WHY NASSG

North American Self-Storage Group (NASSG) acquires, renovates and repurposes commercial/industrial existing self-storage properties located in the top U.S. self-storage markets. The Company has a targeted and highly disciplined location identification and selection process, and is dedicated to developing industry leading projects.

The principals of NASSG have more than 100 years of real estate and construction experience across multiple property sectors, and are experienced, proven and successful owners and operators of multiple real estate platform companies – a demonstrated track record of making money for our partners.

NASSG manages all redevelopment, and its project management capabilities insure timely delivery, and oversight of the construction progress so that projects are completed in a high quality manner. The Company’s on-time delivery construction scheduling is implemented via electronic project management scheduling software with daily job reporting and regular onsite inspections.

The senior management team and shareholders of NASSG have collectively acquired, refinanced, and sold major real estate assets across the United States in transactions totaling over $2 billion, inclusive of the acquisition and rehabilitation of self-storage assets.

 NASSG’s projects are designed by the leading architects in the self-storage industry. These industry leading architectural firms have designed hundreds of self-storage facilities for a wide array of clients, including all four of the publicly traded self-storage REIT’s.

 NASSG has close working relationships with key executives in the self-storage industry. These relationships are critical in terms of designing industry leading projects, as well as the overall process of project feasibility and providing timely and essential market intelligence.

THE SELF STORAGE INDUSTRY

The self-storage industry in the United States generated more than $24 billion in annual U.S. revenues (2014 - estimate). The industry has been the fastest growing segment of the commercial real estate industry over the last 40 years and has been considered by Wall Street analysts to be “recession resistant” based on its performance during up and down cycles.

Self-storage has evolved into one of the primary commercial real estate products. It is the top performing property sector in the NAREIT index. For the 10-year period 2005-2014, self-storage reported the highest returns of any of the seven primary REIT sectors at 18.15%. For the 21-year period 1994-2014, self-storage reported the highest returns of any of the seven primary REIT sectors at 18.20%. During Q-1 2015, self-storage was again the top performer at 9.16%.

There are two main reasons why the self-storage industry keeps growing. The American public is mobile. Gone are the days when people live their entire life in the neighborhood where they grew up. It is estimated that today’s young work force will change careers five to seven times during their lifetime – and many of those job changes require moving to a different location. Another reason why the self- storage industry keeps growing is that people keep acquiring possessions. Their basements, garages, and attics are filled to overflowing and people find that they still need more space. Life events also drive the need for self-storage. That need translates into renting a storage unit.

Since 2001, the number of storage facilities has doubled to over 58,000. Total rentable space in the United States is now over 2.3 billion square feet. During that same time, the average number of units per facility grew from 243 units to 566 units per facility. The industry has seen a shift in its tenant profile. Individuals and families remain the primary renters of self-storage. However, entrepreneurs and businesses are increasingly turning to using self-storage facilities as a low cost option for things such as storing inventory or doing business out of the rental unit. It took the industry over 25 years to build one billion square feet. However, it took only 8 years (1998 to 2005) to build its second billion square feet of rentable space. The future for the self-storage industry is bright.

LEADERSHIP

Sanford J. Fleschman, Chairman

Mr. Fleschman is Chairman of North American Self-Storage Group, LLC. In his role as Chairman, Mr. Fleschman directs the company’s overall business, financial and operations strategy. 

Throughout Mr. Fleschman’s business career his primary responsibilities have consisted of operations, deal structure, strategy setting, resource acquisition and allocation needed to execute that strategy. As part of that function he has sourced and negotiated debt and equity, which has totaled hundreds of millions of dollars leading to the successful creation, execution and ultimate disposition of several alternative asset real estate operating business portfolios. 

