Self Storage Day to day Constructing a new facility

Self Storage Day to day Constructing a new facility

Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes

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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Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
6y
Originally posted by @Henry Clark:

Underneath this pond is a private sewer line going up to the Apartment complex on the left. Our Attorney is working up an easement to allow their line on our property. This was never recorded. The Development folks won't give us a build permit unless we get this in place.

We were originally going to tap into it, but our Engineer said to tap into the Main line. That way if any maintenance is ever needed on the Apartment line there is no dispute who has to pay. About the same distance and cost either way.

Looks like a great project! I'm currently a site/land use Civil, but the goal is to move into the small developer role and complete a lot of my own work similar to how you're managing your project. 

A thought on your sewer, you may want to see if you can put in an automatic termination clause. i.e. if they ever have to dig it up and replace it then the easement terminates and they'll have to relocate the line. Or if they fight the requirement to relocate (which they probably will) then just that if they ever choose to relocate it the easement terminates at that point. I've seen quite a few easements that are arguably abandoned and therefor could be unilaterally vacated, but lacked an abandonment clause. So we're either forced to pursue a quiet title, or attempt to get someone to agree to release their interest in the easement... 

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  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    5y

    @Mark Shaver  Thanks for the insight.  I will discuss with my SEO person.

  • Henry ClarkPro Member
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    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    5y

    Thanks @Mark Shaver

    My SEO guy updated the mobile speed to 1.9 seconds.  He disagreed with the 10.8 you noted, but doesn't matter.  Thanks.  He said we can get faster but not worth it.  He did not develop our website, he would need to re build it.  

  • Henry ClarkPro Member
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    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    5y

    Have enough concrete and dirt work done on the job site, that we can take out the silt fence down below. Used a chain to pull out the stakes. Then tied the chain and silt fence together to pull up the silt fence, by lifting up and going backwards. Glad to be able to mow this piece to get rid of weeds.



    It was hot today. Finished about 3:00 pm and called it a day. Great to be in Self storage and not 8 to 5.

    Decided to get a Jamocha shake at Arby's. A large one. Was thinking about it all the way over there. Ordered a large Jamocha Shake. They said they didn't have any Shake mix, to read the sign of about 15 items they were out of. Didn't list Shakes. "Are you sure your out of Shakes, they are not on the list?" "Yes, we are out of all of our Shakes". You don't really need to know about me not getting a Shake on a hot day.

    But, our concrete pad guy said he could not get any concrete thru Thursday. Today was Tuesday morning.

    We were installing corner Bollards yesterday. I went to Sherwin Williams to get Oil Based primer and Oil Based Safety Yellow paint. They were out. Asked if we could place an order or if any other metro store had it. Said no other store had it. We could order, but they aren't getting what they order, even regularly.

    I would like to know what Jamocha Shakes, Concrete and Paint have to do with each other? These are some of the last things I would think would not be available.

    Glad we pre-ordered our 2 flatbeds of re-bar for this storage site about 6 months ago. We were worried about prices going up and whether they would have any. Rebar, is about the only thing that could stop us from building our last 7 buildings.

  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    5y

    @Mark Shaver  greatly appreciate the input.  Your original suggestion was useful discussing with my SEO.

    Not sure about your measurements above.  When I go to our website, as fast as I can click on any of our content, it pops up. Not noting any slow down in speed that a normal human would notice.

    My major objectives with our SEO are the following:

    1.  Google maps, want to be in the top three, which Google shows on page 1.  We were about 15, we are now number 4.  SEO has done a great job moving us forward.

    2.  Youtube- want to move to page 1.  Currently page 6.  This has also moved forward significantly, but still a lot of work left.

    Most people would say they want the top listed website on page 1 of Google, but that is not my goal, even though it may impact the above two objectives.  

    If you look at a Google Search in a broad perspective:  Ads, Map, Youtubes; then 100's of websites.  Websites themselves don't stand out.  Plus our advertising group Sparefoot is the top Web search listing under that and their other company names.  We are at the top on Sparefoot searches in their websites.  That is why I focus on the Google map and getting my youtubes to page 1.  Very few Self Storage youtubes.

    The length of the video is long, as was noted by my SEO also, but this is the full set of rental instructions, so it is what it is.  We may choose to move to an inner page, if performance/speed is ever an issue for us.

    Our Unit size selection youtube is on a separate page and not the home page.

    Thanks for your input.

  • Henry ClarkPro Member
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    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    5y

    Put in about 20 corner bollards. Got oil well drill stem cut to 7 foot lengths. 3 feet in the ground. Was hard to find. My neighbor who sales steel, quoted me $400 per bollard for new steel. My road guy found these for me. $3.75 cut to 7 foot lengths. Put in an order for 70 more while I can get them.

