Site in the Spotlight - 2002

Owner:	Lee Earhart
Location:	Anaconda, MT
Specs:	3/12 pitch buildings with a 1:12' step, Three buildings (35' x 66'; 30' x 160'; 30' x 120'), 10,710 total square feet, 76 units
Color:	Evergreen

How long have you been in the self-storage industry?

Lee is a newcomer to self storage. He researched the market for four years before diving into the self-storage industry when he opened his first facility, Pinnacle Peak Storage of Anaconda, on October 18, 2001.

What sparked your interest in self storage?

Owning a contracting business, Lee was interested in diversifying his investments. With his construction background, self storage was a natural fit. He began noticing a number of self-storage facilities going up in Butte, where he resides, and noticed the facilities were filling quickly. He felt there was a need for self storage outside the Butte market, leading him to Anaconda.

How did you select the site of your facility?

During his four-year research period, Lee found several possible sites, but it wasn't until January 2001, when he found the perfect location. Just one and one-half miles outside Anaconda, nestled at the base of a mountain range, was 4-acres of deserted land. The property had an old roadhouse (a.k.a. bar) complete with a baseball field. The roadhouse was located on a highly traveled road…perfect for a self-storage facility.

Was the property suitable to build a self-storage facility?

As with most commercial property, land conditions are not always ready to accept construction. The roadhouse property was no exception. Lee had a lot of work ahead of him to make the land suitable to build three storage buildings, including filling in swampland, clearing trees, and tearing down the roadhouse.

Who erected your facility?

In addition to holding the title of Owner, Lee also held the title of General Contractor for his self-storage project. With his experience in carpentry and know-how in the building industry, Lee erected his own buildings, enabling him to keep erection costs down. "(Trachte) buildings were a dream to work with. I am pleased with the Trac-Rite doors as well. I would unequivocally work with Trachte again."

Who is your target market?

"Since we are located in an area known for its recreation, our facility is geared towards recreational storage. We primarily store boats, RVs, and snowmobiles, but we also have a lot of residential storage customers."

What is your occupancy rate?

After opening its doors just over seven months ago, Lee's facility is 65% rented. "And we expect great growth. The surrounding area of Anaconda is continuously growing. Our site has tremendous potential to expand. We plan to triple our size (in phases), possibly as early as this fall."

How do you manage your facility?

Pinnacle Peak Storage has an on-site manager who is compensated with rent-free accommodations on the property. Lee feels it is important to have someone on-site to assist customers and rent units, as well as to keep an eye on the property. "We also have a 10' x 10' office in the facility that is tremendously important," Earhart says.

What would you say to someone considering a self-storage business?

"Research the market before entering. Be patient to find the right site for you. Be cautious and make the right decision. Don't try to save money by going with the cheapest building or by not having a fencing system and adequate lighting. I spent a lot of money on this site, but it will pay off. I'm sure of that." As a carpenter whose natural building choice is wood, Lee suggests using metal when building a self-storage facility. He says, "Metal is the way to go". In fact, the existing self-storage facilities in his area are constructed of wood. He feels that by using metal, he has "classed up" self storage in the Anaconda area. Lee adds that he has been very happy with everyone he has worked with in the self-storage industry.

What is your opinion of the self-storage investment concept?

"Self storage is a good investment. People will continue to need storage. It is also a good investment in good times and in bad." As proof, Lee states that times are currently tough in Anaconda. Nonetheless, Pinnacle Peak Storage of Anaconda continues to grow.

Trachte congratulates Lee Earhart on a successful business venture!