Extra Closet Self Storage represents an excellent opportunity to acquire a cash-flowing, quality self-storage facility in the northwest suburbs of the Oklahoma City Metropolitan Statistical Area, a top 50 MSA. Acquisition of the asset offers the potential to increase returns by raising rates to reflect the market’s averages. This upside is paired with attractive cash-on-cash returns of 13.8 percent in year one and 15.0 percent in year two, and a leveraged IRR of 24.5 percent in year five. A year two pro forma capitalization rate of 8.87 percent is projected.
The offering consists of 296 non-climate controlled, drive-up units and 25 boat/RV parking spaces for a total of 321 units and 29,600 rentable square feet. The facility’s current physical and economic occupancies are 86 percent and 78 percent, respectively. To ensure secure storage, the facility has perimeter-wide fencing, gated access and an on-site manager’s apartment. Since 2015, the facility has undergone multiple improvements and has been praised with consistent 5-star reviews across multiple web platforms for its management and convenient location in the populous Warr Acres suburb of northwest Oklahoma City. The area is home to a five-mile population of 194,769 individuals among 81,089 households with many nationally-recognized retailers and universities in close vicinity.
Warr Acres is notable for its role as a gateway into downtown Oklahoma City and the surrounding metropolitan areas. With two major expressways crossing through the suburb, it's estimated that more vehicles travel the streets of Warr Acres than any other Oklahoma City thoroughfare. The Oklahoma City MSA is the state’s largest metro area with an estimated population of 1,358,452 individuals.
Reno Self Storage encompasses 63,700 rentable square feet among 291 non-climate controlled units with the upside potential to further generate revenue by implementing boat/RV storage throughout the parcel. The facility has an on-site manager's apartment, a self-service kiosk, high clearance inside of its buildings and extra wide aisles for ease of utilizing drive-up units. The subject has a high physical occupancy of 96.9 percent, and an economic occupancy of 75.7 percent.
The facility is in close proximity to numerous highways, including major Interstate 80 which sees traffic counts of over 101,180 vehicles daily, paired with an impressive five-mile population of 220,527 and multiple national retailers such as Walmart and Lowe's. The area is experiencing high growth with the addition of the highly-anticipated Tesla Gigafactory, which became operational in the first quarter of 2016. Overall, the Gigafactory is projected to bring over 9,000 jobs to the city once completed in 2020. Sparks is a suburb of Reno, and a prime component of the Reno-Sparks Metropolitan Statistical Area.
Hemet Self Storage is comprised of 711 non-climate controlled units among 77,758 rentable square feet with an on-site residence and a self-service kiosk. The site's current physical and economic occupancies are 76.3 percent and 60.3 percent, respectively, with the potential to raise rates to the market's averages.
Surrounded by a great mixture of residential, retail and industrial from all directions, the facility's five-mile radius population consists of 162,883 individuals. A number of retailers are in the immediate area, including Walmart, GameStop and Regal Cinemas. Along the facility's thoroughfare are traffic counts of over 20,388 vehicles daily. Hemet is part of the Riverside-San Bernardino-Ontario, California Metropolitan Statistical Area, a component of the populous Greater Los Angeles Area.
Fairfield Self Storage consists of 66,720 rentable square feet among a total of 515 units. Notable for its steady business throughout the year, the subject boasts a consistently high physical occupancy currently at 93.2 percent, with the upside potential to increase its economic occupancy. The facility features a self-service kiosk and a newly-renovated on-site manager's apartment. Additionally, a cellular tower is on site, further generating revenue.
This cash-flowing facility is the closest in proximity to the Travis Air Force Base and resides directly beside the base's entrance gate. It is also parallel to Air Base Parkway, the base's primary thoroughfare demonstrating an approximate 24,300+ vehicles per day. Surrounding the facility entails an abundance of military housing, including both town homes and apartments, and also many retailers. Fairfield is a principal city of the Vallejo-Fairfield Metropolitan Statistical Area, which is part of the larger region known as the San Francisco Bay Area.
