the
Simple
Smart
Secure
Choice
ABOUT US
LEADERSHIP
S3 Storage Solutions LLC was founded by Andy Bilmanis, who is a self-storage entrepreneur with a background in mechanical engineering and construction. Andy is responsible for the underwriting, syndication, development, construction, and management of new self-storage projects. He is also an active member of the North Carolina Self Storage Association.
VISION
S3 Storage Solutions LLC develops modern Class-A self-storage facilities while providing value to its Investors with above market returns. We incorporate the best industry practices and technology in our self-storage facilities. Our customers look to us to provide a safe and secure facility so they can store their possessions with peace of mind. Discover why we are the Simple, Smart, and Secure choice.
DEVELOPMENT PLAN
S3 Storage Solutions has a proven business plan that incorporates conservative underwriting, best industry practices, and partnerships with industry contractors to execute our vision. For each property we will also execute feasibility studies to confirm market conditions, which help to mitigate risk for our Investors. Through this plan, we are able to deliver storage facilities comparable those of the national REITs.
INDUSTRY
OVERVIEW
Self-storage is a commercial real estate asset designed and used for the purpose of leasing individual space to tenants on a month-to-month basis. It is a $29 Billion Industry with more than 60,000 facilities and more than 2.0 billion square feet of space in the United States alone. The industry thrives on change and life events which are known as the 4Ds of Self-Storage; Death, Divorce, Downsizing, and Displacement.
WHY SELF STORAGE
Demand
Through the years, as populations and household median incomes increased, the demand has steadily grown in the United States:
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11.1% of US households utilize self-storage
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Average of 7.40 SF per person in United States
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More than 40% of customers utilize storage for greater than 12 months
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Customers typically live within a 3 to 5 mile radius of the facility, mainly for convenience
Barriers to Entry
The barriers to entry for self-storage are much more attractive than other commercial real estate asset classes such as Office, Retail, and Multifamily, due to simplistic natural of construction and lack of features typically required for human occupancy.
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When compared comparing self-storage to other asset classes (dollar per SF)
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40-60% Lower Development Costs
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10-20% Lower Operating Costs
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Equal or greater Rental Income
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Only about 27% of self-storage facilities are owned by the national REITs in the United States
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Third-party operations companies can handle operations of facilities for owners and allow them to compete with the larger REITs
Investment Potential
The increase in demand and lower barriers to entry for self-storage assets has made it very attractive for investors in addition to the following reasons:
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Great for Passive Investors – Self-storage has performed well during economic downturn and also during economic expansion, as storage demand is driven by change
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Recession Resistant – Less than 1% default rate after 2008 market collapse and continues to have the lowest default rate when compared to other asset classes as interest rates have risen
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Pandemic Resilient – during the COVID pandemic, self-storage demand increased and has favorable tenant-landlord laws as compared to other asset classes, majority of municipalities have classified it as an “Essential Use”
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Returns – the self-storage asset class has the highest total returns over 5 and 10 year averages per NAREIT
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Value Creation - In recent years, Wall Street and private equity firms have realized the benefits of self-storage investments, which has resulted in significant demand and increases in property values
LOCATIONS
SOLD PROPERTIES
The Storage Haven self-storage facility in the Mountain Island Lake area of Charlotte, North Carolina was a ground-up development from entitlement to operations by S3 Storage Solutions. This is a 91,000 square foot Class-A facility offering climate and non-climate controlled space, with Boat/RV parking. The property was comprised of two bi-level structures and one single level structure, all of the 604 storage units are accessed from the ground level access with no elevators. The facility opened for business in the Fall of 2020 and was ultimately sold in May 2021 to a private equity group. This project produced returns for its Limited Partners greater than projected and in roughly a third of the intended hold period. The Storage Haven was located at 10023 Callabridge Court Charlotte NC 28216.
S3 Storage Solutions is currently working on the identification and underwriting of a new self-storage development project. More information coming soon.
COMING SOON
CONTACT US
We invite all contractors and industry suppliers interested in becoming part of the S3 Storage Solutions team to contact us.
