The subject property represents a class A, four-story storage facility comprised of 55,922 rentable square feet on approximately 1.6 acres of land. The facility offers 686 climate-controlled units and 9 rental parking spaces for a total of 695 units. The site offers a wide variety of premium options to accommodate the dense population in the heart of downtown Birmingham. The entire fourth floor of the building is currently leased by a moving company. Upon lease expiration, this floor can be converted to self-storage for additional revenue. This potential expansion would yield an additional 18,000 net rentable square feet for a total of 73,922 square feet. The building was constructed in 1980 and was converted to storage in 2019. The facility won Ministorage Messenger’s “Conversion of the Year Award” with a state-of-the-art design and outstanding amenities. The subject is experiencing a rapid lease-up phase, with physical and economic occupancies of 54 percent and 47 percent, respectively. To ensure secure storage, the property utilizes a 24-hour, state-of-the-art security system.
The subject property is impeccably located in the center of downtown Birmingham, which is the largest metropolitan area in Alabama. This thriving urban center will ensure success for this premium storage asset; there are over 74,000 individuals within three miles of the subject property. The facility offers excellent access to the city’s major thoroughfares, including U.S. Highway 280 and Interstate 20; these roadways witness traffic counts of over 86,000 and 126,000 vehicles per day. As the state’s largest city, Birmingham is widely considered the cultural and economic anchor of the state.
The opportunity allows an investor the ability to acquire a class A, state-of-the-art storage asset with multiple upsides in a thriving downtown location. A buyer can maximize profits by continuing to grow occupancies as the newest storage provider in downtown Birmingham. Upon stabilization, the site will benefit from rental rate increases; the 5×10 and 10×10 climate-controlled rates are well below market. There is additional upside through implementing a robust tenant insurance program and truck rental program, in addition to converting the fourth floor to storage in the coming years. The facility’s premium amenities and construction in the state’s largest downtown district comprises a turn-key investment positioned for consistent success and ample growth in the current and future market.
- Rare Opportunity to Acquire a Brand New, Class A Self Storage Facility in the Heart of Birmingham, AL
- Capitalize on Downtown Birmingham’s Newest, Award-Winning Storage Asset
- Prime Opportunity to Convert the Entire Fourth Floor to Storage Upon Expiration of the Current Tenant’s Lease; This Conversion Would Yield an Additional 18,000 NRSF
- Advantageously Situated in a High-Barrier-to-Entry Market
- Ability to Profit on a Lease-Up Phase and Drive Rental Rates to Market Averages Upon Stabilization
- Premium Access to Highway 280 and IUnterstate 20; these Thoroughfares Witness Robust Traffic Counts Exceeding 86,000 and 126,000 Vehicles Per Day