Valet storage company adds service in Knoxville

A Denver-based storage company that provides pick-up and drop-off service has begun operations in Knoxville.

ClosetBox was founded in 2014 by Marcus Mollmann, and operates in 88 markets across the country. The company’s business model is to provide valet storage service by picking up a customer’s belongings, storing them at a facility on Prosser Road, and delivering them when the customer wants them back.

Spokesman Travis Henry said ClosetBox partners with local moving companies to provide the delivery service, and uses technology that routes empty trucks to people who need storage.

Asked about the company’s target customers, he mentioned home buyers who are between residences, or the parents of college students. Henry (who is not related to the former UT running back of the same name) said college students often need summer storage, but typically their parents make the purchasing decisions. His own daughter went to college in California, and Henry said a valet service “would have been ideal for me.”

ClosetBox’s storage rates vary by ZIP code. Henry said that in the 37932 ZIP code, for example, the cost to rent a 10×10 unit is $138.99 per month. The pickup charge ranges from $99 for five-month customers to $199 for 3-month customers, with an identical delivery charge when the belongings are returned. There is no pickup or delivery charge for customers who rent for a year or more.

Deliveries must be set up in advance, which may be a drawback for customers who need service in the middle of the night, or at other unusual times. Henry acknowledged that ClosetBox won’t be a fit for everyone. “There are some people who need access all the time, 24-7, and we’re not for them … And there are some people who just want to move their own stuff all the time, and that’s great.”

But he added that “We think we’re an option for people who don’t want to do the heavy lifting.”

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Self storage project planned on Western Avenue, in Knoxville

A three-story, climate-controlled self storage project is planned next to the Knoxville News Sentinel building on Western Avenue.

Miller Valentine Group, a development and design/build construction company with offices in Ohio, the Carolinas and Texas, is partnering with Coldwell Banker Commercial Atlantic and Extra Space Storage on the project.

It is slated to include more than 700 units of climate storage and approximately 100,000 square feet of space. Construction is expected to begin early in the second quarter.

According to its website, Miller Valentine and Coldwell Banker have also teamed up on recent self storage projects in Goose Creek, SC, and North Charleston, SC.

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Self storage project planned near Choto Road, in West Knoxville

A mixed-use development with multiple self storage buildings is on the agenda for this month’s MPC meeting.

According to an application, the project near the Choto Road-Northshore Drive roundabout would include a two-story commercial building, a veterinary clinic and a 40,500-square-foot self-service storage facility.

Developer John Huber said the total amount of storage may be reduced, and could eventually be closer to 30,000 or 35,000 square feet.

Huber said that while the traffic counts in that part of Northshore Drive may not be huge, he’s trying to capitalize on the captive audience for storage space.

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Greater Knoxville Business Journal turns a spotlight on self storage

This month’s edition of the Greater Knoxville Business Journal features a new columnist: me.

It’s a great opportunity to write about commercial real estate every month, but readers of this blog won’t be surprised to learn that my first column was about self storage, including the new multi-story projects in the pipeline and the potential challenges posed by technology.

 

Check it out here and, as always, call me at 865.777.3030 if you hear about new projects or deals in the works.

Memphis REIT to invest in Louisville, Ky., self storage project

Jernigan Capital, a Memphis-based REIT, this month announced plans for a large self storage project in Louisville, Ky.

Jernigan said it has closed a $9.9 million investment in the planned 725-unit, 74,172-square-foot facility. According to a news release, the project will be located on Bardstown Road, with construction expected to finish by the end of 2018. The project is slated to include two climate-controlled buildings.

Memphis-based Storage Development Partners LLC is the developer on the project. For more details, see the news release here.

American Self Storage Expands to Sweetwater, Tennessee

Loudon County-based American Self Storage has opened a new location in Sweetwater, with plans for an expansion in the works.

American opened a facility on New Highway 68, in Sweetwater, this July and has 100 units in operation, including 33 climate-controlled units. The company’s original location is on Gamble Street, in Loudon.

Owner Andy Hodges said they chose Sweetwater because of the high occupancy rates at existing facilities in the community, many of which did not have room to expand. American bought 9 acres on New Highway 68, and plans to open two additional buildings with a total of 70 units by Thanksgiving. They are also planning to add 25 covered spaces for boats and RVs.

“When it’s completely done, this property will be able to hold around 660 units,” Hodges said. “We’re just going to be building as they fill up.”

Hodges said that when the addition is opened in November, the company also plans to install a 40-foot flagpole and a large American flag, along with a plaque that pays tribute to fallen police officers.

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Three-story self-storage project approved on Northshore Drive, in Knoxville

Credit: Barry Byrd Architecture

Knoxville planners have approved a three-story self-storage facility on Northshore Drive.

Last month, the Metropolitan Planning Commission heard an application for the project, which would be located behind the Knoxville Cleaners building. According to the application, the climate-controlled storage facility would include a total of 103,512 square feet of space. The approval was granted on the condition that a landscape architect work with MPC on a plan to buffer the building on the front and back sides.

The 4-acre property on Northshore Drive has been listed for sale at a price of $1.25 million.

Knoxville has seen several climate-controlled self-storage facilities in the development pipeline in recent months. In July, a Memphis REIT announced it will invest $9.1 million in a proposed 758-unit self storage facility near West Town Mall.

Meanwhile, a group that includes Ed Campbell and Ed Drummond recently opened Climate Storage, a three-story facility at the intersection of Hardin Valley Road and the Pellissippi Parkway. The same group is currently developing another multi-story facility at Middlebrook Pike and Joe Hinton Road.

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Wine cellars and curb appeal

The Tennessean took the temperature of Nashville’s self-storage industry last week. The takeaway? While population growth and a strong economy have sparked a wave of development, new construction may have peaked.

“You saw record occupancy in the last year and two to where they were able to charge more,” said Alexander Harris, SpareFoot.com’s web editor. “Nationwide, the consensus is that 2017 is going to be the peak year for construction, then 2018 you’ll see a peak in completions. Nashville is actually a little bit earlier in the cycle, starting to pass its peak.”

For more information, including details about a firm that offers wine storage in its projects, read the full story here.