Self Storage opportunity
I ran across an interesting little self storage opportunity.
This facility consists of a paved lot with 80 concrete block storage units and a 160x200 open gravel lot (about 100 spaces) for autos, boats and RVs. 10’ tall concrete block walls surround the 5 acre premises with wrought iron around the front. Built in 2001. Each unit has concrete flooring, with lockable metal roll-up security doors. The inside is drywall finished and has a security alarm system wired to each unit. Updated in 2007 with new stucco and paint, new roof and asphalt. Owner is out of state and cannot manage it. Zoning: Light Industrial. There is potential to run other types of businesses with this compound on 5 acres. Only 10 units are rented right now as there is no management here anymore and owner is out of state.
UNIT SIZES:
1-10, and 17-26 are 9x14
69-56, 54-49, and 34-47 are 9x9
the two corner units 48 and 55 are 19x9x11
27-32, are 4x9
11-16, are 14x4
It is located in an area close to where I have substantial real estate holdings and the area is in the midst of escalating population and economic growth. Price right now is $295k but the owner is pretty desperate and will take closer to $200k. The area is somewhat rural and I cannot project what occupancy would look like so it would have to be underwritten to low occupancy.
@Brian Burke I know you own self storage, thoughts on how you would underwrite something like this?
When I look at this, I wonder how such a small facility could support payroll and what the exit strategy would look like. Maybe it needs to be expanded to a larger facility but no telling if demand is there. I like the low purchase price and using this experience to learn self storage but not sure how viable it is financially.
Would love to hear thoughts from some of the expers.