In 1997, Mr. Fleschman founded STAR Senior Communities (“SSC”), a developer and owner of Independent Senior Apartments, Congregate Care, Assisted Living, and Alzheimer’s Care Communities. The company’s initial equity was raised from a New York Stock Exchange company with subsequent equity financings through private institutional investors. SSC grew through the development and operations of stand-alone Assisted Living/Alzheimer’s and Apartment communities. Over the course of 2006 and 2007, the majority of the company’s portfolio was sold in a highly successful liquidity event to a subsidiary of one of the largest private equity firms in the world.

Through SSC, Mr. Fleschman continues to be active in the Senior Housing category through ownership, operations and advisory board level activities to third party companies. Prior to founding SSC, Mr. Fleschman served as President and Partner of Birtcher Senior Properties (“BSP”), a company focused on the development, acquisition and management of Congregate Care and Assisted Living communities. BSP enjoyed profitable growth throughout the early to mid-1990’s, becoming the twentieth-largest Assisted Living Company in the nation.

Prior to joining BSP, Mr. Fleschman held various positions in regional and national firms in the areas of corporate finance, real estate investment and venture/special situation investing. He has been an expert witness in numerous litigation cases related to the operations of Assisted Living. Mr. Fleschman is or has been a member of numerous national industry trade associations including a past member of the National Investment Conference Operations Advisory Board. He received his BBA and MBA from the University of Texas at Austin where he was awarded a Presidential Scholarship and inducted into the Beta Gamma Sigma National Business Honor Society. He was also a recipient of a Washington Campus Fellowship. 

Russ Colvin. CEO and President

Mr. Colvin is President/CEO of North American Self- Storage Group, LLC. Mr. Colvin directs the company’s overall acquisition, development, capital raising, and operational activities. Mr. Colvin has been active for more than two decades in real estate investment, management, finance, public service and business/non-profit leadership. In addition, Mr. Colvin manages the company’s key strategic self-storage industry relationships. Mr. Colvin previously served as Chairman of StorSmart, LLC, and as a Principal of Alton Storage Partners, LLC, and developed a national self-storage development platform.

From 2005-2009, Mr. Colvin served as President /CEO and Co-Founder of CORE Realty Holdings, where he oversaw all company operations including the financing, acquisitions, management, asset repositioning and capital raising efforts for CORE investment properties throughout the United States. During Mr. Colvin’s tenure at CORE, the company acquired $1.2 billion of real estate assets, which consisted of more than 7,000 apartment units and 4.0 million SF of commercial real estate. Prior to joining CORE, Mr. Colvin served as President of Mammoth Equities Capital Group. From 1998-2003, Mr. Colvin served in senior executive positions with IMPAC Commercial Capital Corporation, Fidelity Federal Bank, and Hawthorne Savings, all of which were publicly traded financial institutions.

Mr. Colvin is actively involved in community service activities. Mr. Colvin has previously served on the Board of Directors of the Los Angeles Fire Department Foundation, the RAND Corporation, the Los Angeles County Sheriff’s Youth Foundation, the Los Angeles Police Foundation, the Los Angeles Police Museum, the Los Angeles Regional Food Bank, and Olive Crest Homes and Services for Abused and Neglected Children. Mr. Colvin is a life member of the Orange County Sheriff’s Advisory Council. In 2006, Mr. Colvin was awarded the Jack Webb Award by the Los Angeles Police Museum. In 2007, Mr. Colvin received the prestigious “Inspiration Award” from the Hugh O’Brian Youth Foundation. From 2010-2012, Mr. Colvin served as Chairman of the LAPD Medal of Valor Awards. Mr. Colvin graduated cum laude from Brandman University with a BA in Legal Studies.

Andrew L. Youngquist, Director of Construction & Development

Andrew L. Youngquist has led a distinguished career in the construction industry, which spans more than four decades. In his role at North American Self Storage Group, Mr. Youngquist directs the overall construction, renovation and development of the company’s projects, and is integral to the acquisition and due diligence process.

