"We wanted to lay low, take some time with our families beforewe started gearing up 180 Development Services," says Jeff Mikus,vice president of finance and Shurgard's former asset manager forthe Southeast. Also at 180 Development's helm are Larry Hoffmann,president and COO and former regional vice president of theSouthwest for Shurgard; Jeff Helgeson, vice president of realestate and development and Shurgard's former market manager forArizona and Colorado; and Tim Jones, vice president of constructionand Shurgard's former construction manager in the Southwest. Thequartet had logged more than 40 years with Seattle-based Shurgardbefore its sale in August 2006 to Public Storage Inc. of Glendale,CA.

The investment partnership will close on its first self-storageacquisition in the Southwest in October. And, Mikus says, it's afive-property portfolio in Texas. The joint venture partners hopeto bed down a couple more deals before the year ends, according toMikus. The Matthews, NC-based Morningstar and Harrison Street,headquartered in Chicago, kicked off a similar joint ventureearlier this year in the Southeast.

Mikus says the $100-million plan for the Southwest isunderwritten with $25 million of equity, but the size andthree-year shelf life can be expanded. The JV is targeting allmajor metros in Arizona, California, Colorado and Texas. The 180Development team's role is mining for deals and managing theacquired properties.