Airdustrial Mini Storage Investment

Airdustrial Mini Storage Investment2020-05-12T12:54:59-04:00

Project Description

The Self Storage Advisory Group of Cushman and Wakefield has been exclusively selected to offer for sale the Airdustrial Mini Storage Investment in the Tumwater/Olympia, WA Metropolitan Area.

$4,300,000
NRSF – 36,725

810 78th Ave SW
Tumwater, WA 98501

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.

Investment Highlights:

  • 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
  • Sign CA to View Offering Memorandum

  • Confidentiality and Buyer Registration Agreement

    Cushman & Wakefield U.S., Inc. ("Broker") has been retained as the exclusive advisor and broker regarding the sale of the property known as Airdustrial Mini Storage Investment.

    To receive an Offering Memorandum ("Offering Memorandum") please read, sign and return this completed Confidentiality Agreement to Broker. The Offering Memorandum has been prepared by Broker for use by a limited number of parties and does not purport to provide a necessarily accurate summary of the property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective Buyers may need or desire. All projections have been developed by Broker and designated sources and are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Seller and therefore are subject to variation. No representation is made by Broker or the Seller as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, the Seller and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, Broker, the Seller and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in or omitted from the Offering Memorandum or any other written or oral communication transmitted or made available to the Buyer. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or the Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum are solely the responsibility of the prospective Buyer. Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective Buyers.

    By accepting the Offering Memorandum, you agree to indemnify, defend, protect and hold Seller and Broker and any affiliate of Seller or Broker harmless from and against any and all claims, damages, demands, liabilities, losses, costs or expenses (including reasonable attorney's fees, collectively "Claims") arising, directly or indirectly from any actions or omissions of Buyer, its employees, officers, directors or agents.

    By accepting the Offering Memorandum, you acknowledge that you are a principal and not an agent of or acting on behalf of any other party in connection with the acquisition. Buyer acknowledges that it is aware that any Agent/Broker other than Cushman & Wakefield, must be compensated by Buyer as Cushman & Wakefield is not cooperating on fees. Furthermore, Buyer acknowledges that it has not had any discussion regarding this Property's Sale with any other broker or agent other than Broker or an agent/broker properly identified through this registration process, including but not limited to, resolutions of incomplete, conflicting or duplicate registrations. Buyer shall indemnify and hold Seller and Broker harmless from and against any claims, causes of action or liabilities, including, without limitation, reasonable attorney's fees and court costs which may be incurred with respect to any claims for other real estate commissions, broker's fees or finder's fees in relation to or in connection with the Property to the extent claimed, through or under Seller.

    The Seller and Broker each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time with or without notice. The Seller shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by the Seller and its legal counsel, and any conditions to the Seller's obligation thereunder have been satisfied or waived.

    The Offering Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting the Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose the Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make an offer and from whom you have obtained an agreement of confidentiality) without prior written authorization of the Seller or Broker, and that you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of the Seller or Broker.

    No employee of seller or at the subject property is to be contacted without the written approval of the listing agents and doing so would be a violation of this confidentiality agreement.