Mr. Youngquist also serves as General Manager of Red Hill Construction, and directs all aspects of the construction operations for Red Hill Construction, where the company specializes in self-storage construction, self-storage conversion/adaptive reuse projects, and the rehabilitation of distressed real estate. Mr. Youngquist has also developed self-storage projects on a ground up basis, as both a contractor and owner.



In 1979 Mr. Youngquist joined the Birtcher Real Estate Group as a Project Manager and was later promoted to National President of Construction, and was responsible for overseeing construction for all facets of the company, including international operations. Mr. Youngquist also served on the board of directors of Birtcher Real Estate Group. During his sixteen-year tenure with Birtcher Real Estate Group, Mr. Youngquist oversaw the construction of over 30 million square feet of commercial and industrial real estate, including hotels, retail properties, the tenant improvement division, and the major specialty projects division. Mr. Youngquist also directed Birtcher Real Estate Group’s construction management program for the theatre industry, which resulted in the construction of over 170,000 new theatre seats in five million square feet of theatre space throughout the U.S.



In 1996, Mr. Youngquist formed Andrew L. Youngquist Construction Company (ALY), specializing in movie theatres throughout the United States, in senior housing, podium condominium construction, and construction of single family residential tract projects. In 2008, ALY was sold to Myers Financial Group.  Mr. Youngquist has previously served on the board of directors of Associated General Contractors, Orange County Together Community Relations, Sun Valley Forum, and the Orange County Council of Girl Scouts.

Cherri King, CPA, Controller

Ms. King serves as Controller of North American Self-Storage Group, LLC. In her role as Controller, Ms. King directs the company’s overall accounting, financial reporting, and budgeting operations. In her role at Star Senior, Ms. King’s primary responsibilities consisted of operational accounting, insurance, human resources, labor budgeting and tracking, and financial reporting at both the company and community level. Ms. King joined the Birtcher organization in 1989. Previous to her position as Vice President/Controller for BSP Management, she was Controller for Birtcher Property Services, Inc., the property management and development division of the Birtcher organization.

Ms. King came to BSP from Kenneth Leventhal & Co as a Senior Tax Accountant. Her client base included primarily residential and commercial real estate clients. Ms. King was graduated Cum Laude from the University of California, Irvine with a B.A. in Political Science with special emphasis in Economics. She continued her education with Business & Accounting course work at the University of California, Los Angeles.

Anthony Laughlin, CPA, Director of Underwriting and Project Analysis

Mr. Laughlin serves as Director of Underwriting and Project Analysis of North American Self-Storage Group, LLC. In his role as Director of Underwriting and Project Analysis, Mr. Laughlin performs the financial analysis and financial modeling for new and existing projects. In addition, Mr. Laughlin plays a key role in the acquisition underwriting process.

From 2010 to 2014, Mr. Laughlin was with Center Street Lending, where he was responsible for analysis of residential real estate loans, directing reporting requirements for lending entities, and overseeing preparation of partnership/LLC tax returns. Prior to joining Center Street Lending, Mr. Laughlin was Land Acquisition Manager for Capital Pacific Homes, a residential home builder. Mr. Laughlin’s duties included sourcing building sites for the company’s Southern California Division, all aspects of due diligence, cash flow analysis, entitlement requirements, and negotiating purchase contracts with sellers. During Mr. Laughlin’s tenure, the Southern California Division closed the purchase of over 3,000 residential lots at a value in excess of $80 million.

Prior to joining Capital Pacific Homes, Mr. Laughlin was Controller for Luminex Lighting, Inc, where he oversaw all of the company’s accounting functions. Prior to joining Luminex Lighting, Mr. Laughlin was Chief Financial Officer for Capital Pacific Homes. Mr. Laughlin’s responsibilities included preparation/filing of all quarterly and annual SEC reports, and banking relationships. Prior to becoming CFO, Mr. Laughlin served as the company’s internal auditor.

Mr. Laughlin is a Certified Public Accountant, and received his BA in Accounting from California State University Fullerton.