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current unit style into traditional storage units for security and consumer privacy; the facilities currently utilize outdated fencing to divide the units.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.
- Rare Opportunity to Acquire Two Facilities with Forward-Looking Financials Within the Densely-Populated Tampa Bay, Florida MSA
- Portfolio Boasts a High Physical Occupancy of 86.4 Percent with Potential to Raise Rates to Match the Markets’ Averages; Both Facilities Rates are Below Market
- Potential to Convert the Current Style to Traditional Storage Units for Security and Consumer Privacy
- Strong Leveraged IRRs of 18.8 Percent and 19.5 Percent in Years Five and Seven
- Facilities Strategically Located at a Maximum Distance of 15 Miles from One Another, Allowing for Efficient Management of the Two Assets from One Centralized Location
- Population of Over 99,000 Individuals Within Three Miles of the St. Petersburg Facility and Over 120,000 Within Three Miles of the Clearwater Property