The Boca Raton Self Storage Opportunity

The Boca Raton Self Storage Opportunity2020-10-21T13:53:36-04:00

Project Description

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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