt, if you have a lot and the distance is over 100 feet. The Grading company and I decided to bill me on an hourly rate, versus per day. Any break downs, partial rainouts or getting stuck, don't get billed to me.
K. Usually you would compact the dirt as you go. These scrapers are compacting the dirt, so we don't have a compactor running behind them. Also without getting to much into the site most of the building site will be the original dirt (compacted) and not moved dirt. Since the driveway and parking will be over where most of the dirt is being moved and we don't plan to build there until next year, it will have a chance to compact over Winter.
L. Will move in 3 inch "Clean" rock at the work entrance and out on the property as a hard surface for the construction vehicles and to clean dirt off prior to driving onto the roadway. We are required to have 75 feet of rock to clean dirt off. Keep the neighbors happy and so we don't get fined.
M. On the bottom right of the drawing, is the Storm retention pond. Give you an idea of how much land you have to give up for drainage, if required.

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