Tampa Bay MSA Self-Storage Portfolio
The Mele Group of Cushman & Wakefield has been selected to exclusively market for sale the Tampa Bay MSA Self-Storage Portfolio.
Acquisition of the self-storage portfolio demonstrates an excellent opportunity to acquire two stabilized facilities in the Tampa Bay, Florida Metropolitan Statistical Area. The subjects are situated approximately 15 miles from one another, allowing for efficient management of the two assets from one centralized location. The locations are densely-populated with high renter-occupied populations, historically demonstrating a higher utilization of storage. There is a portfolio-wide physical occupancy of 86.4 percent, which is indicative of the need for self-storage within the region. As indicated by the portfolio-wide high occupancies, an investor can enhance cash flow through raising rates to match each market’s average; both facilities currently offer storage at rates below market value. Additionally, there is an opportunity to convert the current unit style into traditional storage units for security and consumer privacy; the facilities currently utilize outdated fencing to divide the units. The subject properties boast leveraged IRRs of 18.8 percent and 19.5 percent in years five and seven. Overall, the facilities offer numerous value-add opportunities within one of the fastest-growing metro areas in the nation.
Of the two self-storage facilities, the portfolio has 746 fully climate-controlled, ground-level units across 29,660 rentable square feet. The subjects offer truck rentals, tenant insurance and on-site packing and moving supplies for additional revenue sources. Each facility’s advantageous location in thriving residential and commercial corridors allows the subjects to generate business from a wide array of tenants compared to competitors. The properties have been well-maintained and offer a wide-variety of fully climate-controlled options to accommodate Florida’s year-round climate.
The properties offer convenient access to several heavily-frequented thoroughfares within the region. The St. Petersburg facility offers excellent accessibility to primary thoroughfare U.S. Highway 19, which sustains a traffic count in excess of 30,000 vehicles per day. The property is also within a mile of 66th Street North, which witnesses traffic counts of over 40,000 vehicles per day. 22nd Avenue North is approximately 0.4 miles from the subject and has a traffic count of over 19,000 vehicles per day. The Clearwater facility is approximately two miles from U.S. Highway 19, witnessing traffic counts of over 70,000 per day. Gulf to Bay Boulevard is approximately one mile from the Clearwater property, sustaining a vehicle count in excess of 50,000 per day.
Clearwater and St. Petersburg are principal cities of the Tampa Bay Area, known as the Tampa-Saint Petersburg-Clearwater, Florida Metropolitan Statistical Area. Both are part of Pinellas County; the region is home to over 900,000 individuals and offers several natural amenities and resources along Florida’s West Coast. Pinellas County is a major hub to several Fortune 500 companies, including Nielsen, HSN and Jabil Circuit. The Tampa-Saint Petersburg-Clearwater Metro Area is among the most populated in Florida and offers a desirable tropical climate with unrivaled natural amenities.
The Safe Place Portfolio - UNDER LOI
The Mele Group of Cushman & Wakefield has been selected to exclusively market for sale The Safe Place Portfolio. Acquisition of the Safe Place Portfolio offers three well-maintained self-storage assets with upside in Williamsburg, Norfolk and Newport News, Virginia. Each facility features high occupancies with rental rates exceeding market averages, demonstrating the overall region’s demand for storage. The subject offers a prime opportunity to implement conventional storage amenities including merchandise sales and a robust tenant insurance program. An investor can hire professional management to increase the facilities’ overall operations and efficiencies. New management can enhance the marketing platform by enacting sophisticated search engine optimization to ensure each site appears prominently in online search results; a significant number of consumers are turning to online search engines to identify their storage destination. Furthermore, an investor can benefit from projected cash-on-cash returns of 9.8 percent and 10.9 percent in years one and two. The Safe Place Portfolio has provided self-storage solutions throughout its MSA for nearly 40 years.
The Safe Place Portfolio offers 930 climate-controlled and non-climate-controlled units across 109,630 rentable square feet. The portfolio consists of approximately 9.41 acres and offers a wide-variety of units to accommodate the consumer. There are portfolio-wide physical and economic occupancies of 89.5 percent and 82.3 percent, respectively. The solid occupancies throughout the portfolio are indicative of the need for self-storage within this vibrant MSA. Each facility offers premium video surveillance and electronic gate access to ensure secure premises. All three facilities are ideally situated in high-traffic areas with a multitude of residential zones, national retailers and points of interest.
