Land Acquisition/Valuation for Self Storage Expansion

[Christopher Brown]

I have a stabilized self storage facility and the opportunity to buy the undeveloped adjoining lot.  The owner of the lot is the guy who developed my storage facility a few years ago.  It is not a public listing and there aren't any comps for this kind of land in my area.  How do I value it?  Will commercial brokers help out with that kind of valuation when it's not going to be a brokered transaction?  Do brokers do that kind of rough valuation for a flat fee rather than a commission?  Is there a role for a buyers broker on transactions where the seller isn't represented?  

[Henry Clark]

@Christopher Brown

Rough on a per acre basis if you do what @Zach Quick noted:

If your 10x20's are running as follows:

a.  $60 per month, $50,000 per acre or less will work.

b.  $120 per month, $100,000

c.  $200 per month, $150,000

d.  You can go up to $1mm per acre, just need to work the numbers.  Also look at your RISK exposure.

I always tell people, don't trust me, it's your money.  Everything in Self Storage can be validated.  Follow Zach's advice and put a business model together and just vary the price per acre.