    Normally you would pour concrete into the pipe to both strengthen the pipe and to not allow water into it.

    Decided to cut corners for now. May come back later and put cement in. For now we are putting the tuff stuff foam in the top.

    1. Picture one shows if you just spray around the sides and into the pipe. The foam will just fall down into the pipe.
    2. Wad up some paper. Put about 3 inches down.
    3. Spray the foam in to about level with the top. Wait about 5 minutes and let it rise. Adjust as needed how full you initially fill, so you don't get a huge ice cream cone effect.

    Its a lot of work holding a 60 pound bag of concrete mix and pouring into water in the tube, while the concrete dust in flying in your face. So we didn't want to do write now. We normally put water in first, then the dry mix. Versus mixing and putting wet concrete in. This is just for fill, so you don't need to be exacting. Make sure you wash the concrete off or it will stick to the pipe and make it very hard to paint or clean off later.

    If it grows to big, just shave off and then paint yellow.



    The surface will expand and turn very smooth versus the rough look above. Also it well self spread evenly, so don't spend time trying to make it smooth and even.

  • Henry ClarkPro Member
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    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    5y

    Just posted that last post.  Normally you get tunnel vision.  But the question of why go through all of this popped into my head from possibly your perspective.

    a.  This location is in a higher income area, very hilly- thus hard to find a spot, and almost zero zoning that allows Self Storage.  Makes this one of the safer risk locations we have done.  Very hard to find a location like this.  Most mom/pop build where they happen to be and most large REITS built where the zoning is easiest and there is population, even if everyone else can build there also.

    b.  This location will cost around $2.8mm.  It will appraise out around $3.8mm before it is even rented and about $4.2mm when 90% occupied.  It will be generating around $33,000 per month gross at 90% occupancy.

    c.  I enjoy developing.

    You can't find nor buy a location like that for $2.8mm.

  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    5y

    Friday, last pad poured at this site. Road crew is following behind and pouring between pads. Hopefully get those poured in the next 1 1/2 weeks. Buildings are set to deliver around September 23rd for erection. These will be useful going into the following spring season. Have enough 15's, 20's, 25's and 30's on the Phase 2 portion we started renting. This was a grueling week. Kept ice chest full of drinks available. Temps around 95, but humidity was 50 to 70% and made it tough. Gave the Pad and road crews $100 each out of the blue. They really appreciated it.

    Picture below.  The gentleman on the left is operating a winch motor attached to a cable on the far right.  It "vibrates" across the concrete and smooths and levels.  The guys in the middle are raking back excess concrete or pushing into low spots, to help level the concrete.  They have extensions on this machine and do both our 30 and 40 wide pads with the same machine.  The key to leveling are the wood forms on the outside much be level on both sides.  This machine rides on top of them.  The "light" colored rebar on the bottom right, is the fiberglass rebar mentioned earlier.

  • Accountant · CO · Member since 2018 · 195 posts · 23 votes
    5y

    Thanks, Henry, for another good post. The details you provided are better than many published books. I learned a lot from reading your post. 

  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    5y

    See pictures above.  Crew has been pouring roadways on and off for the last month.  Picture below shows the last roadway that needs to be poured.  They normally pour 8 trucks a day, but they have been getting rationed, zero, 3 or 5 trucks a day.  Thus they haven't been able to knock it out.  Would prefer all of the concrete to set for at least a week before Building delivery trucks show up at the end of September.  Running close.

    Discussed with Concrete contractor.  The picture below shows the construction site entrance.  We plan to leave about a 20 x 20 spot not poured.  See bottom left we have concrete "curbs".  If we pour then the trucks will need to hop the curb.  I will put more rock there.  But decided just to wait and finish the work entrance, once all of the material is delivered and on site.  The building erectors won't need the construction work entrance after that, and we can pour it then.

    Also schedule for the security fence along that road side to be installed, as soon as all of the material is delivered.

  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    5y

    Got the gate operational. Had to plug some things in to get going.
    I prefer to have all of our equipment the same, but for our two large locations we got two different sales people and two different Gate operators. Also one is your normal Black security fence and the other was required to be a Black Ornamental fence to match the neighboring apartment. This is our gate system with the ornamental fence. Gate motor/operator on the inside to the left.


    Will compare this one to our older location. New/Old references.
    New at the top is plastic. Take bolts off, then keylock at bottom, the silver circle.
    Old second below is a substantial metal box, with hefty locking system.

    The one on the left is the more Advanced model and the one on the right is the more durable exterior. Can't have both together.
    Both have exterior "Reset" buttons on the outside. New- black slide at the bottom, inside switch. Old- exterior black button at the top, left of the L in Liftmaster. Hit these to turn off the machines to manually roll gate.

