Airdustrial Mini Storage is comprised of 36,725 net rentable square feet on approximately 3.0 acres of land. The facility currently offers 205 heated units, 49 non-climate-controlled drive-up units and 5 parking spaces for a total of 259 units. To ensure a secure premise, the facility is well-equipped with video surveillance, electronic gating, a fenced perimeter, optimal lighting and keypad access. The subject recently underwent various capital improvements, including asphalt re-paving and a new gutter system to ensure a stabilized structure for the future. The opportunity allows for expansion on demand by utilizing an attractive land lease. Airdustrial Mini Storage currently has a strong physical occupancy of 90 percent, which is indicative of the need for self-storage within the growing Olympia, Washington Metro Area.
The subject property is ideally situated within a prosperous suburb of Tumwater, Washington and benefits from an excellent average household income exceeding $87,000 within three miles of the site, surpassing the national average. Additionally, the site will benefit from a regional population growth of over ten percent over the next several years. The facility offers frontage along SW 78th Ave, which provides access to the region’s major thoroughfares. The property is approximately one mile from Interstate 5 and Highway 99. The subject is minutes away from various existing and planned housing developments, including a planned 1,700-unit home development within a mile of the site. Furthermore, Airdustrial Mini Storage serves as the primary self-storage provider within the immediate vicinity; the nearest competitor is over a mile away. This rapidly-growing market place will benefit the subject property for the foreseeable future.
Airdustrial Mini Storage allows an investor the ability to acquire a stabilized self-storage asset with multiple upsides, including forward-looking financials. The subject has a projected leveraged IRR of 18.5 percent in both years five and seven, in addition to a cash-on-cash return of 9.7 percent in year three. An investor can benefit by growing rental rates to meet the market and by increasing economic occupancy. The investment offers the opportunity to earn over 15 percent return on existing storage. The unique land lease structure boosts investment returns by protecting capital for costly land acquisition, allowing investment dollars to flow directly into the revenue-generating assets. The structure advantageously allows for new ownership to expand the facility to accommodate future population growth. This is a rare opportunity to acquire a stabilized, cash-flowing asset in the path of progress.
- Stabilized, Turn-Key Investment in the Rapidly-Growing Tumwater/Olympia Metro Area
- Annual Household Income of Over $87,000 Within Three Miles
- Land Lease Structure Provides an Opportunity to Expand on Demand with Flexible 50-Year Lease
- Benefit from a Population Growth Rate of Over 10 Percent in the Coming Years
- Leveraged IRR of 18.5 Percent in Year Five and a Cash-on-Cash Return of 9.7 Percent in Year Three
- New 1,700 Unit Housing Development Within Half a Mile of the Property
- Opportunity to Enter the Market Without Heavy Land Acquisition Costs, Putting More Capital to Work on Revenue-Generating Buildings
- Easy Access from Major Thoroughfare I-5 and Hwy 99