Our "process" was inspired (and subsequently implemented) according to the four philosophical principles we hold to be true: specialization, client-primacy, exclusivity, and collaboration. When these ideals are combined with Marcus & Millichap’s state-of-the-art marketing system, we generate unmatched results for our clients. With that said, a lot happens before a property ever makes it to the market. This section describes, generally, how we get from "first conversation" to "closed transaction".
The Property Analysis
Property values change frequently and, unlike securities, self-storage owners cannot just check the daily newspaper to see what the value of their real estate is. As such, the Karr Self-Storage team helps owners understand the value of their self-storage property by “underwriting” the asset according to the parameters set forth by the marketplace. When it comes to the "marketplace" and their interest in self-storage properties throughout Texas, with over $250,000,000 sold in the past five years, in transactions that range from $300,000 to $33,000,000, rest assured our "finger" is truly "on the pulse". The asset’s strengths, weaknesses, opportunities, and threats are each objectively analyzed and correlated to the facility’s existing income stream. A market value is then determined, and the analysis is presented to each owner in both electronic form, and as a tangible hard-copy. The property analysis memorializes not only the property’s current market value, but also the multiple factors that were taken into consideration when determining said value. We consider each property analysis to be a physical representation of our commitment to our clients. No other brokerage team will spend as much time and as much effort trying to truly understand you and your storage real estate.
Customized Marketing Schedule
Before every asset is brought to the market, a tailored marketing plan is developed, and a timeline projecting each step to be taken throughout the process is developed and agreed-upon. Part of what makes up the Karr Self-Storage value proposition is our dedication to accountability; the marketing schedule is our accountability commitment to the client, as well as our roadmap to a successful closing. Given the complex and sophisticated nature of the investment sales business, it sometimes takes a few months to get from "listing" to "closing". Part of the problem is that many Texas self-storage brokers require their clients sign a representation agreement that lasts a minimum of six months. To an inexperienced owner, that timeframe can seem reasonable (particularly when the broker is advocating for it). In reality, however, the request is terribly excessive. If a broker says he requires six months to effectively market a self-storage property, serious questions should be asked of that broker – i.e. why is that length of time required? how do you plan on marketing the asset (specifically)? is the asset truly priced correctly?, etc. A broker’s request for a six-month listing should be viewed as the "red flag" it actually is, and anything less than complete and credible answers to the above questions should be viewed with incredulity. The Karr Self-Storage team can say, categorically, we will never ask for a six-month listing, and our goal will always be to minimize the amount of time it takes to get to the closing table.
Professional Photography & Graphic Design
Institutional quality marketing materials lend credibility to any offering, and that degree of professionalism can only increase the level of interest and awareness. We utilize a professional photographer and graphic designer to make sure every property is positioned in its best light. We are committed to excellence in all phases of the marketing process, and every property, regardless of its size, location, age, or construction quality, is treated with the utmost respect.
Immediately after a property has been placed on the market, a customized "eBlast" is created. The eBlast contains the investment highlights, a small narrative summarizing the opportunity, and a small list of instructions detailing how an investor can access the full Offering Memorandum and back-up financial / due diligence information. Through state-of-the-art technology created in-house by Marcus & Millichap, we are able to track who views each eBlast, who clicked on any embedded links, who viewed the executive summary, and who has asked for more detailed information. This data provides us with real insight into the depth of interest expressed by each individual investor in our database of more than 6,000 qualified self-storage buyers. Armed with this insight, each Karr Self-Storage team member then begins to personally, proactively engage the marketplace in conversation about the investment opportunity. Our approach to marketing a property is illustrative of the skills, tools, and mindset we bring to everything we do – 21st century technology and old-fashioned personal service – the best of both worlds.
Accountability is very important to us, and our detailed Seller Update is the primary method we use to give each client a systematic, measurable progress report on how the market is responding to the offering. Each update begins with a letter from the lead broker describing the any newsworthy events that may have occurred since the previous update. We then give our client a recap of each marketing step that has been completed to date, a summary of every property tour that has been conducted, a list of each offer received, positive and negative feedback, and a recommendation detailing the next steps. When you list a property exclusively with the Karr Self-Storage team, we will be communicating every step of the way.
Contract Negotiation, Escrow Management, & Closing
We advise every client that exclusively lists a property with us to consult an attorney when reviewing and/or executing any legally binding document, such as our Exclusive Representation Agreement, or an Earnest Money Contract. With that said, the Karr Self-Storage team will be present throughout the negotiation process to provide insight, recommendations, and strategic analysis. This collaborative effort between principal, counsel, and broker is often a difference-maker when it comes to picking the right buyer. The Karr Self-Storage team has experience transacting deals with publicly-traded institutions, privately-held investment companies, and mom-and-pop buyers. This insight, experience, and perspective is valuable when it comes to choosing the right path or making the correct decision. This is true of the escrow management and closing process as well. The Karr Self-Storage team monitors and manages everything – from the big picture to the minute detail – we ensure accountability on both sides of the transaction is present and consistent throughout the process.
The investment real estate marketplace has been on occasion described as an ocean full of winds that are constantly changing, maps that are inaccurate, and ports of call that have no docking available. With this image in mind, if you are interested in learning more about the seaworthiness of your ship, and the possible treasure awaiting should you arrive safely at harbor, the Karr Self-Storage team would welcome any opportunity to discuss further how we may be able to help you navigate these choppy waters. Contact us here.