SHAWNEE, Kan. – Nov. 26, 2012 — Lee & Associates, one of the largest national commercial real estate providers with regional expertise, has closed a 126,000-square-foot self storage facility sale at 6410 Vista Drive in Shawnee, Kan. The transaction price could not be disclosed.

“This Class-A facility is situated in a prime location [...]]]>  

SHAWNEE, Kan. – Nov. 26, 2012 — Lee & Associates, one of the largest national commercial real estate providers with regional expertise, has closed a 126,000-square-foot self storage facility sale at 6410 Vista Drive in Shawnee, Kan. The transaction price could not be disclosed.

“This Class-A facility is situated in a prime location of high growth,” said Jon S. England, CCIM, SEC of Lee & Associates Kansas City, who represented the seller, Roc KS Properties, LLC.  “Self storage continues to be a great asset class for investment and this property will serve its new ownership well with its high occupancy and existing customer base.”

According to England, in terms of square footage, this is the one of the largest single asset self storage facility sales in the Kansas City area for the past three years. The buyer plans to improve occupancy and manage expenses.

Built in 2000, the 500-unit property is managed by Extra Space and currently 83 percent leased. The buyer, a local investor, was not represented. 

About Lee & Associates

Celebrating more than 33 years of leadership excellence in commercial real estate, Lee & Associates is the largest broker-owned firm in the nation, with 46 locations across the nation including Arizona, California, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Michigan, Missouri, Nevada, New Jersey, New York, South Carolina, Texas and Wisconsin. With a roster of nearly 700 expert brokers, Lee & Associates provides a wide range of specialized commercial real estate services. Additional information is available at www.lee-associates.com.

 Lee & Associates Commercial Real Estate Services

Capital Gains Tax Set to Rise at Year End; Transaction Activity May Edge Higher as Long-Term Owners Lock in Profits

■ Unless current capital gains laws are extended by Congress and signed into law by President Obama prior to December 31, [...]]]>  

 Lee & Associates Commercial Real Estate Services

Capital Gains Tax Set to Rise at Year End; Transaction Activity May Edge Higher as Long-Term Owners Lock in Profits

■ Unless current capital gains laws are extended by Congress and signed into law by President Obama prior to December 31, 2012, the gains tax laws as we know them today will realize some significant changes come January 1.

■ Capital gains taxes will revert to 20 percent from their 70-plus-year low of 15 percent. In addition, barring legislative intervention, the tax rate on dividends will jump from 15.0 percent to 39.6 percent for top earners. When substantial tax code changes took effect in 1986, including a capital gains rate increase from 20 percent to 28 percent, investor liquidations nearly doubled the total realized capital gains from the previous year. Despite the decline in investment values over the last two years, many investors will likely follow this liquidation strategy, locking in their profits rather than waiting for investments to appreciate sufficiently to offset the 5 percent tax hike.

■ The reluctance to endorse even greater rate hikes likely stems from concern more significant increases could further impede the economic recovery. Considering long-term capital gains taxes have averaged 26 percent over the last fifty years, even hitting 40 percent in 1976 during the Nixon/Ford administrations, risk of further increases once the economy stabilizes remain high. As a result, though investors often choose to hold assets in the year following a rate hike, perceived tax-related risks may encourage them to continue selling assets.

■ Demand for retail and office space remains tepid, however, particularly in secondary and tertiary markets, placing downward pressure on rents and preventing owners from regaining substantive pricing power. For investors holding these assets, future capital gains tax increases could overshadow appreciation substantially, extending the hold period to break even against current net profits for several years. Investors who purchased these assets more than six years ago likely have profits to protect and may consider liquidating late this year.

■ In response to the increase in capital gains taxes, commercial real estate investors’ ability to defer capital gains indefinitely through 1031 exchanges will become even more attractive. Since 2002, the year before the capital gains tax rate was reduced to a 70-plus-year low; the number of 1031 exchanges has fallen by nearly half. As capital gains taxes rise, the share of deals involving 1031 exchanges will increase substantially, as sellers will be further discouraged from taking profits from the investment real estate sector

Source: Marcus & Millichap Research Services, Tax Foundation, Treasury Dept. and Capital Gazette

For More Info Please Contact Self Storage Specialists:

Clifford Crowe, CCIM

ccrowe@lee-associates.com

(760) 448-2457

Steve Bruce

sbruce@lee-associates.com

(760) 929-7861

USSelfStorageLocator.com is an online business. It does not have any physical space that people can rent to store their things.

by Winnie Hsiu July 10, 2012 6:58 AM

If you believe in the hype about the Mayan calendar, we’re now about halfway to the end of the world. If you do believe that, what the heck are you doing reading a self-storage blog?

For the rest of us, this message is to encourage you to take a step back from [...]]]> By Jim Chiswell

If you believe in the hype about the Mayan calendar, we’re now about halfway to the end of the world. If you do believe that, what the heck are you doing reading a self-storage blog?

For the rest of us, this message is to encourage you to take a step back from day-to-day operations and evaluate the plans, goals and objectives you initiated in January. We all start off with a “ready, aim, fire” mentality. Right now, it’s important to add “re-aim” at the end of that mantra.

Giving yourself a six-month report card will help you achieve superior results for the balance of 2012. Don’t cheat the review by just looking at everything pass-fail. Give yourself a true letter grade for occupancy, delinquency handling, marketing, expense control and net operating income. Don’t forget community involvement.

I’m willing to bet few of us have scored straight As. I know I haven’t. But the results of your self-storage operator report card should be used to help you refocus your energy and resources. It should allow you to understand your strengths as well as identify the areas where more attention and effort is needed.

Please don’t forget everyone on your management team needs to participate in the grading of your operation’s performance. This exercise has to be a team thing, not just the boss’s thing. Working together will force everyone to recognize where things have gone well in the first six months, and what other things need to be improved. You can do this even if you didn’t start off the year with specific written goals and objectives. It’s time to re-aim to exceed expectations in the second half of 2012.