Stockton Self Storage consists of 409 non-climate controlled units, ranging from 50 square feet to 250 square feet, along with 225 covered boat/RV parking spaces for a total of 634 units. This institutional-quality facility makes up 53,425 rentable square feet and 65,760 gross square feet and has gated access, recorded video surveillance, new outdoor lighting and an on-site residence to ensure secure storage. The facility is also equipped with a self-service kiosk to reduce management costs. Additional income can be obtained through raising the facility’s rates to market averages and converting the abundant parking spaces available into non-climate storage. The subject has physical and economic occupancies of 96.82 percent and 73.20 percent, respectively, paired with year five and year seven leveraged IRRs of 22.27 percent and 21.91 percent. The opportunity has a pro forma capitalization rate of 8.30 percent.
Located at 1880 West Charter Way in Stockton, this thoroughfare is also known as State Route 4 and has excellent frontage along this route. Additionally, the subject is 0.9 miles southwest of Interstate 5 and 4.8 miles west of State Route 99, both which see average daily traffic counts of 139,000 and 99,000 and serve as major arteries to Sacramento.
Within a five-mile radius of the facility is a significant population count of 210,714 among 63,736 households, and numerous major shopping centers to benefit the population. Stockton is a principal city of the Stockton-Lodi, California Metropolitan Statistical Area, which is also a component of the larger San Jose-San Francisco-Oakland Combined Statistical Area.
The South Sarasota Self-Storage Opportunity consists of 30,544 rentable square feet among 439 units, boasting impeccable visibility from its location along Florida’s Gulf Coast on the major thoroughfare U.S. Highway 41. Also known as the Tamiami Trail, this primary highway demonstrates fantastic traffic counts of over 51,500 vehicles per day on average, paired with great demographics.The facility is strategically located only 0.2 miles from the Stickney Point Road and U.S. Highway 41 intersection that connects mainland Sarasota to the coveted beaches of Siesta Key.
Overall, the facility is comprised of 153 non-climate controlled units and 256 climate controlled units, ranging from 8 square feet to 260 square feet, and 16 mailboxes and 14 boat/RV parking spaces. Returns may be increased through raising rates to match the market and by lowering physical and economic vacancies. The facility’s current physical and economic occupancies are 79 percent and 78 percent, respectively. Acquisition will provide a new investor with an exceptional year two cash-on-cash return of 10.1 percent, along with a year seven leveraged IRR of 20.3 percent and a year two pro forma capitalization rate of 7.46 percent.
Directly neighboring the subject is Ruth’s Chris Steakhouse among residential homes facing Siesta Key. Surrounding the facility are many more neighborhoods, multifamily complexes and and nationally-recognized retailers. The opportunity is the closest mainland self-storage facility to Siesta Key through Stickney Point Bridge, one of two routes traveled to access the key and notably the most traveled. The subject is notable for its utilization by seasonal residents of the Siesta Key area. Recognized internationally for its beaches, Siesta Key Beach is ranked among the top 25 beaches in the world.
The Tampa MSA Self-Storage Development represents a solid opportunity to acquire a brand new self-storage facility to be acquired upon certificate of occupancy from the developer. The facility will provide an investor with a state-of-the-art, Class A facility with superb demographics, a high volume of traffic and access to multiple highways. The offering is in a densely-populated area with a multitude of retailers, further drawing in traffic.
With a building area of 70,000 gross square feet and 53,575 net rentable square feet, the facility will offer both climate controlled units and non-climate controlled units across three buildings. Of the three buildings, two are to be single-story, non-climate controlled buildings with one designated for drive-up storage. The building closest to the street is to be a three-story, climate controlled structure. Located at 9811 Progress Boulevard/County Road 676A in Riverview, Florida, the facility is strategically situated 0.2 miles west of U.S. Highway 301 and 0.8 miles east of Interstate 75, both which see excellent traffic counts of 67,500 and 103,000 daily.
