November 1, 2005

4 Min Read
Buchanan Storage Capital

Todays self-storage environment is a lot like chess. Owners and investors move along a constantly changing battlefield checkered with opportunity and potential danger. They have to be nimble and patient in their movements, balancing agility with long-term strategy. Understanding this can be the key to continued success and ultimate victory.

Buchanan Storage Capital (BSC) has been helping storage owners create the necessary balance by providing sound advice on short- and long-term financial strategies, and supplying access to all forms of debt and equity in every phase of the investment cycle. The company is exclusively dedicated to self-storage financing nationwide, providing permanent, bridge and construction loans in addition to mezzanine debt and equity.

BSC is backed by parent company Buchanan Street Partners (BSP), a real estate investment bank that provides capital for owners and developers of commercial real estate. In addition to specializing in self-storage finance, the firm makes principal equity investments, arranges debt and structured finance, serves as an investment manager to institutional and private investors, and offers investment brokerage services.

Its no surprise that BSCs principals have called checkmate on more than $2 billion in self-storage debt and equity transactions since 1994. Last year, the team closed more than $330 million in self-storage financing, and is on pace to close more than $400 million in 2005. The parent company is expected to exceed $3 billion in transactional activity this year.

Success Strategies: Relationships, Philosophy, Professionalism

Why is BSC so successful at arranging debt and equity financing for self-storage owners nationwide? One reason is the companys powerful network of lender and borrower relationships. Another is its overriding philosophy: Always do the best job possible for the client. Whether its providing intense, highly structured debt solutions or canvassing the capital markets for the most favorable fixed-rate loan terms, BSC always provides customers with the most advantageous capital and advisory services. Finally, its the people. The Buchanan team is a unique blend of high-performing, well-recognized, ethical professionals who have a wealth of experience.

We are committed to the long-term goals of our clients, and pride ourselves on our ability to add real value and measurable results to their overall business strategy, says Jim Davies, principal. Examples of Buchanans focus and commitment to customers are continual. Here are just a few:

  • When one owner wanted to purchase nearly 2 million square feet of storage across multiple southwest states, BSC successfully advised and arranged more than $100 million in highly structured financing for the purchase of 24 Storage USA properties across Arizona, California, Nevada, New Mexico and Texas.

  • Over the past 12 months, the company secured more than $45 million on behalf of United Stor-All Centers for eight properties in Delaware, Florida, New Jersey, Pennsylvania and Virginia.

  • BSC recently structured five joint ventures for ground-up self-storage developments in Connecticut and New York, and arranged many fixed-rate loans for properties still in lease-up.

Creative problem solving, responsiveness to inquiries, deep relationships with capital sources Buchanans knowledge of the self-storage industry helps guide us to more profitable financing decisions, says Ken Nitzberg, chief executive officer of Devon Self-Storage, one of BSCs many clients.

Meet the Masters

Principals Jim Davies and Eric Snyder work with self-storage owners nationwide to optimize the structure and execution of their financing needs. Over the past decade, while at BSC and its predecessor firms, Belgravia and FINOVA, they have collectively completed more than $2 billion in self-storage financing. They are shareholders in BSP and have a combined 30-year background in commercial real estate, with experience as direct lenders, advisors and property-acquisition specialists.

The BSC team is rounded out by a group of highly experienced and knowledgeable real estate professionals:

  • Dave Zorich, vice president, is responsible for the origination of permanent and bridge-loan financing at the firms San Francisco office. He has a 20-year background in finance, sales management.

  • Scott Sweeney, vice president, is responsible for the origination of permanent and bridge-loan financing at the companys Atlanta office. He has 20 years of experience in commercial real estate, sales and operations.

  • Josh Greer, veteran closing manager, has been with BSC for more than five years. He oversees a closing volume of approximately $40 million in storage loans per month. He has overcome every possible closing challenge and believes in going the extra mile for customers. He has a deep commitment to delivering a borrower-friendly process thorough effective communication.

  • Joe Maehler, senior underwriter, came to the company three years ago from CalPERS (California Public Employees Retirement System) Investments. His exclusive focus on self-storage has helped BSC earn a reputation as the most experienced underwriter and originator of storage loans.

  • Krystyn Van Ness, marketing coordinator, joined the company in 2004. Her primary duties include the development of marketing materials, coordination and execution of advertising campaigns, and management of public relations with industry media. She also handles client correspondence and coordinates arrangements for industry tradeshows and events.

BSC, headquartered in Newport Beach, Calif., has offices in Atlanta, Chicago, Los Angeles and San Francisco. For more information, visit www.buchananstoragecapital.com.

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