    My finger at the bottom is pointing to sawn lines in the concrete. Had them put metal sensors to detect if vehicles are approaching the gate. This sensor can be used to stop the gate and make it reverse and/or open the gate without a keypad. We are just using it for the safety purpose. We require all renters to push a button to get out. The purpose is to get a Facial picture of them with the cameras behind the push button, and to also align the front of there car in a position for a License plate camera. The Second picture below, the dial I am pointing to, sets this feature.


    The blue dial below sets how fast the gate opens and closes (cycles). We turned ours to 8 seconds. On the old model we have to have our Security person set it.

    The Red dial below sets the speed of the gate as it either starts up or stops. Ours is set to have a Gentle Start and slow down. This makes for less jarring of the entire gate system.

    Now some of you are thinking you don't need to know the above.  But if you are managing remotely or have an employee (who can leave); then you need to be able to operate.

    Get good pictures.  Maybe do a youtube.

    Our security person has to come and set the Open/Close times. We use 8 am to 9:15 pm.  Our close time is 9 but we added 15 minutes just because.  If we wanted to get techy, remember the metal sensors in the concrete.  We could have our security guy program the gate to open after 9PM if someone drives up on the "inside" of the fence and let them out.  But we want their picture and license plate.

  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    4y

    Phase 3 getting started.  4 trucks arriving today to unload.  Erection crew on site.  More trucks to follow in about 2 weeks.

    Been getting complaints from the hired help.  Wife (CEO) and son about all of the unit sweeping they have to do on the new units.

    Not going to show them the picture below.  Just tell them, I swept with a push broom.

  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    4y

    Well I didn't take enough "between" pictures. They worked really fast and did a great job. Pictures are of the entire complex, left and right side.

    Normal 1637541174 Image Normal 1637541219 Image

    Open items:

    a. Missing some insulation, a door rail, and one overhead air flap. They will have delivered to this location and either they will come back, or have my local contractor install.

    b. Electricians going fast.

    c. Security system contractor will come behind the electricians, who are installing his conduit and wire. Might not get done this winter. Has about 60 cameras to install. Hard to work on little wires and connectors in freezing temps and wind.

    d. We got done installing all unit numbers. Ended up with 356 units.

    e. Even though we are still in construction, will turn on our normal insurance coverage.

    f. Normally I would have built only half of these. But due to access and getting contractors decided to do it all. This will cost me about $60,000 more interest in carrying cost during the rent up phase. But due to the business climate, the last 2/3's of the building would be $400,000 more today, if I had waited. Will keep part of the location blocked off until the rest fills up.

    g. Now on to Marketing. We are ranked 4th for this location on Sparefoot. I have been letting it slide going into winter slow season. About February, I will start managing it back to number one in that zip code.

    h. One small patch of concrete to pour at the work entrance next week. Closed it off.

    i. Building Inspection once electricians are done. They don't inspect Security systems.

    Normal 1637542459 Image
  • Accountant · CO · Member since 2018 · 195 posts · 23 votes
    4y

    Thank you for another great post! I've been reading your posts, and I have to say is better than any book or guru classes out there. I appreciate you sharing your experiences with us! 

  • Henry ClarkPro Member
    OP
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    3y

    To tie this post out.

     We decided to auction this property off as part of our overall financial plan.  Reduced our largest debt position and also took quite a bit of profit off the table.  Used the cash to pay down existing debt on other properties, buy new land for future development, which we will sit on.  This project was at 20% occupancy going into a questionable financial time period which we are still in.  We were still on Interest only construction loan, about to convert to SBA loan, but decided to sell. 

    This was more of a RISK analysis decision versus a financial metric decision.  

    Still adding additional buildings at our other locations.  Have land in hand for our next development, just waiting on Economics to flatten out and for costs to go down.  This latest post is written about 7 months since the sale.  Storage manufacturer costs have come down about 30% from their highs.  Taking a break for now on Storage development.  Acquired 75 Acres and doing a subdivision. You can reference both our posts on Silver Lake and also the subdivision we sold out, Journeys End for those story lines.

    Spent some of the money over Christmas to see our son Ryan who is stationed in Sicily with the Navy.  Can't wait to go back next trip.  Probably have him meet us in Croatia.

    Thanks to all you Airbnb folks.  Nice stay at an old winery converted to an Airbnb.  Homemade Ravioli with Pesto sauce.  Bread with Olive Oil and Balsamic vinegar.  Local red wine.  Might have to sell another Storage location and go on another trip sometime.  They have their own Pizza oven in the background.

    Why do Self Storage?  For the freedom of time and the personal rewards.  We do self-service, so we were still renting and managing our other 7 locations while we were in Sicily/Italy.

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