Storage Units? Marine Slips?

Question

Anyone know of someone in Florida investing and building storage units? Also looking for anyone tied to the marine/marina industry. Looking to connect and learn more about the industry since moving down here. Thanks!

Henry Clark · Answer

OP.  I would start with dryland marine storage first.  Run the numbers on 1021 S. 82nd St in Tampa.  Asking price is $4mm which could work.  I would make a 3 day offer at $3mm.  If they make a counteroffer, accept their $4mm but with a zero-interest loan of $1.5mm for 5 years.  They would need to take second position if you get a lender involved.

I would get the occupancy rate up to around 60% by year 3 and then put on the market for $11mm. You should make $3 to $4mm profit.

You will have to bring about $2mm to the table for the total deal.  Run the numbers and do your due diligence.  I'm just writing on a napkin.

Or do Conexes or Cargo Containers 8x20; since your near ports should be relatively cheaper.  Should give you about a $30mm valuation once occupancy gets around 90%.  Also depends if they will let you do Conexes and also if they will let you do rock roads or has to be concrete.  You will need about $4mm plus the land cost above.  At 25% down; you would have to bring about, again $2mm to the table.

Account Closed · Answer

@Henry Clark interesting, thank you for bringing a specific example. I am definitely looking at dry storage for now for boats and rvs. I came from indiana owning a GC company there and after doing so much research and walking into storage unit places gathering pricing there its definitely an overlooked strategy that is simple. Location seems to be the #1 key other than that demand is always there.

Eddie Starr · Answer

When you say building storage units, are you referring to construction?

I also have some people focusing on lending for construction of Resorts, casinos, villas, beach access/recreation centers/amusement parks, if any of that.

Can also do a share of mixed use, or if you have something in your sights that's NNN, can also work off that.

Michael K Gallagher · Answer

Account Closed I've not done a deal in the Marina industry yet but have had several requirements that sent me underwriting several over the past year or so.  I was looking in the general St Augustine area specifically in the latest search and it does appear that there is at least 1 "powerhouse" broker in that asset class in the area.  can't recall her name but she's with CBRE and seems to be the "go to" broker in that asset class from what I understand.

Account Closed · Answer

@Michael K Gallagher good to know thank you! I think dry storage is an easier entry the more I research the marine space is crazy lucrative but also crazy hard to get into. But theres opportunities everywhere if you get the right connections and search hard enough!

Account Closed · Answer

@Adam Bell congrats! Yes I was initially interested in dry storage units but living here in florida now I see the marine slips go for crazy monthly amounts. The problem with marine is the level of competition in the space and the lack of spaces to build. I think self storage units is an easier "start" in the space. Rv and boat storage "units" or even just spaces go for some pretty high monthly amounts. Alot of opportunity if you find the space in the right area!

Adam Bell · Answer

I purchased a marina in Michigan this May and a looking to expand in this space. We do some outdoor storage (no room for indoor storage), but storage is absolutely a great business and really needed. I'm happy to answer any questions about the marina industry, keeping in mind I'm pretty new to the space.

Storage Units? Marine Slips?

Most Popular Reply