Nailing the Best Deal for Your Facility : It begins by finding a professional broker

It begins by finding a professional broker

Harold Kolbe
02/01/2008

Who do you turn to when looking to sell a self-storage facility? The market is very fragmented, and ownership is still mostly held by private investors, small ownership/ management companies as well as the “big boys.” So what do you do when you want to find a buyer? Who do you call? How do you get started?

To do it right, you’ll need to find a broker, but it’s not as easy as it sounds. You need someone with self-storage experience and national exposure; someone who understands market valuation; someone who can give buyers a professional presentation of your facility in a clean, straightforward package so they know the details in an easy-to-understand summary. It’s a tall order, but it can be done.

A broker will review why the facility is for sale, determine the exit strategy, present a strong income-analysis evaluation, consider the market’s demographics, review the selling process, explain expectations and, most important, close the deal.

Realizing Maximum Value

Naturally, a broker should represent your interests in the best way possible and try to maximize your return. But this is only the beginning of the process. He should also minimize your financial risk in the transaction, assist in recommendations regarding your goals and objectives on the sale, and ensure a smooth exit and transition in the closing process.

A professional broker will assist you in qualifying the buyer and make sure you are dealing with a qualified prospect: someone with experience in the market and in management, and someone who has financial ability to make the purchase. Several confidential issues must also be reviewed with a buyer.

The buyer will want to know why you are selling. Is it because of retirement, health issues, burnout, personal diversification, wealth protection, death, divorce, partnership disagreements, loss of market share? The broker can determine how best to present your property to the prospect so he will understand your motivation.

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