The Virginia Beach-Norfolk-Newport News Metropolitan Statistical Area offers a wide-variety of resources, economic opportunities and attractions for residents and tourists alike. Norfolk is a waterfront city, home to Naval Station Norfolk which occupies four miles of waterfront space and is the world’s largest naval station. The Virginia Beach Metro Area has several economic components which contribute to this thriving area, including tourism, agribusiness and military sectors.
Baton Rouge Storage Portfolio - UNDER LOI
Acquisition of the Baton Rouge Storage Portfolio offers two exceptional self-storage assets along high-traffic thoroughfares and residential zones within the city. This rare opportunity provides multiple advantages through its impeccable locations, high occupancies and ability to manage the two close-in-proximity facilities together to reduce costs. Located approximately 1.4 miles of one another, each facility features strong visibility, convenient access to the city’s heavily-frequented interstate highways and an array of amenities with major residential communities and a commercial district in proximity of each.
Of the two self-storage facilities, the portfolio has 1,091 total units across 119,797 net rentable square feet and 8.1 acres of land. The well-maintained properties are secured with computerized video surveillance, gated access and optimal lighting. The subjects feature a tenant insurance program for an additional revenue stream and state-of-the-art security features. With solid locations along frequented roadways, the portfolio boasts a physical occupancy of 89.7 percent and an economic occupancy of 96.8 percent. The Jefferson Facility offers strategic access to Airline Highway, which has a traffic count of over 16,000 vehicles per day. The Coursey Facility offers direct ingress and egress to and from Coursey Boulevard, which demonstrates a traffic count of over 23,000 vehicles per day. Additionally, both facilities offer convenient access to and from U.S. Highway 61 and are within two miles of Florida Republic Highway, which sustain traffic counts of over 53,000 and 105,000 vehicles per day.
Consisting of 49,490 net rentable square feet on an estimated 4.09 acres of land, the Jefferson Highway facility maintains 496 units ranging from 25 square feet to 300 square feet. The facility currently sustains physical and economic occupancies of 90.9 and 103.5 percent and offers direct access to and from Airline Highway Service Road. The facility is ideally situated in a dense residential corridor with several national retailers within close proximity.
ABQ Self-Storage Portfolio - UNDER CONTRACT
The Mele Group of Cushman & Wakefield has been selected to exclusively market for sale the Albuquerque Self-Storage Portfolio. Acquisition of the self-storage portfolio demonstrates a rare opportunity to acquire three well-maintained facilities in New Mexico. The portfolio has significant growth potential through lease-up activity at the newly-built storage buildings. The Twin Oaks facility can be expanded to accommodate additional boat and RV storage, while the Abrazo property recently completed expansion within the past year. These growth opportunities are indicative of the need for self-storage among several growing residential developments within the region. Each property offers large office spaces, in addition to on-site apartments with the potential to remove and add additional storage space. The portfolio’s physical occupancy indicates the recent expansion at 79.2 percent. An investor can enhance returns by raising rental rates to the comparable averages upon stabilization; the climate-controlled rates for the Twin Oaks facility and the non-climate-controlled rates for the Abrazo facility are currently below market. Additionally, an investor can bolster revenue by implementing a robust tenant insurance and truck rental program.
The portfolio has 1,470 total units among its 184,640 rentable square feet. Combined, the subjects feature 881 climate-controlled units, 163 non-climate-controlled units, 417 drive-up non-climate-controlled units and 9 boat/RV parking spaces. The three properties utilize owner-operated, on-site management and are secured with 24-hour computerized video surveillance, fencing, electronic gate access and optimal lighting. Furthermore, the facilities offer excellent ingress and egress, in addition to drive-up units with wide aisles for consumer convenience.
Albuquerque is the principal city of its Metropolitan Statistical Area and is a major component of the larger Albuquerque-Santa Fe-Las Vegas Combined Statistical Area. The city is home to over 900,000 individuals and is consistently ranked among the nation’s best places to live; Albuquerque is ranked inside “the top 100 Best Place to Live and Retire” by U.S. News. The city is home to the New Mexico Technology Corridor, which consists of several nationally-renowned institutions including Lovelace Respiratory Institute, Sandia National Laboratories, Intel and the University of New Mexico. Netflix recently announced plans to open a location at ABQ Studios, while Facebook is currently constructing a $1 billion site with six buildings which will support over 100 full-time jobs. These technology developments are indicative of the region’s corporate growth. Furthermore, Albuquerque ranks among the top in the country for cities with the most college graduates, in addition to its reputation as a technology hub.