Cheney Mill Self Storage

Cheney Mill Self Storage2020-11-18T14:06:05-05:00

Project Description

The Self-Storage Advisory Group of Cushman & Wakefield has been selected to exclusively market for sale Cheney Mill Self Storage in Manchester, Connecticut.

$3,100,000
NRSF – 25,504

96 Elm Street, Manchester, CT 06040
The Hartford, CT Metro Area

The subject property represents a well-maintained storage facility comprised of 25,504 rentable square feet on approximately 1.45 acres of land. The facility offers 80 fully climate-controlled units and 222 non-climate units in the heart of Manchester, Connecticut; a critical component of the Hartford Metro Area. The site offers a wide variety of premium options to accommodate the affluent population. The subject has excellent physical and economic occupancies of 95 percent and 71 percent, respectively, with ample room for growth. Moreover, the current owner will bear the cost of, and deliver 2,288 net rentable square feet of expansion within 12 months of closing.

The subject property is centrally located in the district of Manchester, Connecticut, which is approximately 15 minutes from downtown Hartford. The property is located off Elm Street and is half a mile from Center Street and Interstate 384; these thoroughfares have solid traffic counts exceeding 16,000 and 49,000 vehicles per day. The facility benefits from a prosperous annual average household income exceeding $90,000 within three miles. Additionally, there are over 60,000 residents within three miles of the subject. The site will benefit from a high renter-occupied population (approximately 50 percent of residents within a mile rent their homes), which is indicative of the strong need for self-storage within the region. Furthermore, the facility benefits from limited competition within the trade area; there are only two competitors within a mile of the site.

The opportunity allows an investor the ability to acquire a well-maintained storage asset with multiple upsides in a prosperous location of the Hartford MSA. The subject has forward-looking financial projections, including a cash-on-cash return of 11.2 percent in year three and a levered IRR of 22.5 percent in year five. The facility can further capitalize by raising rental rates to meet the comparable average, the 5×10 and 10×10 climate-controlled rates are well below market. The area’s limited supply and lucrative household income will justify rate increases. Additionally, a purchaser can implement professional management to eliminate operational deficiencies and further increase profits. The facility’s premium location paired with excellent demographics and a strong demand for storage comprises a turn-key storage investment positioned for continued success for years to come.
Investment Highlights:

  • Excellent Opportunity to Acquire a Stabilized Storage Asset with a Significant Market Footprint in Manchester, Connecticut
  • Historically High Physical Occupancy of 95 Percent and Substantially Below Market Rents Allow for Ample Room for Growth
  • Limited Competition Within the Immediate Trade Area
  • Cash-on-Cash Return of 11.2 Percent in Year Three and a Levered IRR of 22.5 Percent in Year Five
  • Affluent Average Household Income Exceeding $90,000 Annually
  • Capitalize by Raising Rates to Meet the Comparable Average
  • High Renter-Occupied Population with Several Multifamily Developments Surrounding 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 Cheney Mill Self Storage.

    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.