The area has outstanding demographics for self storage, consisting of more renter-occupied units than owner-occupied units. Historically, renters utilize self storage at a higher rate than those who own their residence. Additionally, the facility is located in the heart of many multifamily and apartment complexes, such as the adjacent, 180-unit Kensington Gardens and the 432-unit Allegro Palm Apartments. The five-mile radius population has 165,006 individuals and 61,564 households. This radius is expected to continue its growth at a 1.83 percent rate annually, matching the solid growth of its Metropolitan Statistical Area, the Tampa-St. Petersburg-Clearwater, Florida MSA. Overall, the area's five-mile population has grown by more than 50 percent since 2000.
Catering to the large population within the vicinity are many major, national retailers, including Target, Wawa and UPS. There’s also a multitude of shopping centers and malls in a three-mile radius, such as the 199-store, enclosed Westfield Brandon Mall, anchored by Dillard’s, Macy’s and JCPenney, Lake Brandon Plaza with Publix, Jo-Ann Fabric & Craft and Nordstrom Rack and Lake Brandon Village with Lowe’s and PetSmart, among numerous others.
Riverview is located in the Tampa-St. Petersburg-Clearwater, Florida MSA, the second most populous MSA in Florida and the third largest MSA in the Southeast United States.
Private Storage represents an excellent opportunity to acquire a cash-flowing, self-storage facility on major thoroughfare U.S. 441 in Orlando, Florida. Acquisition of the opportunity benefits an investor with an income-producing, well-positioned asset boasting strong demographics and high traffic counts within the heart of a retail and residentially-dense corridor. Additional upside can be attained through filling physical and economic vacancies currently at 91 percent and 88 percent, respectively.
Constructed on 2.73 acres, the opportunity consists of 443 units ranging from 25 square feet to 500 square feet among a total of 51,375 net rentable square feet. Keypad access along with video surveillance, perimeter-wide fencing and multiple gates ensure security at the site, which is praised by Private Storage’s tenants with consistent five-star reviews for the subject's excellent management, proximity and security features. Since 2013, a multitude of improvements were made to the facility, including brand new unit doors, roof and gutter repairs, lighting fixture replacements and the installation of two exit gates.
Situated directly on major thoroughfare U.S. 441, also known as Orange Blossom Trail, the facility benefits from the highway’s superb traffic counts of over 55,118 vehicles per day. The facility resides in the Southgate Shopping Center, anchored by AutoZone, Aaron’s and adjacent major grocer ALDI, whose parcel features additional signage for the facility along U.S. 441. Named after the nearby 256-acre Lake Holden, the Lake Holden Shores community encompasses the facility and features many waterfront homes and communities directly east. Within a five-mile radius is a population count of 267,772 and 106,971 households, the area is projected to continue its rapid growth at an increase of 1.67 percent annually.
Preferred Self Storage represents an excellent opportunity to secure a well-kept, strongly-positioned self-storage facility in Oklahoma City, a top 50 MSA. Located in a thriving, residential and retail-dense region, the facility benefits an investor with fantastic demographics in a population demonstrating high demand for self storage. Along with a strategic location, the facility boasts a current capitalization rate of 7.75 percent. In years one and two, an investor can expect to enjoy significant cash-on-cash returns of 14.1 percent and 15.4 percent, respectively, paired with leveraged IRRs in years five and seven of 22.0 percent and 22.7 percent. The offering consists of 272 non-climate controlled units and 35,350 rentable square foot, the facility shares a fence line with national tenant Taco Bell to the north. The facility’s occupancies indicate the high-growth and demand for self storage in the immediate area with a physical occupancy of 99.0 percent and an economic occupancy of 89.9 percent.
