The Boca Raton Self Storage Opportunity

The Boca Raton Self Storage Opportunity2020-06-11T12:08:08-04:00

Project Description

The Self Storage Advisory Group of Cushman and Wakefield has been exclusively selected to offer for sale the Boca Raton Self Storage Opportunity.

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NRSF – 22,324

5555 N Dixie Hwy
Boca Raton, FL 33487

The Boca Raton Self Storage Opportunity is comprised of 22,324 rentable square feet on approximately 1.9 acres of land. The facility offers 31 non-climate-controlled units, 341 climate-controlled units, 2 covered boat/RV parking spaces and 1 rental parking space for a total of 375 well-maintained units. The subject offers a one-bedroom/one-bathroom apartment which can be converted to additional storage. This facility recently added new climate-controlled options to enhance the property and offers additional space to expand/go vertical in this thriving component of the Miami MSA. Additionally, the facility is notably the number one U-Haul dealer in the market. To ensure a secure premise, the facility is equipped with video surveillance, keypad entry and electronic gating. The subject property benefits from its prime location in Boca Raton; one of the fastest-growing cities in the well renowned Miami Metropolitan Area.

The subject property is ideally situated within an affluent corridor of Boca Raton, benefiting from an excellent average household income exceeding $110,000 within three miles of the site. The facility is located directly along North Dixie Highway, which sees traffic counts of over 9,000 vehicles daily. Additionally, the site is 0.3 miles from US Highway 1 and just minutes from Interstate 95, which boast traffic counts in excess of 28,000 and 220,000 vehicles daily. An investor can capitalize on an expanding region of Boca Raton; the area had a growth rate of 1.4 percent in 2019, surpassing the national average. This wealthy division of Boca Raton will justify rental rates and provide a stable consumer base for years to come.

The Boca Raton Self Storage Opportunity allows an investor the ability to acquire an established self-storage asset with value-add components in the prosperous region of South Florida. The facility has a current physical occupancy of 98 percent and an economic occupancy of 67 percent; an investor can improve economic occupancy to further solidify the subject’s presence. The subject boasts excellent projected financials with cash-on-cash returns of 12.9 percent and 13.8 percent in years two and three, in addition to a leveraged IRR of 26.4 percent in year five. The site can benefit by raising the 10×15 climate-controlled rates to meet the comparable average, as these rates are far below market. There is additional upside through bolstering the current tenant insurance program, in addition to expanding to further accommodate this high net worth market of the Miami MSA.

Investment Highlights:

  • Established Self Storage Asset with Upside in an Affluent Division of Boca Raton, Florida
  • Number One U-Haul Dealer in the Market, Demonstrating the Subject’s Dominant Presence
  • Excellent Three-Mile Household Income Exceeding $110,000 Annually
  • Cash-on-Cash Returns of 12.9 Percent and 13.8 Percent in Years Two and Three
  • Projected Leveraged IRR of 26.4 Percent in Year Five
  • Potential Room to Expand/Go Vertical
  • Grow Revenue by Raising 10×15 Climate-Controlled Rates to Meet the Market
  • Recently Added New Climate-Controlled Units to Enhance the Facility
  • 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 Boca Raton Self Storage Opportunity.

    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.