Self storage florida

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Self storage florida

Drew C Grossman
Investor · Jacksonville, FL · Member since 2019 · 135 posts · 106 votes

Hello! I am currently looking to acquire a 20-35k sqft self storage facility in Florida. I am very familiar with the state but aim to narrow down strong locations where I can find a smaller facility! I would love to chat with anyone interested and open to all input!

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Zach Quick
Investor · Bentonville, AR · Member since 2014 · 759 posts · 379 votes
5y

@Drew C Grossman Best of luck, storage is hot, as I'm sure you know, but if you turn over enough rocks in that size range you can find some winners.

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  • Zach Quick
    Investor · Bentonville, AR · Member since 2014 · 759 posts · 379 votes
    5y

    @Drew C Grossman Best of luck, storage is hot, as I'm sure you know, but if you turn over enough rocks in that size range you can find some winners.

    2Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    5y

    If you find the right deal and might want a partner let me know. 

    1Reply
  • Scott Krone
    Investor · Northbrook, IL · Member since 2017 · 352 posts · 295 votes
    5y

    @Drew C Grossman  FL is a very competitive market.  For a facility that size, you will probably either 1.  have to use a broker or 2. do a lot of marketing to "mom" and "pop" facilities.   If interested, shoot me your info, and if I see something come across my desk, I can forward you it.  The product you seek is not in our wheel house at this time.

    1Reply
  • Brandon Hobbs
    Investor · St. Augustine, FL · Member since 2016 · 75 posts · 46 votes
    5y

    @Drew C Grossman I am in St Augustine and in the storage business.  I would second the previous comments from @Zach Quick and @Scott Krone.  Happy to help any way I can.

    1Reply
  • Chris MuryBusiness Member
    Realtor · St. Augustine, FL · Member since 2017 · 182 posts · 100 votes
    5y
    Originally posted by @Brandon Hobbs:

    @Drew C Grossman I am in St Augustine and in the storage business.  I would second the previous comments from @Zach Quick and @Scott Krone.  Happy to help any way I can.

    Brandon, do you own self storage in St. Augustine?

    Chris Mury- Realtor543 Reviews
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    1Reply
  • Brandon Hobbs
    Investor · St. Augustine, FL · Member since 2016 · 75 posts · 46 votes
    5y

    @Chris Mury My Florida facility is in Palm Coast.  I live in St Aug.

    1Reply
  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    5y

    Strictly off-market, or commissions ok?

    1Reply
  • Drew C Grossman
    OP
    Investor · Jacksonville, FL · Member since 2019 · 135 posts · 106 votes
    5y

    @Ronald Rohde Hi - I just messaged you!

    0Reply
  • Drew C Grossman
    OP
    Investor · Jacksonville, FL · Member since 2019 · 135 posts · 106 votes
    5y

    @Brandon Thank you for the response Brandon. I just sent you a request to connect!

    0Reply
  • Drew C Grossman
    OP
    Investor · Jacksonville, FL · Member since 2019 · 135 posts · 106 votes
    5y

    @Brandon Hobbs

    0Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    5y

    @Drew C Grossman

    A couple of avenues for you.

    a.  Loopnet florida self storage- forget whether you buy or are even interested in this specific property.  2008 Griffin Rd Leesburg, FL.  Looks like its close to you.  Recommend you go through the evaluation and purchase motions on this property.  This will help you speed up your analysis and thought process on any future properties you look at.   This also has land to expand, which to me is always a deal maker.  Your profit margin is a lot higher on the next series of buildings.

    b.  Same for 611 N Dixie Ave, Fruitland Park.

    c. Sparefoot exercise- pull up Sparefoot for Orlando. You can do this for any city. Select the Map selection in the upper left. 1. Look for holes in the map and look to build or buy there. Look at all of the non national and local ownership locations and start talking with them every year. Kind of like your SFH drive for Dollars method. But get to know the people.

    d.  Google "self storage"- do same exercise as above.

    e.  I always like to both look to build and/or to buy.  Which ever makes the most sense both financially but also "Location" competitiveness.  As far as looking for a place to build, here are two unusual avenues.  1.  Look up on your local GIS county or city map and look for any Railroad owned property.  If its not being used, ask them to sell to you.  This works for us., 2.  Contact the Orlando airport authority.  Some airports buy excess land and will "build to suit" and then you lease back.

    f.  Before you start down any of these routes, determine your financial package limits.  Not knowing the land prices where you might be looking.  Just the building costs and sundry (elec/eng/sewer/roads/surveying/etc) your looking at $750k package without the land.  Probably about $400k more if concrete roads or an additional $150k more if storm drains are needed.

    g.  I would also look at Loopnet florida, commercial/industrial land for sale.  Everyone is always looking for the diamond, I like to dig around in the coal pile.  1.  If you find a good hunk of concrete surface, go with Boat/RV storage.  This old concrete surface will be cheap and of no use for new construction., 2.  These properties can usually be converted to Storage locations with some demo.  Just watch out for any EPA issues.

    This is the fun part.  Good luck.

    2Reply
  • Bennet Sebastian
    Investor · Orlando · Member since 2020 · 96 posts · 31 votes
    5y

    @henry 

    @Henry Clark that was very kind of you to lay it all out there. Thank you for sharing your knowledge on the topic. 

    0Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    5y

    @Bennet Sebastian

    Just sharing our experiences and failures.  Good luck out there.

    0Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    5y

    Side bit of info.  If you do an Airport property build to suit, they are their own legal entity.  They usually don't have a property tax.  There may be a small charge for road maintenance or if another tenant has gone bankrupt, you may have to help pay a portion.

    0Reply
  • Drew C Grossman
    OP
    Investor · Jacksonville, FL · Member since 2019 · 135 posts · 106 votes
    5y

    @Henry Clark - that response was a home run! Well written and your advice is heard loud and clear! I sent you request to connect! Best of luck to you!

    0Reply
  • Drew C Grossman
    OP
    Investor · Jacksonville, FL · Member since 2019 · 135 posts · 106 votes
    5y

    Thank you everyone for the advice on this thread. I have gotten my first self storage property under contract in Florida and we are excited to execute our business plan! This is a value add play which we plan to refinance out (Brrrr) once rents and NOI are stabilized.

    0Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    5y

    @Drew C Grossman

    Congratulations.  Once you get this one done, no holding you back.  The next 10 years most of the Mom/Pop locations will need to sell, due to aging out, even though they don't want to.  Develop a cookie cutter business plan and ramp up.  Read my Value Add post on Self Storage.

    You note NOI, thus your approach is probably CAP rate. If your still under the loan try to switch Expenses over to Depreciation, above/below Operating.

    LED lights, Solar panels, grass to rock, management to self service, on the expense side.

    Revenue increases (rates, fees, Uhaul that you don't manage, etc) and write-off reductions (autopay)- you will cover.

    When you get to the end of your BRRRR it will be curious to see if you actually sell once you run the numbers. Self storage is different than SFH and MFH.

    Congratulations.

    2Reply
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