Strategically situated just south of US Route 62 on North Douglas Boulevard, the property witnesses average traffic counts of over 22,455 and 12,131 vehicles per day respectively. Just .07 miles north, U.S. Route 62 (Northeast 23rd Street) is lined with nationally-recognized tenants, including Walmart Supercenter, Walgreens, McDonald’s, Domino’s and numerous others. Newly constructed in 2017, an OnCue gas station lies immediately west of the facility, producing a significant increase in both traffic and visibility. Additionally, Tinker Air Force Base is located just 4.3 miles south of the property. The base is one of the nation’s largest air logistics centers and the state’s largest single-site employer. Overall, within a five-mile radius of the facility is a solid population count of 79,803 and 32,924 households. Oklahoma City is the principal of its Metropolitan Statistical Area and the largest MSA in the state.
Phoenix Self Storage is comprised of 479 climate controlled units and 529 non-climate controlled units, ranging from 25 square feet to 300 square feet, along with 23 parking spaces for a total of 1,031 units. Residing on 8.62 acres, this Class A facility encompasses 128,240 rentable square feet and 146,120 gross square feet with an on-site residence. The facility is in its lease-up phase with current physical and economic occupancies at 47.22 percent and 34.50 percent, respectively. Increasing management efficiencies and enhancing marketing efforts will help bring the facility to a projected 75 percent economic occupancy in year two.
Located at 3650 West Broadway Road in Phoenix, Arizona, this cash-flowing, institutional-quality facility is situated 3.7 miles southwest of Interstate 17, 4.0 miles south of Interstate 10 and 6.1 miles west of U.S. Highway 60. Broadway Road is currently undergoing a major, $84 million improvement project to widen the thoroughfare to six lanes, extend the roadway, and add sidewalks, bicycle lanes and landscaping, which will raise traffic counts upon completion. The facility would benefit from additional signage along the street for further visibility.
Phoenix is a principal city of the Phoenix-Mesa-Chandler Metropolitan Statistical Area, also known as the Greater Phoenix Metropolitan area. Phoenix’s population encompasses over two-thirds of the state’s total population and Maricopa County is ranked as the second fastest-growing county in the nation. Overall, Arizona is currently one of the fastest-growing states, known for its low income tax and robust market.
The Winston-Salem Self-Storage Opportunity consists of a newly-constructed self-storage facility located within one of the country’s high-growth Metropolitan Statistical Areas, the Greensboro-Winston-Salem-High Point, North Carolina MSA. Acquisition of the facility will provide an investor with immense upside to substantially raise revenue through increased lease-up activity.
Consisting of 558 climate controlled units across two floors, units range from 25 square feet to 608 square feet. The facility was converted to self storage in 2014 and opened in early 2015 on its 1.22 acres, encompassing a total of 70,962 net rentable square feet with current physical and economic occupancies of 53.08 percent and 40.00 percent. The building has brand new heating, ventilation and air conditioning (HVAC), plumbing, exterior painting and exterior lighting.
Within a five-mile radius is a population of 124,342 across 54,197 households and an average household income of $81,991, which surpasses the nation's average household income. The area is residentially dense and has a superb mixture of major retailers in close vicinity, namely Walmart, CVS and Walgreens. Additionally, there's numerous shopping centers nearby, including the enclosed, 213-store Hanes Mall, anchored by Belk, JCPenney and Macy’s and Hanes Point with Target, The Home Depot and Bed Bath & Beyond, among many others.
The Acorn Mini Storage Portfolio represents a solid opportunity to secure two, cash-flowing self-storage facilities located in Melbourne and Palm Bay, Florida. Acquisition of the portfolio will provide an investor with the opportunity to stabilize occupancies and enhance revenues through lease-up of the new expansion currently being developed and by raising current rates to the market rates.
Florida is ranked as a top tax environment in the east for business due to its tax policies, competitive business costs and streamlined regulatory environment. With Florida's tax exemptions combined with more affordable land, labor and capital versus other states, businesses benefit throughout the state.