Three Texas real estate developers have started work on the first of three self-storage facilities they’re building in the San Antonio market.
Brian Cisarik, Robert Loeb and Jeff Bailey teamed up to develop the new facilities, which will be branded SurePoint Self Storage. Three additional San Antonio locations that were developed or purchased by Cisarik and Loeb will be rebranded under the SurePoint name.
In all, SurePoint soon will have six facilities in the San Antonio market.
“Storage is a localized market, and we were able to find a couple of locations that are in growth areas; one is in more of an infill location,” Cisarik told The SpareFoot Storage Beat. “We feel like the demand is there and, of course, San Antonio in general is growing rapidly.”
The first project being developed is at I-35 and FM 1103 in Schertz, TX, just northeast of San Antonio. The three-story, 113,000-square-foot facility is expected to open next January.
Cisarik said groundbreaking is set for July for another facility, which will be at NW Military Highway and George Road in San Antonio. That facility will encompass 110,000 square feet. The third facility, also measuring 110,000 square feet, will be at Bulverde Parkway and Roseheart in San Antonio. Construction on that project is scheduled to start in December.
Cisarik did not disclose construction costs for the projects.
Getting started again
Cisarik and Loeb developed their first facility, Castle Hills Self Storage, in 2001. Two years later, they built Austin Highway Self Storage. In 2010, they bought a majority stake in 3009 Self Storage. All three facilities are in San Antonio.
Last year, they completed an expansion of Austin Highway Self Storage that added 35,000 square feet, bringing the facility to 88,500 square feet.
Seeking to grow their self-storage operations, Cisarik said he and Loeb teamed up with Bailey about two years ago when he was looking to get back into the business. Bailey was an executive at Hendry Investments, a San Antonio company that sold its 21-property portfolio for $144 million in 2008. Self-storage REIT Sovran Self Storage (Uncle Bob’s) and real estate investment firm Heitman LLC formed a joint venture to acquire that portfolio.
Cisarik said he and his business partners considered acquiring facilities, rather than developing them.
“At the prices the REITs are paying, the returns were not there for us. That’s how we ended up developing. We changed our approach and are excited about what we are doing,” Cisarik said.